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Balancing Security and Facilitation

Balancing Security and Facilitation. Agustin Izquierdo Senior Customs and Trade Manager General Motors Compan y. Balancing Security & Trade. Security Programs Really Worth it ? Is it necessary investments and procedures to keep you certified ? What are the real treaths ?.

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Balancing Security and Facilitation

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  1. Balancing Security and Facilitation Agustin Izquierdo SeniorCustoms and Trade Manager General Motors Company

  2. Balancing Security & Trade Security ProgramsReally Worth it? Isitnecessaryinvestments and procedurestokeepyoucertified ? What are the real treaths?

  3. CorporateGovernance AEO • Positive impactonprofitability, customs and costumersatisfaction • Mitigate - RiskMagamentTool • Contributetocompany’svision • Maketheorganization more succesfull • Reputation and BestBussinessPractice

  4. Isthesecuritythreatstill real? • Since 2004, ~ 600 attackstargetingsupplychainhaveocurred – a ratethatequalsoneattackeveryfourdays. Source BSI • 1999 to 2009 46 acts of terrorismagainst US • 124 anti- Western terroristgroups in about 35 countries • May 2009 underwearbombwithexplosivesfrom Yemen • May 2010 printercartridges w/explosives • May 2012 Upgradedunderwearbomb

  5. Cost and Savings • Security Programscannotbemeasuredadecuatelyby $$$ • Implementation and mantainancecostexist, offset bysavings in only a minority cases • Manyparticipantsdidnotexpectedprocessimprovementsimpactingprofitability • Fasterbordercrossing • Front of the line inspections • Lessfrecuentinspections

  6. Cost and Savings • Participants do notseevalueadded in fiscal and customsfacilitations • Participantstakepride in certificationseen as industrybestpractice and valueitforreasonsnotneccesary as monetaryframereference • Companiesviewprograms as neccesarytobeing a responsible and reputablemembers of thetradecommunity

  7. GreatestCost • Improving and implementingphysicalsecurity • Improving and implementing IT system/databasedevelopment • Salaries and expenses of personnelhired/contractedspecificallytoimplement and/ormanagetheprograms • Educatingforeingsuppliers, manufacturersorvendors

  8. MantainingCompliance CTPAT 2009-2010 • Total Suspend & Removed 286 participantsduetoanincidentorfailedvalidation • 52 appeals filed. 19 cases denied and 33 approved ( re instated)

  9. Mutual RecognitionBenefits CustomsAdministrations • UnifiedVisions • Similar/Compatible Security Standards • Efficiency- reducedvalidations • RiskMgtTool ForTradeParterns • Single set of securitystandards • Eliminateredundantvalidationvisits • FasterValidationProcess • Easiertodocumentimplementation • Foreing AEO partnerscouldlowertargeting score in CBP

  10. Conclusion 1. Security and Facilitation are both very important.  Security should not harm the flow of trade - in fact it should help the flow of trade by moving low risk shipments out of the way so the Customs may focus on low risk shipments.  The most secure shipment is one that is moving at 70 miles per hour (at least if by truck). 2. It is important that governments and the trade work together in partnership so that the trade may understand the specific security objectives and the Customs agency understand the different trade lanes.  The goal is to find the most effective way to meet both the security and facilitation. 3. Benefits are critical.  Companies that invest in/demonstrate security should have shipments processed quicker, receive fewer inspections, be granted extraordinary services, moved to the head of the line if chosen for inspection and be processed first after a major disruption at the border. 4. Governments should work together so that they trust each others programs and sign mutual recognition agreements. 5. When considering whether or not to join companies should look closely at all internal processes in place.  In many cases the required security element is part of a process other than security.

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