The Foreign Service Journal, December 2005

transferred electronically. Having to manually re-enter the data upon shipping, on the manifest and bill of lading, at the customs house, in the retailer’s warehouse, in the stockroom and at the checkout can be eliminated in a complete end-to-end distribution system supported by an RFID infrastructure. In addition, each item can have its own unique identi- fier, thereby permitting each item to be tracked and traced. Tracking product usage, returns and even re- calls gives nearly complete control over product distribu- tion and development, making the detection of counter- feiting and thefts much easier and quicker. But, as with any technology that is mouthwatering to some, the issues surrounding its development and appli- cation warrant a clear-eyed look. Disruptive, Discordant Technology The infrastructure to support RFID technology is not yet in place globally. Issues range from interoperability of systems to the lack of globally recognized standards, test- ing and reliability. Four challenges, however, stand out. First, the real-time nature of RFID data creates con- cerns for privacy and security experts. Eliminating paperwork and removing the human element may speed goods through the supply chain, but those advances also threaten traditional laws, regulations and procedures established to maintain the flow of goods and people across borders. The biggest challenges of RFID arise from the proliferation of data, the sharing of the data and databases, and from the possibility of snooping via radio. With few standards or common patterns of behavior yet established on a global basis, RFID watchdogs sug- gest that the following information practices must be accepted in order for the technology to thrive: • Users must be provided notice that the technology is in use with the intent of collecting personal data limited to the purposes for which it is collected. • Collected data is accurate, complete and timely. • Personal data are protected by reasonable security safeguards against risk of loss, unauthorized access, destruction, use, modification or disclosure. • Users can view all information collected about them. • Compliance with these guidelines is mandated and a system is maintained to implement compliance. Second, there are no laws yet to provide warranty pro- tection on systems, readers and antenna RFID products. F O C U S 34 F O R E I G N S E R V I C E J O U R N A L / D E C E M B E R 2 0 0 5 Airline baggage. Some airlines, like British Airways, have been studying the use of RFID in baggage tagging, hoping to decrease operational costs. Misdirected or lost baggage can cost as much as $200 per bag on average, some analysts esti- mate. In 2004, the International Air Transport Association con- ducted a pilot study of RFID technology. They concluded that: 1) RFID must be concurrently integrated with bar-code tech- nology; 2) only a systemic, integrated approach will be suc- cessful in the long run; and 3) tag costs are still too high. Eventually though, U.S. domestic airlines may be forced to adopt RFID luggage tracking for security reasons. Shipping containers. Shipping is another area where RFID tagging has a future. Some analysts estimate that of the 18-20 million shipping containers moving around the world on any given day, less than 400,000 are ever inspected. To address this, containers that range in length from 20 to 45 feet are being retrofitted with external seals that include RFID technology. Sophisticated harbors, like Singapore, are already equipped to handle RFID-tagged containers. Livestock. One longtime practical and successful appli- cation of RFID tagging has been to identify and track live- stock. By encoding the type of breed, diet and breeder’s infor- mation into a tag implanted under the skin of a pig, for exam- ple, the entire hog industry has much more control over its market and consumers benefit from increased quality control. Already used to track valuable migratory wildlife and fish whose geographical boundaries rarely respect political boundaries, RFID tagging could also be used as a tool to aid in containing dangerous, life-threatening contagions and viruses that jump from livestock to humans, such as avian influenza, SARS and mad cow disease. Airplane parts. The U.S. Federal Aviation Administration recently decided to authorize using RFID tagging on airplane parts. Once the supporting system is in place, airplane man- ufacturers and airlines can incorporate into routine mainte- nance practices a scan of the airplane’s parts. The tags will store data on each part’s age and service record, for example, thereby expediting maintenance and improving overall quality control. Pharmaceuticals. The Food and Drug Administration expects that counterfeiting drugs will be “extremely difficult or unprofitable” with reliable RFID in place. By the end of 2005, one of the first pharmaceutical companies to ship with RFID tagging to thwart counterfeiting is Pfizer. The drug giant is expected to begin shipping packages of Viagra, one of the most counterfeited drugs, with RFID chips. A GLOBAL IMPACT: OTHER APPLICATIONS