Details of CBP's C-TPAT Security Guidelines for Foreign Manufacturers

(See ITT's Online Archives or 04/26/06 news, 06042605, for BP summary announcing CBP's issuance of C-TPAT security guidelines for brokers, NVOCCs, OTIs, foreign manufacturers, air carriers, rail carriers, etc.)

C-TPAT Qualifications for Foreign Manufacturers

Currently, C-TPAT for Foreign Manufacturers is open to manufacturers in Mexico and other Foreign Manufacturers by invitation only.

CBP states that the following are the C-TPAT qualifications for foreign manufacturers:

Be an active Manufacturer incorporated in Mexico. (Copies of the company's certificate of incorporation must be made available upon request by C-TPAT personnel).

Have an active CBP Manufacturer Identification (MID) Number that is provided in the Online application process.

Have a designated company officer that will be the primary cargo security officer responsible for C-TPAT.

Commit to maintaining CBP's C-TPAT supply chain security guidelines as outlined in the C-TPAT Manufacturer agreement.

Provide CBP with a C-TPAT supply chain security profile, which identifies how the Manufacturer will meet, maintain and enhance internal policy to meet the C-TPAT Manufacturer security guidelines.¹

¹Failure to provide a comprehensive security profile will delay further processing of the company's C-TPAT application.

Penalties for Providing False Information

The failure to provide true, accurate and complete information in an application may result in denial of this application. Severe penalties are provided by law for knowingly and willfully falsifying or concealing a material fact or using any false document in submitting the application. If a foreign manufacturer is found in violation of the terms and conditions of this program, CBP may cancel its privileges and it may be subject to fines, penalties and criminal charges.

C-TPAT Security Guidelines for Foreign Manufacturers

Manufacturers must conduct a comprehensive assessment of their international supply chains based upon the following C-TPAT security guidelines. Where a Manufacturer out sources or contracts elements of its supply chain, such as a transportation, conveyance, warehouse, broker, consolidator or other elements, the Manufacturer must work with these business partners to ensure that pertinent security measures are in place and adhered to throughout its supply chain. 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.

C-TPAT recognizes the complexity of international supply chains and endorses the application and implementation of security measures based upon risk analysis. Therefore, the program allows for flexibility and the customization of security plans based on the member's business model.

As listed throughout CBP's C-TPAT guidelines, appropriate security measures, based on risk must, be implemented and maintained throughout the Manufacturer's supply chains.

Conveyance Security

CBP states that conveyance integrity procedures must be maintained to protect against the introduction of unauthorized personnel and material.

Conveyance inspection procedures. The Manufacturer must ensure Carriers have conveyance inspection security procedures that include a physical search of all readily accessible conveyance areas, securing all internal/external compartments, panels and reporting cases in which unmanifested materials or signs of tampering are discovered. Conveyance inspections must be documented utilizing a checklist completed by the driver prior to departure from the last point of loading prior to reaching the U.S. border.

Management verification process.The Manufacturer's management shall ensure that Carriers have conveyance inspection procedures that include performing periodic unannounced random conveyance inspections for the Carrier's conveyances en route to the U.S. border. The management conveyance inspection verification process must be documented and records maintained for at least 180 days.

Conveyance tracking and monitoring procedures. C-TPAT Manufacturers shall verify Carriers have conveyance tracking and monitoring procedures that include electronic means for tracking driver movement and activity while transporting cargo en route to the U.S. border. Conveyance tracking and monitoring must be documented utilizing an activity log. Manufacturers must verify that Carrier management performs a documented, periodic, and unannounced verification process to ensure conveyance tracking and monitoring procedures are being followed.

Business partner requirements. Manufacturers must have written and verifiable processes for the screening and selection of business partners including customers, contractors, and vendors. Ensure that contracted service provider companies who provide security, transportation, and cargo handling services commit to C-TPAT Security Guidelines. Periodically review the performance of the service providers to detect weakness or potential weaknesses in security.

Security Procedures

For those business partners eligible for C-TPAT certification (carriers, U.S. ports, terminals, importers, brokers, consolidators, etc.) the Manufacturer must have documentation (e.g., C-TPAT certificate, SVI number, etc.) to determine if these business partners are C-TPAT certified.

For those business partners not eligible for C-TPAT certification, Manufacturers must require their business partners to demonstrate that they are meeting C-TPAT security guidelines via written/electronic confirmation (e.g., contractual obligations; via a letter from a senior business partner officer attesting to compliance; a written statement from the business partner demonstrating their compliance with C-TPAT security guidelines or an equivalent World Customs Organization (WCO) accredited security program administered by a Foreign Customs Authority; or, by providing a completed Manufacturer security questionnaire). Based upon a documented risk assessment process, non-C-TPAT eligible business partners must be subject to verification of compliance with C-TPAT security guidelines by the Manufacturer.

Point of origin.Manufacturers must ensure business partners develop security processes and procedures consistent with the C-TPAT security guidelines to enhance the integrity of the shipment at point of origin. Periodic reviews of business partners' processes and facilities should be conducted based on risk and should maintain the security standards required by the Manufacturer.

Other internal criteria 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, should be addressed by the Manufacturer. Internal requirements should be assessed against a risk-based process as determined by an internal management team.

Container Security

CBP states that container integrity must be maintained to protect against the introduction of unauthorized material and/or persons. At point of stuffing, procedures must be in place to properly seal and maintain the integrity of the shipping containers. A high security seal must be affixed to all loaded containers bound for the U.S. All seals must meet or exceed the current PAS ISO 17712 standards for high security seals.

Container inspection.Procedures must be in place to verify the physical integrity of the cargo container structure prior to loading, to include the reliability of the locking mechanisms of the doors. An inspection process is recommended for all full and empty containers:

Container seals. Written procedures must stipulate how seals are to be controlled and affixed to loaded containers. Procedures must be in place for recognizing and reporting compromised seals and/or containers to CBP or the appropriate foreign authority. Only designated employees should distribute container seals for integrity purposes.

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

Physical Access Controls

Access controls prevent unauthorized entry to conveyances and facilities, maintain control of employees, visitors and protect company assets. 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. Employees should only be given access to those secure areas needed for the performance of their duties. Company management or security personnel must adequately control the issuance and removal of employee, visitor and vendor identification badges. Procedures for the issuance, removal and changing of access devices (e.g. keys, key cards, etc.) must be documented.

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

Deliveries (including mail). Proper vendor ID and/or photo identification must be presented for documentation purposes upon arrival by all vendors. Arriving packages and mail should be periodically screened before being disseminated.

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

Personnel Security

CBP states that processes must be in place to screen prospective employees and to periodically check current employees. Maintain a current permanent employee list, which includes the name, date of birth, national identification number or social security number, position held, and submit such information to CBP upon written request, to the extent permitted by law.

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

Background checks/investigations. Consistent with foreign, federal, state and local regulations, background checks and investigations should be conducted for prospective employees. Periodic checks and reinvestigations should be performed based on cause and/or the sensitivity of the employee's position.

Personnel termination procedures.Companies must have procedures in place to remove identification, facility, and system access for terminated employees.

Procedural Security

CBP states that 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 documentation used in the clearing of merchandise/cargo, is legible, complete, accurate and protected against the exchange, loss or introduction of erroneous information. Documentation control must include safeguarding computer access and information.

Manifesting procedures. To help ensure the integrity of cargo received from abroad, procedures must be in place to ensure that information received from business partners is reported accurately and timely. Ensure that all bills of lading and other documentation submitted for cargo is complete and a system in place to verify the accuracy of the weight, marks and quantity of the shipment.

Shipping & receiving. Arriving cargo should be reconciled against information on the cargo manifest. The cargo should be accurately described, weighed, labeled, marked, counted and verified. Departing cargo should be checked 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. CBP and/or other appropriate law enforcement agencies must be notified if illegal or suspicious activities are detected.

Security Training and Threat Awareness

CBP states that a threat awareness program should be established and maintained by security personnel 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 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 access controls. These programs should offer incentives for active employee participation. Conduct periodic unannounced security checks to ensure that all procedures are being performed in accordance with defined guidelines.

Physical Security

CBP states that cargo handling and storage facilities in domestic and foreign locations must have physical barriers and deterrents that guard against unauthorized access. U.S./Canada Highway Carriers should incorporate the following C-TPAT physical security guidelines 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.

Alarms 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

CBP states that information technology (IT) integrity must be maintained to protect data from unauthorized access or manipulation.

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 of business data. All system violators must be subject to appropriate disciplinary actions for abuse.

Foreign manufacturer C-TPAT Security Guidelines (dated 04/24/06) available at http://www.cbp.gov/xp/cgov/import/commercial_enforcement/ctpat/security_guideline/guideline_manufacturer.xml.

BP Note

According to CBP sources, these C-TPAT guidelines are precursors to C-TPAT criteria (that are expected to have effective dates, etc.), which are expected to be developed.