SCS Notes - Last-minute Review

Prevent nuclear, biological and chemical materials from falling into wrong hands.
Prevent theft/pilferage, sabotage, piracy, product contamination, environmental hazards, counterfeit products, contraband.

High-severity threats include: hacking into IT systems; nuclear device; dirty bomb in container; plane attack; infectious agent; oil tanker attack; food contamination; cargo theft; car bomb; employee sabotage; bombing of a major bridge.
Severity/impact scale: High to Low (reference Deloitte-based chart).

Global transit loss estimates: $30-50 \text{ Billion USD per year}$
Typically $2\%-8\%$ income reduction for Fortune 500 due to poor security
Estimated, $80\%$ of cargo thefts are “made to order thefts”
Threat rated “severe” in Brazil, Russia, South Africa, Indonesia, Nigeria & Malaysia
An effective terrorist attack cost is unknown but would be impactful and disrupt supply chains

Transportation Security: training, communication, non-intrusive inspection, secure inter-modal containers, air cargo security
Information Flow Security: password protection, firewalls, data segmentation, encryption
Personnel Security: background checks, security clearances, identification and verification
Material Flow Security: tracking & tracing, sensors for tampering, tamper-resistant seals, advanced reporting
Physical Facility Security: fences, guards, lighting, CCTV, screening

How obtain information: loose talk, questions, route recognition, information willingly given, buying information, interception, surveillance
What criminals look for: non-compliance, weakest link, times when protections are lowest or product is abundant
When will criminals attack: when control is possible, escape is easy, least expected

ISO 28000:2022 – security management systems standard for the supply chain; apply to organization
Secure Trade Partnership (STP)
Transported Asset Protection Association (TAPA) Standards A, B and C
Customs-Trade Partnership Against Terrorism (C-TPAT)
24 hour Advance Manifest Rule
Container Security Initiative (CSI)

ISO 28000:2022 specifies requirements for security management systems; aims to improve resilience and integrated security management
ISO 28000:2007 focused on managing security in the supply chain, not the security department

Launched by Singapore Customs in 2007; voluntary certification
STP certification encourages robust security via risk-based approach
STP-Plus offers easier trade through Mutual Recognition Arrangements with other countries

Security checks include Premises Security & Access Controls; Personnel Security; Cargo Security; Conveyance Security; Information & IT Security; 8 Key Security Elements; Crisis Management; Incident Management
Examples: GPS tracking; standardized elements; incident handling

Authorized Economic Operator: customs-business partnership program; compliance with WCO standards
Benefits: improved security and facilitation; MRAs with partner countries

Higher clearance facilitation; priority inspection; expedited clearance during disruption; cost savings

Document freight security requirements; elements; contractual language; performance expectations; standard assessment protocol; scoring; corrective actions; training; incident handling

Snapshot of audit rating, process & procedures, criteria, facility classification, overall percentage, areas of concern

US Customs program (2001) to improve container security; private-public partnership
Benefits: cargo less likely to be screened; improved security
Participants: importers, carriers, brokers, warehouses, manufacturers
Validation: supply chain security profile; risk assessment; compliance evaluation
Guideline coverage: Personnel Security; Physical Security; Access Control; Education & Training; Manifest Procedures; Conveyance Security

Government-to-government; CBP in foreign ports; screen high-risk cargo before loading
Non-intrusive inspections; WMD screening
100% manifest data to US; foreign port screening