U.S. and China Conduct Joint C-TPAT Validation Pilot with Three Volunteers
U.S. Customs and Border Protection has posted a press release to its Web site announcing that CBP and the General Administration of China Customs began a Customs-Trade Partnership Against Terrorism validation pilot program in China during the week of March 17, 2008.
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(In October 2007, CBP announced that China had agreed to allow joint U.S.-China C-TPAT validations performed in China using CBP officials. The previous policy of the Chinese government had prevented CBP Supply Chain Security Specialists (SCSSs) from performing C-TPAT validations in China.)
Three Volunteer C-TPAT Importers in Pilot
The pilot involves three C-TPAT importers whose supply chains predominately originate in China. The U.S. companies were invited to participate in the pilot based on several factors including volume, product type, and location of their supply chains in China. The importers voluntarily agreed to participate in the pilot with the concurrence of both CBP and China Customs.
U.S. and China to Jointly Evaluate Pilot and Determine Next Steps
China Customs is heading this initiative using the C-TPAT minimum security criteria as a guide and with CBP SCSSs providing technical assistance. Both the U.S. and China will jointly evaluate the pilot and determine the next steps.
CBP to Use the Information Gathered to Determine if the Three Volunteers Can Receive Higher Level of C-TPAT Benefits
The three U.S. importers are receiving minimum C-TPAT benefits due to CBP's prior inability to validate their security procedures. However, CBP will use the information gathered during the pilot to determine whether the companies can receive a higher level of C-TPAT benefits.
(Certified C-TPAT companies that have not been validated are granted Tier 1 status (and limited benefits). C-TPAT companies that successfully undergo a validation are eligible to receive Tier 2 (if minimum security criteria are met) or Tier 3 status (if minimum security criteria are exceeded and security best practices are adopted) and to receive the associated benefits.)
(See ITT's Online Archives or 10/17/07 news, 07101705, for BP summary of CBP's announcement that it would be allowed to perform joint C-TPAT validations in China.
See ITT's Online Archives or 03/11/08 news, 08031105, for BP summary of the February 13, 2008 COAC meeting, which noted that the process to establish joint C-TPAT validations was going slowly, that interest in CBP's third party validation pilot in China had been minimal, and the third-party validation pilot was expected to end in June 2008.
The C-TPAT third-party validation pilot was provided for in the Security and Accountability for Every (SAFE) Port Act (P.L. 109-347).)
CBP press release on joint validation pilot (dated 03/24/08) available at http://www.cbp.gov/xp/cgov/newsroom/news_releases/03242008.xml.