Economic Integration

The International Organization for Standards (ISO) has issued a new standard designed to    help maintain structural integrety throughout the supply chain at times of catastrophic weather, political and economic upheavals, among other challenges.

In a press release earlier this month announcing the introduction of the new standard, ISO noted that organizations around the world are increasingly implementing risk management processes to deal with uncertainty and ensure continuity. However, if their suppliers are unable to deliver, or customers unable to purchase, the ability of an organization to achieve its objectives would be compromised.

In response, ISO has developed a new standard, ISO 28002:2011, Security management systems for the supply chain – Development of resilience in the supply chain – Requirements with guidance for use, “to promote resilience at every step of the supply chain.”

In the announcement, Captain Charlie Piersall, chairman of the ISO committee that developed the standard, said “Organizations are realizing more and more that to be resilient, it is not enough to focus on internal processes.  As they seek assurance that their suppliers and the extended supply chain in general, have planned for and taken steps to prevent and mitigate the threats and hazards to which they may be exposed, there is a strong demand for standards and best practice. For resiliency, ISO 28002 is that standard.”

He said ISO 28002 offers a comprehensive and systematic process to enhance prevention, protection, preparedness, mitigation, response, continuity of operations and recovery from disruptive incidents. Its generic auditable criteria, when implemented in a management system, can be used to establish, implement, monitor, review, maintain and improve an organization’s resiliency policy to plan for, take action and make decisions before, during and after an incident to its supply chain.

“Today, the leadership of any organization has a duty to its stakeholders to plan for its survival,” said Captain Piersall.  “ISO 28002 offers them an invaluable tool. Its integrated approach is both flexible and proactive, and utilizes to the maximum the knowledge, capabilities and expertise within an organization. In this way the standard helps meet individual needs for risk management within an economically sound context.”

The ISO announcement said the new standard can be applied to any organization including private, not-for-profit, non-governmental, and public sector. Implemented within a management system, it enhances an organization’s capacity to manage and survive any disruptive event and take appropriate actions to help ensure its viability and continued operation. This International Standard was developed as part of the ISO 28000 series on security management systems for the supply chain. 

Questions:  Which ISO standards does your company already use?

What value have they provided to operations?

What interest do you have in this new standard?

When Congress returns from its August recess, introduction in the Senate and passage of the Textile Enforcement and Security Act of 2011 (TESA) will be a priority for the National Council of Textile Organizations (NCTO).  The bill already is before the House of Representatives.

NCTO President Cass Johnson has noted that the TESA legislation is aimed at boosting US Customs and Border Protection (CBP) enforcement activities by providing the agency with improved targeting, increased resources, and expanded authority.

“Our industry and its workers have seen job losses due to Customs fraud grow dramatically over the last decade as unscrupulous importers and producers have progressively discovered the loopholes in our enforcement rules and regulations,” he said.  “At the same time, US Customs has significantly reduced resources dedicated to fighting textile fraud. 

“Fraud schemes include undervaluing goods, illegally claiming FTA (Free Trade Agreement) preference, illegally transshipping goods, as well as front or ghost companies that pose as US manufacturers. These schemes cost textile jobs at home while also cheating the US government out of more than a billion dollars in uncollected duties and penalties every year,” said Johnson.

NCTO contends that the TESA legislation addresses many of its key concerns by providing US Customs officials with broader authority to more efficiently target goods, while also giving them additional tools and resources to increase their commercial enforcement efforts and reduce the prevalence of fraud that is damaging the US textile industry sector.

The bill includes provisions that would: 

•  Increase the number of trained import specialists in textile and apparel  verifications at the 15 largest US ports. 
•  Mandate the government publish names of companies that intentionally violate  the rules of trade agreements. 
•  Allow Department of Homeland Security and Department of Treasury to use  amounts from the fines and penalties collected to pay for expenses directly  related to investigations and/or training. 
•  Instruct the US government to establish an electronic verification program that  tracks yarn and fabric inputs in free trade agreement countries.
•  Establish a Textile and Apparel New Importer Program and a Nonresident  Importer Program. 
•  Establish a Textile and Apparel Manufacturing and Supplier Registry.

 Most recent data shows that CBP collects over $30 billion in revenue annually, making it the second largest revenue generator for the US government. Forty two percent of all duties, more than $12 billion, are collected by CBP from textile imports.

Question:  Should the provisions in the proposed legislation be considered a complete remedy, or just a starting point in the effort to close loopholes in current regulations and prevent fraudulent activities?