Implementing Known Shipper Supply Chain Security Solutions in the USA & Europe

Summary form only given. The known shipper concept for air cargo security is an example of a management-based regulatory regime. Firms are required to produce plans that comply with general criteria outlining how to achieve the security goals in question. These plans are subject to approval by regulators, and often developed with their assistance. The plans generally require firms to produce documentation of subsequent compliance and third-party auditors or periodic audits by regulators are used to certify compliance. A number of countries are in the process of establishing air cargo security regimes based on the "known shipper" approach to management based security compliance. The vast majority of these programs have been launched as voluntary industry/government initiatives. Innovative Compliance Inc has been involved in undertaking research into the implementation of known shipper supply chain security systems since early in 2000. We managed a joint research and development program for the Atlantic City Facility of the Federal Aviation Administration. During 2002 this research initiative was launched as the Known Shipper database of the Transportation Security Administration. Since 2005 we have been operating a voluntary Known Shipper Study for the European Commission in Brussels, with the participation of seven EU Member States, including France, Germany, Italy and the Netherlands. This paper will compare the implementation methodologies and research findings from the above voluntary programs, compare the operational experiences in the USA and EU, and describe variances and similarities between these air cargo programs and comparative voluntary Customs Administration supply chain initiatives in the USA (C-TPAT) and Europe (Authorized Economic Operator).