Security Matrix for COMALEP Customs Administrations XXVI MEETING OF NATIONAL DIRECTORS OF CUSTOMS OF LATIN AMERICA, SPAIN AND PORTUGAL 24 to 27 October, Pucón, Chile 2005.

Security Matrix for COMALEP Customs Administrations Background:Background: –XXV COMALEP Meeting held in Buenos Aires, November Aims of the Matrix:Aims of the Matrix: –Collect information on the security measures adopted within COMALEP. –Provide a diagnosis of the current situation. –Propose strategies to improve supply chain security.

Security Matrix for COMALEP Customs Administrations Basic Principle: Use of the Value Chain. Value (security) interpreted as the sum of perceived benefits for the client, or in general for an international commercial agent.Basic Principle: Use of the Value Chain. Value (security) interpreted as the sum of perceived benefits for the client, or in general for an international commercial agent. The value chain is made up of three basic elements:The value chain is made up of three basic elements: –Support activities: administration, human resources and technologies, (tools to support supply chain); –Primary activities : direct security of the supply chain; –Margin: the level of security provided by a Customs administration.

Model based on international security initiatives.Model based on international security initiatives. Main activities of the security value chain:Main activities of the security value chain: –Prior information –Risk Management –Authorised Traders –Controls –Confirmation of discharge at destination Support activities for the security value chain:Support activities for the security value chain: –Human Resources –Financial Resources –IT-Technology Resources Security Matrix for COMALEP Customs Administrations

Customs without added “security” value for the international supply chain Customs with added “security” value for the international supply chain Human Resources Financial Resources IT and Technology Resources International Trade supply chain Prior information Authorised Trader Risk Management Controls Discharge at destination Security Value Customs Model Security Value Customs Model Security Matrix for COMALEP Customs Administrations

Size of the Matrix. Results of replies from 16 countries. 32 questions. Statistical Analysis of Replies. Horizontal Analysis. Analysis of Support Activities. Analysis of Primary Activities. Security Matrix for COMALEP Customs Administrations

Matrix of COMALEP results Support Activity 1: Human Resources assigned to Security.

Support Activity 1: Human Resources Are there specific tasks associated with security in the organisation? Results

Support Activity 2: Financial Resources for investment in Security. Matrix of COMALEP results

Support Activity 2: Financial Resources Do resources exist for improving customs information systems?. Results

Support Activity 3: IT and Technology Resources for improving levels of international trade security. Matrix of COMALEP Results

Support Activity 3: IT and Technology Resources Do you have recourse to electronic transmission of manifests and customs declarations? Result 1

Primary Activity 1: Prior information for analysis before the goods go through border controls. Matrix of COMALEP results

Primary Activity 2: Authorised Traders and Customs/Private Sector Co-operation Agreements. Agreements. Matrix of COMALEP results

Primary Activity 3: Use of Risk Management Methodology and Intelligence for selection of High Risk Consignments. Matrix of COMALEP results

Results 1 Primary Activity 3: Risk Management and Intelligence Do Risk Management Systems for selection of consignments for control exist?

Results 2 Primary Activity 3: Risk Management and Intelligence Do you have recourse to intelligence and Data Bases to support Selection of consignments through Risk Management?

Matrix of COMALEP results Primary Activity 4: Controls as tools for Security.

Results 1 Primary Activity 4: Controls as a security tool Are there different controls based on Risk Management?

Results 2 Primary Activity 4 : Controls as a security tool Are there technological devices to secure consignments? (sealed according to standards and smart containers)

Matrix of COMALEP results Primary Activity 5: Discharge at destination linked to cross checks and exchange of information at destination.

IT and Technology Resources Conclusions on the Security Matrix for COMALEP Customs Administrations Customs Security Value Model Customs without added “security” value for the international trade chain Customs with added “security” value for the international trade chain Human Resources Financial Resources IPrior information Authorised Traders Risk Management Controls Discharge at destination

Human Resources Financial Resources IT and Technology Resources Prior Information Authorised Traders Risk Management Controls Discharge at destination Customs without added “security” value for the international trade chain Customs with added “security” value for the international trade chain Conclusions on the Security Matrix for COMALEP Customs Administrations Customs Security Value Model

The way forward COMALEP Customs Security Matrix The most relevant gaps. Authorised Traders (Authorised Economic Operators)Authorised Traders (Authorised Economic Operators) Human Resources (Structure of the organisation and training)Human Resources (Structure of the organisation and training) Financial Resources for technology equipment (NII equipment for containers, special seals and smart containers)Financial Resources for technology equipment (NII equipment for containers, special seals and smart containers) The key questions are therefore: HOW CAN WE FILL THESE GAPS? WHAT STRATEGY SHOULD WE FOLLOW?

The way forward COMALEP Customs Security Matrix HOW CAN WE FILL THESE GAPS? Exchange of experience between countries which have succesfully taken on board the missing elements and those which have made mistakes: - Vía documentation (reports on best practices) - Vía placements (experience in the field) -Exchange of information and technical support

The way forward COMALEP Customs Security Matrix WHAT STRATEGY SHOULD WE FOLLOW? Establish a plan of action and improvement for COMALEP Customs Administrations. Re-evaluate the matrix at a date to be determined to see what progress has been made and what the situation is as regards implementation. Possibility of re-formulating the questions in the matrix.

Security Matrix for COMALEP Customs Administrations XXVI MEETING OF NATIONAL DIRECTORS OF CUSTOMS OF LATIN AMERICA, SPAIN AND PORTUGAL 24 to 27 October, Pucón, Chile 2005.