security standards such as the SAFE framework, building up networks, stimulating cooperation and fostering collaboration between customs authorities and border regulatory agencies, businesses and governments.   The International Maritime Organization (IMO) has introduced the International Ship and Port Facility Security (ISPS) Code in order to enhance security in maritime transportation worldwide.  The main intention of ISPS code is to create a standardized, stable framework of risk evaluation in order to allow governments to offset changes in threat with changes in vulnerability for ships and port facilities.  According to ISPS code, the only way to defeat threat is to reduce vulnerability.  The ISPS is part of the International Convention for the Safety of Life at Sea (SOLAS) so it is obligatory for 148 SOLAS contracting parties to follow the requirements.  For those countries that are IMO members but not yet included in SOLAS does not have to comply with the ISPS code.  The SOLAS code is mainly focussing on security related requirements for governments, port authorities and shipping companies.  The Maritime Transportation Security Act of 2002 (also referred as MTSA) can be seen as the counterpart to the ISPS Code in the US.

One of the most important components of European Union’s (EU) modified community custom code is called Authorized Economic Operator (AEO).  The intention of this program is to recognize the organization as low risk and more trusted actor under certain circumstances when it comes to actions with customs authorities within the European Union (EU) countries.  It is therefore required that the authorized operator comply the requirements set by the customs authority.  There are three different types of certification based on which alleviation is preferred by the economic operator.  The core part of the European Union’s customs security program is the Import Control System (ICS) which came in effect on January 1st, 2011.  The main intention of this program is to perform risk analysis before the arrival of cargo into the European Union’s countries.  The main focus is the security of the Union and citizens rather than tariff controls but threats such as piracy should be defeated and consumerism strengthened.  In order to declare cargo imported to the EU, an Entry Summary Declaration has to be submitted first.

2.8.1 Cost Impact of cargo security preventive initiatives