Output 4 - Administration of Customs duty and indirect taxes, other border-related revenue collections, and import/export statistics
Supply Chain Security
Supply chain security is a major international issue. The World Customs Organization (WCO) is developing a framework of standards for the security and facilitation of global trade, designed to be adopted voluntarily by Customs administrations throughout the world to improve ‘end-to-end’ security over the movement of shipping containers and international cargo.
The WCO framework is underpinned by four core elements:
- advance electronic reporting of cargo
- application of risk management to identify high-risk cargo
- non-intrusive examination of outbound cargo, on request
- benefits to those private sector firms that meet minimal supply chain security standards.
Australian Customs is heavily involved in the development of the underpinning elements and standards that support the framework. Customs has already implemented several of the core elements having well established advanced electronic reporting of cargo, risk management in the assessment of all cargo, and extensive x-ray technology.
Customs will develop further initiatives to enhance security over international cargo.
In May 2005, Customs engaged two supply chain specialists to facilitate a series of workshops aimed at producing a strategic direction for Customs in designing and implementing a supply chain security model.As a number of supply chain issues are beyond the responsibilities of Customs, representatives from the Office of Transport Security in the Department of Transport and Regional Services were invited to participate in the workshops.
The supply chain specialists had extensive experience in this field, having been previously engaged by the US Government as systems integrator for Operation Safe Commerce.
The initiative aimed at testing and evaluating various cargo security business and technological processes on a number of international trade lanes using real-time cargo consignments.
The pathway developed by Customs allowed for setting priorities for Australian supply chain security initiatives based on cost, relative security value and timeframe to implement. The outcome will enable Customs to design, build and implement a supply chain security model that is consistent with international best practice and meets the WCO Framework of Standards to secure and facilitate global trade. In June 2005, this framework received endorsement from the 166 members of the WCO. The framework has emerged as an accepted global standard for the development of approaches to enhance security over the movement of international cargo.