Selections near for trial program to outsource...
May 22, 2007
22 May 2007
Selections near for trial program to outsource C-TPAT validations
This article is excerpted from the 22 May 2007 edition of “American Shipper”.
U.S. Customs and Border Protection plans to select by the end of May private sector inspection service providers that will be eligible to provide supply chain security validations in China for U.S. importers participating in the Customs-Trade Partnership Against Terrorism….
The pilot program was mandated by Congress in response to complaints that the agency was taking too long to complete supply chain security assessments and thus delaying companies from receiving reduced inspection levels and other benefits. CBP has increased its C-TPAT staff to its stated goal of 156 persons, and said it is on track to complete validations of all remaining certified applicants to the voluntary partnership program, and all new applicants within a year.
Instead of a force multiplier to speed up the process, CBP is using the pilot program as a way to
vet the security plans of companies who do business in China because it is the only country that has not granted access to CBP officers to conduct in-country audits of foreign suppliers. CBP plans to use third-party validators as a substitute means of documenting whether Chinese factories and transportation providers follow the minimum-security criteria established by their C-TPAT customers. The agency will review the information and determine whether the company is eligible for full C-TPAT privileges.
CBP received bids from 24 trade audit and inspection firms by the April 30 deadline, but seven of those didn't apply for SAFETY Act protection as required by the solicitation, Owen said…
Three C-TPAT field directors are in the process of evaluating the 17 remaining firms on their ability to perform the validations as well as their established presence in China….
Companies will be evaluated on stated requirements for compatible data collection capability and electronic transmission of results to CBP, training programs for auditors, fee schedule, employee background checks and other factors. Inspection services will have to sign non-disclosure forms and attest that they are free from any conflict of interest with the importer that pays for the service.