|
Newsletter: May 2006
Customs-Trade
Partnership
What is C-TPAT?
C-TPAT is a voluntary
government-business initiative to build cooperative relationships that
strengthen and improve overall international supply chain and U.S. border
security. Through this first worldwide supply chain security initiative, the
U.S. Customs and Border Protection (CBP) is asking businesses to ensure the
integrity of their security practices and communicate and verify the
security guidelines of their business partners within the supply chain. In
exchange, CBP provides reduced inspections at the port of arrival, expedited
processing at the border and other significant benefits such as “front of
the line” inspections and penalty mitigation.
Launched in 2001 with just 7
importers, today 6,000 companies have been accepted as certified partners.
CBP is responsible for
screening all import cargo transactions. Utilizing risk management
principles, C-TPAT seeks to enroll compliant low-risk companies. The goal is
to identify compliant trusted import traders who have good supply chain
security procedures and controls to reduce screening of their imported
cargo. In turn, this enables CBP to focus screening efforts on import cargo
transactions involving unknown or high-risk import traders.
Benefits of Participation
in C-TPAT
By participating in C-TPAT,
companies will ensure a more secure and expeditious supply chain and
benefits including: A reduced number of CBP
inspections (reduced border delay times) Priority processing for
CBP inspections. (Front of the Line processing for inspections when
possible.) Assignment of a C-TPAT
Supply Chain Security Specialist (SCSS) who will work with the company to
validate and enhance security throughout the company’s international
supply chain.
CBP expectations for the
C-TPAT participant
Certified C-TPAT companies
are committed towards the common goal of creating a more secure and
efficient supply chain through partnership. Businesses must ensure that
their brands, employees, and customers are protected to the best of their
abilities.
Foreign Suppliers
Requirements
After the importer’s C-TPAT
validation, follow-up meetings and site visits are conducted with
foreign suppliers and service providers to evaluate their progress against
the C-TPAT Security Criteria. As part of this plan to regularly inspect
supply chain partners for security compliance, the company will conduct
several unannounced on site security inspections. In addition, the company
will amend suppliers’ contracts to incorporate minimum security requirements
and initiate risk-based audits.
When a C-TPAT certified
company out sources or contracts elements of their supply chain, it is
imperative that the manufacturer adhere to security measures. The new
purchase orders will include the language “Supplier accepts responsibility
for factory and container security…..”
International suppliers are
required to provide semi-annu
al “Business Updates” that include
security measures, management changes, employee turnover, policy changes
with respect to packaging handling, storage, financial status etc. This
information is used to analyze risk, determine contractual compliance,
ensure continuity of security measure and need for modifications to security
plans.
Only manufacturers who
received a passing score in Factory Certification Requirements are
permitted to do business with the C-TPAT companies. If a supplier is unable
to meet C-TPAT security criteria but is deemed a “critical” supplier by the
Company, close scrutinizing the shipments will be conducted to address the
supplier’s security vulnerabilities.
Foreign manufacturers will be
given formal onsite supply chain security training sponsored by the
US C-TPAT certified Company. This training is documented and participants
are tested to ensure their understanding of the information taught.
For more information on C-TPAT, please browse the
following website : |
Back to Index of
May 2006