Customs have to balance the task of uncovering illicit activity in the supply chain, with the need to keep legitimate cargo moving across the border in a timely manner.
Removing the Haystack
A simple analogy is the proverbial ‘finding the needle in a haystack’. The needle being smuggled goods hidden inside a container, and the haystack representing the majority of legitimate cargo.
While our C-Hawk risk assessment system helps customs target high-risk containers (the needles), it also helps to identify low-risk or no-risk shipments. In this way it effectively removes the haystack, allowing customs to concentrate their limited resources on only the highest risk containers.
Certifying Low Risk Shippers
To help customs identify what may be considered a low-risk shipment there are at least two very effective certification processes that can qualify an entity in the supply chain, such as an importer, exporter or customs broker etc., as being trustworthy. In the U.S. there is C-TPAT. In most other countries the AEO program (Authorized Economic Operator) is available to those involved in the supply chain.
The AEO program was designed and offered to member countries by the WCO (World Customs Organization). It is incumbent upon customs in each country to administer the program on behalf of its national trading community.
Applying for AEO
In most countries, applying for AEO status is a manual, paper-based process between the applicant, and customs. C-Hawk will soon include a module that will automate much of this process; from the online application through the vetting process to final award. The system will provide transparency to both customs, and the applicant as the process moves along the various stages of verification.
Facilitating a Low Risk Shipment
Ideally, once a supply chain entity, such as an importer, has become AEO compliant, then the targeting system employed by customs will be able lower the risk associated with that particular shipment, and therefore it will be less likely to be detained or physically inspected.
This is something C-Hawk can facilitate automatically.