CBP's Answers to Questions Submitted at its January 2005 Trade Symposium (Part III)

(CBP's 2004 Trade Symposium was held on January 12-14, 2005 in Washington, DC. See ITT's Online Archives or 01/27/05 and 01/28/05 news, 05012710 and 05012810, for Parts I and II of BP's summary of this trade symposium.)

This is Part III of a multi-part series of summaries on this document, and provides "highlights" of the rest of the questions and answers concerning global supply chain security. (See ITT's Online Archives or 06/10/05 and 06/13/05 news, 05061005 and 05061305, for Parts I and II.)

Highlights of Questions & Answers on Global Supply Chain Security

The following are highlights of the rest of the questions and answers related to global supply chain security:

C-TPAT communications web portal to be rolled out in June 2005. In response to a question on whether a C-TPAT members only web site will be created for port alert information, program specifics and other communications, CBP states that a secure communications web portal is under development with a June 2005 rollout timeframe. According to CBP, this secure communications portal will be an avenue for the exchange of sensitive information between CBP and the C-TPAT certified membership.

In April 2005, C-TPAT specialists began using automated assessment tool for validations. In response to questions on validating foreign manufacturers, CBP states that in April 2005, C-TPAT Supply Chain Specialists (SCSs) began using an automated validation assessment tool, which provides for a consistent, thorough approach to validations. The results of the assessment tool are downloaded into an internal records management database, so that redundancies can be avoided. However, CBP notes that validation visits to foreign manufacturers often reveal security weaknesses, and additional visits to the same manufacturer may be necessary to ensure that recommendations to address the security deficiencies have in fact been implemented.

CBP also states that once this automated tool has been employed in the field for several months, CBP will provide a best practices catalogue, which will further outline effective security measures and assist members in ascertaining the risk associated with various components of their supply chain.

C-TPAT seal requirements. In response to questions on C-TPAT seal requirements, CBP states that at present, the C-TPAT program (as well as the southern border FAST program) requires all loaded containers/trailers destined for the U.S. arriving by sea, rail, or truck to be sealed using a high security mechanical seal meeting the International Standardization Organization Publicly Available Specification (ISO/PAS) 17712 standards. CBP notes that it does not endorse or "approve" one seal manufacturer over another. According to CBP, the standard is outlined in the minimum security criteria for importers, which became effective on March 25, 2005. (See ITT's Online Archives or 03/31/05 news, 05033105, for BP summary on CBP's posting of these C-TPAT criteria, which includes links to other related BP summaries.)

C-TPAT members receive fewer examinations, etc. A commenter stated that it appears that the benefits of C-TPAT are being reduced, as feedback from C-TPAT participants indicates that the reduced number of inspections has not been evident, and C-TPAT participation is not required for the Automated Commercial Environment (ACE).

CBP responds that it strongly disagrees, and states that C-TPAT members receive, on average, six times fewer examinations for security related reasons than non-C-TPAT members, and four times fewer trade related examinations than non-C-TPAT members. C-TPAT members are also given expedited cargo processing on the land borders through the use of FAST dedicated lanes. CBP further states that it has recently adopted a tiered benefits program granting even greater benefits to validated members meeting or exceeding the minimum security criteria. (See ITT's Online Archives or 04/27/05 news, 05042710, for BP summary of Commissioner Bonner's speech on three "tiers" of C-TPAT benefits.)

In response to a similar question, CBP states that examination rates vary based on the commodity imported, countries of origin, trade routes utilized, importing history of the importer and/or shipper, and other variables. CBP notes that since 9/11, it has quadrupled examinations.

C-TPAT benefits for importers of all sizes. A commenter stated that both World Customs Organization (WCO) Secretary Danet and Commissioner Bonner have suggested that they are frustrated by their inability to get relevant information from small and medium importers, and asks if C-TPAT has a plan to engage small and medium sized enterprises (SMEs) from this group and solicit their input.

CBP responds that within the C-TPAT program, importers of all size are afforded tangible benefits and the opportunity to attend C-TPAT sponsored training seminars. CBP states that in summer 2005, members will also be allowed access to a dedicated, web based communications portal that will further facilitate the exchange of information between CBP and the C-TPAT trade community (see above). CBP notes that C-TPAT Program Officers and SCSs also regularly attend trade conferences, providing further avenues for the exchange of information.

Discussions with FDA, USDA on C-TPAT benefits. A questioner asked if there is any chance that a C-TPAT benefit could extend to Food and Drug Administration (FDA) exams or if one-face-at-the-border would ever include FDA. CBP responds that at present, the C-TPAT Office is actively engaged in discussions with the FDA and the U.S. Department of Agriculture (USDA) to afford C-TPAT certified members certain benefits from these other government agencies (OGAs), such as fewer cargo examinations for FDA and USDA purposes. CBP states that it agrees that to truly facilitate compliant trade, the impact of OGA examination rates must be addressed and reduced.

Redundancies with OGAs. In response to a question on how CBP, after creating C-TPAT, stays consistent with requirements and enforcement and/or verification of security plans of OGAs such as the Department of Transportation (DOT), CBP states that C-TPAT has an open dialogue with OGAs to ensure that redundancies are eliminated.

According to CBP, one important program to help reduce the redundancies in regards to data provided to the U.S. federal government is the International Trade Data System (ITDS) program, under which participating federal government agencies identify the needed data elements, and such data is provided by the importer to the U.S. government at one time. Agencies with individual needs pull from this one dataset, thus reducing the need for multiple transmissions of similar data to multiple government agencies.

Validations have been done on 12% of C-TPAT membership, etc. CBP reports that at present, validations have been completed on 12% of C-TPAT membership, and validations are underway on another 26%.

According to CBP, C-TPAT validations are initiated based on risk. High risk supply chains, using the same foreign suppliers, manufacturers, logistics providers, etc., may be subject to more frequent validations than low risk supply chains.

C-TPAT membership is not presently being extended beyond current enrollment sectors. In response to questions on if or when C-TPAT participation will be extended to licensed motor carrier property brokers (3PLs - Third Party Logistics providers) and to factories and distribution centers outside the U.S., CBP states that at this time, it does not plan to expand membership beyond the current existing enrollment sectors.

CBP Answers to Question Cards Submitted at the Trade Symposium 2004 available at http://www.cbp.gov/linkhandler/cgov/import/communications_to_industry/trade_2004/trade_answers.ctt/trade_answers.doc