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C-TPAT Best Practices

Wayne KornmannDirector, Long Beach C-TPAT Field Office

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C-TPAT Best Practices

Overview

What are Best Practices?

C-TPAT Best Practice Catalog

How Do Importers Achieve Tier 3 Status?

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What are C-TPAT Best Practices?Security measures that exceed C-TPAT Minimum Security

Criteria

Have written policies and procedures that govern their use

Employ a system of checks and balances

Incorporate management support

Permanent part of a company’s business processes

Best Practices do not have to be costly to business

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C-TPAT Best Practice CatalogWhere did the best practices come from?

Best practices were identified by Supply Chain SecuritySpecialists during C-TPAT validations and site visits made from2003-2005

Over 1,000 validation reports reviewed

Developed for the trade to use in strengtheningtheir company’s supply chain security program

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Best Practices - ExamplesManagement SupportA Supply Chain Security Committee was established by senior

company executives to evaluate the company’s overall supplychain security and make recommendations for improvement

The Supply Chain Security Committee included seniormanagement from key departments such as IT, Shipping &Receiving, Human Resources, Security, Finance, Traffic, etc.

Some committees included operational supervisors and lineemployees

On-going committee meetings held to discuss findings &recommendations, prepare policies and brief seniormanagement

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Best Practices - ExamplesBusiness Partner RequirementsSecurity requirements were incorporated into contracts with

foreign service providers. Language required that:Security vulnerabilities and weakness must be addressed

immediatelyCompanies were subject to random security audits

A vendor manual is completed and given to each factory. Thevendor must acknowledge that they received the manual andunderstand the requirements addressed in the manualThe manual contains supply chain security requirements,

labor practices and other business policiesThe manufacturer can only use freight forwarders approved

by the company

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Best Practices - ExamplesContainer SecurityAn air carrier will not accept containers or ULDs from unknown

customersKnown customers are advised that cargo is subject to random

inspectionsCarrier conducts and documents inspections on all empty

containers and places a seal on the container

Container seals are placed on container by shipping manager.Seal number(s) documented on the bill of lading (BOL)A guard and driver witness the sealing and initial BOLThe factory sends the seal number(s) electronically to the

highway carrier and importerGuard at outbound gate verifies the seal number against BOLImporter verifies seal number when container arrives in U.S.

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Not a C-TPAT Best Practice

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Best Practices - ExamplesConveyance MonitoringA highway carrier installed panic buttons in each tractor. In caseof emergency, the driver can press the button which sends analarm signal to the the dispatch office and 5 managers cell phonesThe dispatch office will determine driver location via GPSCompany personnel or local law enforcement are dispatched

A truck driver must check-in with dispatcher at various pointsduring routeDispatcher notates times and locationRoute times were previously established by companyIf there are time discrepancies or driver fails to check in, the

company will send out security, notify CBP/lawenforcement or take other actions (per SOP/management)Company has a truck disabler that can shut off engine

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Do You Know How Your Cargo IsHandled and Moved Overseas?

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How Can My Company AchieveTier 3 Status?Importer must be a C-TPAT certified and validated member

Must meet all C-TPAT Importer minimum security criteria

Review and adopt actions required and recommendationsfound in C-TPAT Validation Report

Review the “Best Practice” Catalog and discuss securityimprovements within your company and with businesspartners and service providers

Consult with your assigned Supply Chain Security Specialist

Implement security improvements or Best Practices andintegrate into standard business processes

Ensure security procedures are documented, tested, audited,and reviewed on a periodic basis

Thank You