by Owen Tang,
guest lecturer in law of the Department of Logistics,
Hong Kong Polytechnic University
Global import-export professionals who trade
with the US should take note of the new criteria set by the
US Bureau of Customs & Border Protection (CBP) and released
last March, on its Customs-Trade Partnership Against Terrorism
(C-TPAT) programme.
C-TPAT came about after the terror attacks of September 11,
2001. The CBP floated the idea of a voluntary programme to
certify the security of importers' global supply chains. The
importers would have to supply CBP with comprehensive profiles
of their international supply chain. The programme was officially
rolled out in January 2002.
The CBP announced the two benefits for participating companies:
 Faster
customs clearance
Decreased
customs examinations
In practice, if a company that came up for an examination
as part of a random screening process showed no indication
of violations, the CBP would waive the examination. This could
be a very attractive benefit because an exam would likely
incur expenses of about US$500-$700 per container.
C-TPAT would be a significant con-sideration to shippers as
the CBP announced at the end of 2002 that although US borders
had closed for only five days after 9/11, in a future event
of a similar nature, US borders would close for a minimum
of 30 days. Furthermore, when the borders eventually opened,
they would do so only to C-TPAT members.
Furthermore, CBP Commissioner Robert Bonner announced at the
2005 Annual Trade Symposium that C-TPAT members are six times
less likely to be the subject of security inspections than
non-members. C-TPAT members are also four times less likely
to be the subject of compliance inspections than non-members.
As a result, C-TPAT membership has grown from 750 at the end
of 2002 to over 8,500 during the first quarter of 2005. Those
8,500 member companies, according to CBP, account for 40%
of all US imports. More and more importers are now requiring
their vendors, providers, and partners to be C-TPAT certified.
Shippers should consider the following points:
The
new C-TPAT standards criteria released on March 25, 2005 would
take effect immediately. The existing C-TPAT members must
implement the new standards in full within 180 days.
The
new C-TPAT standards are now the benchmark against which import
compliance will be judged, regardless of whether a company
is actually a C-TPAT member.
What has changed from the old C-TPAT criteria to the new?
The
new C-TPAT standards replaced the old guidelines' "recommendations"
to "minimum security criteria."
The
old rules referred to C-TPAT standards as "general recommendations
that should be followed on a case-by-case basis." Now,
the new rules adopt a strong language that the standards "must
be implanted and maintained throughout the importer's supply
chains-based on risk."
Of immediate concern, the current C-TPAT members have only
60 days from March 25, 2005 to address the security of the
physical supply chain on the following three areas:
1) Container security;
2) Physical security;
3) Physical access controls.
Container Security
Security:
US-bound containers must be sealed at the point of stuffing
with high security seals. "All seals must meet or exceed
the current PAS ISO 17712 standards for high security seals"
and "written procedures must stipulate how seals are
to be controlled and affixed to loaded containers-to include
procedures for recognizing and reporting compromised seals."
Procedures
to verify a container's integrity must be in place.
Containers
must be stored in a secure area to prevent unauthorized access
and/or manipulation" and "procedures must be in
place for reporting and neutralizing un-authorized entry into
containers or container storage areas."
Physical Security
Cargo
handling and storage facilities in domestic and foreign locations
must have physical barriers and deterrents that guard against
unauthorized access.
Importers
should incorporate the C-TPAT physical security criteria "throughout
their supply chains."
A detailed
list of criteria must be complied with, such as for fencing,
gates and gate houses, parking, building structure, locking
devices and key controls, lighting, alarm systems and video
surveillance cameras, and IT security.
Physical Access Controls
Access
controls must include positive identification of employees,
visitors, and vendors at all points of entry. Visitors must
present photo identification for documentation purposes upon
arrival.
Employment history and references must be verified: "An
employee identification system must be in place for positive
identification and access control purposes."
|
