Contacts:
In Washington: Michel Donner + 1 202 473 3114
mdonner@worldbank.org Bert Kruk + 1 202 458 7913 ckruk@worldbank.org WASHINGTON, July 16, 2009 – The World Bank launched today a Supply Chain Security (SCS) Guide. The SCS Guide includes a top level explanation of the salient aspects of SCS, and its essential regulatory, conceptual, technological and procedural components. It also describes the main SCS elements: Advance (electronic) Cargo Information (ACI), Risk Management, Non-Intrusive Inspection (NII) and Operators’ Certification, as well as some less conspicuous features such as: mutual recognition, interoperability, and layered approach. The guide also presents the diverse trends that appeared as the SCS concept unrolled, reflecting different emphases, sensitivities and approaches. The tragic events of September 11, 2001 triggered a legitimate renewed focus on the security aspect in trade and transport related matters. The most visible initiatives in this area have been: - In 2001, the Customs-Trade Partnership Against Terrorism (C-TPAT) voluntary certification program (USA);
- In 2003, implementation of the “24hrs advanced manifest rule” for shipments to US ports; and
- In 2004, implementation of the International Ship and Port Facility Security Code (ISPS Code) addressing the port and vessel segments of the maritime trade and transport security.
In 2005, the World Customs Organization (WCO) published its “Framework of Standards to Secure and Facilitate Global Trade”. To date, 156 WCO Members have signed a letter of intent to implement the Framework. With such a heavy-weight prime mover, it is likely that the Framework of Standards will shape the majority of the future national SCS programs. But these are only the visible parts of the iceberg. When attempting to map out the current status of supply chain security, analysts find themselves confronted with a mosaic of “initiatives”, programs, codes, “solutions”, technological applications, regulations etc., which may be international, national, regional, sectorial, compulsory, voluntary, unilateral, bilateral, multilateral, mutually complementary or overlapping. On the occasion of the 25th International Association of Ports and Harbors (IAPH) Biennial Conference in 2007, a number of port and shipping specialists convened and debated this growing complexity of the supply chain security theme. They concluded that there is a need to inform and alert trade, logistics and transport governmental and private decision-makers, stakeholders, practitioners and communities, particularly in developing countries, about the rise of a multiplicity of SCS initiatives and programs, and the impact of their implementation on international commerce. The IAPH, the World Bank and the WCO decided to join forces to prepare a paper, which is now published in the form of the Supply Chain Security Guide. “It is recognized that the implementation of the ISPS Code brought along undeniable productivity gains in many ports operations,” said Marc Juhel, World Bank Transport Sector Manager. “While the need to tighten-up the overall Supply Chain Security - from producer to consumer- is unquestionable, there are concerns that certain components need to be handled with extra-care, lest they introduce or cause artificial distortions in the trade routes or, more generally, run against the continued trade facilitation efforts now underway in many developing countries and regions. Governance problems will not be solved by technology alone, and, in line with the Bank’s strategy for the sector, transport, for both passengers and freight, must also remain affordable.” According to the guide’s authors, having seen the difficulties some ports have encountered to fully implement the ISPS Code, there is a real need to heighten awareness of the multiple facets of Supply Chain Security in developing countries.
For more information, please visit: http://www.worldbank.org/ports
The document can be downloaded at: http://siteresources.worldbank.org/INTPRAL/Resources/SCS_Guide_Final.pdf
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