CBP's "Draft" of New C-TPAT Security Standards For Importers Available

The following is largely a transcription of the second draft, entitled "Draft 11/02/04 C-TPAT Security Standards for Importers." (When compared to the current C-TPAT importer security recommendations posted on CBP's Web site, the security standards in this second draft are more extensive and cover a number of new areas (e.g., business partner requirements, information technology security, etc.)

According to CBP, the following are "draft" minimum standards 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. The draft states that C-TPAT recognizes that one size does not fit all regarding supply chain security. Therefore, the program allows for flexibility and the customization of security plans based on the member's business model:

Requirements for an Importer's Business Partners

Written Processes for Selection of Business Partners. Importers must have written and verifiable processes for the selection of business partners - to include manufacturers, product suppliers and/or vendors, carriers, terminal operators, brokers and consolidators.

Security Questionnaire/Report Submitted by Business Partner. Processes must include the evaluation and verification of a written security questionnaire or security report submitted by the business partner that addresses the following:

security procedures.Importers must require current and prospective business partners to submit a written report or response to a security questionnaire regarding their current security procedures. It is imperative that business partners outline their current security practices and procedures for their C-TPAT importer so potential supply chain weaknesses can be identified and appropriately corrected. Through these questionnaires, importers can identify if outsourcing occurs at any point in their supply chain and if minimum C-TPAT security standards are being met or exceeded by the entity handling their merchandise.

point of production. Importers must ensure business partners develop security processes and procedures to enhance the integrity of the shipment at point of production. Periodic reviews of business partners' facilities should maintain the standard required by the importer.

customs industry partnership program participation by service provider.Current or prospective service providers must indicate their status of participation in Customs Industry Partnership Programs: C-TPAT, Carrier Initiative Program (CIP), Super Carrier Initiative Program (SCIP), and the Business Anti-Smuggling Coalition (BASC).

other internal requirements for selection.Internal requirements, such as financial soundness, capability of meeting contractual security requirements, and the ability to identify and correct security deficiencies as needed, must be addressed by the importer.

Container Security

Container Integrity; High Security Mechanical Seal. Container integrity must be maintained to protect against the introduction of unauthorized material and/or personnel. Importers must require that procedures are in place at time of container stuffing/sealing to maintain the integrity of the cargo. A high security mechanical seal must be affixed to all loaded sea containers bound for the U.S. All seals must meet or exceed the current PAS ISO 17712 standards for high security mechanical seals.

Container Inspection.Procedures must be in place to verify the physical integrity of the container structure prior to stuffing, to include the reliability of the locking mechanisms of the doors. A seven-point inspection process is recommended for all containers: Front wall, Left side, Right side, Floor, Ceiling/Roof, Inside/outside doors, and Outside/Undercarriage.

Integrity of Container Seals.Written procedures must stipulate how seals are to be secured, logged, and affixed to all loaded containers and verified throughout the supply chain - to include procedures for recognizing and reporting compromised seals or seal discrepancies to CBP or the appropriate foreign authority. Only designated employees should handle and distribute container seals for integrity purposes. All loaded containers must be sealed with a high security seal.

Seal Change Reporting. The reporting of seal changes must be recorded, reported, and updated in a timely manner throughout the importer's supply chain. At each delivery point of the container, procedures must be in place to check and verify the integrity of the seal.

Container Storage.Containers must be stored in a secure area to prevent access and/or manipulation. Procedures must be in place for reporting unauthorized entry to container storage areas.

Physical Access Controls

Access controls must prevent unauthorized entry/access to facilities. Access controls must include the positive identification of all employees, visitors, and vendors at all points of entry.

Employees.An employee identification system must be in place for positive identification and access control purposes. Employees must only be given access to areas needed for the performance of their duties.

Visitors.Visitors must present photo identification for documentation purposes upon arrival. All visitors should be escorted and visibly display company issued temporary identification.

Deliveries (including Mail).Vendors must present photo identification for documentation purposes upon arrival. Arriving packages and mail should be screened before being disseminated.

Challenging and Removing Unauthorized Persons. Procedures must be in place to identify, challenge and address unauthorized/unidentified persons.

Securing Physical Access.Company management or security personnel must adequately control the issuance and removal of employee, visitor and vendor identification badges. The issuance, removal and changing of access devices (e.g. keys, key cards, etc.) as necessary must also be controlled by management/security.

Personnel Security

Processes must be in place to screen prospective employees and to periodically check current employees.

Pre-Employment Verification. Application information, such as employment history and references must be verified prior to employment.

Background Investigations. Consistent with international, federal, state and local regulations, background investigations should be conducted for prospective employees. Once employed, periodic background reinvestigations should be performed.

Personnel Termination Procedures.Companies must have procedures in place to remove facility and systems access for terminated employees.

Procedural Security in Supply Chain

Security measures must be in place to ensure the integrity and security of processes relevant to the transportation, handling, and storage of cargo in the supply chain.

Documentation Processing. Procedures must be in place to ensure that all information used in the clearing of merchandise/cargo, is legible, complete, accurate, and protected against the exchange, loss or introduction or erroneous information. Documentation control must include safeguarding computer access and information.

Manifesting Procedures.Procedures must be in place to ensure that information received from foreign suppliers is reported accurately and timely.

Shipping & Receiving. Arriving cargo should be reconciled against advance information on the cargo manifest. The cargo should be accurately described, and the weights, labels, marks and piece count indicated and verified. Departing cargo should be verified against purchase or delivery orders. Drivers delivering or receiving cargo must be positively identified before cargo is received or released.

Cargo Discrepancies. All shortages, overages, and other significant discrepancies or anomalies must be resolved and/or investigated appropriately. Customs and/or other appropriate law enforcement agencies must be notified if illegal activities are detected.

Importer Security Training and Threat Awareness Program

A threat awareness program should be established and maintained by the importer to recognize and foster awareness of the threat posed by terrorists at each point in the supply chain. Employees must be made aware of the procedures the company has in place to address the response to a situation and how to report it. Additional training should be provided to employees in the shipping and receiving areas, as well as those receiving and opening mail.

Additionally, specific training should be offered to assist employees in maintaining cargo integrity, recognizing internal conspiracies, and protecting the integrity of access controls. These programs should offer incentives for active employee participation.

Physical Security Standards for Supply Chain

Cargo handling and storage facilities in domestic and foreign locations must have physical barriers and deterrents that guard against unauthorized access. Importers should incorporate the following C-TPAT physical security standards throughout their supply chains as applicable:

Fencing. Perimeter fencing should enclose the areas around cargo handling and storage facilities. Interior fencing within a cargo handling structure should be used to segregate domestic, international, high value, and hazardous cargo. All fencing must be regularly inspected for integrity and damage.

Gates and Gate Houses. Gates through which vehicles and/or personnel enter or exit must be manned and/or monitored. The number of gates should be kept to the minimum necessary for proper access and safety.

Parking. Private passenger vehicles should be prohibited from parking in or adjacent to cargo handling and storage areas.

Building Structure. Buildings must be constructed of materials that resist unlawful entry. The integrity of structures must be maintained by periodic inspection and repair.

Locking Devices and Key Controls. All external and internal windows, gates and fences must be secured with locking devices. Management or security personnel must control the issuance of all locks and keys.

Lighting. Adequate lighting must be provided inside and outside the facility including the following areas: entrances and exits, cargo handling and storage areas, fence lines and parking areas.

Alarm Systems & Video Surveillance Cameras. Alarm systems and video surveillance cameras should be utilized to monitor premises and prevent unauthorized access to cargo handling and storage areas.

Information Technology Security

Password protection.Automated systems must use individually assigned accounts that require a periodic change of password. IT security policies, procedures and standards must be in place and provided to employees in the form of training.

Accountability. A system must be in place to identify the abuse of IT including improper access, tampering or the altering business data. All system violators must be subject appropriate disciplinary actions for abuse.

CBP's second draft C-TPAT security standards for importers availablefromBP via email by emailing documents@brokerpower.com.