CBP Posts New C-TPAT Security Criteria for Importers and FAQs

(See ITT's Online Archives or 02/25/05 news, 05022505 for BP transcript of final draft version. See ITT's Online Archives or 03/28/05, 05032810 for BP summary of implementation plan. See ITT's Online Archives or 03/25/05 and 03/23/05 news, 05032505 and 05032310 for BP summaries of online application for C-TPAT importer applicants. )

CBP Posts FAQ on New Security Criteria for Importers

CBP has also posted a set of frequently asked questions (FAQ) titled: "Frequently Asked Questions Regarding Minimum Security Criteria for Importers," that is dated March 25, 2005 and contains 43 pairs of questions and answers.

Excerpted answers from this FAQ include the following (partial list):

Work on security criteria for other sectors in 2005. Throughout 2005, CBP will work with the trade community to develop minimum-security criteria for all enrollment sectors. Specifically, CBP states it will now begin revising the sea carrier, air carrier, and foreign manufacturer sectors concurrently.

Voluntary program. In a number of FAQs, CBP states that it is neither moving toward making C-TPAT mandatory, nor a regulatory program; it will continue to evolve as a voluntary, incentives-based government/private sector partnership.

Foreign country employee information. If criminal or financial background checks are not permitted in a foreign country, CBP states that some types of applicant information such as employment history, employment references, etc. can still be verified as part of the screening process. Members should be certain to document what level or checks have been initiated, as well as document limitations imposed by foreign law.

Physical security in foreign locations. Regarding physical security standards for suppliers, CBP states that foreign suppliers, manufacturers, cargo handling and storage facilities in foreign locations must have physical barriers and deterrents that guard against unauthorized access.

Returned goods, unsolicited material, etc. For returned goods, samples, prototypes, unsolicited promotional, marketing or advertising material, that importers have no control over with respect to the shipment or the security of the shipping party, CBP states that unsolicited shipments understandably lie outside the capability of the importer to ensure security.

Guarantees not needed. C-TPAT importers are not expected to guarantee that every shipment is secure, but rather, importers must demonstrate an ongoing commitment towards strengthening their supply chains.

Refusal of a supplier to cooperate. If after making every effort, a supplier refuses to cooperate with the C-TPAT importer, and that supplier is the only supplier in the world for a critical good, or if a requirement is not met due to circumstances outside of the participating C-TPAT importer, CBP states that an importer will continue to receive C-TPAT membership benefits if the importer continues to demonstrate its ongoing commitment toward enhancing the security of its supply chain.

Validations of existing members after phased implementation ends. Validations of existing members will be conducted using the new criteria after the phased in implementation period has ended.

Details on additional C-TPAT benefits in near future. In addition to identifying the current benefits of being a C-TPAT importer (six-times less likely to undergo a security related cargo exam, four-times less likely to be subject to a trade related exam, access to land border expedited processing via the FAST program, and participation in the Importer Self-Assessment (ISA) program), additional benefits are being discussed within CBP and more information about these additional benefits will be provided in the near future.

OGA security programs. CBP has attempted to align the C-TPAT program requirements to security programs administered by other government agencies (OGA). Generally, companies that participate in other government administered security related programs find it easier to meet or exceed the C-TPAT program requirements.

Smaller and medium size importers. Regarding whether CBP will be flexible in applying C-TPAT standards to smaller and medium size importers, CBP states that periodic reviews, which does not necessarily imply an actual physical review of the foreign manufacturer/supplier, of business partners' processes and facilities should be conducted based on risk, and should maintain the security standards required by the importers. A Best Practices document under development will provide several avenues through which small to mid-size importers have been successful in leveraging their business partners.

How far back in the supply chain to go for C-TPAT purposes. In response to a question asking how far back into the supply chain must a certified C-TPAT importer go to ensure and maintain proper security standards (assuming that risks are equal), CBP states that the supply chain for C-TPAT purposes is defined from point of origin (manufacturer/supplier/vendor) through to point of distribution- and recognizes the diverse business models C-TPAT members employ.

High risk supply chain components. Regarding the frequency of business partner reviews to ensure compliance with C-TPAT standards, and the criteria for container security, CBP states that high-risk supply chain components should be reviewed more frequently than low risk components.

Consequences of doing business with firm that is not C-TPAT certified or compliant. CBP states that if using non-C-TPAT business partners, the C-TPAT member must be aware of the security measures employed by their business partner, and these measures must be subject to verification of compliance with C-TPAT security criteria by the importer.

Compliant and non-compliant cargo in a consolidated load. When compliant supplier's cargo is mixed with non-compliant suppliers' cargo in a consolidated load, if an examination of the higher risk cargo is necessary, the entire shipment will be examined.

Compliant consolidator with noncompliant suppliers. A compliant consolidator does not 'cleanse' noncompliant suppliers, as it would not necessarily ensure that the cargo itself is not containing contraband. Importers must still advance supply chain security enhancements throughout their business partners.

'Opting out' of various program requirements. Regarding the 'flexibility' of the program, a C-TPAT importer, using its customization discretion, cannot 'opt out' of various program 'requirements.' Flexibility and customization is allowed based on the member's business model which demonstrates that the baseline, minimum security criteria are being met or exceeded.

The term 'as applicable.' The intention of the term "as applicable" throughout the security criteria document indicates that the importer may modify and/or provide alternatives to the listed 'requirements' such that the level of security within the specific parameter is met, but not necessarily exactly as indicated.

BASC. Membership in the Business Anti-Smuggling Coalition (BASC) helps establish that the foreign business partner is meeting minimum security criteria, but a complete review would still be needed to identify any deficiencies which need to be addressed.

New Security Criteria for C-TPAT Importers web page (contains new criteria and FAQ, as well as CBP Commissioner's statement) at http://www.cbp.gov/xp/cgov/import/commercial_enforcement/ctpat/criteria_importers/