Security Matrix for COMALEP Customs Administrations

1. Security Matrix for COMALEPCustoms Administrations XXVI MEETING OF NATIONAL DIRECTORS OF CUSTOMS OF LATIN AMERICA, SPAIN AND PORTUGAL 24 to 27 October, Pucón, Chile 2005.

2. Security Matrix for COMALEP Customs Administrations • Background: • XXV COMALEP Meeting held in Buenos Aires, November 2004. • Aims of the Matrix: • Collect information on the security measures adopted within COMALEP. • Provide a diagnosis of the current situation. • Propose strategies to improve supply chain security.

3. Security Matrix for COMALEP Customs Administrations • Basic Principle: Use of the Value Chain. Value (security) interpreted as the sum of perceived benefits for the client, or in general for an international commercial agent. • The value chain is made up of three basic elements: • Support activities: administration, human resources and technologies, (tools to support supply chain); • Primary activities : direct security of the supply chain; • Margin: the level of security provided by a Customs administration.

4. Security Matrix for COMALEP Customs Administrations • Model based on international security initiatives. • Main activities of the security value chain: • Prior information • Risk Management • Authorised Traders • Controls • Confirmation of discharge at destination • Support activities for the security value chain: • Human Resources • Financial Resources • IT-Technology Resources

5. IT and Technology Resources Human Resources Financial Resources International Trade supply chain Prior information Authorised Trader Risk Management Discharge at destination Controls Security Matrix for COMALEP Customs Administrations Security Value Customs Model Customs without added “security” value for the international supply chain Customs with added “security” value for the international supply chain

6. Security Matrix for COMALEP Customs Administrations • Size of the Matrix. • Results of replies from 16 countries. • 32 questions. • Statistical Analysis of Replies. • Horizontal Analysis. • Analysis of Support Activities. • Analysis of Primary Activities.

7. Matrix of COMALEP results Support Activity 1: Human Resources assigned to Security.

8. Support Activity 1: Human ResourcesAre there specific tasks associated with security in the organisation? Results

9. Matrix of COMALEP results Support Activity 2: Financial Resources for investment in Security.

10. Support Activity 2: Financial Resources Do resources exist for improving customs information systems?. Results

11. Matrix of COMALEP Results Support Activity 3: IT and Technology Resources for improving levels of international trade security.

12. Support Activity 3: IT and Technology ResourcesDo you have recourse to electronic transmission of manifests and customs declarations? Result 1

13. Matrix of COMALEP results Primary Activity 1: Prior information for analysis before the goods go through border controls.

14. Matrix of COMALEP results Primary Activity 2: Authorised Traders and Customs/Private Sector Co-operation Agreements.

15. Matrix of COMALEP results Primary Activity 3: Use of Risk Management Methodology and Intelligence for selection of High Risk Consignments.

16. Results 1 Primary Activity 3: Risk Management and IntelligenceDo Risk Management Systems for selection of consignments for control exist?

17. Results 2 Primary Activity 3: Risk Management and IntelligenceDo you have recourse to intelligence and Data Bases to support Selection of consignments through Risk Management?

18. Matrix of COMALEP results Primary Activity 4: Controls as tools for Security.

19. Results 1 Primary Activity 4: Controls as a security toolAre there different controls based on Risk Management?

20. Results 2 Primary Activity 4 : Controls as a security tool Are there technological devices to secure consignments? (sealed according to standards and smart containers)

21. Matrix of COMALEP results Primary Activity 5: Discharge at destination linked to cross checks and exchange of information at destination.

22. Conclusions on the Security Matrix for COMALEP Customs Administrations Customs Security Value Model IT and Technology Resources Financial Resources Human Resources Customs without added “security” value for the international trade chain Customs with added “security” value for the international trade chain Risk Management Authorised Traders Discharge at destination Controls IPrior information

23. Conclusions on the Security Matrix for COMALEP Customs Administrations Customs Security Value Model IT and Technology Resources Financial Resources Human Resources Customs without added “security” value for the international trade chain Customs with added “security” value for the international trade chain Risk Management Authorised Traders Discharge at destination Controls Prior Information

24. The way forward COMALEP Customs Security Matrix • The most relevant gaps. • Authorised Traders (Authorised Economic Operators) • Human Resources (Structure of the organisation and training) • Financial Resources for technology equipment (NII equipment for containers, special seals and smart containers) • The key questions are therefore: • HOW CAN WE FILL THESE GAPS? • WHAT STRATEGY SHOULD WE FOLLOW?

25. The way forward COMALEP Customs Security Matrix HOW CAN WE FILL THESE GAPS? Exchange of experience between countries which have succesfully taken on board the missing elements and those which have made mistakes: - Vía documentation (reports on best practices) - Vía placements (experience in the field) -Exchange of information and technical support

26. The way forward COMALEP Customs Security Matrix WHAT STRATEGY SHOULD WE FOLLOW? Establish a plan of action and improvement for COMALEP Customs Administrations. Re-evaluate the matrix at a date to be determined to see what progress has been made and what the situation is as regards implementation. Possibility of re-formulating the questions in the matrix.

27. Security Matrix for COMALEP Customs Administrations XXVI MEETING OF NATIONAL DIRECTORS OF CUSTOMS OF LATIN AMERICA, SPAIN AND PORTUGAL 24 to 27 October, Pucón, Chile 2005.