The Security Conditions of the Authorised Economic Operator Thomas Nietsch Chairman IFCBA 2019.01.11. CAAAREM Congress, Los Cabos

CAAAREM Congress, Los Cabos The Agenda The reason: 11th September 2001 Changes of the viewpoints One-sided steps by the USA The WCO concept 2019.01.11. CAAAREM Congress, Los Cabos

CAAAREM Congress, Los Cabos Phrases Authorised Economic Operator = AEO Authorised Supply Chain C-TPAT = Customs – Trade Partnership Against Terrorism CSI = Container Security Initiative WCO = World Customs Organisation 2019.01.11. CAAAREM Congress, Los Cabos

CAAAREM Congress, Los Cabos The Beginning 11th September 2001 After the first shock: Customs has an increased role in the defence of the society The first step: closing the border crossings between the USA – Canada, physical cargo and person control 2019.01.11. CAAAREM Congress, Los Cabos

Changing the Viewpoints The next possible terror attack in a closed container What was controlled till 2001 (and as well as today)? The control of the import is too late The control of the export -> pushing the borders out It is uncertain to find the terrorists Instead of it try to find the „good guys” How to find the needle in a haycock? 2019.01.11. CAAAREM Congress, Los Cabos

CAAAREM Congress, Los Cabos The USA did not Wait … The pushing of the borders out to overseas: CSI The first port was Rotterdam Today the number of these ports are over 40 The USA traffic of the non-participating ports is over Screening of the containers before loading to the ship USA customs officers Sea transport, air transport, transport of cargo and persons Pre-advice, USA acceptance 2019.01.11. CAAAREM Congress, Los Cabos

CAAAREM Congress, Los Cabos WCO The concept of the Authorised Economic Operator June 2005 SAFE Framework of Standards to Secure and Facilitate Global Trade Two sides of the same coin: security and trade facilitation More than 20 countries signed readiness to start immediate implementation AEO basic ideas: Preliminary security audit International recognition Authorised Supply Chain Pre-advices, preliminary risk management Trade facilitation, tangible, documented, meaningful, measurable and reportable benefits 2019.01.11. CAAAREM Congress, Los Cabos

CAAAREM Congress, Los Cabos WCO AEO Conditions Demonstrated compliance with Customs requirements Satisfactory system for management of commercial records To give Customs full access to necessary record Adequate information technology security Financial viability Consultation, co-operation and communication To notify Customs of any unusual, illegal or suspicious shipments Education, training and awareness Education of personnel and trading partners on security issues 2019.01.11. CAAAREM Congress, Los Cabos

CAAAREM Congress, Los Cabos WCO AEO Conditions Information exchange, access and confidentiality Protection against unauthorised access and loss of information Cargo security To ensure the integrity of cargo Proper sealing Secure storage of cargo and transport means Verifying the carriers Conveyance security 2019.01.11. CAAAREM Congress, Los Cabos

CAAAREM Congress, Los Cabos WCO AEO Conditions Premises security Adequate lighting Controlled entrance and exit of both persons and vehicles Access to document and cargo storage only for authorised personnel Personnel security Verifying staff when recruiting and then periodically Trading partner security Crisis management and incident recovery Measurement, analyses and improvement 2019.01.11. CAAAREM Congress, Los Cabos

CAAAREM Congress, Los Cabos WCO AEO Benefits Expedite release of cargo Reduced data set for that Minimum number of cargo security inspections „… cargo flow of an AEO should be stopped by Customs only exceptionally, due to risk management reasons” Priority use of non-intrusive inspection techniques, if required Access to a portal with the list of AEO-s Priority processing of AEO shipments by Customs following the closing and re-opening of borders and ports First consideration of simplified procedures for AEO-s Account based processing instead of transaction by transaction clearance WCO AEO Benefit 2019.01.11. CAAAREM Congress, Los Cabos

CAAAREM Congress, Los Cabos Summarising The C-TPAT system (USA) has been operating for years A C-TPAT importer must consider the exporter for security aspects WCO tries to follow the USA Implementing the AEO system within a short time Preparations, investments 2019.01.11. CAAAREM Congress, Los Cabos

CAAAREM Congress, Los Cabos Further Information http://www.ifcba.org http://www.wcoomd.org/ie/index.html http://www.iccwbo.org/policy/customs/ 2019.01.11. CAAAREM Congress, Los Cabos

CAAAREM Congress, Los Cabos THANK YOU! 2019.01.11. CAAAREM Congress, Los Cabos