Vastera Certifications

At the end of 2004, Vastera announced that its eleven managed services operations in Mexico and its site in Bydgoszcz, Poland were certified in compliance with the International Organization for Standardization (ISO) 9001:2000 standard, and ISO 9001:2001, respectively. Founded in 1947, ISO facilitates the international coordination and unification of industrial standards. It has a network of national standards institutes from 148 countries, working in partnership with international organizations, governments, industry, and consumer representatives. ISO 9001:2000 and 9001:2001 certified organizations enhance customer satisfaction by not only meeting customer and regulatory requirements, but also by continually working to improve performance. The certification process includes a rigorous review of business processes, documents, work practices, data, and records by an independent third-party auditor. Thus, such certification indicates that these sites have an exemplary quality management system in place. In addition to participating in such reviews, Vastera employees were interviewed and on-site observations were held at its Mexico and Poland facilities. To date, Vastera has received ISO certification for fourteen managed services operations, including those in Mexico, Poland, US, and Canada.

In addition to being ISO 9001:2000 and ISO 9001:2001-certified, Vastera is

* Customs-Trade Partnership Against Terrorism (C-TPAT) certified, enabling expedited clearance through and reduced physical examinations at US Customs' checkpoints. The C-TPAT program was designed to ensure that proper security procedures are in place to protect the flow of global trade entering the US.

* Partners in Protection (PIP) certified in Canada, recognizing Vastera's dedication to enhanced border security in North America. Mid-2004, Vastera announced that it has been accepted as a member of the Canadian government's PIP program, a joint government-business initiative designed to enhance border security, combat terrorism and organized crime, increase awareness of compliance issues, and detect and prevent smuggling. Available to importers, carriers, brokers, warehouse operators and associations who work in international trade, the PIP program teams private industry with the Canadian Border Services Agency (CBSA). To be admitted to the program, eligible companies must complete a memorandum of understanding, conduct a thorough self-assessment of their supply chain security procedures, and meet periodically with CBSA representatives to exchange information and participate in awareness sessions that help detect illegal activities. In working with the CBSA, Vastera is building a working relationship with the Canadian government in relation to protecting the health, safety, and economic prosperity of Canadians. In return for acceptance into PIP, Vastera will offer support to its own clients throughout the application process. Once approved under the PIP program, Vastera clients can then consider participation in the Free and Secure Trade Program (FAST), a joint US-Canada cross-border program under which pre-approved carriers, importers, and drivers can leverage expedited clearance into either country, transforming the compliance obligation into an opportunity to streamline the supply chain. Additionally, Vastera is a certified customs broker, and an approved software provider of the Customs Self Assessment Electronic Data Interchange (CSA EDI).

* Simpler Trade Procedures (SITPRO) certified in the UK, whereby Vastera is an approved document supplier. It can produce and supply nearly seventy SITPRO standard documents for its customers operating in the UK and Europe.

* Wewn�trzny System Kontroli (WSK) certified in Poland, recognizing Vastera's exemplary quality and compliance management systems. WSK is the Polish internal control system certification. Vastera's Managed Services operations in Poland received WSK certification from the Polish Center for Testing and Certification. The vendor is also IQNet certified in Poland recognizing that its Managed Services operations have implemented and are maintaining a management system which fulfills the requirements of the ISO 9001:2001 standard.

In addition to these certifications, at the end of January, Vastera announced that it is expanding its trade management consulting practice to the European Union (EU). Its management consulting practice complements the software and outsourced trade management solutions already offered by Vastera in Europe. Among the trade management consulting services being offered in the EU are import/export compliance program assessments, process design and implementation consulting, and consulting in areas such as global supply chain management (SCM), and trade lane redesign. Vastera hopes to leverage its strong in-country presence as it pursues new consulting opportunities in Europe, where it currently provides trade management operational solutions and software to companies such as Dell, Ford, Logica, Lucent, Nestle, Nortel Networks, Schenectady International, and Seagate Technology.

Thus, JPMorgan hopes to leverage all of Vastera's certification and prominence in international trade. However, one should note, that though Vastera is impressive, and JPMorgan has notable reach, Vastera, focuses more on the rules and regulations imposed by the many governmental bodies required in cross-border trade (such as product harmonization coding, customs clearance, duties, tariffs, and taxes). Ultimately, the acquisition agreement with JPMorgan will not compensate for what Vastera has always lacked—the technology to automate and manage global logistics tracking, goods movement, and the visibility part of the physical supply chain. JPMorgan Chase will thus have to continue its pursuit of solutions to round out a complete GTM product portfolio, as to reach a "breeze" to navigate international trading channels to place orders, send, and receive shipments and settle bills anywhere in the world.