Statistics tell us that currently 80% of international trade occurs via maritime routes. In the age of globalization, this number continues to grow and increase in importance. To that end, the World Customs Organization, also known as the WCO, created standards for the safe shipping of products called SAFE.
WCO
Established in 1952, the WCO is based in Brussels, Belgium and is tasked with improving the effectiveness and efficiency of customs administration. Similar to the United Nations, Interpol, and other world bodies, the WCO is made up of member countries that pay dues to the WCO in exchange for heightening standards of global trade.
SAFE
Formally adopted in June of 2005 and largely due to the September 11, 2001 terrorist attacks, SAFE is an initiative to increase security while facilitating the explosive growth of international commerce flowing through world customs. The following items are the primary objectives of SAFE:
- To create certainty and predictability, with respect to international trade, at a global level.
- To integrate supply chain management within the maritime trade.
- To empower customs to meet the challenges and opportunities for the 21st Century.
- To facilitate closer cooperation among the various customs administrations.
- To create a better customs-to-business environment.
- To provide for the seamless movement of goods across borders.
Pillars
The SAFE initiative contains two pillars:
Customs to customs cooperation
- With goods flowing in and out of customs, this will streamline the process while adding security measures.
- Customs receiving goods should have the right to inspect items passing through customs.
- Customs will employ the latest technological methods for inspecting items, namely “non-intrusive” inspections. Using hi-technological devices will create better security while not disrupting the flow of goods.
- At the same time, customs officials should develop and use a technologically-advanced risk management system that can detect high-risk items.
- Using strategic intelligence to detect possible threats before the items arrive at the customs.
- Using electronic information to determine the risk associated with incoming cargo.
- Have technology determine performance measures, i.e. a statistical analysis of percentage of cargo identified as high risk. In addition, there should be targeted screening of various cargo.
Customs and business partnerships
- Having an Authorized Economic Operator, or AEO, as part of the SAFE program. An AEO can be a distributor, airport, manufacturer, broker, carrier, port, exporter, freight forwarder, and anyone else involved in the movement of goods.
- Incorporate best practices for security measures.
- Design incentives for businesses and others to cooperate fully as an AEO.
- Using modern technology for checking cargo and similar containers.
- Facilitating cohesive working between the customs administration and other AEOs.
Integration
A significant aspect of the SAFE initiative is having integration between all parties involved in the shipping process. This means that all parties have integrated technological and security systems and have integrated supply chain management.
As the world continues to increase in globalization, the SAFE initiative gains importance. Time will tell how far the initiative goes.
Involved in maritime trade? Contact the Kolodny law firm, expert attorneys handling maritime law.
Alan Kolodny is committed to representing injured clients in Texas and throughout the United States. Alan earned his B.A. from Rice University and his J.D. from Southern Methodist University.
He focuses his practice on representing plaintiffs in personal injury cases involving the following matters: maritime and offshore accidents, including those under the Jones Act; automobile and 18-wheeler truck accidents; and industrial site accidents, work-related accidents, and claims for injured railroad workers under the Federal Employers’ Liability Act.
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