Supply Chain Security Since 9/11
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- Norman Simpson
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1 Supply Chain Security Since 9/ TRB SUMMIT 24 AUGUST 2011 SETH M.M. STODDER, Palindrome Strategies, LLC
2 Agenda Introduction Supply Chain Security Since 9/11 Pre-9/11 View Post-9/11 Actions Where To Next National Strategy and beyond
3 History Pre-9/11 View Supply Chain Security a Smuggling Issue Dealt with primarily at the POEs Limited Industry Partnership Programs Business Alliance for Secure Commerce (BASC) Private Sector Led Carrier Initiative Program / Land Border CIP Americas Counter Smuggling Initiative Limited International Cooperation WCO, Bilateral Concern About Pilferage, Internal Conspiracies Interagency Commission on Crime and Security at U.S. Seaports Report (2000) Terrorism Primarily an Air Cargo Issue Lockerbie Pan Am 103 (bomb in luggage)
4 History Post-9/11 Immediate Aftermath Ramped Up Border Security Level One Alert Wait Times at the Borders Seeds of C-TPAT / FAST Concern About Containers and WMD Nuke In Box Not Just Smuggling DoA Concern if Seaport City is Target Enduring Air Cargo Concern Passenger Planes Air Cargo
5 Key Elements of Post-9/11 Strategy Staffing Increases More Security, More Facilitation Development of Risk Targeting Capabilities and Information Collection Cooperation with the Private Sector C-TPAT, FAST, Air Cargo Security International Collaboration Bilateral North America, CSI, Megaports, TSA Air Cargo Mutual Recognition efforts Multilateral SAFE, ISPS, ICAO Technology Deployments Imaging Equipment (NII) Radiation Detection Equipment Port Security Measures Coast Guard Efforts / Area Maritime Security Committees Port Security Grants MTSA -- TWIC
6 Congressional Involvement Trade Act of 2002 Authorizes collection of advance information all modes Maritime Transportation Security Act of 2002 (MTSA) TWIC ISPS SAFE Port Act of 2006 Authorizes C-TPAT, CSI, among other things Implementing Recommendations of the 9/11 Commission Act of 2007 (9/11 Act) 100% Scanning Maritime Containers 100% Screening Air Cargo on passenger planes
7 9/11 Act Scanning Maritime Containers By 2012, all maritime containers must be scanned at foreign port, pre-loading or else banned from US Scanning = NII and Radiation Detection Escape Hatch DHS can extend deadline for 2 years every 2 years Air Cargo on Passenger Planes Section % screening of cargo transported on passenger aircraft Screening = NII, trace detection, physical exam or canine
8 Administration Response to 9/11 Act Enormous Objection from Trade and International Community DHS extended deadline to 2014 DHS not moving to implement and consistent message has been that 100% scanning requirement not advisable or feasible TSA moving to implement 100% screening requirement for air cargo on passenger planes Domestic Already implemented International Work in progress, with intent to implement this year
9 National Strategy for Global Supply Chain Security Forthcoming this year Fundamental Principles of Strategy: Risk Management Collaboration with Private Sector and International Partners Security and Prosperity Equally Important Values Goal of National Strategy: Secure and efficient global supply chain system that is resilient against catastrophic disruptions
10 National Strategy for Global Supply Chain Security Risk Management Three Elements: Deter malicious actors from using system layers of security Protect systemically critical infrastructure Strengthen resilience of the system Improving the System Three Elements: Streamline and reform government security processes Develop new technologies to improve security and facilitate trade Expand, develop, and modernize infrastructure to meet needs of security, efficient commerce, and resilience as trade flows increase
11 Priority Actions: 1 of 4 GOAL APPROACH PRIORITIES Strengthening security and facilitating flow of maritime cargo. Core Strategy Risk-based, layered approach with six key elements: 1. Threat and risk assessments 2. Risk targeting, information analysis, and sharing 3. Partnerships with industry and governments 4. Promotion of global best practices and standards 5. Inspection/screening personnel and technology deployments both overseas and in the U.S. 6. Port infrastructure security and worker credentialing
12 Priority Actions: 2 of 4 GOAL APPROACH PRIORITIES Strengthening security and facilitating flow of air cargo. Key elements: 1. Implement 9/11 Act by 12/31/11, all air cargo on US-bound passenger planes screened pre-departure 2. Partnerships with industry on improving supply chain security and developing global trusted shipper arrangements 3. International partnerships and efforts to strengthen global standards and practices 4. Strengthen risk targeting of in-bound air cargo including working with industry and international partners to consider promulgation of rule requiring pre-departure information on all in-bound air cargo shipments
13 Priority Actions: 3 of 4 GOAL APPROACH PRIORITIES Strengthening security and facilitating flow of cargo within North America. Strategy builds from Obama-Harper and Obama-Calderon Declarations: Canada: 1. Develop integrated US-Canada cargo security strategy 2. Harmonize C-TPAT and PIP, expand FAST 3. Modernize border infrastructure, and improve joint border facilities management 4. Strengthen rail security Mexico: 1. Improve bi-national collaboration on cargo security 2. Develop protocols for secure lanes for pre-cleared truck/rail shipments 3. Implement 21 st Century Border Declaration, and develop more efficient and secure border management process
14 Priority Actions: 4 of 4 GOAL APPROACH PRIORITIES Expanding, developing, and modernizing global supply chain and border infrastructure upon which the system depends. Incorporate flexibility and redundancy by building on Administration efforts to combine public and private funding of large-scale infrastructure improvements: ID opportunities to enhance current land border infrastructure Incorporating best practices for resilience into plans Assess and remediate systemic risks from loss of operations at key critical nodes
15 Implementation of National Strategy 2011 New Threat and Risk Assessments for Supply Chain Security Discussions with Stakeholders Industry and International Partners Technology Assessment Implement Near-Term Priorities 2012 National Action Plan developed
16 Issues Over the Horizon Extreme Budgetary Pressures CSI Cuts Complicating effort to develop alternative to 100% scanning Evolution of CSI New Staffing Models International Collaboration / Mutual Recognition AEO programs Mutual Recognition (New Zealand most recent) China issues and recent agreement Joint validation efforts and mutual recognition for AEO/C-TPAT WCO Efforts Air Cargo Security Post Yemen (both WCO and ICAO) Maritime Cargo Napolitano trip to WCO meeting in June DHS partnership with WCO essentially following key elements of National Strategy for Global Supply Chain Security Reauthorization of SAFE Port Act This Year? Potential vehicle for amending 9/11 Act 100% scanning requirement
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