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Risk ManagementHow to help balance security and efficiency
Mercosur Customs WorkshopMontevideo August, 2011
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• Los Angeles/ Long Beach• New York/ New Jersey• Seattle/ Tacoma• Santos• Vitoria
Consulting Advisory Services• USTDA/ SEP• Asia-Pacific Economic Co-operation• Port of New York/ New Jersey• Port of Los Angeles • Govt. of Mexico - SCT• Aqaba Special Economic Zone• Australian Customs Service• GE Maritime Security
Cargo and Supply Chain Security• Hong Kong• Singapore • Kaohsiung• Tokyo• Karachi
• Aqaba• Rotterdam• Antwerp• Bremerhaven• Hamburg
System Deployment & Integration • Philippine Ports Authority (e-Port
Initiative)• US CBP Automated Targeting System• US CBP Free and Secure Trade• US CBP SFI Pilot Program• DHS Secure Freight Initiative• Port of Halifax Access Control• US Army RF-ITV Program
Cargo and Port Program Experience
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• Five forces of globalization– Compliance, Communications, Collaboration, Competition,
Complexity
• Governments are looking for better ways to protect national assets, critical infrastructure and citizens
• Responding to asymmetric threats is a priority– Acts of Cybercrime, Acts of Nature and Terrorism
• Balancing trade agility, security and assurance is the GOAL• Responding to laws and mandates WILL impact operations if
not properly planned, designed and deployed• World Bank Logistics Performance Index – Mercosur Overview
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Context
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• Role• Facilitate Trade• Ensure Security of Operations • Collect Revenue
• International Jurisdiction Limitations• Limited visibility into operations outside of the ports – domestic or international• Limited enforcement capability unless data or cargo is available
• Acceptance of standardized policies & procedures (e.g. affixing of seals)
• Reciprocity with other Customs Agencies• Import• Export• Transshipment
• Limited Risk management & Targeting• Information Sharing limitations• Availability and Quality of Data• Applicability across Modes (Air / Sea)• Supplier / Service Provider Technical capabilities• Data format standards
Challenges for Customs Agencies
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People
• ID and credentialing systems• Traveler security• Access and border control• Biometrics systems (e.g., CODIS)• Identity and access management
solutions (IT systems access)
Assets
• In-transit visibility/ RFID• Supply chain management
systems• Asset tracking• Secure commerce roadmaps• Open-I risk intelligence
Locations
• Intelligent video surveillance• Facility management and access control
(physical and IT security)• Border security systems• Integrated port security• Command and perimeter security
Technology
• Managed security solutions• Remote managed security • Endpoint security• Vulnerability & risk management
• Application security solutions• Secure info sharing Strategic
Integrated Response
Integration within and across the domains is the only way to strike the delicate balance between SUCCESS and RISK
How to Manage Risk and Balance Security
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Mission Critical support for over 10 years• Office of Information Technology• Office of International Affairs• Office of Strategic Trade
Program Involvement• National Targeting Center (NTC)• Automated Targeting System (ATS)• Secure Freight Initiative (SFI) • Western Hemisphere Travel Initiative (WHTI)
Program Roles• ATS System life-cycle support - Cargo, Passenger and Land border• Identifying gaps in targeting methodologies• Developing Rules and Assessing rule effectiveness• Developing Risk Models
Risk Management & Targeting Innovations• Pattern Discovery/ Machine Learning algorithm to assist NTC analysts • Integrated Open Source Intelligence• Image analysis on radiographic images to find anomalies• Packaging and transmitting near real time data from port of embarkation • Cargo & Stakeholder Trend analysis
Customs and Border Protection (CBP)
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Overview• Enhanced Risk Management and Targeting capabilities based on:
• Current and planned information availability• Threat/Risk Priorities• Critical sources of information - Federal Agencies and Commercial Enterprises• Individual demographics
Customs Platform
Hold / Release
Carriers CustomsBrokers
AnomalousBehavior - Current Trade Data- Historical Data
PatternRecognition- Discovery- Recognition
Threshold Adjustment / Manual Overrides
ElectronicManifest
Data
ElectronicEntryData
Historical & Current Data- Entry, Manifest, - Actions, Decisions, Findings
Inspection Match
Commercial Database- Lloyds Lists- etc.
GovernmentDatabase Intelligence
- Classified, - Open Source
Watch listed Entities- EIN, SSN, UCR- One-time shippers
Watch ListScreening- Watch Lists- SSN, EIN, Other - UCR
Rules Engine/Profiling- Shipments- Actors
Shipment Risk Score Totals
Benefits• Revenue collection
• Security (Terrorism, Weapons, Interdiction of illicit drugs and contraband)
• Integrity Assurance and Identification of Corruption
• Dynamic Border Management
• Intellectual Property Rights Infringement and Counterfeiting
Enhanced Risk Management and Targeting
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Overview• Integration of Open Intelligence sources into existing Risk Assessment Model and Risk
Management posture
Benefits• Monitor threats and incidents
around the world, 24x7 • Dynamically impact risk
management and targeting capabilities
• Instantly ascertain how a global threat or incident impacts your facilities, supply chains and operations
• Access mission-critical asset information and documentation instantly
• Facilitate an appropriate response in terms of Continuity of Operations Planning (COOP)
Open Intelligence Integration
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Overview• Enhancement of current Customs Environment by integration of multiple data sources
(enforcement, seizure, manifest, bookings, export documentation, examination events and findings
Benefits• Facilitate faster cargo clearance using
data-driven modeling and analysis• Enhanced decision making• Provide Common operating picture• Allow users to drill down to specific
people, cargo details, or risks• Provide capability to record decisions,
actions, exams and relevant dispositions
• Dynamically collect machine generated scans and images
• Establish agency interface layer
Enhanced Screening and Data Warehousing
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1. Sensor pair #1 detects vehicle, system prepares for transaction
2. Sensor pair #2 detects vehicle, front LPR, scene camera, & driver camera capture images and RFID starts scanning
3. Vehicle clears sensor pair #1, rear LPR camera captures image, RFID stops
4. Results and images are transmitted over network to US Customs
5. Vehicle reaches booth and Secondary information is transmitted to US Customs
WHTI/ Border Integration
Rear LPR Front LPRDriver Cam RFIDScene Cam
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WHTI/ Border IntegrationAll vehicles plates
scanned are reviewed and sent
to Customs54321
Motorola MC75
Handheld
License Plate Query Screen shot
If a license plate needs to be fixed
Images captured can be viewed for visual verification
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WHTI/ Border Integration
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Benefits
• Reduced wait times through RFID and License Plate Reader technology
• Provides information to Officer prior to the vehicle arriving at booth
• Facilitated processing – FROM 20 mins to 2mins
• Reduced handling of paper documentation
Overall
• Fully integrated with on-site Customs and National Targeting Center Customs system
• Allows flexible deployment based on gate and lane operations
• Provides a tool to execute pre-clearance of vehicles, with a POSITIVE impact on EFFECIENCY
• Enables US Customs to conduct REAL TIME vehicle and driver background checks
• System provides DASHBOARD to US Customs
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USTDA funded grant to Brasil’s Secretaria Especial do Portos (SEP)
Project Focus:• Analyze current Port/ Supply Chain Operations, Cargo
and Information Flow – Import, Export & Cabotage
• Develop To-Be Supply Chain solution utilizing Best Practices, Procedures and Technologies
• Recommend Technologies and Solutions to Reduce Risks, Facilitate Trade & Improve Cargo Security
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Port of Houston
Port of Philadelphia
Export Logistics Chain
Import Logistics Chain
Cabotage Logistics Chain
Projeto Carga Inteligente
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Focus ResultsAnalisis of:• WCO SAFE Framework• Electronic Freight Initiative EFM) • International Trade Data System
(ITDS)• Other global projects – OSC, ACSD,
SCSA
Improvement of existing processes in the logistics chain
Analysis and Assessment of:• RFID• GPS/ GPRS/ GSM• Bar – code• Camera based systems• Scanning and Screening
• Passive RFID Tag • Ultra-high frequency: 860-960MHz• Fixed reader baased • Open frequency license (ANATEL)
Analysis of:• NF-e/ CT-e• Vessel carrier messages – EDI
300/301/310/315 • Data entry solutions - handheld• Container monitoring messages
Carga Inteligente Data Model/ API to allow:• Collection of disparate data sources• Extending the sharing and collection
of data across the Logistics Chain
Business Process Enhancements
Container Monitoring Mechanisms
Systems Integration Information Exchange
XML
Projeto Carga Inteligente - Design
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Sistema Porto Sem Papel (PSP)
PORTAL
DATA CONCENTRATOR
Export Logistics
Operations
Vessel Operations
VTMS ERP
Business Process Enhancements
Container Monitoring Mechanisms
Intelligent Cargo & Logistics Interface
(API)
Container Demand
Container Discharge & Export
Declaration
Systems Integration Information Exchange
XML
Projeto Carga Inteligente - Vision
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Business Process - Procedures - Protocols - Photos
Container Tech. - RFID/ GPS - eSeals - Tapes
Data Sources - Electronic Forms - Handheld devices - EDI/ XML -
Info Exchange - Repository - Image database - Documentation
As-is Baseline - Paper forms/ Fax - Communication - Processes
Information Sources
ACE / ITDS / EFM Initiative / Secure Freight / SISCOMEX
WCO SAFE Framework / AEO / Linha Azul / 10+2
Global Laws, Mandates, Standards
Logistics Chain - Import - Export - Cabotage
Empty Container
Container Stuffing
Terminal Operations
DeclarationContainer Demand
Container Movement
Information Integration Intelligent Cargo – Secure Integrated Data Messaging
Empty DepotShipper Trucker Terminal Customs Broker Warehouse Vessel Carrier
Cargo Risk Management & Analytics
Risk Management and Integrated Supply Chain Visibility
Cargo/ People Verification Shipment Tracking Alerts & Notifications
SEP & Receita Federal Logistics Industry Other Brasilian Agencies Exporters/ImportersEnd Users
Projeto Carga Inteligente - Risk Management
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Projeto Carga Inteligente - Benefits
Public Sector• Facilitating the free movement of legitimate goods
• Preventing assets of illicit trade, smuggling, crime and possible terrorist acts
• Increasing visibility of cargo end-to-end
Industry• Single window for all participants in the logistics chain
• Platform to communicate industry needs and concerns in the current environment
• Reducing Total Landed Cost of the products
Overall• Improving visibility and assistance in making decisions
• Addressing the major issue of congestion at Brasilian ports
• Sharing logistics chain data with multiple parties
• Streamlining the movement of cargo and cargo security
• Enabling compliance with international standards
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• WCO SAFE Framework and lessons learned from other Customs initiatives
• Deploy an Integrated Risk Management and Targeting approach that includes:• Training & Communication• Enhanced Policies & Procedures• Technology – as an enabler
• Enhance current systems to more effectively capture, store and analyze manifest and entry data
• Overall such an approach will:• Facilitate free flow of legitimate goods• Streamline Information Exchange with government entities and trade
community• Identify organizations that are most vulnerable in the supply chain• Provide actionable information to make decisions to mitigate risks• Allow you to extend its borders• Enable strategic utilization of limited resources to focus on high risk cargo/
people• Assist in revenue collection and reduce duty evasion practices
Lessons Learned
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Thank You
Nishant PillaiEmail – [email protected] - +1 916 802 8950