On March 14, 2014, Japan will join the global effort to
make things more difficult for exporters secure supply chains against international terrorism with the implementation of it’s own “24-hour rule.”
First implemented by the U.S. in 2002, the 24-hour advance manifest rule requires all inbound cargo carriers to submit complete manifests a full 24 hours before leaving their ports of departure. The rule has since been widely adopted by countries all over the world.
Under Japan’s 24-Hour Rule (JP24), notice of all containerized freight bound for Japan must be transmitted at least 24 hours before cargo is loaded onto vessels to the Nippon Automated Cargo and Port Consolidated System (NACCS), the Japanese government agency responsible for the country’s import/export and customs clearance services. Continue Reading
I got a call recently from a local manufacturer looking to sue a supplier in a Latin American country for breach of contract.
Given Miami’s proximity to the region, I see these types of cases a lot.
The first thing I’ll do is take a look at the case to confirm that jurisdiction would be proper in the U.S.
And most of the time it is.
However, when the jurisdictional nexus is weak or nonexistent, these Latin American breach of contract cases must be litigated in the region.
Litigation in Latin American is Painfully Slow
So whenever I tell a client that the case must be litigated in Latin America, I say “good luck with that.” Continue Reading
A special guest post by Global Security Consultant and Political Risk Expert, Paul Crespo. This is the latest post in the series.
With the growth of global commerce more businesses rely on maritime shipping to get their goods and raw materials to market.
The release of the Tom Hanks film “Captain Phillips” depicting the 2009 hijacking of the US merchant ship Maersk Alabama by Somali pirates, has reminded us of the threats to that shipping. US Navy SEALS successfully resolved that high-visibility ship hijacking, but how secure are the cargo ships that your international business relies on today?
Global Cost of Piracy
According to a study by Oceans Beyond Piracy, the cost of maritime piracy to the global economy in2012 was between $5.7 and $6.1 billion. This was a drop of 12.6% from about $7 billion in 2011, due mostly to a 70% drop in Somali piracy. The report notes however, that while overall piracy incidents have declined substantially, the cost “per incident” is now much higher. Continue Reading
A special guest post by Global Security Consultant and Political Risk Expert, Paul Crespo. This is the seventh post in the series.
Global companies today face a variety of serious risks that range from political disturbances, terrorist bombings, supply chain disruptions, natural disasters and cyber-attacks, to the kidnapping of key executives.
Any of these threats can create corporate crises that can seriously damage your company’s operations, reputation and even existence. Even worse are the threats we don’t foresee or predict – potentially catastrophic Black Swan events like 9/11.
Depending on the country where it occurs, a corporate crisis can also be severely compounded by language and cultural differences that will magnify the confusion and multiply the damage. How your company handles a crisis can make or break its future. So, what can your international company do to prepare for a crisis?
Below are 3 key steps to take before a crisis explodes: Continue Reading
A special guest post by Global Security Consultant and Political Risk Expert, Paul Crespo. This is the sixth post in the series.
With larger and costlier data breaches being reported every day, cyber security is quickly moving from being seen by C-level executives as a purely technical security issue, to a top business risk for global corporations.
Cybercrime and cyberspying are costing the US economy $100bn a year, and the global economy perhaps $300bn annually, according to a report by the Center for Strategic and International Studies (CSIS); and senior business executives are taking notice. Continue Reading
A special guest post by Global Security Consultant and Political Risk Expert, Paul Crespo. This is the fifth post in the series.
Mexico is a top Latin American location for American business operations. A vast market with close proximity, Mexico represents the United States’s second largest export market and its third largest source of imports.
Recently however, the battle against, and between, powerful drug cartels has given Mexico a black eye. Roughly 70,000 people have been killed in drug-related violence since 2006. Constant reports of gruesome and escalating violence have dominated headlines for the past few years, making some American businesses wary of Mexico.
Mexico’s new President Enrique Pena Nieto, has vowed to reduce the violence by tackling crimes like extortion and kidnapping rather than focusing on hunting down drug bosses. The security situation however, remains problematic. Some parts of the country are still in virtual lock down. Continue Reading
Last week Apple released the Apple iPhone 5s. The most innovative feature of the new phone was the device’s fingerprint scanner, which was widely heralded as being the world’s first “hack proof” access point.
It took only a few days, however, for a German hacking group to bypass the phone’s latest security feature and gain access to the device.
The incident is the latest example that no security barrier is too great for a determined corporate spy to breach.
As our foreign competitors step up their efforts to do whatever they can to steal our vital trade secrets, there’s never been a more critical time for American companies to implement effective industrial espionage countermeasures.
Safeguarding information is not only necessary to keep America competitive, it’s also the law. Continue Reading
Earlier this week I wrote about industrial espionage and how it is the fastest and least expensive way for our foreign competitors to bridge the innovation gap with the U.S.
Using cutting-edge technology and age-old techniques of deceit and manipulation, corporate spies are the greatest post-cold war threat to international business.
Today’s international conflicts are not limited to nation to nation disputes. Increasingly, they include corporation versus corporation. The recent trial between U.S.-based Apple and South Korean technology giant Samsung is just one example of the epic battle raging over the world’s most coveted trade secrets.
At its essence, Industrial espionage is the process of illegally and unethically gaining confidential information from other companies – formulas, algorithms, strategic plans, and other intellectual property to gain a competitive edge over a competitor. Having company secrets stolen by a competitor is costly and can be lethal to your global business.
That’s why it’s never been more important for American executives to educate themselves on the range of corporate espionage tactics used against them. Continue Reading
A special guest post by Global Security Consultant and Political Risk Expert, Paul Crespo. This is the fourth post in the series.
For ten years Brazil has been the darling of the emerging market countries: the “B” in BRIC (Brazil, Russia, India & China). With annual growth rates of 5 percent, its stock markets often doubled year to year. Brazil is hot. It will be hosting the World Cup next summer and the Olympics in 2016.
Recently however, many of the risks of doing business in Brazil have begun to dampen some of this enthusiasm. The economy has slowed considerably, and the summer’s mass protests that rocked dozens of cities across the country, reminded us that despite the tremendous potential, Brazil is still one of Latin America’s most dangerous places to do business.
Even before these protests, FTI Consulting had given Brazil a 4 on a five-point Latin American Public Security Index, with 5 being the most dangerous. That ranking placed Brazil on par with Bolivia, Colombia and El Salvador. Continue Reading
Spying continues to dominate the news. Just today Brazilian President Dilma Rousseff cancelled a trip to meet with President Obama over revelations that the U.S. actively spied on Brazil.
Up until recently, the prevailing view was that companies located in China and Russia had the most active industrial espionage programs.
That’s all changed after the Snowden leaks.
According to a recent report, German companies now view the U.S. as a higher risk for corporate espionage than even Russia.
I think the ridiculous comparison is worth a laugh. Continue Reading