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C-TPAT
The C-TPAT Program from Customs: An overview of C-TPAT
Everyone involved in world trade has a vital interest in protecting
the import/export supply chain from terrorist attacks in the U.S. and
abroad. Serious disruptions in the chain will assuredly result in
negative financial repercussions for all parties involved. In an
attempt to pre-empt the financial consequences to any terrorist attacks,
Customs and many of the corporate and private entities that comprise the
supply chain, have joined forces to initiate and implement an innovative
program against terrorist attacks - C-TPAT.
The goal of the C-TPAT program is to fortify the security of goods entering
the U.S., thereby reducing the threat of terrorist attacks. This goal can
only be acheived through the joint support and participation of all involved
entities - corporate, private, and governmental. The program's focus is not
only to enhance Customs' enforcement of security protocols at each point of
entry, but also to increase the integrity of the import supply chain by
instituting additional security measures and by communicating these enhanced
measures to every other partner in that chain.
Once implemented, C-TPAT will provide Customs and the owners of the supply chain
- importers, air, ocean, rail, truck, and express consignment carriers, freight
forwarders and customs brokers, warehouse and logistics operators, and manufacturers
an opportunity to play an active role in the war against terrorism and to protect
national security. Moreover, C-TPAT members will enjoy expedited processing at ports
of entry thereby promoting an increase in international commerce. It's in everyone's
best interest to become a C-TPAT member.
| Q: | What is C-TPAT?
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| A: | C-TPAT - The Customs-Trade Partnership Against Terrorism
a.. Is a joint government-business initiative to build cooperative
relationships that strengthen overall supply chain and border security.
b.. C-TPAT recognizes that Customs can provide the highest level of
security only through close cooperation with the ultimate owners of
the supply chain- importers, carriers, brokers, warehouse operators
and manufacturers.
c.. Through this initiative, Customs is asking businesses to ensure
the integrity of their security practices and communicate their security
guidelines to their business partners within the supply chain.
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| Q: | What exactly are Customs expectations for the trade on this program?
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| A: | To make a commitment toward the common goal of creating a more secure
and efficient supply chain through partnership. Customs understands that
it has entered a new era and requires the assistance of private industry
to ensure increased vigilance throughout the supply chain. Customs
recognizes that just as it protects the trade and our borders, businesses
must ensure that their brands, employees, and customers are protected to
the best of their abilities.
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| Q: | Will the information our company provides be confidential?
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| A: | All information on supply chain security submitted by companies applying
for the C-TPAT program will be confidential. Customs will not disclose a
company's participation in C-TPAT without the company's consent.
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| Q: | As a company, we are very interested in C-TPAT but we are not interested
in spending a lot of money, nor putting ourselves in a liability position if
something goes wrong. Is it still possible to do this partnership? |
| A: | Yes. Customs intent is to not impose security requirements that will be
cost prohibitive. For this reason, we worked in concert with the trade community
in developing security guidelines that reflect a realistic business perspective.
Potential C-TPAT participants may find that they already have many of these
guidelines in place.
C-TPAT is also not intended to create any new 'liabilities' for companies beyond
existing trade laws and regulations. However, joining C-TPAT will commit companies
to follow through on actions specified in the signed agreement. These actions
include self-assessing security systems, submitting security questionnaires,
developing security enhancement plans, and communicating C-TPAT guidelines to companies
in the supply chain. If a company fails to uphold its C-TPAT commitments, Customs would
take action to suspend benefits or cancel participation.
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| Q: | What is the overall vision for C-TPAT in the coming months and years?
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| A: | Customs recognizes that a safe and secure supply chain is the most critical
part of our work in keeping our country safe. For this reason, Customs is seeking
a strong anti-terrorism partnership with the trade community through C-TPAT.
Trade partners will have a commitment to both trade security and trade compliance,
which are rooted in the same business practices. Customs wants to work closely
with companies whose good business practices ensure supply chain security and
compliance with trade laws.
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| Q: | How will audits work in the future?
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| A: | Audits will continue to be used to assess overall trade compliance. Customs
Regulatory Audit will apply the new "Focused Assessment" methodology, a risk-based
audit program, in conducting these audits. Companies will not be required to
undergo a Focused Assessment in order to participate in C-TPAT. However, to take
advantage of Customs Regulatory Audit Importer Self-Assessment (ISA) program,
importers must be C-TPAT participants.
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| Q: |
As a carrier, I already participate in the Customs Carrier Initiative - is it a
duplication of effort in joining C-TPAT? |
| A: | Customs will be looking for carriers to join C-TPAT to enhance existing security
practices and better address the terrorism threat to international air, sea, and land
shipping. We will work to ensure that C-TPAT participation does not require duplicate
work for current Customs Carrier Initiative Program (CIP) participants. CIP participants
already subscribe to the importance of security from a narcotics-smuggling perspective
and are well positioned to expand their security focus to encompass anti-terrorism.
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| Q: | Is the C-TPAT program a viable consideration for medium or small size companies?
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| A: | C-TPAT is designed for the entire trade community and Customs encourages all companies
to take an active role in promoting supply chain and border security. While the benefits
of C-TPAT are greatest for large companies that rely heavily on international supply
chains, C-TPAT is not just a big-company program. Medium and small companies may want to
evaluate the requirements and benefits of C-TPAT carefully in deciding whether to apply
for the program. Moreover, even without official participation in C-TPAT, companies
should still consider employing C-TPAT guidelines in their security practices.
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| Q: | What does participation in C-TPAT require? |
| A: | Businesses must apply to participate in C-TPAT. Participants will sign an agreement that
commits them to the following actions:
a.. Conduct a comprehensive self-assessment of supply chain security using the C-TPAT
security guidelines jointly developed by Customs and the trade community. These
guidelines, which are available for review on the Customs web-site, encompass the
following areas: Procedural Security, Physical Security, Personnel Security,
Education and Training, Access Controls, Manifest Procedures, and Conveyance Security.
b.. Submit a supply chain security profile questionnaire to Customs.
Develop and implement a program to enhance security throughout the supply chain in
accordance with C-TPAT guidelines.
c.. Communicate C-TPAT guidelines to other companies in the supply chain and work
toward building the guidelines into relationships with these companies.
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| Q: | What are the benefits of participation in C-TPAT?
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| A: |
a.. C-TPAT offers businesses an opportunity to play an active role in the war against
terrorism. By participating in this first worldwide supply chain security initiative,
companies will ensure a more secure supply chain for their employees, suppliers and
customers.
b.. Beyond these essential security benefits, Customs will offer potential benefits
to C-TPAT members, including:
c.. A reduced number of inspections (reduced border times)
d.. An assigned account manager (if one is not already assigned)
e.. Access to the C-TPAT membership list
f.. Eligibility for account-based processes (bimonthly/monthly payments, e. g.)
g.. An emphasis on self-policing, not Customs verifications.
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| Q: | Who is eligible for C-TPAT?
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| A: |
a.. C-TPAT is currently open to all importers and carriers (air, rail, sea).
b.. The U.S. Customs Service is currently accepting C-TPAT program applications from
companies/individuals within the following international supply chain categories:
c.. Importers
d.. Licensed customs brokers
e.. Air carriers
f.. Sea carriers
g.. Rail carriers
h.. Air freight consolidators
i.. Transportation intermediaries and NVOCCs
j.. Customs plans to open enrollment to a broader spectrum of the trade community in
the near future.
k.. C-TPAT membership will be made available to all sectors of the supply chain.
l.. Customs will be consulting with the trade community to develop the most effective
approach for each sector to participate in C-TPAT.
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| Q: | How to apply?
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| A: |
a.. Applicants will submit signed agreements to Customs, which will represent their
commitment to the C-TPAT security guidelines.
b.. The Agreement should also identify the importer of record number(s) that the
importer indicates is covered by the security profile submitted.
c.. Applicants will also submit a supply chain security profile questionnaire at
the same time they submit their signed agreements or within a specified time
thereafter.
d.. After submitting a signed C-TPAT Agreement, Customs will email an acknowledgment
of receipt within 10-business days through the company's point of contact (POC).
e.. Companies are required to submit the Security Profile 60 days after signing the
C-TPAT Agreement. Customs will verify receipt of the Security Profile within 10-business
days through the designated POC and complete the review within 60 days.
f.. The C-TPAT Agreement will then be co-signed by Customs after the review of the
company's Security Profile is determined adequate
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