CBP Issues FAQ on C-TPAT and Air Freight Consolidators, OTIs, Brokers, and NVOCCs
U.S. Customs and Border Protection (CBP) has posted to its Web site a new set of frequently asked questions and answers (FAQs) regarding the Customs-Trade Partnership Against Terrorism (C-TPAT) and air freight consolidators, ocean transportation intermediaries (OTIs), brokers, and non-vessel operating common carriers (NVOCCs).
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The following are the questions, and CBP's responses:
Is C-TPAT a voluntary program?
In response to a question as to whether C-TPAT is a voluntary program for brokers, air freight consolidators/OTIs, and NVOCCs, CBP states that it is, noting that C-TPAT is designed to build upon existing relationships with the various sectors of the trade community to enlist voluntary participation in the program to develop and enhance relevant security practices.
Should a company sign more than one agreement?
In response to a question as to whether a company should sign more than one agreement if it performs multiple functions (e.g., brokerage and freight forwarding), CBP states that it should. According to CBP, agreements which pertain to the functions a company performs should be signed and the company should note on the security profile submission that it performs multiple services and that it agrees to the appropriate security recommendations for that service function.
Will a company be designated as a broker account when it signs onto C-TPAT?
In response to a question as to whether a company will be designated as a broker account when it signs onto C-TPAT, CBP states that account status is one of the potential benefits of C-TPAT participation. According to CBP, account status designation will be determined based on a variety of factors, including C-TPAT participation.
Will freight forwarders/consolidators and NVOCCs be designated as accounts?
In response to a question as to whether freight forwarders/consolidators and NVOCCs will be designated as accounts when they sign onto C-TPAT, CBP states that as the initiative evolves, account status may be extended to forwarders and NVOCCs as a potential benefit.
Are there monetary penalties associated with C-TPAT?
CBP responds to the question as to whether there are monetary penalties associated with C-TPAT by stating that there are not.
Will brokers be required to do background checks on all their employees?
In response to a question as to whether brokers will be required to do background checks on all of their employees, CBP states that they will not. However, CBP states that it is expected that pre-employment verification will be done on all new hires and that a more detailed background review will be completed when significant issues arise.
C-TPAT FAQ - Air Freight Consolidators, Ocean Transportation Intermediaries, Brokers, and NVOCCs available at
http://www.cbp.gov/xp/cgov/import/commercial_enforcement/ctpat/brokers/faq_brokers.xml.