C- TPAT

Saurabh Kumar

What is C-TPAT?

Voluntary government-business initiative to build cooperative relationships that strengthen and improve overall international supply chain and U.S. border security

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.

Beginning

Initiative after the 9/11 Launched in Nov 2011 with just seven members Currently over 7,400 companies enrolled

Benefits for Members

Reduced number of Inspections Reduced Border delay Times Priority processing for CBP Inspections Assignment of C-TPAT Supply chain security

specialist ( SCSS) Eligibility to attend C-TPAT Supply chain security

Training Seminars Reduced cargo theft and pilferage Reduced Insurance cost

Drawbacks

Cost to Upgrade security Cost to engage other Within Supply chain On-Going obligations, monitor Action Plan Loss of benefits if suspended Hidden civil penalties for non-compliance with

stated processes and approved security?

Enrollment to C-TPAT

U.S. Importers of record U.S./Canada Highway Carriers U.S./Mexico Highway Carriers Rail Carriers Sea Carriers Air Carriers U.S. Marine Port Authority/Terminal Operators U.S. Air Freight Consolidators, Ocean Transportation Intermediaries

and Non-Vessel Operating Common Carriers (NVOCC) Mexican and Canadian Manufacturers Certain Invited Foreign Manufacturers Licensed U.S. Customs Brokers Third Party Logistics Providers (3PL) Long Haul Highway Carriers in Mexico

Procedures for Application

Filling online Application http://www.cbp.gov/xp/cgov/trade/cargo_security/ctpat/apply_ctpat/online_app/

Submission of corporate information, a supply chain security profile, and an acknowledgement of an agreement to voluntarily participate

Assigned CBP-SCSS will contact the participant for the C-TPAT Validation process

Use of C-TPAT Security link internet web portal web portal

Status verification Interface( SVI) for consenting partners

Bilateral initiative between US - Canada and US - Mexico

Ensure safety and security Expedited shipment Common risk-management principles

Qualification Importer registration Carrier registration Commercial driver application

Objectives Expedited clearance among members of C-

TPAT and PIP (Partner’s in protection) Increase the integrity of supply chain security

Benefits Dedicated lanes for expedite transport Reduced number of security

examinations Enhanced supply chain safety and

security

C-TPAT 5 Step Risk Assessment Process

Map cargo flow and identify Business partners

Threat assessment – Terrorism, Contraband, Human smuggling etc..

Rating of C-TPAT minimum security criteria – High, Medium, Low

Prepare action plan Documentation

Terms under Risk Assessment

International supply chain security – Point of origin to point of final distribution

Threat Assessment 1 - Low Risk - No recent

incidents/intelligence/information

2 - Medium Risk – No recent incidents/some intelligence/information on possible activity

3 - High Risk – Recent incidents and intelligence/information

The Future of C-TPAT

Advisory committees have suggested several changes to strengthen C-TPAT. Expand C-TPAT to ensure that international

ports are not violating C-TPAT security requirements.

Target small to medium size companies for C-TPAT involvement.

Standardization of global guidelines to ensure consistency in security.

Standardization of data collection to identify high risk shipments.

The Future of C-TPAT

Proposed Mandatory Standards Selection of Business Partners Container Security: Inspection, seals and proper

storage Physical Security: Unauthorized access, fences,

etc. Personnel Security: Background checks, etc. Procedural Security: Shipping/Receiving etc. Security Training Information Technology: Password protection,

etc.

The Future of C-TPAT

A House Bill has recently proposed several amendments to broaden the scope and strengthen C-TPAT

Making C-TPAT involvement mandatory for all companies based in or doing business with the United States.

Annual verification of C-TPAT participants security measures.

Penalties for non-compliance including probation, fines, and expulsion.