CBP Inviting Cos to Join Export C-TPAT Pilot, Mulls "Tier 3" for Trucks

Companies Have Been Invited to Participate in C-TPAT Export Pilot

U.S. Customs and Border Protection (CBP) officials state that companies have been invited to participate in a Customs-Trade Partnership Against Terrorism (C-TPAT) Export Pilot Program. CBP's office for the C-TPAT program is currently conducting outreach with the companies about their export supply chain. The Exporter criteria have not been considered yet, and COAC will be consulted during its development. No further requirements for an Exporter program have been developed at this time. However, since C-TPAT is the premier trusted trader program of the U.S. Government, it is anticipated that the program requirements will include C-TPAT membership, and an Exporter will be added as a new business entity. Therefore, if a company is primarily an exporter, and does not import goods, it will be eligible for the C-TPAT program.

CBP Working to Develop a C-TPAT Export Component that Meets Trade Needs

CBP is in the preliminary stages of developing an export component for C-TPAT. CBP had its C-TPAT development team create a possible solution that would maintain its high security standards, but the proposal did not fully meet the trade’s needs. With a better understanding of what is needed, CBP is considering an alternate solution, but it is still under review for security concerns.

Could mirror import program, use AEO-style checklist. The COAC subcommittee has considered different approaches to C-TPAT for export, such as "flipping" the C-TPAT importer criteria to exports and perhaps using a checklist that is similar to Authorized Economic Operator (AEO) in Europe. However, a consensus on these or other approaches has not been attained.

CBP in infancy of identifying approach. CBP officials stated that the agency is in the infancy of even identifying how it is going to go forward with this initiative. Initially, CBP will need to examine how it is going to be able to implement an export component to C-TPAT considering its resources and what exactly the initiative will entail at the operational level.¹

No Plans for ISA or C-TPAT Expansion to “Foreign-Based” Importers of Record

CBP was asked if it was looking to expand Importer Self-Assessment (ISA) or C-TPAT so that nonresident importers could also participate and take advantage of planned advances, such as Simplified Entry or Account Management. CBP officials stated that while C-TPAT does allow nonresident importers from Canada to be in the C-TPAT program, CBP does not have plans to expand the program to nonresident importers in other countries at this time.

However, officials did state that the agency needs to revisit a lot of the ISA issues and that CBP and the Acting Commissioner are open to taking "a fresh look" at the ISA and will look to COAC for input.

(See ITT’s Online Archives 12022425 for earlier summary on CBP's plans to allow customs brokers to pre-certify ISA applicants.)

COAC Concerned with C-TPAT Info Being Requested for Focused Assessments

A subcommittee official stated that the subcommittee would like to provide input on certain issues with C-TPAT that it believes need to be taken into consideration, such as unique requirements related to air shipments and ocean port processing. There are also a number of operational issues and regulatory issues related to the different modes. Additionally, it has come to the subcommittee’s attention that C-TPAT-related questions are being asked as part of Regulatory Audit Focused Assessments. The subcommittee is concerned that including C-TPAT questions as part of a focused assessment may damage the voluntary nature of the C-TPAT program.

CBP Working on C-TPAT Web Portal 2.0, Will Take Years to Roll Out

CBP has already solicited stakeholder input prior to the design of the next generation of the C-TPAT Web Portal (Portal 2.0). CBP began designing Portal 2.0 for the requirements of harmonization with Canada, but it was also seeking to create a more efficient and user friendly interface with partners. Prior to designing Portal 2.0, C-TPAT’s development team considered partner’s feedback with the current Web Portal.

Will roll out over several years and stages. A CBP official stated that it's going to take several years to roll out Portal 2.0 and that it would roll out in several stages.

Addressed disclosure policy for C-TPAT members. Since C-TPAT’s inception, CBP has maintained a “no public disclosure” policy regarding members for security reasons. However, CBP recognizes that some business models require a third party (non-member) to be able to identity membership status. In designing Portal 2.0, this issue was addressed, but Portal 2.0 would not provide an immediate solution.

Also Surveying Members on Tier 3 Status for Mexican and Canadian Hwy Carriers

CBP is also sending out a survey to its members to solicit feedback regarding suggested changes to the program, such as Tier 3 status for Highway Carriers and altering the process (Status Verification Interface, SVI) to verify membership. The survey is aimed at determining how many of the carriers are in favor of this change and what additional benefits the partners would desire.

(For importers whose security measures exceed the minimum security criteria and have adopted "security best practices" as evidenced by the successful completion of a validation, Tier 3 status is granted. Under Tier 3, the most significant risk score reductions available are provided by CBP, resulting in very infrequent examinations for security reasons, among other benefits.)

CBP Considering Broader Definition of 3PLs, Adding Foreign Consolidators

CBP is still considering the possibility of a broader definition of Third-Party Logistics Providers (3PLs). CBP agrees that foreign-based consolidators are a critical node in international supply chains and is considering expanding its membership to allow foreign consolidators into the program.

COAC Recommends Establishment of a C-TPAT Working Group

The COAC subcommittee recommends that a separate working group be established to deal solely with C-TPAT concerns, since C-TPAT is the largest private/government partnership of its kind with a membership of 10,221 partners as of January 1, 2012, and COAC is very interested in the C-TPAT program.

¹CBP officials noted that the agency has not yet had any discussions regarding this topic with the Transportation Security Administration (TSA), but has done a few joint visits with TSA mostly in the international realm and some domestic visits with the CCSP program. CBP is now in a type of fact finding stage and has identified that working with TSA will be a component of the C-TPAT for exports initiative.

(See ITT's Online Archives 11121319 for summary of CBP's plans to pilot C-TPAT for Exporters, provide tiering benefits to C-TPAT highway carriers, and enhancements to the C-TPAT web portal.

See ITT's Online Archives 12020808 for summary of the December 2011 COAC subcommittee's recommendations for expanding C-TPAT at the land border, etc.)

Global Supply Chain Security Land Border Subcommittee CBP C-TPAT Report is available here.

Global Supply Chain Security Land Border Subcommittee Trade Executive Summary is available here.