The Customs Trade Partnership Against Terrorism is one of the most important programs for importers to be familiar with. The following information is provided by the U.S. Customs Service.

Security recommendations

     Importers should develop and implement a sound plan to enhance security procedures throughout their supply chain. Where an importer does not control a facility, conveyance or process subject to these recommendations, the importer agrees to make every reasonable effort to secure compliance by the responsible party. The following are general recommendations that should be followed on a case-by-case basis depending on the company’s size and structure and may not be applicable to all.

     Procedural security: Procedures should be in place to protect against materials without manifests being introduced into the supply chain. Security controls should include the supervised introduction/removal of cargo, the proper marking, weighing, counting and documenting of cargo/cargo equipment verified against manifest documents, the detecting/reporting of shortages/overages, and procedures for verifying seals on containers, trailers, and railcars.

     The movement of incoming/outgoing goods should be monitored. Random, unannounced security assessments of areas in your company’s control within the supply chain should be conducted. Procedures for notifying Customs and other law enforcement agencies in cases where anomalies or illegal activities are detected, or suspected, by the company should also be in place.

     Physical security: All buildings and rail yards should be constructed of materials, which resist unlawful entry and protect against outside intrusion. Physical security should include perimeter fences, locking devices on external and internal doors, windows, gates and fences, adequate lighting inside and outside the facility, and the segregation and marking of international, domestic, high-value, and dangerous goods cargo within the warehouse by a safe, caged or otherwise fenced-in area.

     Access controls: Unauthorized access to facilities and conveyances should be prohibited. Controls should include positive identification of all employees, visitors, and vendors. Procedures should also include challenging unauthorized/unidentified persons.

     Personnel security: Companies should conduct employment screening and interviewing of prospective employees to include periodic background checks and application verifications.

     Education and training awareness: A security awareness program should be provided to employees including the recognition of internal conspiracies, maintaining cargo integrity, and determining and addressing unauthorized access. These programs should offer incentives for active employee participation in security controls.

     Manifest procedures: Companies should ensure that manifests are complete, legible, accurate, and submitted in a timely manner to Customs.

     Conveyance security: Conveyance integrity should be maintained to protect against the introduction of unauthorized personnel and material. Security should include the physical search of all readily accessible areas, the securing of internal/external compartments and panels, and procedures for reporting cases in which unauthorized personnel, materials without manifests, or signs of tampering, are discovered.

     Importers will also want to earn C-TPAT validation. A C-TPAT validation is a process through which the Customs Service meets with company representatives and potentially visits selected domestic and foreign sites to verify that the supply chain security measures contained in the C-TPAT participant’s security profile are accurate and are being followed.

     Since the decision to provide expedited release of cargo, and/or a reduced number of examinations may be directly linked to a company’s C-TPAT documentation, the principal goal of a validation for Customs is to ensure that the company’s C-TPAT security profile is reliable, accurate, and effective. However, we expect that validations will also provide a forum through which Customs and a C-TPAT participant can build a stronger partnership by discussing supply chain security issues, sharing best practices, and cooperatively developing solutions to address potential vulnerabilities. The face-to-face nature of a validation encourages both Customs and the C-TPAT participant to better understand the role each plays in securing our borders against international terrorism.

     A C-TPAT validation is not a Customs audit. Whereas Customs routinely performs audits in a variety of operational areas (e.g. trade compliance, NAFTA), C-TPAT validations do not measure a company’s adherence to existing government rules and regulations. Instead, the validation is focused on the reliability of the materials that a company voluntarily submits to Customs under the C-TPAT program.

     According to Customs, validations will be focused and concise. Although they may extend beyond two weeks on some occasions due to Customs planning and travel, they will not involve more than 10 working days of a company’s time. Customs plans on validating the security profiles of all C-TPAT participants. Normally a company’s initial validation will occur within three years of becoming a certified member of C-TPAT.

     The order in which a C-TPAT participant’s profile will be selected for validation will be based on risk management principles. Validations may be initiated based on import volume, security related anomalies, strategic threat posed by geographic regions, or other risk related information. Alternatively, a validation may be performed as a matter of routine program oversight. Customs headquarters will provide C-TPAT participants 30 days written notice prior to the beginning of any validation.

     At the conclusion of a validation, company management will be briefed on the findings of the validation. Additionally, a Validation Report will be prepared and presented to the company shortly thereafter. Ideally, the report will affirm or increase the level of benefits provided to the participant. However, depending on the findings, some or all of the participant’s C-TPAT benefits may be deferred until corrective action is taken to address identified vulnerabilities. With respect to actions resulting from a validation, Customs authority will rest with the Executive Director, Border Security and Facilitation, Office of Field Operations, at Customs Headquarters.

     The C-TPAT security recommendations were developed jointly by Customs and the trade community as guidelines that companies should consider as they assess the effectiveness of their own supply chain security programs. With the understanding that they are not requirements and are not all-inclusive, the recommendations may help limit the scope of the validation and customize it to the C-TPAT participant involved.

Required documentation

     Importers must also respond to the following C-TPAT Supply Chain Security Profile Questionnaire.

     Provide an executive summary outlining the process elements of the security procedures you currently have in place. Your submission must include the importer of record number(s) which are covered by the security processes you describe. At minimum, address the following elements:

Security program:

     •Facilities security.

     •Theft prevention.

     •Shipping and receiving controls.

     •Information security controls - integrity of automated systems.

     •Internal controls - process established for reporting and correcting problems.

Personnel security:

     •Pre-employment screening & periodic background reviews.

     •Employee training on security awareness and procedures.

     •Internal codes of conduct.

     •Internal controls - process established for reporting and managing problems related to personnel security.

Service provider requirements - product suppliers, carriers, forwarders:

     •Written standards for service providers’ physical plant security.

     •Quality controls on production processes to ensure system integrity.

     •Financial assessment process to determine service provider’s fiscal soundness and ability to deliver goods and services within contract parameters.

     •Internal controls for the selection of service providers.

     •Profiles of Tier 1 suppliers (i.e. those entities receiving and packing a finished commodity, for transportation to the final destination) maintained and available for review.

     Indicate if your service providers participate in Customs Industry Partnership Programs: the Customs-Trade Partnership Against Terrorism (C-TPAT), the Carrier Initiative Program (CIP), the Super Carrier Initiative Program (SCIP), the Business Anti-Smuggling Coalition (BASC).

     Indicate that the specific detailed procedures noted above are available to Customs in a verifiable format at an identified location.

     Include an assessment of your security processes, as well as information on what changes you envision making to correct identified weaknesses. Identifying perceived weaknesses will not necessarily prohibit participation in C-TPAT. Customs is committed to working with you to identify effective corrections and adjustments to your processes that will result in a more secure supply chain operation. Customs has specific programs in place that can assist your company in meeting this objective. Its Carrier Initiative Program Coordinators can provide expert advice on establishing security programs throughout your supply chain. Program information will be provided upon request.