Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

C-TPAT Fciq presentation 20121018 updated

5,303 views

Published on

  • Be the first to comment

C-TPAT Fciq presentation 20121018 updated

  1. 1. An introduction to the program, state of play and explanation of its operations Presented by Ron MayDirector, Buffalo, NY C-TPAT Field Office March 2012 1 Field Operations
  2. 2. C-TPAT Achievements October 9, 2012• Certified Members by Business Type Importers - 4352 10,397 - Certified Partners to current date 60 885• 164 - Total C-TPAT staffing level Carriers - 2985 4352 1263• 21,454 - Total Validations Completed Brokers - 852 – 11,516 - Initial Validations Completed – 9,938- Re-Validations Completed Foreign Manufacturers - 1263 852• Number of completed validations by year: Consolidators/3PLs - 885 -2011 / 715-Initial Validations / 2,229-Revalidations 2,940-Total Validations in 2011 Marine Port Authorities and Terminal 2985 Operators - 60 -2012 / 460 -Initial Validations / 1,145-Revalidations 1,605-Total Validations in 2012• 1,453 - Total Suspensions• 1,100 - Total Removals• Internationalization Efforts: Validations By Year – 6 - Mutual Recognition Arrangements: New Zealand, Canada, Jordan , Japan, Korea, European Union 4000 – 2 - Mutual Recognition Projects: Taiwan, Singapore 3000 – 12 - Technical Assistance Projects: Malaysia, Mexico, Philippines, Guatemala, China, Colombia, Israel, Peru, Vietnam. Dominican Republic, Costa Rica, India 2000 – 2 - Capacity Building Training Programs: Ghana, Kenya 1000 – 4 - Rounds of joint validations with the General Administration of China Customs 0• Security Criteria Implemented: 2006 2007 2008 2009 2010 2011 2012 – 10 - Business Entity Types: Importers, Air Carriers, Highway Carriers, Mexico Long Haul Highway Carriers, Rail Carriers, Sea Carriers, Foreign Manufacturers, Customs Brokers, Port Authorities/Terminal Operators, Third Party Logistics Providers (3PLs).• Tiered Benefits Structure – commensurate with security enhancements. Best Practices Catalog. – 329 - Tier 3 Importers March 2012 2 Field Operations
  3. 3. FY10 – Entry ValuesTier III Importers• 329 Partners• 27% of Entry Value• 15% of Entries March 2012 3 Field Operations
  4. 4. Supply Chain Security Specialist“The C-TPAT Supply Chain Security Specialist (SCSS) primarily conductsC-TPAT Validations of C-TPAT member companies and serves as the principaladvisor and primary point of contact for certified members in theC-TPAT program.”• 146 SCSSs Currently On-Board; includes 18 Headquarters employees• Seven field offices: New York, Washington D.C., Miami, Los Angeles, Newark, Buffalo, Houston• Extensive travel March 2012 Field Operations 4 4
  5. 5. Program Travel• Covered 6 of 7 continents• Nearly 100 countries visited (multiple visits within higher risk countries) – Angola - Colombia - Malaysia – Bangladesh - Brazil - Russia – Israel - Mexico - Guatemala – Sri Lanka - Jordan - El Salvador – Pakistan - Egypt - Haiti – India - Ivory Coast – Botswana - Nicaragua **Each SCSS averages approx. 75-100 days a year on travel March 2012 5 Field Operations
  6. 6. C-TPAT Program Business TypesC-TPAT program currently has 10 Business Entity Types: Importers Sea Carriers U.S./Canadian Highway Carriers U.S./Mexico Highway Carriers Rail Carriers Air Carriers Mexican and Canadian Foreign Manufacturers Licensed U.S. Customs Brokers Mexico Long Haul Highway Carrier U.S. Marine Port Authority/Terminal Operators Third Party Logistics Providers (3PL) March 2012 6 Field Operations
  7. 7. Minimum-Security Criteria• Risk Assessment• Business Partner Requirements• Conveyance, Container & Trailer Security• Physical Access Controls• Personnel Security• Procedural Security• Physical Security• Security Training and Threat Awareness• Information and Technology SecurityThese criteria are posted both in Spanish and English andthe criteria for foreign manufacturers is posted in 12different languages to include Thai, Chinese and Arabic. March 2012 7 Field Operations
  8. 8. What is a Supply Chain? Supplier Raw Material Conveyance Consumer ConsigneeFOR HIGHWAY CARRIERS:The supply chain for highway carriers for C-TPAT purposes is defined fromthe yard where the tractors and trailers are stored, through pickup at themanufacturer/supplier/vendor, through to the consignee. March 2012 8 Field Operations
  9. 9. Validation and Revalidation Visits• Initial validation visits take place within 12 months of certification (unless documented circumstances prevent this)• Revalidation visits take place within 4 years of original validation completed date.• C-TPAT partner is strongly recommended to attend overseas or foreign portion of validation or revalidation visit.• CBP covers cost of its employees for travel and accommodations. C-TPAT participant only covers cost associated with its own employees.• Many factors are considered in selecting site visit, but primary focus is still on greatest risk to overall supply chain and CBP’s need for compliance with the SAFE Port Act.• Additional considerations: – Recent incidents or problems at another location – Newly acquired supply chain components – Lack of additional sites to visit – Law enforcement information (internal CBP decision) – Volume or production rates from site – Weather, holidays, labor issues, political issues, disease concerns and other unique circumstances. March 2012 9 Field Operations
  10. 10. Increase Focus on Evidence of ImplementationSample Matrix: Documented Procedures EVIDENCE OF IMPLEMENTATION How far back did you go? Document/ checklist/ form Reviewed and obtained copy of procedures/ documentation/ files Current week______________________ None Reviewed procedures/ documentation/ files - no copy obtained 1-6 months________________________ Risk Assessment WRITTEN PROCEDURES Observed process / site tour 6-12 months ________________________ Documenation uploaded in portal Photo evidence / document scanned Over 12 months____________________ Other ____________________ Explanation of compliance by management / department employee Document/ checklist/ form Reviewed and obtained copy of procedures/ documentation/ files Current week______________________ None Reviewed procedures/ documentation/ files - no copy obtained 1-6 months________________________ Business Partners WRITTEN PROCEDURES Observed process / site tour 6-12 months ________________________ Documenation uploaded in portal Photo evidence / document scanned Over 12 months____________________ Other ____________________ Explanation of compliance by management / department employee Document/ checklist/ form Reviewed and obtained copy of procedures/ documentation/ files Current week______________________ None Reviewed procedures/ documentation/ files - no copy obtained 1-6 months________________________ Conveyance Security WRITTEN PROCEDURES Observed process / site tour 6-12 months ________________________ Inspection Documenation uploaded in portal Photo evidence / document scanned Over 12 months____________________ Other ____________________ Explanation of compliance by management / department employee Document/ checklist/ form Reviewed and obtained copy of procedures/ documentation/ files Current week______________________ None Reviewed procedures/ documentation/ files - no copy obtained 1-6 months________________________ Physical Access WRITTEN PROCEDURES Observed process / site tour 6-12 months ________________________ Controls Documenation uploaded in portal Photo evidence / document scanned Over 12 months____________________ Other ____________________ Explanation of compliance by management / department employee March 2012 10 Field Operations
  11. 11. Post Incident Analysis (PIA)When a C-TPAT participant is involved in a supply chain incident, HQ C-TPATprogram staff will examine the incident and provide details to C-TPAT management sothat they can determine the correct response from the program.All Post Incident Analysis (PIA) will be conducted within 30 days.The Field Director will assign a SCSS team to conduct the PIA (usually involving thecompany assigned SCSS). The PIA report, with program status, and recommendationsmust be finalized within this 30 day time frame.Once the Field Director receives and reviews the PIA report and discusses and approvesthe company status recommendation, the full report and recommended actions are thenforwarded to HQ for review by C-TPAT Management. All final decisions on PIA results,recommendations and C-TPAT program actions must be approved at the HQ C-TPATmanagement level. March 2012 11 Field Operations
  12. 12. Canadian Company Participation in C-TPAT Applicants Certified Validated Suspended/ RemovedImporters 2 39 1041 84 Hwy 23 145 1349 187CarriersForeign 1 10 136 8 Mfrs. Totals 26 194 2526 279 (10%) March 2012 12 Field Operations
  13. 13. Mutual Recognition (MR) Process (4) Phases1. Side-by-side comparison of program requirements2. Pilot programs of joint validations/observations3. Signing of agreement4. Development of information sharing procedures March 2012 13 Field Operations
  14. 14. PIP/PEP Presentation courtesy of: Bill Tu Senior Advisor, CBSAInternational & Bilateral Trusted Traders - PIP Program March 2012 14 Field Operations
  15. 15. Beyond the Border: “A Shared Vision for Perimeter Security and Economic Competitiveness”• The “Beyond the Border” Declaration was announced by Canadian Prime Minister Stephen Harper and U.S. President Barack Obama in February 2011• Four key principles underpinning the Declaration: - Addressing threats early - Trade facilitation, economic growth and jobs - Integrated cross-border law enforcement; and - Critical infrastructure and cyber security March 2012 15 Field Operations 15
  16. 16. Harmonization of PIP & C-TPATHarmonization refers to further aligning both programs, whereapplicable, in the areas of policy, procedures anddocumentation practices while each country retains sovereigntyover its own program.Harmonization Benefits: Single application process for companies seeking to join both programs Only one site validation required Creates streamlined and efficient border processes Enhances security and integrity of the company’s supply chain March 2012 16 Field Operations
  17. 17. Harmonization of PIP & C-TPAT• Implementation: – Phase 1: Pilot harmonization of two Canada - and two US-based highway carriers, completed in 2011 – Phase 2: Harmonization 1.0 of Canada and US highway carriers, scheduled for 2012 – Phase 3: Harmonization 2.0 of all other common lines of business, line by line (to the fullest extent possible), scheduled for December 2013 March 2012 17 Field Operations 17
  18. 18. How the MR process will work• Both administrations will use risked base scoring to lower exam levels. Lower risk level will be communicated to each administration via automated systems (in development).• Each administration will monitor application of risk reductions through normal measurement matrix’s, but will also use random audit element.• Process will be very fluid and evolve quickly through live learning. March 2012 18 Field Operations
  19. 19. MR benefits• Coordination between US and Canada administrations• Less duplication (1 visit for both programs)• Business resumption considerations for program participants• Established points of contact within each administration• First to receive important informational notices• Global marketability March 2012 19 Field Operations
  20. 20. Challenges to MR process• Logistics of process (time, travel, money)• Differences in information collection and sharing laws, rules, and regulations• Development of common data platform to share information (IT) March 2012 20 Field Operations
  21. 21. Centers of Excellence and Expertise Overview May 2012 March 2012 21 Field Operations
  22. 22. BackgroundResponding to the Call for Trade TransformationIn direct response to calls for more uniform and efficient facilitation, and in collaboration with the Commercial Operations Advisory Committee (COAC) during FY 2011 CBP created two pilotsThe resulting pilots underwent careful concept testing and validation both within CBP and with the broader trade communityCEE and AE PilotsThe Center of Excellence and Expertise (CEE) pilot was established in November 2010 to enhance facilitation, improve enforcement efforts, and increase CBPs knowledge of the pharmaceutical industryThe Account Executive (AE) pilot was established to work with selected “trusted partners” in the electronics industry to facilitate trade, while ensuring continued compliance with all import requirementsBoth pilots relied on small cross-occupational core teams, with matrix staff bringing additional specialized expertise. At the conclusion of the pilots, the AE concept was combined with the CEE to create new centers to segment risk, facilitate trade for trusted partners and develop comprehensive enforcement strategies:Objective: make CBP’s haystack smaller March 2012 22 Field Operations
  23. 23. Current CentersFour Centers Currently Established since October 2011**Pharmaceuticals, Health & Chemicals Center (NY, NY)• Covers the full spectrum of commodities within the Pharmaceutical industry, and will expand to include Chemicals and Health equipment industriesElectronics Center (Long Beach, CA)• Covers the full spectrum of commodities within the Information Technology and Consumer Electronics industries March 2012 23 Field Operations
  24. 24. Current Centers continuedAutomotive & Aerospace (Detroit, MI)• Covers the full spectrum of commodities within the Automotive, Aerospace, and transportation related industriesPetroleum, Natural Gas & Minerals (Houston, TX)• Covers the full spectrum of commodities within the Petroleum and related industries as well as minerals March 2012 24 Field Operations
  25. 25. What CEE’s will provide• Centers serve as a single point of processing for businesses enrolled in CBP’s trusted shipper programs - Customs-Trade Partnership Against Terrorism (C-TPAT) and Importer Self Assessment (ISA)• Centers will increase industry-based knowledge to segment risk, develop trade facilitation strategies, and enhance enforcement• The Centers will also serve as a resource to the broader trade community and to CBP’s U.S. government partners March 2012 25 Field Operations
  26. 26. Proposed Centers1. Agriculture & Prepared Products2. Automotive & Aerospace *3. Base Metals & Machinery4. Consumer Products & Mass Merchandising5. Industrial & Manufacturing Materials6. Electronics*7. Petroleum, Natural Gas & Minerals*8. Pharmaceuticals, Health & Chemicals*9. Textiles, Wearing Apparel & Footwear March 2012 26 Field Operations
  27. 27. Benefits of Centers Action Benefits• Eliminate unnecessary • Fewer cargo delays transactional work for • Reduced costs compliant importers • Greater predictability• Shift focus at Ports of Entry to • Better use of CBP employees high-risk shipments • Stronger CBP to importer• Provide single point of contact relationships for inquiries • Increased uniformity and• Develop cross-functional transparency for trade expertise • CBP expertise and learning abilities will increase with more specialization March 2012 27 Field Operations
  28. 28. Nexus• Joint program with CBSA• Goal is to “establish and expand trusted travel lanes at airports, waterways, and land crossings”.• NEXUS card fulfills travel document requirement of Western Hemisphere Travel Initiative (WHTI)• Qualify if citizen or permanent resident of US or Canada residing in either country• Gives expedited clearance at air, land and marine modes of travel (additional requirements for air travel). March 2012 28 Field Operations
  29. 29. NEXUS Information• Toll free information (US or Canada): 1-866-639-8726 www.nexus.gov or www.nexus.gc.ca March 2012 29 Field Operations
  30. 30. Email ContactRonald.may@dhs.gov March 2012 30 Field Operations

×