Customs Report

U.S. Customs & Border Protection recently answered several questions about its new Customs-Trade Partnership Against Terrorism program. These include the following.

Q: Is the Customs-Trade Partnership Against Terrorism (C-TPAT) a voluntary program for eligible foreign manufacturers?

A: Yes. C-TPAT builds upon existing relationships with all of the segments, of the supply chain, both foreign and domestic, in an effort to secure the entire supply chain of goods entering the United States.

Q: Is C-TPAT membership open to all foreign manufacturers?

A: No. CBP will implement a phased approach to foreign sector enrollment, and initially will offer participation to Mexican manufacturers, Mexico related parties and a select group of foreign manufacturers in Asia and Europe that will be invited to participate directly by CBP.

Q: How will eligible foreign manufacturers outside of Mexico be notified of their opportunity to participate in C-TPAT?

A: As eligibility to join C-TPAT will be initially open to a specific audience outside of Mexico, these eligible foreign manufacturers will be contacted directly by CBP to join C-TPAT.

Q: Is C-TPAT participation currently open to related parties of all of the C-TPAT importers?

A: No. For this initial phase, only related parties in Mexico will be eligible to join C-TPAT. We are exploring a strategy to extend C-TPAT enrollment to related parties outside of Mexico at a later date.

Q: Will Mexican related parties that are included in the security profiles of C-TPAT Importers have to undergo the entire process of applying for C-TPAT?

A: No. Related parties in Mexico that are included in the security profile of the C-TPAT Importer are not required to complete the Voluntary Agreement and the Supply Chain Security Profile Questionnaire.

Q: How can I have an impact on the security standards of my foreign service providers and affiliated foreign manufacturers?

A: A good way to begin to influence the security standards of your manufacturers/exporters is to share the C-TPAT security recommendations and supply chain security profile questionnaire with them.

Q: Will the C-TPAT importer bear sole responsibility for the security processes and facility of a C-TPAT foreign manufacturer.

A: No. All companies who are members of C-TPAT, both foreign and domestic, will be responsible for the security of their facility, and of their supply chain.

Q:As an exporter/manufacturer, I already participate in the Business Anti-Smuggling Coalition. Is it a duplication of effort in joining C-TPAT?

A: No. Participation in BASC will not be a duplication of effort if a company joins C-TPAT. BASC is a private sector controlled initiative, supported by Customs and Border Protection, which is aimed at enhancing existing security practices to prevent drugs and implements of terror from being shipped in commercial cargo. CBP encourages companies to continue to join BASC as a means to maintain and improve their security, to share best practices with other BASC members and to receive visits by CBP officers under the Americas Counter Smuggling Initiative (ACSI).

Q: If I am a certified BASC company, do I still need to apply to become a member of C-TPAT?

A: Yes. BASC companies must still apply to join C-TPAT. However, since BASC participants already subscribe to stringent security standards throughout the scope of their operations, it is anticipated that these participants will rapidly meet the standards of C-TPAT thus expediting the enrollment process.

Q: How will C-TPAT become available to other segments of the foreign supply chain after the initial enrollment?

A: CBP is working on a strategy that will include input from the trade, to enroll additional segments of the foreign supply chain into C-TPAT. Once this is developed and approved, CBP will announce open enrollment on the CBP Web Page.

Q: What additional benefits are there for foreign manufacturers to join C-TPAT?

A: The more Customs knows about the entire security of the supply chain, the more effective we will be at making risk determinations concerning your conveyance and/or operation.

Q: Will CBP assist the C-TPAT participants in the development of a threat, education and awareness program?

A: Through conferences, training seminars and visits by C-TPAT Supply Chain Security Specialist, CBP will assist C-TPAT members in developing these areas.

Q: Will CBP validate all of the foreign manufacturers that are members of C-TPAT?

A: Yes, CPB is currently hiring and training an additional cadre of personnel to be Supply Chain Security Specialists who will conduct the validation visits.

Q: In addition to the recommended C-TPAT Security Recommendations, how else will CBP communicate sound security practices to its members.

A: In addition to the conferences/seminars, CBP will be publishing best practices on security measures adopted by C-TPAT members on the web page in the near future. These best practices will range from cost effective to sophisticated practices that will provide excellent examples to C-TPAT members.

Q: Are there monetary penalties associated with C-TPAT for foreign manufacturers?

A: Carriers who transport goods destined for the United States must apply by returning a Voluntary Agreement and a Supply Chain Security Profile Questionnaire to Customs. Supplemental information may be requested. See complete application instructions on the cbp website.

Q: What are the requirements for joining C-TPAT for U.S. /Mexico Border Highway Carriers?

Q: Can a Carrier become an approved FAST carrier without being a C-TPAT participant?

A: No. Participation in C-TPAT is a requirement for participating in FAST. FAST is designed to build upon the security measures required in C-TPAT, targeted specifically for expediting processing at our land border with Mexico and Canada.

Q: What are the benefits of participation in C-TPAT?

A: The primary benefits are access to dedicated FAST Lanes along certain U.S./Mexico border crossings and the potential for a reduced number of inspections (reduced border times).

Q: Do I have to join both the C-TPAT and FAST Programs to receive the most benefits?

A: Only carriers who are C-TPAT and FAST certified, and whose drivers possess valid driver registration card will be permitted to use the FAST Lanes along certain U.S. /Mexico border crossings. If a carrier does not want to use the dedicated lane, then participation in FAST will not be required.

Q: If I am a C-TPAT Northern Border Highway Carrier and a FAST U.S./Canada Highway Carrier, do I still have to apply to receive benefits on the Southern border?

A: Yes. Since the information required to apply on the Northern and Southern borders is slightly different, a U.S./Mexico Border Highway Carrier Application must be submitted to be considered for C-TPAT and FAST on the Southern border. Part of the application process includes sending the U.S./Mexico Border Highway Carrier Agreement and U.S./Mexico Border Highway Carrier Supply Chain Security Profile to CBP. Carriers that are already C-TPAT and FAST on the northern border should already be very familiar with this procedure and will receive expedited processing by CBP.