Unit 4 - SAFE

The Safe
Framework of
Standards to
Secure and
Facilitate Global
Trade (SAFE
Framework)
Presented by M. Wilson-Maxwell
Customs Role
in International Trade
• Border protection
• Trade facilitation
• Collection of Revenue
Why was the Safe Framework of Standards
introduced?
• Disruption in the global supply chain
• Need for a safer world trade regime and

for partnership between Customs and business
Adoption of the SAFE
• The World Customs Organization (WCO) along

with the Directors General of Customs
adopted the Safe Framework of Standards to
Secure and Facilitate Global Trade.
What is the SAFE Framework of Standards?
• The SAFE Framework is a non-binding

international instrument of the WCO that sets
modern supply chain standards regarding end
to end management of good moving across
borders
Versions of the SAFE
• In fulfilling its mission to facilitate
implementation of the SAFE
Framework and to keep it updated,
the WCO has rolled out different
versions of the SAFE framework since
its inception.
• The 2007 version of the SAFE
Framework incorporated detailed
provisions on the conditions and
requirements for Customs and
Authorized Economic Operators
(AEO)
• In June 2010 the WCO issued its SAFE
Package which brought together all
WCO instruments and guidelines that
support implementation of the SAFE
Framework.
• The June 2012 version of the SAFE
Framework included new parts 5 and
6 in respect of co-ordinated Border
Management and Trade Continuity
and Resumption
• The June 2015 version of the SAFE
Framework includes, among other things,
–an addition of a new Pillar 3 to foster
closer cooperation between Customs
and other government agencies,
ensuring an efficient and effective
government response to the
challenges of supply chain security.
Benefits of the SAFE Framework of
Standards
• SAFE Framework provides a consolidated platform
which will enhance world trade, ensure better
security against terrorism and other forms of
transnational crime, and increase the contribution of
Customs and trade partners to the economic and
social well-being of nations. It will improve the ability
of Customs to detect and deal with high-risk
consignments and increase efficiencies in the
administration of goods, thereby expediting the
clearance and release of goods.
Benefits of the SAFE
Framework of Standards
• THE GOVERNMENT
– The SAFE supports economic and social
protection, and will enable foreign direct
investment.
– empowers governments to expand the mandate

of Customs through the establishment of co-
operative arrangements between Customs and
other government agencies.
• CUSTOMS
– The SAFE Framework is to establish and enhance Customs-
to-Customs network arrangements to promote the
seamless movement of goods through secure international
trade supply chains
– More effective risk management
– Earlier security control mechanisms in the supply chain
– Mutual recognition of customs control under certain
circumstances
– more comprehensive view of the global supply chain and
creation of the opportunity to eliminate duplication and
multiple reporting requirements among Customs.
• BUSINESSES
– The SAFE Framework takes account of, and is based on,
modern international production and distribution models.
– Reduction in processing time and costs e.g. AEO
programme
– reduces multiple and complex reporting requirements
through uniformity and predictability of processes.
– reduced risk-targeting assessments and inspections, and
expedited processing of their goods.
Capacity Building
• Capacity Building is an important element to
ensure widespread adoption and
implementation of the SAFE Framework
• Countries committed to implement the SAFE

Framework should be assisted by the WCO
and a consortium of Members and other
co-operating partners.
Implementation
• Capacity Building + a phased approach is
required for successful implementation of the
SAFE Framework
• The SAFE Framework should be implemented

at various stages in accordance with each
administration’s capacity and the necessary
legislative authority.
The Four (4) Core Elements of the SAFE
Framework
1. Advance electronic manifest information.
2. Common risk-management approach.
3. Inspection of high-risk cargo at port of origin
4. Enhanced trade facilitation for legitimate

trade
Three Pillars of the SAFE
Framework
• The SAFE Framework, based on the previously
described four core elements, rests on the three
pillars of Customs-to-Customs network
arrangements, Customs-to-Business partnerships
and Customs-to-other Government Agencies
co-operation. The three-pillar strategy has many
advantages. The pillars involve a set of standards that
are consolidated to guarantee ease of understanding
and rapid international implementation of the SAFE
Framework.
Pillars of the SAFE Framework
• PILLAR 1 : CUSTOMS – CUSTOMS
• PILLAR 2 : CUSTOMS - BUSINESS
• PILLAR 3 : CUSTOMS – Other Government

and Inter-Government Agencies
(SAFE PACKAGE 2015)
Standards and Technical
Specifications for
Implementation
• Overarching themes to guide the

Implementation Process for the
SAFE Framework Pillars
PILLAR 1
Customs-to-Customs Standards
• (1) Integrated Supply Chain Management
• (2) Cargo Inspection Authority
• (3) Modern Technology in Inspection Equipment
• (4) Risk Management Systems
• (5) Selectivity, Profiling and Targeting

PILLAR 1
Customs-to-Customs Standards
• (6) Advance Electronic Information
• (7) Targeting and Communication
• (8) Performance Measures
• (9) Security Assessments
• (10) Employee Integrity
• (11) Outbound Security Inspections

PILLAR 2
Customs-to-Business Standards
• (1) Partnership
• (2) Security
• (3) Authorization
• (4) Technology
• (5) Communication
• (6) Facilitation
Pillar 3
Customs to Other Government and
Inter-Government Agencies
Cooperation within Government
• (1) Mutual Cooperation
• (2) Cooperative Arrangements/Procedures
• (3) Alignment of security programmes
• (4) Harmonization of national control
measures
• (5) Development of continuity and
resumptions measures
Pillar 3
Cooperation between and among governments
• (6) Harmonization of data filing requirements
• (7) Mutual Cooperation
• (8) Development of Cooperative
Arrangements or Protocols
• (9) Harmonization of security programmes
• (10) Harmonization of cross-border control
measures
Pillar 3
Multinational Cooperation
• (11) Establishment of Mutual Cooperation
• (12) Development of cooperative

arrangements or protocols
What is an Authorized Economic
Operator (AEO)?
• An Authorized Economic Operator (AEO) is a

party involved in the international movement
of goods in whatever function that has been
approved by or on behalf of a national
Customs administration as complying with
WCO or equivalent supply chain security
standards.
Who can be an Authorized
Economic Operator (AEO) ?
• AEOs may include manufacturers, importers,

exporters, brokers, carriers, consolidators,
intermediaries, ports, airports, terminal
operators, integrated operators, warehouses,
distributors and freight forwarders.
AEO in the SAFE Framework
• The AEO programme falls under Pillar 2 of the
SAFE Framework: Customs - Business
• The AEO programme represents an

international platform where both Customs
administrations and the trade related private
sector, can share in the responsibility of
securing the international supply chain.
Conditions and Requirements by
Customs for the AEO
The AEO should demonstrate /maintain:
• Demonstrated Compliance with Customs
Requirements
• Satisfactory System for Management of Commercial

Records
• Financial viability
• Consultation, Cooperation and Communication

Conditions and Requirements (cont.)
• Education, Training and Awareness
• Information Exchange, Access and Confidentiality
• Cargo Security
• Conveyance Security
• Premises Security
Conditions and Requirements (cont.)
• Personnel Security
• Trading Partner Security
• Crisis Management and Incident Recovery
• Measurement, Analyses and Improvement

Benefits to the Authorized
Economic Operator
• Measures to expedite cargo release, reduce transit
time and lower storage costs
• Measures to facilitate post-release processes
• Special measures relating to periods of trade

disruption or elevated threat level
• Participation in new trade facilitation

programmes/initiatives
Benefits to the Authorized
Economic Operator
• Benefits provided by other government agencies
• Benefits under mutual recognition

arrangements/agreements(MRAs )
• Providing access to information of value to AEO

participants
• Indirect benefits

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The Safe

• Disruption in the global supply chain

• Need for a safer world trade regime and

• The World Customs Organization (WCO) along

• The SAFE Framework is a non-binding

– empowers governments to expand the mandate

• Countries committed to implement the SAFE

• The SAFE Framework should be implemented

2. Common risk-management approach.

3. Inspection of high-risk cargo at port of origin

4. Enhanced trade facilitation for legitimate

• PILLAR 2 : CUSTOMS - BUSINESS

• PILLAR 3 : CUSTOMS – Other Government

• Overarching themes to guide the

• (2) Cargo Inspection Authority

• (3) Modern Technology in Inspection Equipment

• (4) Risk Management Systems

• (5) Selectivity, Profiling and Targeting

• (7) Targeting and Communication

• (8) Performance Measures

• (9) Security Assessments

• (10) Employee Integrity

• (11) Outbound Security Inspections

• (12) Development of cooperative

• An Authorized Economic Operator (AEO) is a

• AEOs may include manufacturers, importers,

• The AEO programme represents an

• Satisfactory System for Management of Commercial

• Consultation, Cooperation and Communication

• Information Exchange, Access and Confidentiality

• Trading Partner Security

• Crisis Management and Incident Recovery

• Measurement, Analyses and Improvement

• Measures to facilitate post-release processes

• Special measures relating to periods of trade

• Participation in new trade facilitation

• Benefits under mutual recognition

• Providing access to information of value to AEO

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