Trade Experts Question Value of CTPAT Membership Under New Trade Landscape
As CBP continues to ramp up enforcement of U.S. import compliance, one issue some industry experts want CBP to address is what the agency's increased enforcement means for the Customs Trade Partnership Against Terrorism, or CTPAT, according to comments from panelists during a June 27 session of a conference sponsored by the American Association of Exporters and Importers.
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Panelists during the session considered whether being a "trusted trader" should continue to be an appropriate term for the program, or whether the government is seeking parties that go along lockstep with official positions and government actions.
"I'd like to see some benefits to trade that's much more quantified," said panelist Vince Iacopella, executive vice president of strategic growth and president of government and trade relations for Alba Wheels Up.
But "it's pretty clear that outside of UFLPA, on the resiliency side and the visibility side, we're going have to go past the first tier. So, anybody who has a drastic reduction in value, legitimate or otherwise, it's pretty clear that that's going to be heavily scrutinized."
Right before the session, the audience heard an off-the-record discussion with Jeff Rezmovic, CBP deputy executive assistant commissioner for the Office of Trade.
According to panelist Mark Hirzel, who serves as co-chair of AAEI’s Transpacific Committee and oversees export compliance activities for American Honda Motor, Rezmovic was quick to respond on the question about whether the trade industry should stay focused on CTPAT's objectives.
Later in the session, Hirzel talked about the investments that companies must make to be a member of CTPAT.
"It is not cheap to implement," Hirzel said. Furthermore, if CBP issues more forms 28 and 29, which serve as a warning to a company that its import is facing heightened security or potential compliance violations, does being a CTPAT member "mean anything anymore? And if it doesn't, then I think it's important for trade to say, hey, this means something. We're part of our Trusted Trader program, and this is what it means. But we know that that's not happening."