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C-TPAT

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Customs- Trade Partnership Against terrorism

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C-TPAT

  1. 1. C- TPAT<br /> Saurabh Kumar<br />
  2. 2. What is C-TPAT?<br />Voluntary government-business initiative to build cooperative relationships that strengthen and improve overall international supply chain and U.S. border security<br />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.<br />
  3. 3. Beginning <br />Initiative after the 9/11 <br />Launched in Nov 2011 with just seven members<br />Currently over 7,400 companies enrolled<br />
  4. 4. Benefits for Members <br />Reduced number of Inspections<br />Reduced Border delay Times<br />Priority processing for CBP Inspections<br />Assignment of C-TPAT Supply chain security specialist ( SCSS)<br />Eligibility to attend C-TPAT Supply chain security Training Seminars<br />Reduced cargo theft and pilferage<br />Reduced Insurance cost<br />
  5. 5. Drawbacks<br />Cost to Upgrade security<br />Cost to engage other Within Supply chain<br />On-Going obligations, monitor Action Plan<br />Loss of benefits if suspended<br />Hidden civil penalties for non-compliance with stated processes and approved security?<br />
  6. 6. Enrollment to C-TPAT <br />U.S. Importers of record <br />U.S./Canada Highway Carriers <br />U.S./Mexico Highway Carriers <br />Rail Carriers <br />Sea Carriers <br />Air Carriers <br />U.S. Marine Port Authority/Terminal Operators <br />U.S. Air Freight Consolidators, Ocean Transportation Intermediaries and Non-Vessel Operating Common Carriers (NVOCC) <br />Mexican and Canadian Manufacturers <br />Certain Invited Foreign Manufacturers <br />Licensed U.S. Customs Brokers <br />Third Party Logistics Providers (3PL) <br />Long Haul Highway Carriers in Mexico<br />
  7. 7. Procedures for Application <br />Filling online Application http://www.cbp.gov/xp/cgov/trade/cargo_security/ctpat/apply_ctpat/online_app/<br />Submission of corporate information, a supply chain security profile, and an acknowledgement of an agreement to voluntarily participate<br />Assigned CBP-SCSS will contact the participant for the C-TPAT Validation process<br />Use of C-TPAT Security link internet web portal web portal<br />Status verification Interface( SVI) for consenting partners <br />
  8. 8. Bilateral initiative between US - Canada and US - Mexico<br />Ensure safety and security <br />Expedited shipment <br />Common risk-management principles <br />
  9. 9. Qualification<br />Importer registration<br />Carrier registration<br />Commercial driver application<br />Objectives<br />Expedited clearance among members of C-TPAT and PIP (Partner’s in protection)<br />Increase the integrity of supply chain security<br />
  10. 10. Benefits<br />Dedicated lanes for expedite transport<br />Reduced number of security examinations<br />Enhanced supply chain safety and security<br />
  11. 11. C-TPAT 5 Step Risk Assessment Process <br />Map cargo flow and identify Business partners<br />Threat assessment – Terrorism, Contraband, Human smuggling etc..<br />Rating of C-TPAT minimum security criteria – High, Medium, Low<br />Prepare action plan<br />Documentation <br />
  12. 12. Terms underRisk Assessment <br />International supply chain security – Point of origin to point of final distribution<br />Threat Assessment <br /> 1 - Low Risk - No recent incidents/intelligence/information <br /> 2 - Medium Risk – No recent incidents/some intelligence/information on possible activity <br /> 3 - High Risk – Recent incidents and intelligence/information <br />
  13. 13. The Future of C-TPAT <br />Advisory committees have suggested several changes to strengthen C-TPAT. <br />Expand C-TPAT to ensure that international ports are not violating C-TPAT security requirements. <br />Target small to medium size companies for C-TPAT involvement. <br />Standardization of global guidelines to ensure consistency in security. <br />Standardization of data collection to identify high risk shipments. <br />
  14. 14. The Future of C-TPAT <br />Proposed Mandatory Standards<br />Selection of Business Partners<br />Container Security: Inspection, seals and proper storage<br />Physical Security: Unauthorized access, fences, etc.<br />Personnel Security: Background checks, etc.<br />Procedural Security: Shipping/Receiving etc.<br />Security Training<br />Information Technology: Password protection, etc.<br />
  15. 15. The Future of C-TPAT <br />A House Bill has recently proposed several amendments to broaden the scope and strengthen C-TPAT<br />Making C-TPAT involvement mandatory for all companies based in or doing business with the United States. <br />Annual verification of C-TPAT participants security measures.<br />Penalties for non-compliance including probation, fines, and expulsion. <br />

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