Details of CBP's Implementation Plan for the New C-TPAT Security Criteria for Rail Carriers

These new minimum-security criteria will help solidify membership expectations, and more clearly define and establish the baseline level of security measures, which must be employed by member rail carriers.

The rail carrier minimum-security criteria are effective as of August 29, 2006.

(See today's ITT, 06090510, for BP summary of the new C-TPAT security criteria for rail carriers.)

For New Rail Carriers Wishing to Join C-TPAT

Rail carriers wishing to join the C-TPAT program on or after August 29, 2006, will need to meet or exceed the security criteria before they will be 'certified' and eligible for benefits.

For Existing C-TPAT Member Rail Carriers

For rail carriers who are already a member of the C-TPAT program, a gradual, phased implementation approach will be followed which provides existing members more time to address the security measures outlined in the criteria. The components outlined in the security criteria document have been segmented into three distinct phases, each with their own timeline, as follows:

Phase 1 - Hardening Of The Physical Supply Chain: Under the first phase, existing rail carriers will have 60 days from the August 29 effective date to immediately solidify their international supply chain by focusing on the physical and more traditional security areas consisting of the following:

Rolling Stock Security (inspections, rail car, locomotive security, etc)

Physical Access Controls (employees, visitors, etc)

Physical Security (fencing, lighting, parking, etc.).

All C-TPAT member rail carriers will be required to ensure compliance with these three elements within 60 days of the August 29, 2006 effective date.

Phase Two: Phase two will address more internal and/or procedural elements. Specifically, under phase two, current members will have 120 days from the August 29, 2006 effective date to ensure compliance with the following criteria:

Conveyance Tracking and Monitoring (unforeseen stops, etc)

Seals (sealing procedures, seal control, etc)

Personnel Security (background checks, employee hiring-firing, etc.),

Procedural Security (documentation, manifesting procedures, etc.)

Security Training and Threat Awareness

Information Technology Security (password protection, etc.).

CBP states that a longer timeframe is necessary for these elements due to the business procedure changes that are most likely necessary to attain compliance.

Phase Three: Phase three will address the remaining and more cumbersome requirement of leveraging security throughout the business partners. Specifically, under phase three rail carriers will have 180 days from the August 29, 2006 effective date, to ensure compliance to the following:

Security Procedures

Business Partner Requirements

According to CBP, the longer timeframe necessary for this area to allow rail carriers to make necessary changes to the rail carrier's business practices such as contractual agreements, supplier/vendor identification, etc.

Official Statement of Compliance Not Required

C-TPAT member rail carriers will not be required to certify or provide an official statement to CBP of their compliance with the new minimum-security criteria. As a result of the wide dissemination of the security criteria, it will be made clear that each member rail carrier is responsible for compliance within the timelines outlined. Validations will be used as the means to assess compliance with these criteria. C-TPAT Program Officers and Supply Chain Specialists will continue to work in partnership with members towards attaining full compliance, and addressing member-specific issues as they arise.

Consequences for Non-Compliance with Minimum Security Criteria

Validations will continue to be initiated as necessary of high-risk rail carriers to ensure compliance. Rail carriers failing to meet the security criteria as evidenced through a validation, or from a resulting seizure due to compromised supply chain security, will have their program benefits suspended until further notification by CBP. Egregious instances of non-compliance or fraud may result in not only suspension of benefits, but complete removal from the program. In these instances, such parties would be required to re-apply as if a new applicant, and benefits would only be re-instated after a physical validation of the submitted security profile. Partnership and a continued demonstrated commitment on the part of rail carriers towards securing their international supply chains will be the primary factors considered before CBP initiates any negative actions against the member Rail carriers.

C-TPAT Implementation Plan for Minimum Security Criteria for Rail Carriers (dated 08/28/06) available at http://www.cbp.gov/xp/cgov/import/commercial_enforcement/ctpat/security_criteria/sec_criteria_rail/rail_implementation_plan.xml