Managing Global Supply Chains: Compliance, Security, and Dealing with Terrorism, 1st Edition (Hardback) book cover

Managing Global Supply Chains

Compliance, Security, and Dealing with Terrorism, 1st Edition

By Thomas A. Cook

Auerbach Publications

320 pages | 78 B/W Illus.

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September 11, 2001 had a profound impact upon individuals, institutions, and governments, but also upon the world of global trade. Years later, the reverberations of this deliberate and focused act of terrorism are manifest in much more stringent logistics, documentary requirements, and regulations. A single source on compliance and security, written from a supply chain manager’s perspective, Managing Global Supply Chains sorts out all the issues and frames a comprehensive strategy for supply chain executives in the post 9/11 world.

Table of Contents




The Events of 9/11 and How They Affect Global Supply Chains

Overview of Issues and Concerns

9/11: How Were Supply Lines Affected?

It Costs More to Ship

More Attention Had to Be Paid to Documentation and Logistics Detail

Regulations Changed, Making It More Cumbersome to Import and Export

Corporations Had to Modify Their Supply Lines

Purchasing and Selling Decisions Were Altered

Carriers’ Futures Were Uncertain

Increase in Potential Fines and Penalties

An Entirely New Corporate Responsibility Was Created in Security and Compliance

The Mind-Set of the United States Government

The Big Picture

The Risks of Global Trade: Now, Add Compliance and Security

The Security Concern in Our Transportation Infrastructure

Operation Safe Commerce (OSC)

Free and Secure Trade (FAST)

What Is the FAST program?

What Are the Benefits of the FAST Program?

Who Is Eligible to Apply?

Where Is FAST Available?

Compliance and Security: Import Supply Chains

Protecting our Borders Against Terrorism

CBP’s “Twin Goals”: Anti-Terrorism and Facilitating Legitimate Trade and Travel

Better Targeting

Pushing Our “Zone of Security” Outward

Partnering with Other Countries

Partnering with the Private Sector (C-TPAT)

Inspection Technology and Equipment

Keeping Weapons and Money from Falling into Terrorist Hands: Outbound Inspections

Protecting the Miles of Open Border Between Official Ports of Entry

Basic Import Management



Origin Markings

Record Keeping


Customs Brokers

Records Storage Methods

Customs Initiatives Since 9/11

Highlights of CBP’s Accomplishments

Strengthening Our Control of U.S. Borders

Improving Selectivity, Screening, and Targeting

Private, Public Sector, and International Partnerships

Importer Self Assessment (ISA)

Food and Drug Administration (FDA) (Imports)

New (Interim) Final Rules Require Registration of Facilities, Prior Notice Filing for Food Shipments

Automated Commercial Environment (ACE)

Managing Inbound Supply Chains: Purchasing Control

Export Supply Chains

Department of Commerce Census Bureau

Department of Commerce Bureau of Industry and Security


Export Licensing

Denied Parties Screening

Deemed Exports

Anti-Boycott Compliance

Department of Treasury Office of Foreign Asset Controls

Department of State

Implementing a Successful Export Compliance Program

Designating Responsibility

Senior Management Support

Developing Standard Operating Procedures

Best Practices

Internal Assessment

Developing a Compliance and Security Management Program

Analysis of Risks

Obtaining Senior Management Involvement

Forming a Committee Structure

Creating Standard Operating Procedures

Infrastructure and Communication Systems

Resource Development

Risk Management Attitude

Disaster and Contingency Planning


Managing Vendors, Suppliers, Freight Forwarders, Customhouse Brokers, and Service Providers for Compliance and Security Issues

Overview of Global Service Providers

Customhouse Brokers and Freight Forwarders

Specific Compliance and Security Reference Points for Forwarders and Brokers

Carriers: Air, Ocean, Truck, and Rail

Warehouses and Consolidation/De-Consolidation Facilities

Selling Distributors and Agents in Export

Purchasing Distributors and Agents in Import

Third-Party Providers

Banks and Other Finance Houses

Miscellaneous Companies and Services

Cost-Effective Logistics

Critical Issues in Compliance and Security

Sarbanes–Oxley and the Interface with Global Supply Chain Management

DOT Hazardous Material Regulations (49 CFR 100-179)



Shipping Papers

Marking and Labeling



Segregation of Hazardous Materials


Selection of Proper Packaging

Employee Training

Materials of Trade

Managing Hazardous Materials Transportation as Part of Compliance in Global Supply Chains

Facility Security Checklist

Security Checklist for Shipper

Carrier Safety Assessment

Employee Background Check Guidelines

International Port Security Program

The SAFE Port Act

Technology Issues In Compliance and Security

Department of Homeland Security (DHS): “Best Practices for

Container Seals”

Plan to Require Container Seals Motivates Adoption of 13 Cargo Security Best Practices

Standards and Deadline to Come

Getting Ahead of the Curve

Best Practices Outlined

Radio Frequency Identification (RFID): Smart and Secure

SST Phase I Results

SST Phase II Objectives

SST Phase II Benefits

SST Phase II Deliverables

Required Shipper’s Resources

Supply Chain Benefits

Foreign Corrupt Practices Act

Food and Drug Administration/Environmental Protection Agency

Propose Security Restrictions

Food and Drug Administration

Environmental Protection Agency

Ultimate Consignee

INCO Terms

Use of the Term “Ex Works” by Parties in International Contracts and Purchase Agreements

Routed Export Transactions under the July 10, 2000, Federal Register Notice

Responsibilities of Parties in a Routed Export Transaction

Record Keeping: A Vital Issue

Transfer Pricing: A Serious and Potentially Costly Compliance Issue

IRS, CBP, SEC, and DOJ Involvement?

What Business Travelers Need to Know

Container Security Update 2007

Customs-Trade Partnership Against Terrorism

Security Requirements for Validation of Participants

Business Partner Requirements

Security Procedures

Security Training and Threat Awareness

Information and Technology Security

CBP Proposal for Advance Trade Data Elements


Security Filing: Proposed Data Requirements

Vessel Stow Plan: Container Status Messages

Security Filing: Responsible Parties


Annex A: Proposed Data Definitions

Annex B: Data Elements Comparison

Customs Bonds

Parties to a Bond

Types of Bonds

Amounts of Bonds

Continuous Bond

Breach of Bond

Ten Steps to a Secure and Compliant Supply Chain

Acknowledge the Issues

Identify the Point Person

Obtain Senior Management Authorization

Develop an Initial Execution Strategy

Obtain External Resources and Support

Develop a Compliance and Security Committee

Complete a Facilities Review

Prioritize the Issues. Finalize an Action Plan. Implement the Program

Training and Education


Concluding Remarks

The Challenges of Compliance and Security in our Global Supply



Legislation Related to the Attack of September 11, 2001

Bills and Joint Resolutions Signed into Law

Other Resolutions Approved

Legislation with Floor Action

New Government Cargo Security Rules Call on Forwarders to Work with Agents on Securing the Supply Chain

General Aviation Security: Increased Federal Oversight Is

Needed, but Continued Partnership with the Private Sector Is

Critical to Long-Term Success, GAO-05-144, November 10, 2004

Key Acronyms



Subject Categories

BISAC Subject Codes/Headings:
BUSINESS & ECONOMICS / Quality Control
BUSINESS & ECONOMICS / Purchasing & Buying
HOUSE & HOME / Security