18 April 2005

Importers throw support behind new C-TPAT criteria

The following article is excerpted from the 15 April 2005 edition of “American Shipper”. The World Customs Organization standards for security and facilitation referred to in this article is the “Framework of Standards” that came out of the WCO Task Force on Security and Facilitation meetings held between 2002 and 2004. CSCB President Carol West attended meetings of the Task Force as Secretary of the International Federation of Customs Brokers Associations (IFCBA), and the IFCBA continues to participate in the development of the “Framework of Standards” document.

Representatives for major U.S. importers said Thursday they strongly stand behind new, tougher baseline security standards for the Customs-Trade Partnership Against Terrorism Program as a way to protect global supply chains and reduce inspection bottlenecks that can delay delivery of their goods.

The sign of support came from the Retail Industry Leaders Association (RILA), the American Association of Exporters and Importers (AAEI), and IBM in a meeting with reporters in the office of U.S. Customs and Border Protection Commissioner Robert Bonner. It was the first time in recent memory that Bonner has included members of the private sector in any group interview session he grants the press, and appeared designed to calm jittery shippers worried about the cost and difficulty of meeting the higher level of C-TPAT security criteria.

CBP raised the bar on C-TPAT importer participation last month, moving from the prior policy of enlisting participation based on CBP recommended practices and guidelines to a common set of minimum expectations for all importers.

C-TPAT is a voluntary program under which importers, carriers and suppliers commit to tightening their internal security controls to prevent terrorists from using containers to smuggle themselves or weapons into the United States in exchange for fewer inspections and other potential benefits.

The new criteria require importers to verify that overseas suppliers and transportation providers have appropriate security procedures in place in a wide range of areas such as container packing and inspection, access controls for their facilities, employee background checks, information security and sound documentation procedures, training, physical barriers and electronic alarm and surveillance systems….

Hall Northcott, president of AAEI, said CBP has resolved his group's initial concerns by consulting with a broad cross-section of C-TPAT members to provide input on the new criteria, maintaining the program's voluntary nature and continuing to work to provide more trade facilitation benefits.

The new security regime represents a "massive change" for importers beyond simply securing cargo to adjusting their business practices for their total operations, Northcott said.

CBP will soon begin work on upgrading the criteria for carriers and C-TPAT participants.

Bonner said 9,083 companies have signed up for C-TPAT so far, including 5,020 importers, 2,208 carriers from all modes, 1,412 brokers, 393 Mexican manufacturers and a handful of port authorities and marine terminals.

Almost 600 companies have been validated by CBP supply chain officers through on-site visits at their overseas facilities and another 400 validations are in progress.

Those figures are up from a month ago, when CBP had enrolled 8,800 companies and validated 455 companies as having followed through on their security commitments. …

CBP has 69 supply chain specialists in place, up from 40 last year, and intends to build up to 157 officers with the funding that is in place,….

Bonner said he is eager to bring in more foreign manufacturers to the program but that it must be done gradually so as not to overwhelm the program's administrative capabilities to review and vet that companies are meeting their security criteria…..

"We are going to make this available to companies in Canada on a selective basis, and in other parts of the world, where it makes s