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C-TPAT is a partnership between the US government and businesses importing goods into the US, aimed at securing cargo. Membership involves a supply chain assessment and brings benefits such as expedited processing and training. Compliance is not mandatory but is required for participation in the FAST program. Mutual Recognition Agreements have been signed with several countries.
The Customs-Trade Partnership Against Terrorism (C-TPAT) is a joint effort between the US government and businesses involved in importing goods into the United States. It is part of the ever-changing nature of US Customs and recognizes that border security will be much more efficient if US Customs involves businesses in the process of securing and inspecting cargo. Partnership membership is available to most businesses that import goods into the United States, including shippers, brokers, manufacturers, and importers, as long as they agree to the membership guidelines.
If a company is interested in joining C-TPAT, they first complete an application which includes information about the company, a participation agreement and a profile of their supply chain, which includes a validation of how goods are handled. Examining the supply chain involves examining procedural, physical, and personnel security, along with access controls, handling of packing manifests, and the type of education and training employees receive. If the company’s application to join the group is approved, a supply chain security specialist is assigned who assesses the supply chain and makes suggestions for improvement before certifying the company as a member.
In addition to helping the United States fight terrorism, membership also brings many more tangible benefits. Members are less prone to customs inspections and will be directed to the front of the customs lines when they need to be inspected. They can also take advantage of C-TPAT training courses for themselves and their employees to learn more ways to strengthen the security of their supply chain. If routine inspection reveals non-compliance, membership is revoked and the company must recertify.
Becoming compliant takes work, but the guidelines were developed as a joint effort between U.S. Customs and business organizations, which makes many companies feel more comfortable joining the partnership. While some expenses may be involved to protect the supply chain, most businesses agree that the expedited processing they receive as members is worth the initial outlay of money and time to get all employees systems compliant. Additionally, strengthening supply chain security often increases supply chain efficiency, saving the company money in the long run.
Membership is not mandatory for any company, although most large companies have joined for the benefits it confers. For companies in Canada and Mexico, participation in the Free and Secure Trade (FAST) program requires that the company’s supply chain is C-TPAT certified. The US has also signed Mutual Recognition Agreements with several countries, meaning they have agreed upon common security requirements standards, so a company’s validation in one country is recognized in the other.
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