Globalization of
Container Security
Its Origins, Its Transition, and Its
Current Status
Dr. Jim Giermanski
Powers International
Three Phase Development

Phase 1 - Harmonizing divergent Customs
Practices

Phase 2 - 9/11 and Port Security

Phase 3 - Chain of Custody
Phase 1: Pre 9/11
1999-2001
Recognition of the Need for
Cooperation and
Modernization
Modernizing Customs
Revised Kyoto Convention of 1999
a) simplifying Customs procedures
b) information technology
c) automated targeting systems
d) maximum use of information technology
f) e-commerce
A DEFINING MOMENT
9/11
Phase-2: 2001-2004
Post 9/11 and the
Maritime Model
Emergence of Security
Programs
1. Customs Trade Partnership Against Terrorism (C-TPAT), 2001
a) Originally 7 companies
b) Now 8,322 firms
c) 7 security areas mandated
d) focus on importer, vessel carrier, and port/terminals
2.
U.S. Container Security Initiative (CSI), 2002
a) Generated the 24 hr. Rule
b) 32 Countries participating, 58 Ports
First U.S. Laws and Port Security

Trade Act of 2002 as amended by The Maritime
Transportation Security Act in November 2002
1. Advance Cargo Data (electronically)
2. Security-Related
Vessel identification system
Vessel security plans
Port security assessments; and in the
3. Operational and efficiency Matters
Maritime intelligence system
Grants program
International Organizations/Standards
1. Transported Asset Protection Association
(TAPA) issues Freight Security Requirements,
2001
2. International Maritime Organization (IMO)
a) Creation of International Ship and Port
Facility Security Code (ISPS)
b) ISPS went into effect 2004, “Special
Measures to enhance Maritime Security”
UN Economic Commission for
Europe
Recommendation 33, (Approved September, 2004)
The Single Window through which “…trade-related
information and/or documents need only be submitted
once at a single entry point to fulfill all import, export,
and transit-related regulatory requirements.”
Phase-2 Culminates In
The Maritime Model:
Port-to-Port Security
Until 2004 - The Maritime Focus
Phase-3: 2004 - 2008
A New View:
Origin to Destination
Modernizing Customs
Kyoto Convention ICT Guidelines
(Information and Communication Technology)
2004
a) electronic exchange of information at export
and import
b) chain of “electronic” data
c) single global schema linked electronically
The EU Factor
 EC Regulation No. 1935/2004
a) origin to destination and traceability
b) safety of foodstuffs
 EU report # 40008032-6-2 - 2005
a) security essential to supply chain
b) supply chain secure origin to destination
NGOs and Government Actions
1.
World Customs Organization (WCO),
2005
Framework of Standards to Secure and Facilitate
Global Trade
a)
b)
c)
Section 1-2-4 of WCO Standards: stuffing to destination
Appendix 1, Annex 1 control at stuffing, intermediate handling,
loading, off loading, terminal, destination
Edifact and XML as EDI standards
NGO’s and Governments, Cont.

U.S. Adopts WCO Standards, 2005
 Kyoto
ICT Guidelines go into
effect, 2006
Governments Programs and Laws

C-TPAT Changes: New Standards for Importers
a) Security begins at Stuffing
b) Tracking and monitoring
c) 9 areas of security

SAFE Port Act, October 2006
a) Advance Electronic Information
b) Origin to Destination Security
c) Many WCO components incorporated
d) Codification of C-TPAT and CSI
e) Green Lanes (Tier-3) established
2005/2006
The EU’s AEO

AEO (Authorized Economic Operator)
2006
a) Use of advance electronic data
b) Electronic records
c) Security Compliance to SAFE Framework
d) Adopting of Single Window Concept
e) Authorized access to cargo and control of seals
f) Control of cargo from loading to unloading
g) Generally Consistent to C-TPAT
New U.S. Law and Supreme Court
Decision
Implementing the 9/11 Commission Recommendations
Act of 2007
a) Detect breach and access “prior” to entering U.S.
b) Electronic notification of breach in supply chain
c) Applicability of end-to-end security for all truck, rail, and vessel
New Federal Rules Of Civil Procedure 2007
a) Electronic data discoverable for litigation in civil matters
b) Impact on role and value of chain of custody
c) Role of 3rd party control of data
What Does it All Mean?
The New Model:
Electronic Global Chain of
Custody (EGCC)
Maritime Model Obsolete
The New EGCC

Global Supply Chain Defined
a) No longer port-to-port
b) Now Origin to Destination

Technology Needed
a ) No longer RFID-only “RFID is only an interim solution and that ultimately CBP
will use container security devices…” Greg Olsavsky, CBP’s Director of
Cargo Control (May,
)
b) Satellite
c) GSM/Zigbee
d) 3rd party platforms, servers, and call centers
2008

A SINGLE WINDOW Implementation In U.S.
U.S. Single Window
International Trade Data System (ITDS) establishes a
single portal system: ACE
ACE (Automated Commercial Environment) Eventually Combines:
a) Automated Manifest System (AMS)
b) Automated Broker Interface (ABI)
c) Automated Export System (AES)
d) Automated Commercial System (ACS)
Types of Data: CSI’s 24-hr. Manifest
Carrier SCAC Code
Last Foreign Port
Vessel Name
Voyage Number
IMO Vessel ID Number
Date of Departure from Port
Container Number
Commodity Description (with HTS-6)
Commodity Weight
Bill of Lading Number
Shipper Name and Address
Consignee Name and Address
Hazmat Code
Seal Number
Numbers and Quantity
Foreign Port of Lading
First Foreign Place of Receipt
Vessel Country
Date of Arrival at First US Port
Port of Unlading
Time of Departure from Port
Proposed “10 + 2” Data
Manufacturer Name and Address
Seller Name and Address
Buyer Name and Address
Ship To Name and Address
Container Stuffing Location
Consolidator Name and Address
Importer of Record Number
Ultimate Consignee Number
Country of Origin
Commodity/HTS-6 digit
Stow Plan
Container Movement Data
EGCC Today
Origin to Destination
Electronic Global Chain of Custody
Model
Electronic Global Chain of Custody
Paradigm
1.Container #
2.Device#
3.Date/time/seal
4.Aurthorization ID
5..Activation
Place of
Origin
Customs and
Border
Virtual Network
Protection
Internet
1.Container#
2.Device#
3.Date/Time
4.Integrity Reading
Sails to destination
port
PORT OF ORIGIN
24 hr. Manifest
PORT OF
DESTINATION
EGCC Capabilities
•Tracking
•Detecting
•Recording
•Transmitting
rd
•3 Party Verifying
Place of
Destination
Model’s Components
Software
& Hardware


Satellite Communications and Tracking
Interface
Global Communications Interface
Dr. Jim Giermanski
Powers International
jgiermanski@powersintlinc.com