C-TPAT

C-TPAT is one layer in U.S. Customs and Border

Protection’s (CBP) multi-layered cargo enforcement
strategy.

Customs - Trade Partnership Against Terrorism (C-TPAT)

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 NEED of C-TPAT
• In the days and months following the terrorist
attacks of 9/11, the specter of terrorist
infiltration of global supply chains was raised,
conjuring visions of weapons of mass
destruction being smuggled into the USA with
cargo shipments. Supply chain security issues
rapidly evolved from focusing on prevention
of the theft of goods to prevention of the
entry of terrorist contraband
 WHAT IS C-TPAT
• C-TPAT is a voluntary public-private sector
partnership program which recognizes that
CBP can provide the highest level of cargo
security only through close cooperation with
the principle stakeholders of the international
supply chain such as importers, carriers,
licensed customs brokers, and manufacturers.
 LEGAL BACKGROUND

• The Security and Accountability for Every Port

Act of 2006 provided a statutory framework
for the C-TPAT program and imposed strict
program oversight requirements.
 A Growing Partnership
• From its inception in November 2001, C-TPAT
continued to grow. Today, more than 11,400
certified partners spanning the gamut of the
trade community have been accepted into the
program.
 A Growing Partnership
• U.S. importers/exporters
• U.S./Canada highway carriers
• U.S./Mexico highway carriersrail and sea
carriers
• Rail and sea carriers
• Licensed U.S. Customs brokers
• Ocean transportation intermediaries
 A Growing Partnership
• U.S. freight consolidators
• Mexican and Canadian manufacturers
 How C-TPAT works

When an entity joins C-TPAT, an agreement is

made to work with CBP to protect the supply
chain, identify security gaps, and implement
specific security measures and best practices.
Applicants must address a broad range of
security topics and present security profiles
that list action plans to align security
throughout the supply chain.
 Roles & Responsibility of C-TPAT

• C-TPAT
• Maintain and evaluate the minimum security criteria
• Certify, Validate and Revalidate member supply chains

• Participants
• Continued commitment to the program
– Annual self-assessment to include: Verification of supply
chain security processes
– Self-policing or Auditing to ensure compliance
 Minimum Security Criteria of C-TPAT

• It is the responsibility of the member to study

their supply chain(s), assess the risk, and then
develop security controls to deal with those
risks.
• Identify the dangers or vulnerabilities to your
business that you should avoid.
 Minimum Security Criteria of C-TPAT

• The starting point for making effective security

practices.
• Incorporating the criteria into your business
can improve the performance of your business
and will lessen the chances of a security
breach.
• Strong supply chain security measures reduce
the risk of loss, theft, and smuggling.
 Minimum Security Criteria of C-TPAT

• The supply chain for C-TPAT purposes is defined

from point of origin
(manufacturer/supplier/vendor) through to point
of distribution.
• CBP is concerned about security of the container
as it travels through the supply chain and clears
final CBP processing at the Port of entry.
• Once it clears CBP, the importer and others still
have a role to ensure that cargo is not
compromised prior to reaching final destination.
 Security Breach Defined
Introduction of the following into the supply chain:

• Prohibited or otherwise illegal products,

substances, or people
 Common Factors/Observations

Breaches are breakdowns or failures involving

security measures for:
• People

• Processes

• Technology –(Equipment/Information)
 People
1. Personnel Security (Internal Conspiracy)Failure
to conduct checks/re-checks
2. Failure to identify change in employee behavior
3. Training & Awareness
 Processes

• Risk assessment of supply chain not conducted or

incomplete
• No written policies/procedures
• Outdated policies/procedures
• Failure of employees/management to follow
established policies & procedures/not trained properly
• Security measures never tested/audited
• Change in business partners –security not assessed
 Processes

• Lack of checks, balances,

accountability/responsibility
• Unaware of sub-contracting of products &
services in the supply chain to “other”business
partners
• Change in supply chain used (Cargo Flow/Trade
Lane)
 Technology/Equipment/Information

• Failure to control and monitor access to/track instruments of international

trade and transportation
• Equipment is faulty –e.g. latches on containers/trailers inadequate,
surveillance cameras/monitoring system not working
• Technology not kept up-to-date with growth/size of company –e.g. access
controls
• Uncontrolled access to equipment and technology used for surveillance
and monitoring the facility
• Uncontrolled access to information: automated or paper –shipping,
receiving & financial information
 Policies and Procedure
Inspection processes should be in place at all
locations

Manufacturers
Suppliers
Vendors
Logistical Service Providers
Distribution Centers
Container Storage Depots
Warehouses
 Trend Analysis
Contributing Factors :

– Internal Conspiracy: 74%

– Threat/Intimidation: 3%
– Bribes: 11%
– Unspecified: 12%
 Trend Analysis

• Location of Compromise:

– In transit: 51%
– Factory: 25%
– Exchange Hub: 17%
– Unspecified/Other: 7%
Trend Analysis
 C-TPAT Benefits

C-TPAT Partners enjoy a variety of benefits,

including taking an active role in working
closer with the U.S. Government in its war
against terrorism. As they do this, Partners are
able to better identify their own security
vulnerabilities and take corrective actions to
mitigate risks. Some of the benefits of the
program include:
 C-TPAT Benefits
• Reduced number of CBP examinations
• Front of the line inspections
• Possible exemption from Stratified Exams
• Shorter wait times at the border
• Assignment of a Supply Chain Security Specialist
to the company
• Access to the Free and Secure Trade (FAST) Lanes
at the land borders
• Access to the C-TPAT web-based Portal system
and a library of training materials
 C-TPAT Benefits
• Possibility of enjoying additional benefits by being
recognized as a trusted trade Partner by foreign Customs
administrations that have signed Mutual Recognition with
the United States
• Eligibility for other U.S. Government pilot programs, such as
the Food and Drug Administration’s Secure Supply Chain
program
• Business resumption priority following a natural disaster or
terrorist attack
• Importer eligibility to participate in the Importer Self-
Assessment Program (ISA)
• Priority consideration at CBP’s industry-focused Centers of
Excellence and Expertise
Thank You for Listen