Security and efficiency in the supply chain are crucial for international trade, making the Customs-Trade Partnership Against Terrorism (CTPAT) an essential component.
This program, led by U.S. Customs and Border Protection (CBP), sets the security standards for companies engaged in global trade. In this article, we will explore the significance of CTPAT in the trade industry and how it benefits companies aiming to enhance their security practices.
What is C-TPAT
The Customs Trade Partnership Against Terrorism, better known as the CTPAT, is one of the many protection strategies from the U.S. Customs and Border Protection (CBP).
This program is a collaboration between customs and exporters aimed at protecting and securing all goods imported into the U.S. against terrorism. It was established in 2001 following the 9/11 attacks.
Understanding the Basics of Customs-Trade
International trade is vital for many industries, with frequent shipments and transactions occurring at the borders. Customs authorities must ensure regulations are in place to secure the safe trade of goods, benefiting all participants in international commerce.
Businesses must comply with the customs laws, regulations, requirements, and processes of each country where goods are imported and exported. This compliance helps prevent and combat terrorism, trafficking, illegal entry, and cargo theft.
Partnership Against Terrorism
The C-TPAT partnership is available to importers, carriers, licensed customs brokers, and manufacturers, with participation being completely voluntary. Many significant businesses choose to enroll due to the substantial benefits it provides to the trade industry.
The primary focus of C-TPAT is to ensure that U.S. borders are secure and protected during international trade. It aims to provide a high level of cargo security and prevent any terrorist acts.
CTPAT Requirements and Criteria
The requirements and criteria of CTPAT are fundamental to consolidating the security of the global supply chain.
Companies wishing to participate in the program must comply with a series of standards established by the U.S. Customs and Border Protection (CBP). These requirements range from facility security to supply chain verification.
To be accepted into the program, companies must demonstrate a commitment to security through measures that protect their assets and prevent the infiltration of illicit activities in their supply chain.
This includes conducting risk assessments, implementing access controls, staff security training, and adopting tracking and monitoring technologies.
Minimum Security Standards and Guidelines
The U.S. Customs and Border Protection (CBP) requires importers and other program participants to meet the minimum security criteria (MSC).
This means participants meet CBP’s standards and their business is then classified according to the risk level they represent. There are 12 classifications of members based on the type of business conducted:
- Air Carriers
- Consolidators (Air Freight Consolidators, Ocean Transport Intermediaries, and Non-Vessel Operating Common Carriers (NVOCC)
- Customs Brokers
- U.S. Exporters
- Canadian and Mexican Manufacturers
- Highway Carriers
- Importers
- Mexico Long Haul Carriers
- Marine Port Authority and Terminal Operators
- Rail Carriers
- Sea Carriers
- Third-Party Logistics Services Providers(3PL)
Besides the business type classification, the CTPAT Certification criteria are also based on the risk levels and are divided into three main categories, each with its subcategories for businesses to comply with:
1. Corporate Security
- Security vision and responsibility (new). Companies must have and establish a clear security vision within the organization where they assign responsibilities for security measures. Security must be ensured as a priority at all levels of the company.
- Risk assessment. Businesses need to conduct regular risk assessments to identify potential vulnerabilities in the supply chain.
- Business partner requirements. They need to ensure security standards are set for partners to also meet CTPAT criteria and maintain security throughout the supply chain.
- Cybersecurity. Measures to protect digital assets and information from cyber threats must be in place to safeguard data integrity and confidentiality.
2. Transportation Security
- Conveyance and IIT (Instruments of International Traffic) security. Ensuring the security of vehicles and equipment used in transportation to prevent unauthorized access or tampering.
- Seal security. Companies have to make sure seals on containers are properly secured and verified to prevent tampering during transit.
- Procedural security. There needs to be implementation of secure procedures for handling and transporting goods.
- Agricultural security. Aspiring members also need to prevent the introduction of agricultural contaminants to protect agriculture and the environment.
3. People and Physical Security
- Physical access. Access to facilities has to be controlled and monitored at all times to ensure that only authorized personnel can enter restricted areas.
- Physical security. This includes physical security measures such as fences, gates, and barriers to protect facilities and goods.
- Personnel security. Screening and training of employees must take place as a standard to ensure they are aware of security protocols.
- Security training and threat awareness. Providing ongoing security training to employees to increase awareness of potential threats and how to respond to security incidents effectively.
Overall, the goal of having these requirements is for companies to strengthen the security of their supply chains and contribute to a safer global trade environment.
Benefits of working with a C-TPAT certified company
Working with a CTPAT certified company as EP Logistics, has many benefits, such as:
- Getting a reduced number of CBP examinations
- Front-of-the-line inspections
- shorter times at the border
- Sometimes exemptions from certain exams
A supply chain security specialist assigned specifically for your company, access to the Free and Secure Trade (FAST) lanes, priority to resume business after a natural disaster or terrorist attack, eligibility to participate in the Importer Self-Assessment Program (ISA) just to mention some.
Security Advantages for Supply Chain Management
Additionally, being recognized as a trusted trade partner by foreign Customs administrations that have also signed Mutual Recognition with the United States gives your company a high status in the global trade industry. CTPAT certification means:
- Improved security
- Faster transport
- Priority in emergencies
- Lower fines
- Global Recognition
- More efficient operations, and enhanced supply chain security.
Why does EP Logistics participate in C-TPAT?
As part of our promise to provide our clients with a service of excellence, EP Logistics LLC is proudly certified by the U.S. Customs and Border Protection (CBP) as a CTPAT Tier I, US Consolidator.
With this certification, our company’s commitment to maintaining the highest level of security for the well-being of our facilities and the United States is recognized. As a member of the CTPAT program since 2010, security continues to be an integral part of the culture and business processes of EP Logistics.
EP Logistics maintains a multilayered security program consistent with the CTPAT Minimum Security Criteria (MSC), demonstrating our commitment to protecting our organization, employees, and clients’ supply chains from any illegal or illicit activities at all times.
Security is everyone’s responsibility. All employees and business partners, including contractors, service providers, and visitors, adhere to CTPAT security policies and procedures at each of our facilities. This vigilance prevents supply chain security breaches and ensures that your business is always in excellent hands.
If you want your business to benefit from reduced front-of-the-line inspection times, expedited customs clearance, improved turnaround times, fewer potential CBP penalties, and stronger control over your supply chain, EP Logistics has you covered.
Get in touch and experience the difference of partnering with an experienced C TPAT-certified provider.
