Security and customs clearance are currently major political concerns as well as supply chain ones. David Priestman met with two companies that specialises in IT solutions for customs and security and overviews the global issue.

Mike Dixon is MD of Langdon Systems, the Wigan-based niche provider of consultancy and software solutions for customs clearance - both to 3PLs/forwarders and end-users. Since 1984, Langdon has delivered software solutions to the international trade community through the design and development of a modular 'Duty Management System'. This system is designed to reflect the many Customs regimes available to companies involved in the import, warehouse, manufacture and export of products, as well as the broad cross section of industry types involved.

Langdon's products include the 'MAXIman' customs WMS, 'PORTman' import system, 'Intrastat' software for automating the capture, processing and reporting of arrival and despatch data in order to satisfy customs (which runs on UNIX and PC-DOS), 'OUTman' outward processing relief management and 'INman' (inward relief).

Langdon approach the subject from the viewpoint and background of customs officials, not software engineers. There is nothing 'nerdy' or 'flash' about their products and services, more thoroughness and precision. Its all about know-how and, being gamekeeper turned poacher, Langdon help customers maintain compliance with international regulations and duties and move goods more cost-effectively.

Dixon explained to me how Langdon aids customers with declarations, import/export licenses and choice of destinations and transit routes (which effect duty levels). By partnering with SCE vendors like Manhattan Associates Langdon has the software competence to marry to its know-how. "Customs planning should start in the purchasing department, not with expedition," says Dixon. He continued:

"Lots of companies pay unnecessary duties - because of their trading patterns and the locations where taxes are paid. The general attitude is 'pay it as soon as possible', which hits cash flow. Duties are typically around 10% plus local VAT but sometimes there are high import duties, such as anti-dumping levies. An operator can defer duties for months and pay them only when shipping to a retailer, wholesaler or dealer. The duty is therefore paid when the supplier has invoiced for payment by its retailer/distributor. There may not need to be a physically separate building for bonded goods. Flexibility can be gained from storing bonded and free circulation stock in the same distribution centre - achievable when you have the right IT solution.

"Efficient management of customs clearance, bonding and duty payments will give a 3PL or end-user operator a competitive advantage, simply for the fact that the area is often overlooked. By managing import, storage and transport intelligently the duty can be minimised and paid as late as is necessary.

Customs legislation and procedures are a complex area that can have a significant impact on business practices and operating costs. It is an area that is often left to 3PLs, who may not have the necessary commercial information or knowledge of customs processes to maximise duty savings within an organisation. Langdon is acknowledged as the market leader when it comes to recognising the importance of customs consulting and solutions. Close attention to this often neglected area of supply chain management can bring great dividends in revenues saved and cash flow benefits.

One Langdon customer, Richard Cunningham of Sony Broadcast, told us, "the flexibility of the Langdon software and the expertise of their personnel have proved to be a valuable contributor to our European operations."

6 million containers enter the USA ports each year yet, prior to a new security initiative (part of 'Operation Safe Commerce') launched last summer, little was known about their contents and point-of-origin. Seattle port was the pioneer of a track and trace scheme that monitors each container from its origin to ultimate US destination. US officials now inspect containers at Hong Kong, Singapore and other major ports.

Vikram Verma is President and CEO of Savi Technologies. Savi supply realtime software and tagging solutions for seafreight operators, including the US Department of Defence (DOD). He told us about a joint project with PAR Technology, the US Department of Transportation and the DOD to assess real-time communications between Savi's electronic bolt seal hardware (E-Seals) and software system and PAR's wireless systems for tracking the security status of intermodal cargo containers transported between the US and Europe.

The E-seal project is designed to track commercial container shipments from their point of inspection, along trade corridors, to their point of clearance. In addition, the E-seal technology can facilitate border clearance activities and commercial vehicle enforcement and offer potential benefits to freight carriers that include greater accuracy in manifest information, reduced paperwork, improved port and Customs clearances, and opportunities for shipment tracking.

The groundbreaking project links Savi's RFID products with PAR's cellular and GPS-based tracking system to assess interoperability in support of national security applications for monitoring the integrity of cargo containers. In addition, a project called the European Container Security Test and Equipment Tracking Demonstration, will evaluate the benefits of these technologies working together to improve end-to-end chassis and cargo visibility, operational efficiency, asset utilisation, data accuracy and on-time delivery for both the private and public sectors.

"We're excited about this partnership with Savi to help demonstrate our ability to fully monitor the location and security status of container shipments from point of loading to final destination," Greg Talomie, VP of PAR, told us. "We also expect to establish the value of collecting, consolidating and making available real-time chassis, container, cargo and security information."

As part of the field operation test, Lykes Lines will manage the physical transport of intermodal cargo containers on chassis by truck, rail and ship from the point of loading at a Defence Logistics Agency supply facility in Virginia, to final destination in Germersheim, Germany. Savi's broad customer base includes Woolworths, Singapore Airlines, Hutchison Whampoa and P&O Ports. www.savi.com

Evergreen America has received notification that its 'Supply Chain Security Profile' has fulfilled US Customs requirements for participation in the 'Customs-Trade Participation Against Terrorism'. The letter from US Customs to Thomas Chen said: "You are contributing to the security of our borders and to the continued free flow of international trade. The participation of Evergreen is but the first important step in what promises to be a sustained effort to meet the challenge posed by the terrorist threat to the US." The letter acknowledged the carriers' responsibility in establishing their own "complete and detailed security plan for Customs to review upon request."

Chen said, "as responsible members of the world shipping community, the Evergreen alliance stepped forward very early in the C-TPAT initiative to ensure its support and to take a leadership role in this matter." In the process, Customs will assign each carrier an Account Manager, encourage each carrier to set up security programmes which will be reviewed by the agency, and provide yearly assessments to all participants.

DCS Transport & Logistics Solutions, a leading provider of software and services to the freight and logistics industry, has announced that US Customs have certified the company to be a Sea AMS Vendor. DCS have sought this recognition in response to US Customs requiring 24 hour advance notice of manifest information, prior to loading at a foreign port, in order to enhance security.

This certification allows DCS to offer NVOCC clients their Advance Manifest (sea) Application, which is designed to be used specifically with the US Automated Manifest System to comply with the current 24 hour ruling imposed upon carriers this month. DCS T&LS have over 25,000 end-users of their applications in over 71 countries, with operations in UK, Netherlands, Belgium, Germany and USA. www.dcstrans.com