C-TPAT — Do Importers Really Have A Choice?

Second- and third-tier importers are feeling the pressure to join


New York — January 8, 2008 — The United States' Customs-Trade Partnership Against Terrorism (C-TPAT) security program will soon enter its fifth year. Introduced by the Customs Border & Protection Agency (CBP) in 2002 as a result of 9/11, the program is a voluntary trade security initiative that partners the import community with CBP in an effort to secure the global supply chain. Its main objective is to encourage supply chain security practices among U.S. importers thereby resulting in a more secure U.S. border. C-TPAT is the largest partnership ever introduced between industry and government.

The program continues to grow and add "teeth" to its mission. In 2005, minimum requirements were established by CBP based on practices that appeared to be prevalent throughout the trading community of companies who submitted their applications pre-2005. In 2006, the SAFE Port Act codified the C-TPAT program.

In addition, C-TPAT is going to become even more important with the strategic framework for Import Safety that was recently released by The President. The Import Safety model will include a voluntary (in most instances) security certification process that will probably be integrated into the C-TPAT certification program. As this program becomes formalized, all types and sizes of importers are asking themselves — is C-TPAT necessary for my business's viability? The quick answer — probably yes.

Global Supply Chains are Vulnerable

C-TPAT's high-level objective is to identify and correct vulnerabilities within the global supply chain that could be leveraged for terrorist purposes, such as the compromise of containers, railcars, trucks and trailers inbound to the United States. Obvious vulnerabilities include the use of these transportation methods to smuggle weapons and drugs to finance terrorism, support undocumented entry (i.e. human trafficking) and transport chemical, nuclear, biologic or radiological weapons. Less obvious vulnerabilities include the illegal movement of money to provide financial support for military operations. Regardless of the method, general sabotage will disrupt goods flowing into and out of the United States, thereby negatively impacting the U.S. economy and the economies of major trading partners.

Supply chain security has truly become a global issue. C-TPAT is no longer a lone wolf. The European Union has launched its Authorized Economic Operator initiative that aims to secure inbound physical and financial supply chains. In addition, there are various country-specific initiatives being launched in Asia to monitor the security of how goods are being transported into various nations.

As C-TPAT adds new policies and procedures it becomes less "voluntary" and more "necessary."

Voluntary Morphs into Necessary

C-TPAT has been purposely established as a voluntary program. The general reason is CBP's acknowledgement that one security program will not suit all businesses — one glove does not fit all hands. Each company is different based on its product and industry. In addition, it has been the opinion of CBP that a customer has greater power than promulgated regulation to enforce security standards in its supply chain, namely service providers and vendors, making it more effective overall. The intent of the program is to push the C-TPAT security guidelines down throughout the supply chain. This includes, but is not limited to, customs brokers, freight forwarders, carriers (all modes) and suppliers.

Initial supporters of the program were large-scale importers, typically in the retail space. They viewed the program as a way to help speed their goods through customs — critical for a supply chain with seasonal spikes or just-in-time inventory strategies. These organizations have weighed the pros and cons of the program and decided that the benefits outweighed the costs to join C-TPAT. Unfortunately, the buck doesn't stop there.

This content continues onto the next page...
  • Enhance Your Experience.

    When you register for SDCExec.com you stay connected to the pulse of the industry by signing up for topic-based e-newsletters and information. Registering also allows you to quickly comment on content and request more infomation.

Already have an account? Click here to Log in.

Enhance Your Experience.

When you register for SDCExec.com you stay connected to the pulse of the industry by signing up for topic-based e-newsletters and information. Registering also allows you to quickly comment on content and request more infomation.

OR

Complete the registration form.

Required
Required
Required
Required
Required
Required
Required
Required
Required
Required
Required