One of the largest security risks in shipping is the potential terrorist breach of containers and other closed cargo units. As a consequence, DNV has made an analysis of the security risk originating from present cargo handling procedures, and assessed the regulatory regimes currently in place or under development
Apart from unilaterally implemented security initiatives, such as the US-launched C-TPAT and CSI, or the Swedish Stair-Sec programme, it was concluded that (with the exception of some agricultural cargoes and dangerous goods) the contents of shipped containers were of no-one's concern until they arrived in the country of destination.
The conclusion to DNV's investigation is that unless timely measures are taken, once the ISPS Code on 1 July 2004 is implemented, masters and shipowners could face an unpredictable liability should harbour authorities discover any tampering of cargo or containers at arrival in port.
This was one of the reasons why DNV has become active in the Security Task Force of the World Customs Organisation (WCO), which had been requested by both IMO and the members of the G8 Summit, to develop instruments to enhance safety and the security of the supply chain whilst continuing to facilitate world trade.
The WCO Security Task Force was set up in June 2002 to represent customs as well as the trade and transport sectors, and so far produced measures of an administrative nature only. Besides there are customs organisations that find it difficult to change focus from revenue collection of imports to security supervision on exported goods.
DNV is pushing the WCO to speed up the process and has started working with them on sector-specific guidelines. Currently the development of guidelines for three sectors (maritime transport, air transport and mporters/exporters) is in progress, the completion date for these guidelines is expected to be by June 2004 and they will provide an umbrella for a future supply chain security standard.
Essentially, compliance to this new Supply Chain Security Standard will give a 'Green Lane' through Customs.
DNV has proposed a draft Code as basis for such standard. This draft Code embraces all existing supply chain security requirements in the market, is fully compatible with the ISO 9000-2000 standard and seamlessly connects the rest of the supply chain to the ISPS Code. It ostensibly formulates generic security requirements for the four basic processes in the land-based supply chain: stuffing of cargo units; storage of cargo and closed units; transport by road, rail or inland waterways; and the processing of information.
During the next few months DNV will, together with a number of progressive Customs organisations and multinational companies, test the validity and applicability of this Code in a series of pilot projects. Later, in the second half of 2004, a certification scheme will be rolled out, based on this standard, into those industrialised countries where customs are prepared to provide a green lane to certified companies.
In parallel to these pilots, and the work going on in the World Customs Organisation, DNV is attempting to have its Supply Chain Security Code turned into an ISO standard. For this DNV has established a close cooperation with the UN Economic Commission for Europe.