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Less and Better Data to build Trust and Efficiency

Less and Better Data to build Trust and Efficiency. Pioneering Paperless Trade: The way covered and the way ahead Experience of Innovative Compliance in Supply Chain Security UN/CEFACT Executive Forum Geneva , 20-21 st June 2005. Who we are and what we do.

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Less and Better Data to build Trust and Efficiency

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  1. Less and Better Data to build Trust and Efficiency Pioneering Paperless Trade: The way covered and the way ahead Experience of Innovative Compliance in Supply Chain Security UN/CEFACT Executive Forum Geneva , 20-21st June 2005

  2. Who we are and what we do • Integrated Risk and Regulatory data management services for the International Transportation industry • US Intermodal Dangerous Goods Data Management (DOT) • US Air Cargo Security (TSA) • EU Air Cargo Security (DG-TREN - Study)

  3. Background/Business Drivers • Lack of mutual recognition of supply chain security procedures and processes • within the EU • between the EU, USA and other jurisdictions • Industry must “register” with, and report very similar compliance data to, more than one Appropriate Authority • Carrot & stick approach to compliance

  4. Accreditation by many Competent Authorities • Accreditation of Participants in the International Supply Chain • IATA Cargo Agent • US Indirect Air Carrier • EU Regulated Agent Accreditation • EU Authorized Economic Operator Accreditation • ………..

  5. Differing Shipment Validation Requirements • Per-Shipment Risk Evaluation • US CBP Load/No Load Decision • EU Pilot Confirmation • US TSA Freight Assessment • EU AEO Pre-Clearance • Targeted Inspection/Screening • Customs - US CBP & EU Administrations • Aviation - Shipment Inspections

  6. Project Phases and Evolution • Voluntary pilot study of industry/regulator procedures to enable mutual recognition • Prototyping of data interchange • between transportation industry & regulators • with transportation security authorities in other jurisdictions • with EU customs administration • Future Trends – EU wide and multimodal implications

  7. Services and User Community • Web Service to validate and exchange information on actors and actions taken to render cargo secure • On line web access • XML data exchange between Industry & Regulators • User Community • Regulatory authorities in pilot EU Member States • Participants in the EU Transportation Industry • Industry/Government Study Group

  8. The Business Model • Lead taken by DG-TREN in Brussels • Government funded Pilot to evaluate: • Feasibility ( policies, data collection, risk analysis, etc) • Costs • Potential for Private/Public Partnership • Users motivated to participate through: • Ability to influence future mandatory requirements • Trade facilitation benefits (initially EU – US)

  9. Financing Development and Maintenance • Direct Cost Justification • Cost of inspection/screening • Facilitation delays • Loss of business • System development & operation could be financed by usage fees from • Government • Industry • Other stakeholders

  10. Standards and Interoperability • Data Standards • Unique Shipment Reference Number • Unique Corporate Name/ID’s • Evolving Regulatory Standards • Risk management paradigms • Cross administration security procedures • IT Standards selected to support • Interoperability • Maintainability • Data security

  11. What are the Benefits? • Pilot will investigate • Feasibility of integrating security procedures within the business processes of industry and regulatory participants to achieve • For Industry • Reduced processing costs • Enhanced risk management • Increased trade facilitation • For the Public at Large • Safety for the traveling public and transport employees • Government • Better utilization of scarce regulatory resources

  12. Key Trends that support a Single Window approach • Security is already an integral component of most trade facilitation processes • Competent Authorities have recognized the need for “one stop” compliance and the “seamless integration” of regulatory processes • Mutual recognition relies on (secure) data on actions taken to render cargo secure

  13. Crucial Success Factors • Success factors • Joint Government/Industry participation in the regulatory process • Simple, elegant and industry acceptable technological solutions • Limiting Factors • Political Leadership • Industry fears • Lack of agreed standards

  14. To integrate security with paperless trade we need to.. • Establish standards to permit the definition and “one time” capture of all data elements required • Obtain government support for “one stop” security accreditation and mutual recognition across Administrations and National boundaries • Deliver UN funding to develop and validate International Standards

  15. Thank you Support@euaircargo.com

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