Trade Partnership Programs: Are You Ready for Global Compliance?
Chances are that, if you are a US based organization, you are up to date on you C-TPAT (Customs-Trade Partnership Against Terrorism) and if you are a multi-national, your AEO (Authorised Economic Operators) initiatives to achieve a safer supply chain while streamlining trade through self-compliance security initatives (designed to withstand comprehensive audits). And while this may have been enough in the beginning, today the C-TPAT and AEO are just two of many global trade partnership initiatives that you should be aware of. If your organization is to be a major player in the global marketplace, you should be aware of at least the following seven initiatives:
- AEO (EU)
Authorized Economic Operator: AEO status is granted to reliable operators that are compliant with respect to security and safety standards and who can therefore be considered "secure" traders. Benefts include fast-tracked consignment, streamlined declarations, and mutual recognition with countries with a similar program. - C-TPAT (US)
Customs Trade Partnership Against Terrorism: A voluntary supply chain security program focussed on securing supply chains against terrorism. Benefits include reduced customs inspection, reduced border delays, and eligibility for account-based operations. - Customs Co-operation and Mutual Administrative Assistance in Customs Matters
An European Union program that provides the necessary tools for customs cooperation between EU member countries and other importers and exporters, including Korea, Canada, Hong Kong, the US, India, China and Japan. - FAST
Free and Secure Trade: A voluntary joint initiative between the Canada Border Services Agency (CBSA) and U.S. Customs and Border Protection that enhances border and trade chain security while making cross-border commercial shipments simpler and subject to fewer delays. - ISA
Importers Self Assessment Program: a voluntary approach to trade compliance that provides the opportunity for importers who have made a commitment of resources to assume responsibility for monitoring their own compliance in exchange for benefits. - SAFE Framework
SAFE Framework of Standards to Secure and Facilitate Global Trade: a WCO Framework that includes requirements for Customs and Authorized Economic Operators that is designed to facilitate the implementation of secure trade programs in member nations - SEP
Secure Export Partnership: A US-New Zealand Customs security arrangement (which is representative of emerging US security arrangements with other countries).
Posted by the doctor at 10/25/2011 1:11 PM 
Categories: Risk Management, Global Trade, Compliance
Tags: Global Trade C-TPAT AEO FAST ISA SAFE SEP
Categories: Risk Management, Global Trade, Compliance
Tags: Global Trade C-TPAT AEO FAST ISA SAFE SEP
The doctor makes a good point regarding the fact that programs such as C-TPAT and AEO are just two of many global initiatives focused on risk management in the global supply chain. Awareness to the continued growth of initiatives – whether voluntary or regulatory – is critical to ensure a company’s international supply chains run smoothly.
Government agencies and the Customs administrations continue to look for ways to focus limited resources on the highest risk shipments crossing international borders. Partnership programs such as C-TPAT will continue to play a key role. The WCO’s 2011 Compendium of Authorized Economic Operator Programmes includes information on 31 different programs - both AEO and Compliance programs (see http://www.wcoomd.org/home_research_researchseries.htm for a copy of the full report).
Since this document was published, additional programs have been announced, such as the Nuevo Esquema De Empresas Certificadas (NEEC) in Mexico which combines requirements for both supply chain security and compliance in exchange for low-risk trader status and benefits. The NEEC pilot began in May 2011 and official rollout of the program is expected to begin mid-November 2011. Additionally, in August 2011, India introduced the implementation of its AEO program to secure the supply chain for imported and exported goods (along with components related to customs compliance). Furthermore, as discussed at a recent Commercial Operations Advisory Committee (COAC) with U.S. Customs & Border Protection (CBP), the agency noted that looking at adding an Export component to the C-TPAT program was a high priority going forward to ensure progress on the concept of “mutual recognition.”
In the current environment, and looking forward, facilitation of trade will be directly related to the level of risk presented by an importer/exporter. With the ongoing terrorism threat – as well as other supply chain risks- it is wise for companies operating across borders to consider what steps they can take to minimize risk and position themselves to be deemed a “trusted trader.”
Reply to this