WCO Endorses "Framework of Standards" Based on 24-Hour Rule, C-TPAT, CSI, Etc. Principles
U.S. Customs and Border Protection (CBP) has issued a press release announcing that on December 9, 2004, the World Customs Organization (WCO) endorsed a Framework of Standards to secure and facilitate global trade that is based upon principles designed and implemented by CBP.
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Framework Intended to Encourage Cooperation on Security, Etc.
According to the CBP press release, the WCO Framework is designed to encourage cooperation between worldwide Customs administrations to secure international supply chains and facilitate the movement of goods. The use of advanced electronic information and smarter, more secure containers are vital components.
CBP adds that the Framework will create an international, consistent system for identifying businesses that offer a high degree of security. In return, they receive tangible benefits including the speedy clearance of low risk cargo through Customs.
Framework Shares Key Elements with Current CBP Initiatives
CBP states that the WCO Framework shares some key elements with current CBP initiatives such as:
The 24-Hour Rule;
The Advanced Targeting System housed at the National Targeting Center;
The Container Security Initiative (CSI); and
The Customs-Trade Partnership Against Terrorism (C-TPAT).
Four Core Elements of the Framework
According to the WCO, the Framework consists of four core elements:
1. it harmonizes the advance electronic manifest information requirements on inbound, outbound, and transit shipments;
2. each country that joins it commits to employing a consistent risk management approach to address terrorism and other security threats;
3. it requires that at the reasonable request of the receiving nation, based on a comparable risk targeting methodology, the sending nation's Customs administrations will perform an outbound inspection of high-risk containers using non-intrusive detection equipment, such as large-scale x-ray machines and radiation detectors; and
4. it defines benefits that Customs will provide to businesses that meet minimal supply chain security standards and best practices.
Implementation Plan for Framework Standards (Phased Approach)
According to the WCO, in order for the Framework to be implemented, not only will capacity building be necessary, but an understanding that a phased approach will be necessary. While the Framework is considered a minimum set of standards, it will be implemented at various stages in accordance with each administration's capacity and the necessary legislative authority. The WCO Secretariat, in conjunction with the HLSG, will develop an Implementation Plan for the Framework Standards.
Framework's Benefits for Business
The WCO states that authorized traders and logistics service providers will reap benefits, such as faster processing of goods by Customs, e.g., through reduced examination rates. This, in turn, translates into savings in time and costs. One of the main tenets of the Framework is to create one set of international standards and this establishes uniformity and predictability. It also reduces multiple and complex reporting requirements.
CBP Hosts Trade Roundtable on WCO Framework of Standards
On December 17, 2004, CBP will be hosting an invitation-only "WCO High Level Strategic Group Framework Initial Rollout Roundtable with Members of the Trade Community" in Washington, DC. Agenda topics for this roundtable include: Overview of WCO Security Initiatives; Explanation of the Policy Commission approved Framework Document; Framework Roundtable Discussion; and Discussion on constructing a private-sector consultative program.
(In June 2002, the WCO created a "Task Force on Security and Facilitation of the International Trade Supply Chain," which held its final meeting in April 2004. During June 2004, the WCO Council initiated a High Level Strategic Group (HLSG) to provide leadership and guidance to WCO members in the establishment of an international framework on security and facilitation. (See ITT's Online Archives or 07/19/04 news, 04071920, for BP summary on the creation of the WCO's HLSG.)
CBP press release (dated 12/09/04) available at http://www.cbp.gov/xp/cgov/newsroom/highlights/12102004.xml,
WCO information, including Framework of Standards (dated 11/25/04) availablefromBP by emailing documents@brokerpower.com.