Customs-trade partnership against terrorism (C-TPAT)

S S Mishra
Bureau Veritas Products Services

C-TPAT is a joint government-business initiative, which seeks to improve the efficiency of screening and movement of goods around the world. The United States Customs Service launched C-TPAT in November 2001, in direct response to the 9/11 terrorist attack. It is a voluntary government program that ensures the integrity of shipments and communicates the defined security guidelines to business partners within the supply chain defined from point of origin (manufacturer, supplier, and vendor) till point of distribution. One of main objective of C-TPAT is to expedite release of cargo by improving the flow of trade without impairing homeland security and also ensuring the adherence to pertinent security measures facilitating legitimate trade.

C-TPAT is important to all companies that import and want to minimize border delays. It also plays an active role in the war against terrorism and ensuring supply chain security. Other potential benefits offered by customs includes reduced number of inspections, access to C-TPAT membership list, discussions etc. This program emphasises on self policing instead of custom verification. Also the participating members are provided with an account manager, which ensures better communication and co-ordination with customs. C-TPAT is currently open to all importers and carriers i.e. air, rail, sea. Businesses who wish to participate in C-TPAT have to conduct a comprehensive security self-assessment. They have to submit a complete supply chain security questionnaire to customs. Under the C-TPAT program they have to develop and implement a security criteria throughout their supply chains and shall have to communicate their guidelines to other companies in the supply chain including brokers, carriers, freight forwarders and other partners. In order to apply for C-TPAT, one has to submit signed agreements to customs declaring their commitments and adherence to C-TPAT security guidelines. Along with the agreement or within a stipulated time after submitting the agreement, one has to also submit a supply chain security profile questionnaire. Before the required application and questionnaire can be completed, a comprehensive evaluation of security procedures, training and record keeping must be undertaken by the company to ensure that the protocols are in line with customs C-TPAT standards. To develop security profile questionnaire, one has to follow the security guidelines developed jointly by customs and the trade community. Broadly these guidelines embrace the following areas:

Procedural Security

Security measures must be in place to ensure the integrity and security of processes relevant to the transportation, handling, and storage of cargo in the supply chain to protect against entry/ doodling of any unauthorized material. Security procedures for proper marking, weighing, counting and documenting of cargo, detecting and reporting of shortages of overages, procedures for verifying seals on containers, trailers and railcars. Security procedures on movement of incoming/outgoing goods and procedures for notifying customs and other law enforcement agencies in case of any anomalies or illegal activities are detected or suspected.

Physical Security

All buildings, warehouses and storage house shall be constructed of such material so as to resist unlawful entry and protect against outside intrusion. Physical security includes perimeter fencing, locking devices etc.

Personnel Security

Having systems of screening and background checks of personnel to be engaged in the shipment process.

Education and Training

Employees must be made aware of the procedures the company has in place to address the response to a situation and how to report it and the possible threats in this area. Additional training should be provided to employees in the shipping and receiving areas, as well as those receiving and opening mail.

Access Controls

System to prohibit unauthorized entry to facilities, maintain control of employees and vsitors, and protect company assets. Access controls must include the positive identification of all employees, visitors, and vendors at all points of entry.

Manifest Procedures

To help ensure the integrity of cargo received from abroad, procedures must be in place to ensure that information received from foreign suppliers is reported accurately and timely.

Conveyance Security

Conveyance security needs to be maintained to protect against the introduction of unauthorized personnel and material. Security should include the physical search, the securing of internal/external compartments and panels, and system for reporting cases in which unauthorized personnel, unmanifested materials, or signs of tampering are discovered.

The show does not end here. After submitting application for C-TPAT, CBP (Customs & Border Protection) evaluates the program within 30-60 days and issues its findings followed by any corrective actions and thereafter the participating member becomes C-TPAT certified. As a universal principal of law, whenever any rules are made, a body is required to regulate it. Similarly audits are performed to assess overall trade compliance with the laws of the land.

Partnership work here is of ongoing nature, customs validates the security profiles of all C-TPAT participants. Normally a company’s initial validation will occur within three years of becoming a certified member of C-TPAT. The validation process is unlike the usual audit, as it evaluates the status and effectiveness of key security measures in the participant’s profile and makes recommendations where appropriate.

A Partnership Validation Team (PVT), consisting of customs office of field operations personnel and a representative of the C-TPAT participant will conduct the onsite C-TPAT validation. After this a report is prepared and sent to the customs headquarter for final editing. The advantage of validation process is that the depending upon the report the benefits of the participants are either increased or are deferred till the corrective actions (if any) or any vulnerabilities or anomalies are fixed.

C-TPAT is also not intended to create any new “liabilities” for companies beyond existing trade laws and regulations. However, it is truly an effort in this age of global bio-terrorism to foster and facilitate the growth of international trade as it was before 9/11.