Managing global supply chains : compliance, security, and dealing with terrorism

September 11, 2001 had a profound impact upon individuals, institutions, and governments, but also upon the world of global trade. Years later, the reverberations of this deliberate and focused act of terrorism are manifest in much more stringent logistics, documentary requirements, and regulations. A single source on compliance and security, written from a supply chain manager's perspective, Managing Global Supply Chains sorts out all the issues and frames a comprehensive strategy for supply chain executives in the post 9/11 world.

Foreword	p. xv
Acknowledgments	p. xvii
Introduction	p. xix
Chapter 1 The Events of 9/11 and How They Affect Global Supply Chains	p. 1
Overview of Issues and Concerns	p. 1
9/11: How Were Supply Lines Affected?	p. 2
It Cost More to Ship	p. 3
More Attention Had to Be Paid to Documentation and Logistics Detail	p. 3
Regulations Changed, Making It More Cumbersome to Import and Export	p. 4
Corporations Had to Modify Their Supply Lines	p. 4
Purchasing and Selling Decisions Were Altered	p. 4
Carriers' Furtures Were Uncertain	p. 5
Increase in Potential Fines and Penalties	p. 6
An Entirely New Corporate Responsibility Was Created in Security and Compliance	p. 6
The Mind-Set of the United States Government	p. 7
The Big Picture	p. 8
The Risks of Global Trade: Now, Add Compliance and Security	p. 11
The Security Concern in Our Transportation Infrastructure	p. 13
Operation Safe Commerce (OSC)	p. 14
Free and Secure Trade (FAST)	p. 15
What Is the FAST Program?	p. 15
What Are the Benefits of the FAST Program?	p. 15
Who Is Eligible to Apply?	p. 16
Where Is FAST Available?	p. 16
Chapter 2 Compliance and Security: Import Supply Chains	p. 19
Protecting our Borders Against Terrorism	p. 20
CBP's "Twin Goals": Anti-Terrorism and Facilitating Legitimate Trade and Travel	p. 21
Better Targeting	p. 21
Pushing Our "Zone of Security" Outward	p. 22
Partnering with Other Countries	p. 22
Partnering with the Private Sector (C-TPAT)	p. 23
Inspection Technology and Equipment	p. 23
Keeping Weapons and Money from Falling into Terrorist Hands: Outbound Inspections	p. 24
Protecting the Miles of Open Border Between Official Ports of Entry	p. 24
Basic Import Management	p. 25
Classification	p. 25
Valuation	p. 26
Origin Markings	p. 26
Record Keeping	p. 27
Importers	p. 27
Customs Brokers	p. 28
Records Storage Methods	p. 28
Customs Initiatives Since 9/11	p. 29
Highlights of CBP's Accomplishments	p. 29
Strengthening Our Control of U.S. Borders	p. 29
Improving Selectivity, Screening, and Targeting	p. 30
Private, Public Sector, and International Partnerships	p. 30
Importer Self Assessment (ISA)	p. 32
Food and Drug Administration (FDA) (Imports)	p. 33
New (Interim) Final Rules Require Registration of Facilities, Prior Notice Filing for Food Shipments	p. 34
Automated Commercial Environment (ACE)	p. 35
Managing Inbound Supply Chains: Purchasing Control	p. 37
Chapter 3 Export Supply Chains	p. 39
Department of Commerce Census Bureau	p. 40
Department of Commerce Bureau of Industry and Security	p. 42
USPPI	p. 42
Export Licensing	p. 42
Denied Parties Screening	p. 45
Deemed Exports	p. 46
Anti-Boycott Compliance	p. 47
Department of Treasury Office of Foreign Asset Controls	p. 48
Department of State	p. 51
Implementing a Successful Export Compliance Program	p. 52
Designating Responsibility	p. 52
Senior Management Support	p. 53
Developing Standard Operating Procedures	p. 53
Best Practices	p. 54
Internal Assessment	p. 54
Chapter 4 Developing a Compliance and Security Management Program	p. 57
Analysis of Risks	p. 57
Obtaining Senior Management Involvement	p. 59
Forming a Committee Structure	p. 60
Creating Standard Operating Procedures	p. 60
Infrastructure and Communication Systems	p. 60
Resource Development	p. 61
Risk Management Attitude	p. 65
Disaster and Contingency Planning	p. 65
Self-Assessment	p. 66
Chapter 5 Managing Vendors, Suppliers, Freight Forwarders, Customhouse Brokers, and Service Providers for Compliance and Security Issues	p. 67
Overview of Global Service Providers	p. 67
Customhouse Brokers and Freight Forwarders	p. 69
Specific Compliance and Security Reference Points for Forwarders and Brokers	p. 70
Carriers: Air, Ocean, Truck, and Rail	p. 70
Warehouses and Consolidation/De-Consolidation Facilities	p. 72
Selling Distributors and Agents in Export	p. 72
Purchasing Distributors and Agents in Import	p. 73
Third-Party Providers	p. 74
Banks and Other Finance Houses	p. 74
Miscellaneous Companies and Services	p. 75
Cost-Effective Logistics	p. 78
Chapter 6 Critical Issues in Compliance and Security	p. 93
Sarbanes-Oxley and the Interface with Global Supply Chain Management	p. 93
DOT Hazardous Material Regulations (49 CFR 100-179)	p. 98
Purpose	p. 98
Overview	p. 98
Shipping Papers	p. 99
Marking and Labeling	p. 100
Labeling	p. 100
Placarding	p. 101
Segregation of Hazardous Materials	p. 102
Packaging	p. 102
Selection of Proper Packaging	p. 102
Employee Training	p. 103
Materials of Trade	p. 104
Managing Hazardous Materials Transportation as Part of Compliance in Global Supply Chains	p. 104
Facility Security Checklist	p. 105
Security Checklist for Shipper	p. 106
Carrier Safety Assessment	p. 106
Employee Background Check Guidelines	p. 107
International Port Security Program	p. 107
The SAFE Port Act	p. 109
Technology Issues In Compliance and Security	p. 111
Department of Homeland Security (DHS): "Best Practices for Container Seals"	p. 111
Plan to Require Container Seals Motivates Adoption of 13 Cargo Security Best Practices	p. 111
Standards and Deadline to Come	p. 112
Getting Ahead of the Curve	p. 112
Best Practices Outlined	p. 113
Radio Frequency Identification (RFID): Smart and Secure	p. 115
SST Phase I Results	p. 117
SST Phase II Objectives	p. 117
SST Phase II Benefits	p. 118
SST Phase II Deliverables	p. 120
Required Shipper's Resources	p. 120
Supply Chain Benefits	p. 121
Foreign Corrupt Practices Act	p. 121
Food and Drug Administration/Environmental Protection Agency Propose Security Restrictions	p. 122
Food and Drug Administration	p. 123
Environmental Protection Agency	p. 123
Ultimate Consignee	p. 125
INCO Terms	p. 128
Use of the Term "Ex Works" by Parties in International Contracts and Purchase Agreements	p. 128
Routed Export Transactions under the July 10, 2000, Federal Register Notice	p. 129
Responsibilities of Parties in a Routed Export Transaction	p. 130
Record Keeping: A Vital Issue	p. 132
Transfer Pricing: A Serious and Potentially Costly Compliance Issue	p. 133
IRS, CBP, SEC, and DOJ Involvement?	p. 133
What Business Travelers Need to Know	p. 134
Container Security Update 2007	p. 137
Customs-Trade Partnership Against Terrorism	p. 137
Security Requirements for Validation of Participants	p. 138
Business Partner Requirements	p. 139
Security Procedures	p. 139
Security Training and Threat Awareness	p. 147
Information and Technology Security	p. 147
CBP Proposal for Advance Trade Data Elements	p. 148
Background	p. 148
Security Filing: Proposed Data Requirements	p. 150
Vessel Stow Plan: Container Status Messages	p. 151
Security Filing: Responsible Parties	p. 152
Notes	p. 153
Annex A Proposed Data Definitions	p. 153
Annex B Data Elements Comparison	p. 155
Customs Bonds	p. 156
Parties to a Bond	p. 156
Types of Bonds	p. 156
Amounts of Bonds	p. 156
Continuous Bond	p. 156
Breach of Bond	p. 157
Chapter 7 Ten Steps to a Secure and Compliant Supply Chain	p. 159
Acknowledge the Issues	p. 160
Identify the Point Person	p. 161
Obtain Senior Management Authorization	p. 161
Develop an Initial Execution Strategy	p. 162
Obtain External Resources and Support	p. 162
Develop a Compliance and Security Committee	p. 163
Complete a Facilities Review	p. 164
Prioritize the Issues. Finalize an Action Plan. Implement the Program	p. 165
Training and Education	p. 165
Self-Audit	p. 168
Concluding Remarks	p. 171
The Challenges of Compliance and Security in our Global Supply Chains	p. 171
Appendix	p. 173
Legislation Related to the Attack of September 11, 2001	p. 173
Bills and Joint Resolutions Signed into Law	p. 173
Other Resolutions Approved	p. 174
Legislation with Floor Action	p. 176
New Government Cargo Security Rules Call on Forwarders to Work with Agents on Security the Supply Chain	p. 181
General Aviation Security: Increased Federal Oversight Is Needed, but Continued Partnership with the Private Sector Is Critical to Long-Term Success, GAO-05-144, November 10, 2004	p. 181
Key Acronyms	p. 182
Glossary	p. 185
Index	p. 193

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