In addition to the 24-hour Automated Manifest Rule, the Department of Transportation, and US Customs have launched Operation Safe Commerce, which is intended to enhance security for international container cargo, and which will make global logistics systems even more dependent on timely, accurate data collection regarding shipment contents and movement. Since manual data entry is time-consuming and prone to errors, global logistics systems operate much better when supported by data collection based on automatic identification technologies, such as bar code labels and radio frequency identification (RFID) tags, which can be scanned at strategic locations between point of origin and destination. RFID is one of the emerging technologies that will drive increased supply chain visibility, control, and compliance. Additionally, suppliers such as Albertsons, Target, Wal-Mart, and the US Department of Defense (DOD) are pushing the RFID mandate on their suppliers, proving that RFID will have a significant impact on future supply chain operations (see RFID—A New Technology Set to Explode?) and will play a notable role in streamlining trade in the global trade management (GTM) realm.
Thus, no matter which import/export or package a shipper buys or uses, GTM should, in principle, save thousands of hours work while dramatically cutting costs. For example, export control laws require shippers to screen buyers against denied-parties lists. There are more than thirty of these constantly changing lists, which name entities with ties to terrorists, criminal groups, and unfriendly (unsavory) governments. Some exporters review tens of thousands of orders annually, thus it is difficult, if not impossible to conduct adequate checks manually. Conversely, software that is updated daily, by knowledgeable professionals, can do the job in a few seconds, and mitigate the major risk of selling to, or buying from, any of a number of prohibited individuals or organizations known as "denied parties". There are almost 12,000 of these named on lists maintained by the US state, treasury, and commerce departments, and a few thousand of which are deemed to be terrorists, or fronts for terrorist organizations. Others appear on the list for different reasons, such as unsavory states government, or because of their contribution to the proliferation of prohibited narcotics, chemical or biological weapons, and missile or nuclear technology.
In theory, enterprises have to screen everybody that is party to any transaction, including suppliers, forwarders, customers, and so on. For example, Section 326 of the USA Patriot Act was implemented to address terrorism and money laundering, enhance reporting on suspicious customer activity, and verify customer identity in an effort to curtail global money laundering and terrorist financing. It requires financial institutions, such as banks, insurance companies, credit card companies, money services businesses, mutual funds brokers or dealers, and casinos to establish minimal procedures to verify the identity of new customers when they open accounts. This section also requires cross-checking account holder and requester names against government lists of known or suspected terrorist organizations.
Banks must also have compliance programs in place to ensure that, under the rules issued by US Office of Foreign Assets Control (OFAC), their corporate customers are in no way dealing with a blacklisted party. On the other hand, any manufacturing plant that is suspected of breaching one or more trade compliance regulations, might even be temporarily shut down and its property impounded by agencies like the US CBP service, Export Enforcement (EE), or the Immigration and Customs Enforcement (ICE) service, to name a few. Even inadvertently dealing with denied parties that have shell, front-office operations in non-embargoed countries is alarmingly easy, thus the need for timely and accurate information becomes even more pertinent.
Thus, no matter which import/export or package a shipper buys or uses, GTM should, in principle, save thousands of hours work while dramatically cutting costs. For example, export control laws require shippers to screen buyers against denied-parties lists. There are more than thirty of these constantly changing lists, which name entities with ties to terrorists, criminal groups, and unfriendly (unsavory) governments. Some exporters review tens of thousands of orders annually, thus it is difficult, if not impossible to conduct adequate checks manually. Conversely, software that is updated daily, by knowledgeable professionals, can do the job in a few seconds, and mitigate the major risk of selling to, or buying from, any of a number of prohibited individuals or organizations known as "denied parties". There are almost 12,000 of these named on lists maintained by the US state, treasury, and commerce departments, and a few thousand of which are deemed to be terrorists, or fronts for terrorist organizations. Others appear on the list for different reasons, such as unsavory states government, or because of their contribution to the proliferation of prohibited narcotics, chemical or biological weapons, and missile or nuclear technology.
In theory, enterprises have to screen everybody that is party to any transaction, including suppliers, forwarders, customers, and so on. For example, Section 326 of the USA Patriot Act was implemented to address terrorism and money laundering, enhance reporting on suspicious customer activity, and verify customer identity in an effort to curtail global money laundering and terrorist financing. It requires financial institutions, such as banks, insurance companies, credit card companies, money services businesses, mutual funds brokers or dealers, and casinos to establish minimal procedures to verify the identity of new customers when they open accounts. This section also requires cross-checking account holder and requester names against government lists of known or suspected terrorist organizations.
Banks must also have compliance programs in place to ensure that, under the rules issued by US Office of Foreign Assets Control (OFAC), their corporate customers are in no way dealing with a blacklisted party. On the other hand, any manufacturing plant that is suspected of breaching one or more trade compliance regulations, might even be temporarily shut down and its property impounded by agencies like the US CBP service, Export Enforcement (EE), or the Immigration and Customs Enforcement (ICE) service, to name a few. Even inadvertently dealing with denied parties that have shell, front-office operations in non-embargoed countries is alarmingly easy, thus the need for timely and accurate information becomes even more pertinent.
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