Customs activities for this year are underpinned by the World Customs Organization’s (WCO) 2021 theme “Customs bolstering recovery, resilience and renewal for sustainable global supply chain”. The colossal task that lies ahead as nations look to reconstruct their global supply chain is one of the reasons that the WCO has advocated Authorised Economic Operator (AEO) programmes as a tool to promote reconstruction.
SARS, in collaboration with the Border Management Agency (BMA), is leading the process of creating a Single Government AEO (SGAEO) programme to ensure improved trade facilitation and supply chain security in South Africa, the Southern African region, the African continent and globally. The World Bank (WB) and WCO have agreed to assist SARS to create a SGAEO programme, through the WB Trade Facilitation Programme.
The agreement to conceptualise a SGAEO for South Africa culminated in agreement that SARS and the BMA would jointly host a workshop with all agencies involved in managing trade at the border. The WB and WCO have agreed to participate in the workshop on 2 March 2021. The workshop is intended to contextualise and set the scene for the creation of a SGAEO programme in South Africa and to allow for comparison of the various OGA risk management programmes for cross border trade with the SARS AEO programme.
International drivers for Single Government AEO programmes include the World Trade Organisation’s Trade Facilitation Agreement and the WCO’s SAFE Framework of Standards. South Africa’s scoring on the OECD’s Trade Facilitation Indicator is used as input into the World Bank’s (WB) Ease of Trading across Borders in its annual Doing Business Report.
For Customs Administrations, AEO programmes are vital tools for developing trust-based partnerships with economic operators who have high levels of commitment to compliance and supply chain security. Economic operators, on the other hand, are interested in the tangible benefits offered to participants, particularly, mutual recognition agreements (MRAs) with trading partners.
While several countries have adopted different OGA (Other Government Agencies)AEO models, SARS’ preferred model is a Single Government AEO Programme with one certification process and benefits granted by all agencies.
Source: South African Revenue Service, Rae Vivier, 2 March 2021
Today, the World Customs Organization (WCO) and International Civil Aviation Organization (ICAO) released their Joint WCO-ICAO Guiding Principles for Pre-Loading Advance Cargo Information and Joint WCO-ICAO Guidelines on Alignment of the Customs Authorized Economic Operator and Aviation Security Regulated Agent/Known Consignor Programmes. These Guiding Principles and Guidelines are a result of continuous joint efforts over the last 10 years, following serious threats and vulnerabilities to international trade supply chains.
“In the context of the COVID-19 pandemic and the need to facilitate safe and secure vaccine distribution, strong collaboration among Customs, Civil Aviation Authorities and the relevant stakeholders is highly recommended,” said the WCO Secretary General, Dr. Kunio Mikuriya. “WCO and ICAO Members are encouraged to make the best use of advance cargo information for risk assessment as well as to align partnership and security programmes to ensure secure and efficient air cargo supply chains,” he added.
With the new Joint WCO-ICAO Guiding Principles for Pre-Loading Advance Cargo Information (PLACI), another layer is being added to the multi-layered approach to Aviation Security in order to detect Improvised Explosive Devices/Improvised Incendiary Devices (IED/IID) in air cargo. These PLACI principles should not be used as a standalone method of Aviation Security (AVSEC) screening or air cargo security control, but rather to perform an additional assessment of the potential Aviation Security risks represented by a consignment.
These Joint Guiding Principles comprise several key and specific principles to meet the needs and capabilities of both regulators and industry, and provide guidance for the risk analysis process. Combined with intelligence and other information, PLACI consignment data enables regulators to perform an initial assessment of the potential risks posed by a consignment. The results of the initial assessment may also indicate the need for additional action.
These Guidelines aim to assist WCO and ICAO Members wishing to assess the similarities between their Customs and AVSEC security programmes, with the intention of further aligning them. This collaborative work should ultimately lead to simplification of procedures and eradication of duplicate security requirements and controls, to the benefit of the authorities and the airline industry.
Maintaining trade flows during the COVID-19 pandemic will be crucial in providing access to essential food and medical items and in limiting negative impacts on jobs and poverty.
The speed and scale of the crisis are unprecedented. But governments can ameliorate the impact. The following documents, hyperlinked to this page provide initial guidance for policymakers on best practices to mitigate pandemic-related trade risks, support trade facilitation and logistics, and implement trade policy in a time of crisis.
Managing Risk and Facilitating Trade in the COVID-19 Pandemic
Maintaining trade flows as much as possible during the COVID-19 pandemic will be crucial in providing access to essential food and medical items and in limiting negative impacts on jobs and poverty.
Some countries are closing border crossings and implementing protectionist measures such as restricting exports of critical medical supplies. Although these measures may in the short-term provide some immediate reduction in the spread of the disease, in the medium term they may undermine health protection, as countries lose access to essential products to fight the pandemic. Instead, governments should refrain from introducing new barriers to trade and consider removing import tariffs and other taxes at the border on critical medical equipment and products, including food, to support the health response.
Trade facilitation measures can contribute to the response to the crisis by expediting the movement, release, and clearance of goods, including goods in transit. The World Bank Group provides guidance and technical assistance to developing and least developed countries to implement best practices to facilitate the free flow of goods.
Do’s and Don’ts of Trade Policy in Response to COVID-19
Despite the initial inclination of policy makers to close borders, maintaining trade flows during the COVID-19 pandemic will be crucial. Trade in both goods and services will play a key role in overcoming the pandemic and limiting its impact in the following ways:
by providing access to essential medical goods (including material inputs for their production) and services to help contain the pandemic and treat those affected,
ensuring access to food throughout the world,
providing farmers with necessary inputs (seeds, fertilizers, pesticides, equipment, veterinary products)for the next harvest,
by supporting jobs and maintaining economic activity in the face of a global recession. Substantialdisruption to regional and global value chains will reduce employment and increase poverty.Trade policies will therefore be an essential instrument in the management of the crisis.
Trade policy reforms, such as tariff reductions, can contribute:
to reducing the cost and improving the availability of COVID-19 goods and services,
to reducing tax and administrative burdens on importers and exporters,
to reducing the cost of food and other products heavily consumed by the poor and contributing to themacro-economic measures introduced to limit the negative economic and social impact of the COVID-19 related downturn,
to supporting the eventual economic recovery and building resilience to future crises.
Governments with industries producing COVID-19 medical goods or food staples can further contribute by committing to refrain from limiting exports through bans or taxes. If export restrictions must be used, then they should be targeted, proportionate, transparent, and temporary.Measures to streamline trade procedures and facilitate trade at borders can contribute to the response to the crisis by expediting the movement, release, and clearance of goods, including goods in transit, and enabling exchange of services.
Reforms can be designed to reduce the need for close contact between traders, transporters and border officials so as to protect stakeholders and limit the spread of the virus, while maintaining essential assessments to ensure revenue, health and security. Interventions to sustain and enhance the efficiency of logistics operations may also be critical in avoiding substantial disruption to distribution networks and hence to regional and global value chains.
The covid-19 pandemic is increasingly a concern for developing countries. Using a new database on trade in covid-19 relevant products, this paper looks at the role of trade policy to address the looming health crisis in developing countries with highest numbers of recorded cases. It shows that export restrictions by leading producers could cause significant disruption in supplies and contribute to price increases. Tariffs and other restrictions to imports further impair the flow of critical products to developing countries.
Customs and Border Protection (CBP) has expanded its pilot of a new, voluntary scheme to try to improve the security of low-value shipments entering US borders.
The Section 321 Data Pilot is focused in particular on e-commerce, and aims to improve data-sharing between online marketplaces, carriers, technology firms and logistics provider to help protect American consumers from illicit goods arriving by air, ocean, truck, or rail.
That includes, “illicit narcotics, unregulated prescription drugs, brand counterfeits, and unsafe food and beauty products”, according to the CBP, which plans to run the pilot until August 2021.
Nine companies have been selected to participate in the pilot, including e-commerce giants Amazon and eBay, carriers Zulily, FedEx, DHL and UPS, as well as technology firm PreClear and logistics providers XB Fulfillment and BoxC Logistics.
CBP has said that it plans to expand access to all interested and qualified participants “in early 2020.”
The participants will provide cargo origin, content, tracking, recipient and other information to CBP upfront, in addition to the information that is currently legally required for Section 321 shipments – in other words one shipment per day for eligible importers, individuals or companies with a value of $800 or less.
CBP says it wants to see whether having that additional information will enable it to perform “more effective and efficient targeted screening” of these low-value shipments.
Research published in 2018 has suggested that two-thirds of counterfeit goods intercepted by customs around the world are discovered in small parcels sent through postal or courier services.
In part because they are harder for customs officials to track and seize, and also because in many jurisdictions they have not required detailed manifests for their contents. The US stepped up the manifest requirements for Section 321 shipments from January 1, 2019.
CBP broadened the scope of the 321 Data Pilot last month, shortly after the pilot was launched in August, to include ocean shipments and international mail which weren’t included in the original plan.
“Combined with the exponential growth of the online shopping market in the US over the past five years, CBP has seen a significant increase in small, low-value packages,” said the agency in a statement.
“Today, CBP processes more than 600 million express consignment and international mail shipments a year – approximately 1.8m a day. The unprecedented growth in volume of these low-value shipments requires creative solutions to interdict illicit and dangerous products to enter the US.”
Source: article by Phil Taylor, Securityindustry.com, 20 January 2020
To mark International Customs Day 2020 – focusing on the theme of ‘fostering Sustainability for People, Prosperity and the Planet’, the following article from the Spring 2018 edition of World Trade Matters by Jan Hoffmann, the Chief of the Trade Logistics Branch, Division on Technology and Logistics at UNCTAD, is relevant. The article discusses global trade facilitation reforms, the digitalisation of trade and measures towards ensuring long-term sustainability in the maritime industry.
Confronted with growing populism and a surge in protectionist measures recorded by the WTO, policy makers and enterprises are struggling to avoid a backlash in international trade. At UNCTAD’s Trade Logistics Branch, we support these endeavours by helping to make trade work better. Through trade facilitation reforms, the promotion of digitalisation, and ensuring the long-term sustainability of international transport, we aim at ensuring that the international movement of goods is not confronted with unnecessary obstacles and costs.
A multilateral agreement to facilitate international trade
Under the Trade Facilitation Agreement (TFA) of the World Trade Organization (WTO), developing countries commit to implement a number of very practical measures that make trade easier and more transparent. Countries are obliged to publish duties and procedures on the web, traders can transmit their declarations prior to the arrival of the goods, payments can be made electronically, and fees and charges must not become hidden taxes to generate income for the government. These are but some of the 37 concrete measures grouped into 12 Articles of the TFA. They are all useful and help make trade more efficient.
However, many of these measures involve an initial investment or reforms that require human and financial resources to start with, which developing countries many not have. The good news is that the TFA also includes a novel mechanism – the so called “Special and Differential Treatment” – that helps developing countries plan and acquire the necessary capacity prior to being fully committed to comply with all 12 Articles. Concretely, the mechanism puts the developing countries in the position – and obligation – to analyse and notify their own implementation capacity. At UNCTAD, we are working closely with the developing countries to enable them to do so. Our main counterpart in this endeavour are the National Trade Facilitation Committees (NTFCs) that each country must set up under the TFA. UNCTAD’s Empowerment Programme for NTFCs includes training and knowledge development for the members of the NTFC, combined with advisory services and the development of a Roadmap of TFA implementation.
By the same token, UNCTAD also supports developing countries in setting up Trade Information Portals. Under the TFA, members of the WTO are obliged to make relevant information on tariffs and trade procedures available on-line. UNCTAD’s Trade Information Portals not only help countries become compliant with this obligation, but in the process of analysing and publishing applicable trade procedures, a Trade Information Portal effectively helps countries identify the potential for the further simplification of procedures. Thanks to these new insights, NTFCs can then develop programmes and reforms that subsequently ensure the further simplification of procedures.
Technological progress will never be as slow as today
My favourite provision of the TFA is Article 10.1., as it provides for a dynamic dimension of the Agreement. According to this article, countries need to minimize “the incidence and complexity of import, export, and transit formalities”, continuously “review” requirements, keep “reducing the time and cost of compliance for traders and operators”, and always choose “the least trade restrictive measure”. As such, even if a country is compliant with all TFA provisions today, countries will need to continue monitoring if existing procedures are still appropriate in view of technological or regulatory developments.
As trade becomes increasingly digitalised, and new technologies which do not yet exist will be developed, it will be important that governments continuously revise and review the applicable rules and regulations.
Digitalisation comes in stages. First, we optimize existing procedures, making use of cargo tracking, the Internet of Things, blockchain et al. Second, new businesses are developed which could not exist without the new technologies; new platforms come into being and we see more “uberisation”. Finally, there is transformation and science fiction; still in our lifetime Artificial Intelligence will overtake human capabilities to manage international trade and its logistics.
But let us take one step at a time. At UNCTAD, we support developing countries through eTrade readiness assessments, the development and upgrade of technological solutions in Customs automation and Single Windows, and by providing a Forum for our members to analyse and discuss the challenges that come with digitalisation. We encourage the development of global standards that allow for interoperability among new systems. The challenge for policy makers it to encourage private sector investments in new technologies and solutions, while ensuring that no new monopolies emerge that might exclude smaller players.
And it has to be sustainable
While we aim at ensuring continued growth in international trade, there is a catch. The transport of this trade encompasses increasing externalities, such as pollution, green-house-gas emissions, and congestion.
Ports need to minimise social and environmental externalities. Many port cities are among the most polluted places to live, as ships burn heavy oil, and delivering trucks produce noise and cause traffic congestions. In addition, ports need to be resilient in the face of disruptions and damages caused by natural disasters and climate change impacts.
International transport, including shipping, needs to play a larger role in addressing global warming and contribute to mitigating the carbon emissions that are causing climate change. Shipping emits less carbon dioxide (CO2) per ton-mile than other modes of transport, but then due to its sheer volume it also produces many ton-miles. Would it be possible that the industry could be charged by its main regulatory body not per ship tonnage (as is currently the case), but per tonne of CO2 emission?
Currently, the International Maritime Organization is funded proportional to the tonnage registered under the members’ flags. Like this, Panama, Marshall Islands and Liberia pay for the largest share of the IMO budget – and in the end, this is passed on to the ship-owner, who in turn passes this on to the shipper, who will charge the consumer. This is a good established mechanism that could be expanded to also internalize the external costs of CO2 emissions.
Being the most globalized of all businesses, maritime transport should consider adopting a global regime that helps further internalize its environmental externalities – to ensure prosperity for all.
It is all about efficiency
Investing in trade facilitation reforms, making intelligent use of the latest technologies, and ensuring that externalities are internalized are all several sides of the same coin. Trade efficiency is necessary to promote an open international trading system. It requires a continuous effort by policy makers to continuously review current procedures, apply the most appropriate technological solutions, and support an efficient allocation of scarce resources.
Source: Jan Hoffman, UNCTAD – originally published in World Trade Matters, Spring Edition, 2018
WTC 6, home to the US Customs Service, New York until September 2001
As unrecognisable as the building is, the same can be said for the world of Customs today. Few contemplated a ‘Customs’ parallel at the time; but, when the Department of Homeland Security was launched, the emergence of US Customs and Border Protection (USCBP) ushered in a new way of doing business. The world of Customs was literally ‘turned on its head’. Bilateral overtures seeking agreements on ‘container security’, ‘port security’ as well as an industry focussed ‘Customs and Trade Partnership Against Terrorism’ (C-TPAT) forced the World Customs Organisation (WCO) into swift action. After years of deliberation and negotiation several guidelines were released, later to be packaged as the WCO SAFE Framework of Standards. It seemed that the recent Revised Kyoto Convention (RKC) on simplification and harmonisation of Customs procedures was already ‘dated’. Customs as a proud solo entity was gone for ever, as country after country seemed compelled to address border security through wholesale transformation and upheaval of their border frontier policies and structures. Thus was born ‘border security’ and ‘cooperative border management’. In a manner of speaking, 9/11 put Customs onto the global map. Along with WCO developments, the tech industries brought about several innovations for risk management and other streamlined and efficient service offerings. Prior to 9/11, only the wealthy countries could afford non-intrusive inspection capabilities. One key aspect of the SAFE Framework’s was to include a pillar on Capacity Building. Through this, the WCO and business partners are able to offer tailor-made assistance to developing countries, to uplift their Customs and border capabilities. In particular, countries in Africa now are now in a position to consider ‘automated’ capabilities in the area of Customs-2-Customs information exchange as well as establishment of national Preferred Trader and Authorised Economic Operator (AEO) schemes. At the same time a parallel industry of ‘Customs Experts’ is being developed in conjunction with the private sector. The end result is the availability of ‘standards’, ‘policies’ and ‘guidelines’ fit for Customs and Border operations, focussed on eliminating incompatibilities and barriers to trade. Where these exist, they are largely attributed to poor interpretation and application of these principles. With closer cooperation amongst various border authorities still a challenge for many countries, there are no doubt remedies available to address these needs. In gratitude, let us remember the thousands of public servants and civilians who lost their lives that we can benefit today.
The WCO has published a 2018 edition of its Framework of Standards. The 2018 version of the SAFE Framework augments the objectives of the SAFE Framework with respect to strengthening co-operation between and among Customs administrations, for example through the exchange of information, mutual recognition of controls, mutual recognition of AEOs, and mutual administrative assistance.
In addition, it calls for enhanced cooperation with government agencies entrusted with regulatory authorities over certain goods (e.g. weapons, hazardous materials) and passengers, as well as entities responsible for postal issues. The Framework now also includes certain minimum tangible benefits to AEOs, while providing a comprehensive list of AEO benefits.
The updated SAFE Framework offers new opportunities for Customs, relevant government agencies and economic operators to work towards a common goal of enhancing supply chain security and efficiency, based on mutual trust and transparency.
Customs officers and trade practitioners also be on the lookout for then new WCO Academy course on SAFE and AEO. The Framework of Standards to Secure and Facilitate Global Trade is a unique international instrument which usher in a safer world trade regime, and also heralds the beginning of a new approach to working methods and partnership for both Customs and business. This E-Learning course aims to present this tool and the benefits of its implementation.
This Friday, 20 April 2018, SARS Customs will implement its new Cargo, Conveyance and Goods Accounting solution – otherwise known as the Cargo Processing System (CPS). In recent years SARS has introduced several e-initiatives to bolster cargo reporting in support its electronic Customs Clearance Processing System (iCBS), introduced in August 2013.
Followers of SARS’ New Customs Acts Programme (NCAP) will recognise that the CPS forms part of one of the three core pillars of the new legislative programme, better known as Reporting of Conveyances and Goods (RCG). The other two pillars are, Registration, Licensing and Accreditation (RLA) and Declaration Processing (DPR). More about these in future articles. In order to expedite the implementation of the new Acts, SARS deemed it necessary to introduce elements of the new functionality via a transitional manner under the current Customs and Excise (1964) Act.
Proper revenue accounting and goods statistical reporting, can only be adequately achieved if Customs knows what goods ‘actually’ arrive, transit and exit it’s borders. Many countries, since the era of heightened security (post 9/11), have invested heavily in the re-engineering of policies and systems to address the threat of terrorism. This lead to a re-focus of resources and energies to develop risk management systems based on ‘advanced information’. SARS has invested significantly in automated systems in the last decade. Shortly, SARS it will also introduce a new automated risk engine with enhanced capabilities to include post clearance audit activities.
It should also not come as a surprise to anyone conversant with Customs practice, that international Customs standards such as the WCO’s SAFE Framework of Standards, the RKC and the Data Model are prevalent in the new Customs legal dispensation and its operational business systems.
South Africa will now follow several of its trading partners with the introduction of ‘advance reporting of containerised cargo’ destined for South African sea ports. This reporting requires carriers and forwarders to submit ‘advance loading notices’ to SARS Customs at both master and house bill of lading levels, 24 hours prior to vessel departure.
The implementation of CPS is significant in terms of its scope. It comprises some 30 odd electronic cargo notices and reports across the sea, air, rail and road modalities. These reports form the ‘pipeline’ of information deemed necessary to ensure that the ‘chain of custody’ is visible and secure from point of departure to final destination. For the first time, South Africa will also require cargo reporting in the export domain.
It is no understatement that the CPS initiative is a challenge in particular to new supply chain entities who have not been required in the past to submit electronic reports. In order to meet these reporting requirements, a significant investment in systems development and training is required on the part of SARS and external trade participants. To this end, SARS intends to focus on ramping up compliance amongst all cargo reporters across all transport modalities. The first modality will be road, which is the most significantly developed and supported modality by trade since the inception of manifest reporting under the Customs Modernisation Programme. The remaining transport modalities will receive attention once road is stabilised.
Hong Kong-based CargoX raised $7 million through an initial coin offering to build its smart contract-based house bill of lading solution. CargoX, has designs on developing so-called smart contracts to transfer house bills of lading onto a blockchain solution it is building. House bills of lading are issues by non-vessel-operating common carriers (NVOs).
The coins, also called tokens, can be used to pay for CargoX’s smart contract solutions, but those interested in the blockchain-backed bill of lading solution can also pay with traditional currencies.
“Our platform will support all the legacy payment options with fiat money, but as we are a startup based on blockchain technologies, we are working on implementing cryptocurrency payment as well,” said CargoX founder Stefan Kukman. “There will be various service levels supported, and there will be additional features and services provided to holders and users of our CXO utility tokens.”
The ICO serves two purposes in this application. It helps CargoX raise funds as opposed to seeking venture capital investment, but the coins can also be used to transact within the solution. So, the sale of the CXO tokens is ancillary to the product offering.
That’s different from another crypto-token liner shipping model that emerged in the second half of 2017 called 300Cubits. That company issued tokens, called TEUs, to underpin a solution that would penalize shippers and carriers for no-show or overbooking behavior.
CargoX, meanwhile, said it wants to be a neutral platform for global trade documentation and is starting with the bill of lading approach. The solution comprises an app, a document exchange protocol, and a governing body, which is currently being established.
“The next step is to demonstrate the viability of our platform with a test shipment,” Kukman said.
That pilot, scheduled for the second quarter of 2018, links a logistics company with its clients on a shipment from Asia to Europe.
“Technology companies often lack the shipping and logistics expertise necessary to break into this industry,” Kukman said. “On the other hand, logistics companies venturing into the tech field may be held back by their reliance on established, old-school business practices.”
To register, CargoX collects “know your customer” and NVO license information “to establish roles and permissions on the platform.”
“Once companies register, they will receive their public and private key for signing the Smart B/Ls. This can be done in the Smart B/L distributed application provided by CargoX, or with the help of the CargoX Smart B/L API (application programming interface) integrated into the company’s system.”
That integration can take a few hours or weeks, depending on the workflow of the company, CargoX said.
The ultimate goal of bringing bills of lading to the blockchain solution is to create a common, encrypted repository of data. The secondary benefit of that process would be the potential to eliminate bank-backed letters of credit for suppliers, as the smart contract would automatically trigger payment.
“The shipping industry currently wastes billions of dollars on spending related to letters of credit, which are used in global trade as a payment guarantees,” Kukman said.
In terms of how the blockchain-backed bill of lading would function in practice, Kukman said that data will be encrypted and stored in a decentralized storage application.
“These are much safer than centralized storage, as they use the same blockchain security mechanisms as the billions of dollars worth of cryptocurrencies such as bitcoin currently in circulation,” he said. “Actual ownership (of the document) will be traded (sent) in the same way people send tokens today, from one wallet to another.”
Researchers at Sandia National Laboratories have developed new glass scintillators to detect suspicious nuclear material at borders and ports. The new scintillators are cheap, effective and more stable than the current scintillators in use.
Scintillators, which produce bright light when struck by radiation, are used extensively by the US Government in homeland security as radiation detectors. By observing the amount of light produced, and how quickly, the source of radiation may be identified.
Dr Patrick Feng, who led the Defense Nuclear Nonproliferation project, began to develop new types of scintillators in 2010, in order to “strengthen national security by improving the cost-to-performance ratio of radiation detectors”. To improve this ratio, he had to “bridge the gap” between effective scintillators made from expensive materials, and affordable but far less effective models.
Although there are many types of scintillator available, the best-performing scintillators are made from trans-stilbene. This crystallised form of a molecule allows border security tell the difference between gamma rays, which appear naturally everywhere, and neutrons, which are often associated with threatening materials such as plutonium and uranium, by producing a bright light in response.
The gold standard scintillator material for the past 40 years has been the crystalline form of a molecule called trans-stilbene, despite intense research to develop a replacement. Trans-stilbene is highly effective at differentiating between two types of radiation: gamma rays, which are ubiquitous in the environment, and neutrons, which emanate almost exclusively from controlled threat materials such as plutonium or uranium. Trans-stilbene is very sensitive to these materials, producing a bright light in response to their presence.
These crystals, however, are too fragile and expensive (around S1,000 per cubic inch) to be used in the field, and instead, security personnel will tend to use plastic-based scintillators, which can be moulded into large shapes but are ineffective at differentiating between different types of radiation or detecting weak sources.
In order to find a good alternative, Dr Feng and his team at Sandia National Laboratories in Livermore, CA, began to experiment with organic glass components, which are capable of discriminating between different types of radiation.
Tests demonstrated that scintillators made with organic glass performed even better than the trans-stilbene scintillators in radiation detection tests.
The researchers were able to improve their design further when they drew a parallel between the behaviour of LEDs, which produce light when electrical energy is applied, and scintillators, which respond to radioactive sources. They found that adding fluorine, which is used in some LEDs, into the scintillator components helped stabilise them. This allowed for the organic glass to be melted down and cast into large blocks without becoming cloudy or crystallising upon cooling.
The result was an indefinitely stable scintillator able to differentiate between non-threatening radioactive sources, such as those used in medical treatments, and those which could constitute threats. The organic glass components are cheap and easy to manufacture, and do not degrade over time.
Next, the researchers will cast a large prototype for field testing, and hopefully demonstrate that the scintillator can withstand environmental wear and tear, for instance, due to the humidity of ports where checks are carried out. They also hope to adjust the scintillator to distinguish between safe sources of gamma radiation, and those which could be used to make “dirty bombs”. Source: Sandia Laboratory
For thousands of years, maritime authorities have relied on tip-offs, patrols, investigations and random inspections to find smuggled goods. Today they have a variety of additional methods at their disposal, and one of the most promising is also the most intuitive: looking at every vessel’s historical behavior.
Israeli firm Windward was founded to collect, vet and analyze AIS, along with a variety of other commercial data sources on maritime traffic. Just having access to the massive quantity of data that the world’s fleet generates is not sufficient: it could take weeks for a human operator to sift through the records of just a few hundred ships, and law enforcement agencies need actionable intelligence in real time.
This is where Windward excels. Its system uses proprietary algorithms to find specific ships that may be involved in illicit activity based on a number of “red flag” behaviors. Loitering just off of a village or an uninhabited bay may be a sign that a vessel is engaged in tendering goods or passengers from shore. Similarly, when a ship turns off its AIS transmitter or changes its AIS reporting name near smuggling hotspots, it may be taking on contraband. And a ship with a well-established trading pattern that suddenly heads to a troubled region may be engaged in a new (and not entirely legitimate) line of business.
These behaviors are obvious when Ami Daniel, Windward’s CEO and co-founder, walks through a few examples in a live presentation. The novel development isn’t the signal pattern – it is the fact that his firm can automatically find it, without knowing which ships to examine in advance. It doesn’t matter if a vessel is operated by a reputable company or a known North Korean front – Windward’s system analyzes records for the entire fleet, and if a vessel looks suspicious, it gets flagged.
A few cases illustrate the potential of this approach. In Windward’s best-known example, a Cyprus-flagged reefer with a history of trading between Northern Europe and West Africa headed to a port in Ukraine – well outside its normal pattern. It returned towards the Strait of Gibraltar, but before passing through to the Atlantic, it lingered off of Algeria and Morocco for 12 days. It turned its AIS on and off multiple times in busy shipping lanes during this loitering period. Windward notes that this region is at high risk for the smuggling of arms and narcotics.
After passing through the Strait of Gibraltar, the vessel headed north towards Scotland, where it arrived on January 14. It loitered again for half a day in a small bay off the isle of Islay – an area without a port for a 4,200 dwt ship. Windward’s system flagged this behavior as a potential sign of a smuggling drop-off, though it is also possible that the ship anchored up to wait out foul weather or to time its arrival.
This particular case made headlines in the UK when Windward told media that hundreds of vessels with suspicious records entered British waters in the first two months of 2017. The story was picked up by the Global Mail, Sky News and the Daily Record, and Scottish politicians called on the authorities to look into the matter: “This requires investigation, certainly by the police and, I suspect, by the security authorities to clarify what’s going on,” said member of Scottish Parliament Mike Russell.
These results capture attention, and Daniel says that the firm is marketing the system’s abilities to multiple government agencies. The kind of smuggling/trafficking behavior that it can identify is often associated with organized crime and the financing of terrorism, so it has a great deal of appeal for intelligence applications as well as maritime security / maritime domain awareness. He suggests that for now, commercial users (traders, brokers and others) are not a target market, nor does he foresee branching out into similar offerings for trucking or air freight. Windward does one thing well – very well – and Daniel expects that it will invest in its core strength for some time to come. Original article published in The Maritime Executive.
International trading involves many participants all around the globe. These participants may not necessarily have the needed trust of all parties, especially at the initial stages, when newcomers join the trade. Blockchain can provide the needed trust to capture key transaction activities as immutable records, as well as storing and sharing encrypted legal and financial documents.
Visibility of transaction records and documents are tightly controlled by blockchain, permitting sharing only among entrusted and allowed parties. In this demo, IBM demonstrates how blockchain may support such an application.
The blockchain solution being built by the two companies is expected to be made available to the ocean shipping industry later this year, according to a joint statement from International Business Machines Corp and the container unit of A.P. Moller-Maersk. It would help manage and track the paper trail of tens of millions of shipping containers globally by digitizing the supply chain process from end to end.
This will enhance transparency and make the sharing of information among trading partners more secure.
When adopted at scale, the solution based on the Linux Foundation’s open source Hyperledger platform has the potential to save the industry billions of dollars, the companies said.
“Working closely with Maersk for years, we’ve long understood the challenges facing the supply chain and logistics industry and quickly recognized the opportunity for blockchain to provide massive savings when used broadly across the ocean shipping industry ecosystem,” said Bridget van Kralingen, senior vice president, industry platforms, at IBM.
IBM and Maersk intend to work with a network of shippers, freight forwarders, ocean carriers, ports and customs authorities to build the new global trade digitization product, the companies said.
The product is also designed to help reduce or eliminate fraud and errors and minimize the time products spend in the transit and shipping process.
For instance, Maersk found that in 2014, just a simple shipment of refrigerated goods from East Africa to Europe can go through nearly 30 people and organizations, including more than 200 different communications among them.
The new blockchain solution would enable the real-time exchange of original supply chain transactions and documents through a digital infrastructure that connects the participants within the network, according to IBM and Maersk. Source: Reuters
Cargo thieves have used 3D printers to make fake security seals to hide when a shipment has been compromised.
In some cases the cloned seals are so ingenious they even match the identification numbers on the original, according to third-party logistics organisation SpedLogSwiss, which reports an incident in which the scam was used in the theft of a pharmaceutical shipment.
In 3D printing, three-dimensional work pieces are built up in layers on relatively cheap devices. This construction is done by computer control of one or more liquid or solid materials. Typical materials are synthetic resins, plastics, ceramics and metals. This new technology opens up new possibilities in the manufacture of products. The advantages of this technology have now been discovered by organized crime.
A victim of seal counterfeiting has provided the following images to raise the awareness of other freight forwarders and shippers. In the below incident, a shipment of pharmaceutical goods loaded in a container was sealed with an intact shipper seal (Figure 1) and a seal from the shipping transport company was also applied to the container (Figure 2):
Upon arrival of the container at the end customer dock, the seals were removed and the container opened. It was then found that most of the load had been stolen in transit. The original seals had been removed during transport, the goods were removed, and the container was resealed with new, but fake seals. (Figure 3)
“The advantages of this technology have already been discovered by the organized crime,” says SpedLogSwiss, which notes that some 3D printers can prepare the fake seals in as little as 10 minutes.
The organization has issued a circular describing the incident in order to raise awareness of the issue.
According to freight security specialist Freightwatch International, there were just over 500 thefts in the Europe, Middle East and Africa (EMEA) in the second quarter of 2015.
Belgium, Germany, the Netherlands, France, the UK, Austria, South Africa, Spain and Russia topped the list of countries affected, with electronics, clothing and accessories, food and drink the most stolen product categories. Source: www.securingindustry.com
Rotterdam World Gateway says it is the first deep sea container terminal with minimal customs presence in the European Union. Ronald Lugthart, Managing Director of Rotterdam World Gateway,has received the definitive customs permit and AEO certificate for RWG, handed over by Anneke van den Breemer, Regional Director of customs at the port of Rotterdam.
Lugthart said: “Due to the high degree of automation at RWG, the introduction of a 100% pre-announcement procedure for containers and cargo via Portbase and the implementation of simplified customs procedures, over 95% of the administrative process is now completely digitised.
“This means that the administrative process can operate independently of the logistic process at the terminal, enabling fast and reliable handling.”Anneke van den Breemer commented: “As Dutch customs, our goal is to minimise any disruption to the logistic process caused by the required customs formalities. RWG and customs have recently been collaborating intensively.
“At the RWG terminal, optimal use is now being made of the simplified customs procedures. This is in the best interest of all parties: not just of the terminal and customs, but of freight forwarders and hauliers as well.”
By applying these simplified customs procedures, RWG is able to implement a fully automated gate process for road hauliers. This has great benefits for hauliers because no physical customs handling has to take place at the RWG terminal and thus no stop has to be made.
RWG adds that it is the first terminal in the port of Rotterdam to act as an Authorised Consignee, which means the customs transit will be automatically ended upon arrival at the terminal. This gives parties involved extra assurance that this transit has been cleared properly.
In addition to simplified customs procedures, constructive cooperation between customs and RWG has resulted in the establishment of a new scanning facility that is fully integrated into the terminal’s automated logistic process and operates 24/7.
Furthermore, nuclear radiation detection takes place for all truck and rail handling, and a high percentage of the containers arriving and departing by barge will be inspected as well. Source: WorldCargoNews
The new Rapiscan 638DV 320kV is an advanced dual-view X-ray system with a 1837 mm wide by 1800 mm high tunnel opening for screening ULD type, ISO standard, and large cargo pallet type freight.
The new 638DV 320kV features high penetration, dual-view technology and explosives and narcotics detection alert supporting secure inspection and higher throughput for air cargo screening and customs applications.
Detection of Explosives and Narcotics Alert
Target™ and NARCScan™ are designed to assist operators in the detection of a wide range of explosives and narcotics respectively in real time during the scanning process by marking a potential threat on the X-ray image. Rapiscan detection algorithms are based on regulatory material analysis techniques.
Dual View Advanced Technology
As mandated by US and EU regulators, the 638DV 320kV utilizes a dual-view technology which produces two simultaneous images (vertical and horizontal views) of the scanned object. It provides a more complete image, thereby reducing the need for repositioning and rescanning and enabling rapid, accurate and comprehensive threat detection.
Ease of Use Providing Highest Throughput
With over 14 image processing tools and detection alert algorithms, the feature-rich software allows the operator to more easily and accurately search for contraband. Source: Rapiscan
Rotterdam World Gateway says it is the first deep sea container terminal with minimal customs presence in the European Union. Ronald Lugthart, Managing Director of Rotterdam World Gateway,has received the definitive customs permit and AEO certificate for RWG, handed over by Anneke van den Breemer, Regional Director of customs at the port of Rotterdam.
The new 
What Happened to the Portcullis? 
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