For the past few years, we've all been hearing the buzz about Customs - Trade Partnership Against Terrorism (C-TPAT) and some of us have jumped on the band wagon. In fact, over 10,000 companies - including carriers, importers, customs brokers and other eligible firms are voluntary certified participants in this terrorism avoidance initiative.

Are you interested in learning what this initiative is all about, but have been hearing how difficult it is to obtain certification, and what tremendous resources it will take to get there, and how the costs seem to outweigh the benefits? There is some truth to this, but most anything worth having comes with a price. So, we have to ask ourselves, is certification worth pursuing? It is still a fairly young program and it continues to evolve. That being said, the challenges that come along with developing your procedures and policies will be quite unique to your company, as will the benefits of participation.

Benefits of C-TPAT participation include:

  • Reduced number of cargo inspections
  • Emphasis on self-policing as opposed to Customs verification

These benefits translate into some valuable practical considerations, including:

  • Cost savings - a full Customs exam can cost upward of $500 - $1000 per container
  • The more parties involved in a transaction who are partners, the lower the likely-hood of cargo inspections
  • Membership is considered a mitigating factor in the case of potential penalty matters
  • Ongoing familiarity with the program decreases the necessary time spent and resources involved in assuring compliance

As the program evolves, it is expected that the benefits will continue to outweigh the costs or perceived disadvantages to becoming a participant in the program. While there are no commitments from Customs, the trade has requested that Customs consider a number of new benefits for the ?next generation.?

Some of the next generation benefits of C-TPAT could include:

  • Basing cargo release on 10+2 data and permitting monthly entry of cargo aligned with the periodic monthly statement
  • Expedited responses to ruling requests
  • Enhanced penalty mitigation
  • Prior disclosure benefits
  • Further lowering of the number of inspections
  • Tax incentives for supply chain security and safety enhancements
  • Mutual recognition with other countries? approved security programs

What is involved in becoming C-TPAT certified?

  • Complete and submit the Agreement to Voluntarily Participate
  • Complete and submit the Supply Chain Security Profile Questionnaire - be aware that it is possible that Customs will request or require changes and upgrades to your processes
  • Assure that your stated procedures are followed through on, and updated as necessary Some of the absolutely, positively, must haves in order to become certified, and to be an effective participant in the program include:
  • Having the full commitment and support from high-level company management
  • Integrating participation into your overall supply chain security program
  • Assigning dedicated staff or team to manage the project on a continuing basis

This blog is an informal and brief summation of the good, the bad & the ugly about C-TPAT. For more detailed information, please see

 

Pacific Customs Brokers, Inc. is proud to be a participant in the C-TPAT Program. We will be very pleased to discuss and consult with you on your questions regarding the possible benefits and hurdles of C-TPAT participation at your convenience.

Have questions on how it will impact your business? Send them in through our comments section below or check out the rest of Pacific Customs Brokers blog.

 

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While we strive for accuracy in all our communications, as the Importer of Record it is incumbent upon your company to ensure that you are aware of the requirements under the new regulations so that you maintain compliance as always.