customs-trade partnership against terrorism working with business and the trade community
TRANSCRIPT
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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Presenter’s Name June 17, 2003 4
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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Presenter’s Name June 17, 2003
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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Presenter’s Name June 17, 2003
• 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.)
Presenter’s Name June 17, 2003 12
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