US Customs to Enforce New Container Security Initiative Regulations in October

The new Container Security Initiative (CSI) regulations from U.S. Customs are intended to improve U.S. security by tightening and expanding cargo-reporting requirements. Phase two of CSI, effective October 2003, mandates that all modes of import and export (road, rail, air and marine) electronically transmit cargo manifests to the U.S. Customs Service before departure.

According to Robert Goodwin, vice president, Research, Gartner Inc., "Widespread supply chain disruptions could impose enormous costs, dwarfing the September 11 attacks in raw dollar losses. Of the many issues the transportation industry must address in this area, the most important involves the deployment of more effective technologies supported by government and trade association standards.

"Enterprises that rely on a global supply chain should think seriously about implementing an IT solution to meet CSI requirements. Ideally, this solution will simultaneously improve supply chain efficiency for the company's own benefit," said Gordon Fuller, Practice Lead, Secure Logistics, Covansys. "Companies that do not heed the new reporting requirements mandated by CSI risk incurring serious interruptions in their supply chains, which could cost them millions. There are technological solutions to avert problems."

The first phase of CSI regulations, effective December 2002, impacted the top 20 foreign ports, and required that all container manifests for cargo at foreign sea ports bound for U.S. locations be electronically transmitted to the U.S. Customs Service at least 24 hours before vessel departure. Phase two of CSI expands locations impacted to include areas of the Middle East, Turkey, Dubai, Sri Lanka, and major ports in Africa, Latin America, Asia and Europe.

Fuller will also be a featured speaker at the International Supply Chain Week Conference & Exposition on Sept. 15-18, 2003 in Chicago, Illinois. At the conference, Fuller will explain the effect of changing regulations and technology on supply chains, highlighting real-world problems, illustrating the areas where management oversight can most effectively control the events and interfaces, and providing a successful approach to business and system remediation.

Covansys Corporation (Nasdaq: CVNS), a global consulting and technology services company, announced today the availability of a free educational Webinar on the CSI regulations. Registration and information for the Webinar can be accessed at

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