Made up of 180 member countries, the World Customs Organization (WCO) covers almost all the international trading worldwide, and is in tune with the need to ensure the safety of goods in various stages of the supply chain. To meet this need, the WCO established the SAFE Framework of Standards to Secure and Facilitate Global Trade.
The SAFE Framework is built on two pillars:
- Customs-to-Customs networks.
- Customs-to-Business partnerships.
And is made up of four core elements:
- Harmonization of advance electronic cargo information.
- Risk management to address security threats.
- Performance of outbound inspections on high-risk cargo using large-scale non-intrusive technology.
- Benefits to businesses that meet the safety standards and best practices.
The above are focused on the facilitation of trading by implementing standardized customs policies aiming to work preventively based on risk assessments. One of these policies includes a full advance validation of goods in transit and the tracking of shipments during their transit. This policy also results in a much faster and efficient clearance at the destination and in some instances a decrease of operation costs.
The SAFE Framework initiative has received a positive response from the international trading community, with many countries changing their current processes and legislation to meet these standards.
What does it take to implement it?
Among the various aspects implied on this question, there are three key elements to a successful implementation of the SAFE Framework: financial resources assigned to the modernization, automation of customs process, and the integration a single customs legal frame.
To accomplish the tasks of facilitating trade, the SAFE Framework relies on technology to collect and analyze data in advance and to scan shipments on a large scale. Both aspects require certain systems and platforms to be set and, committed investment from governments.
The question is not really whether governments want to invest in the development of these platforms since the balanced benefits justify the cash allocation, but instead whether they have the resources to do so and can prioritize the requirement from other national interests. To solve this issue, the SAFE Framework suggests a phased approach to enable governments to implement within their financial capacity.
This phased approach will not only help to assimilate the investment on the implementation of these standards, but also will be of use when addressing the integration of the customs legal frame towards mutual recognition.
As countries move to adopt the SAFE Framework they must recognize each other as part of a standardized system, team work will be required to develop the functional mechanisms needed. The U.S. has expressed interest in adopting the SAFE Framework, but they will need to integrate all the new technology, as well as new legal figures such as Authorized Economic Operators, to their current legal customs frame.
The SAFE Framework will allow businesses and customs administrations to benefit from the optimization of standardize import and export processes, as well as increase trade safety.