U.S., Canada Sign PIP/C-TPAT Cargo Security Mutual Recognition Arrangement
On June 28, 2008, the U.S. and Canada signed a mutual recognition arrangement agreeing to mutual standards for Canada's Partners in Protection (PIP) and the U.S.' Customs-Trade Partnership Against Terrorism (C-TPAT) programs.
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The arrangement acknowledges that Canada Border Services Agency (CBSA) and U.S. Customs and Border Protection (CBP) will apply similar high security standards and perform similar site validations when approving companies for membership in their respective programs.
Commissioner Basham stated that with strong industry support and the combined efforts of CBP and the CBSA, the U.S. and Canada are leading the way toward a more secure global supply chain.
Canada Launched Modernized PIP Program on June 30th
On June 30, 2008 Canada launched a modernized PIP program to enhance border security, combat organized crime and terrorism, and achieve mutual recognition and compatibility between the PIP program and CBP's C-TPAT program, etc.
All PIP members who joined before June 30, 2008, will have to reapply under the modernized PIP program by December 31, 2008 as there are now different criteria.
Canada's strengthened PIP program implements minimum security requirements; mandatory site validations; denial, suspension, cancellation, reinstatement and appeal policies and procedures; and an automated application process.
It provides benefits such as lower examination rates to companies that demonstrate a good compliance record and actively participate in the program. It is available to the entire trade community, from importers, carriers, brokers, warehouse operators to associations and is similar to C-TPAT.
Benefits of Mutual Recognition
CBSA lists the following as benefits of mutual recognition:
The similar security requirements for PIP and C-TPAT make it easier to be eligible for both programs (a separate application must be made to both programs).
Only one site validation may be necessary for applicants to PIP and C-TPAT. However, both programs reserve the right to perform site validations of their members.
Members of both programs are eligible to use Free and Secure Trade (FAST) lanes in both directions and therefore benefit from expedited border clearances (members must apply separately to FAST in Canada to be eligible to use FAST lanes going into Canada).
Companies that are members of PIP and C-TPAT can benefit from having an enhanced reputation as being a low-risk company by demonstrating their adherence to high security standards.
Members are better positioned to achieve international recognition.
(See ITT's Online Archives or 07/01/08 news, 08070110, for BP summary of U.S. and Jordan signing a mutual recognition agreement agreeing to mutual standards for Jordan's Golden List Program (GLP) and the U.S.' C-TPAT.
See ITT's Online Archives or 03/04/08 news, 08030410, for BP summary of Canada planning to modernize PIP by June 30th.
See ITT's Online Archives or 02/27/08 news, 08022705, for BP summary of CBP officials discussing mutual recognition at the February 2008 COAC meeting, including a list of potential mutual recognition countries and their mutual recognition progress status.
See ITT's Online Archives or 04/17/08 news, 08041710, for BP summary of CBP testifying on C-TPAT mutual recognition, etc.
See ITT's Online Archives or 05/20/08 news, 08052005, for BP summary of CBP officials discussing mutual recognition, etc. at the May 2008 COAC meeting.)
Canada's PIP Web site available at http://www.cbsa-asfc.gc.ca/security-securite/pip-pep/menu-eng.html
CBP's C-TPAT Web site available at http://www.cbp.gov/xp/cgov/trade/cargo_security/ctpat/
CBP news release (dated 06/30/08) available at http://www.cbp.gov/xp/cgov/newsroom/news_releases/06302008_6.xml