Customs-Trade Partnership Against Terrorism Working with Business and the Trade Community.

Customs-Trade Partnership Against Terrorism

Working with Business and the Trade Community

Presenter’s Name June 17, 2003

• Established: 2001 Initial Partners: 7 major importers

• Objective: In direct response to the events of September 11, 2001, C-TPAT builds upon relationships with all segments of the supply chain, both foreign and domestic, to secure the global supply chain and protect legitimate trade against smugglers and terrorists.

• Goal 1: Enhance National Security at the U.S. Border and beyond.

• Goal 2: Work cooperatively to secure the supply chain against implements of terror.

Presenter’s Name June 17, 2003

• Partnership - cooperatively developed minimum security criteria vs. mandatory requirements

• Advisory Committee on Commercial Operations to CBP (COAC)• Group comprised of the trade community, mostly C-TPAT member

• Provides input and suggestions to C-TPAT

• Voluntary – companies are not required to adhere to C-TPAT guidelines, but must do so to receive benefits

• Provides for the customized application of criteria by members• Small/Medium/Large sized companies – flexibility in security criteria

• Provides tangible benefits

• Trust but verify information

The C-TPAT Approach

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C-TPAT Achievements10,819 - Certified Partners

161 - Staffing Level

341 - Tier 3 Importers

27,312 - Total Validations Completed12,949 - Initial Validations Completed14,363 - Revalidations Completed

Number of completed validations by year: 2014: 573 Initial Validations + 1,975 Revalidations = 2,548 Total Validations

2015: 101 Initial Validations + 305 Revalidations = 406 Total Validations

2,045 - Total Suspensions1,444 - Total Removals

Program Initiatives: 10 - Mutual Recognition Arrangements: New Zealand, Canada, Jordan, Japan, Korea, European Union, Taiwan, Israel, Mexico, Singapore

2 - Mutual Recognition Projects: China, Dominican Republic

12 - Technical Assistance Projects: India, Turkey, Jamaica, Switzerland, Honduras, Panama, Colombia, Chile, Peru, Uruguay, Brazil, Costa Rica

4 - Partner Government Agencies: FDA, TSA, USDA, Coast Guard

May 1, 2015

Validations Completed by Year

Presenter’s Name June 17, 2003

• Emphasize prevention vs. interdiction

• Promote shared responsibility

• Promote security awareness

• Increase supply chain security and supply chain efficiency

C-TPAT Objectives

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U.S. Congress’s Security and Accountability For Every (SAFE) Port Act of 2006 put into law a number of programs to improve security of U.S. ports.

C-TPAT Requirements:

SAFE Port Act Requirements

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Presenter’s Name June 17, 2003

Minimum Security Criteria

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• The validation process involves creating a “Validation Team,” that performs a joint review of the supply chain based on the security profile submitted and a documented risk assessment

• Each validation is customized according to the Partner

• An open forum to discuss issues, share ideas, address vulnerabilities and develop solutions

• Understand the role of CBP and the trade community in the war on terror

• Trust but verify system (Reliable, Accurate, and Effective)

What is a Validation?

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Presenter’s Name June 17, 2003

C-TPAT - Travels the World to Secure Supply Chains: Visited supply chains in 109 countries

Presenter’s Name June 17, 2003

What’s in it for Industry

Presenter’s Name June 17, 2003

• Reduced inspections (targeting score reduction)

• Front of the line treatment for exams

• Assigned CBP Supply Chain Security Specialist (SCSS)

• Participation in CBP training seminars

• Access to Verification Interface for other C-TPAT members

• Eligibility for other CBP Programs (FAST, ISA)

Benefits and Incentives (cont.)

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Exam rates/Benefit rates

•Entries filed by Tier III partners are 9 times less likely to undergo a security based examination than those entries filed by non C-TPAT partners.•Entries filed by Tier II partners are 3.5 times less likely to undergo a security exam than those entries filed by non CTPAT partners.•If you flip this around, it means non C-TPAT entries are up to 9 times more likely to face a security exam.

Presenter’s Name June 17, 2003

Mutual Recognition

• MR means that the security requirements/standards of the industry partnership program, as well as its verification procedures, are the same or compatible with those of the potential MR partner

• MR is a long term goal

• Customs, AEO Programs & Trade Community must realize the time, effort and resources that goes into achieving MR.

Presenter’s Name June 17, 2003

MRA Global Snapshot (23 MRAs)

2007=1

2008=3

2009=3

2010=6

2011=4

2012=2

12 MRAs in negotiations

2013=2

2014=2

Presenter’s Name June 17, 2003

MRA: Benefits (Government)

• Resources (time and money) would be better allocated.

• Lower probability of on-site visits for MR Partner• Validation and revalidation process will be

quicker and smoother.• Will lead to the establishment of true end-to-

end global security.

Presenter’s Name June 17, 2003

MRA: Benefits (Trade)

• Companies will go through fewer validations “audit fatigue”

• Validation and revalidation process will be quicker

• When applicable, companies will receive similar treatment from countries where MR has been achieved

Presenter’s Name June 17, 2003

MRA Challenges•

• Entity Identifiers- there are many

• Language differences

• Cultural differences

• Resources vary (Need compatible IT Systems that share status)

• Timelines

• Disparity in benefits (vary from country to country)

• Regulations block sharing of information

Questions?

Steve KrupinskyChief C-TPAT- International Branch

Washington D.C.202 344 1180

[email protected]