Customs-Trade Partnership

Against Terrorism

August 3, 2006
 C-TPAT
• Voluntary supply chain security program
started by CBP after terrorist attacks of
9/11/2001
• Company joined in February 2003
• Benefits to Company are:
– Reduced inspections by CBP
– Expedited shipments through the FAST program
– More dependable supply chain
– Compliance with our customers’ requirements
 Who Can Join C-TPAT?
• Importers
• Brokers
• US/Canada Highway carriers
• US/Mexico Highway carriers
• NVOCCs, consolidators
• Air carriers
• Rail carriers
• Sea carriers
• Mexican manufacturers
• Certain invited foreign manufacturers
 C-TPAT Security Requirements

• Seven primary areas of supply chain

security
– Physical controls
• Container Security
• Physical Access Controls
• Physical Security
– Internal Supply Chain Management Practices
• Personnel Security
• Procedural Security
• Information Technology Security
– Business Partner Requirements
• C-TPAT Partners and non-C-TPAT Partners
 Physical Controls
• Container/trailer security
– Includes container/trailer seals
• Seals should be stored in a secure area
• One or two people should handle seals
• Record seal numbers used for shipments
– Location containers or trailers are stored
• Should be in an enclosed, secure area
• Trailer locations should be tracked
– Inspection prior to loading
• Use the 7-point inspection process
• Document the trailer inspection
 Physical Controls
• Physical access controls
– Employee identification and access
• Employees should wear their badges at all times
• Access to shipping and receiving areas should be limited to
employees who need to be there
– Visitor identification
• All visitors must sign in and obtain a visitors badge
• Visitors should be escorted while in the building
 Physical Controls
• Physical security
– Fencing
• Perimeter controls to keep unauthorized people from having
access to your trailers or building
– Locks and alarms
• Keep unauthorized people out of secure areas
• If an emergency door is opened, an alarm should sound
– Cameras
• Show people arriving and leaving
• Show shipping and receiving areas
 Internal Supply Chain
Management Practices
• Personnel Security
– Pre-employment screening
– On-going background checks
– Watching for suspicious behavior or activity
 Internal Supply Chain
Management Practices
• Procedural Security
– Document control
• Limited access to blank forms and completed document
storage
– Shipping and receiving controls
• Discrepancy reports and follow-up
– Report threats and suspicious shipments
– Security training
• Information Technology Security
– Password protection
– Limit access to data storage areas
 Business Partner Requirements

• C-TPAT certification – OR -
• Other security certification – AND -
• Comply with C-TPAT importer security
criteria
• Applies to
– Suppliers who import raw materials, equipment,
tooling used in production, etc.
– Suppliers who ship directly from overseas to
Company locations worldwide
– Customs Brokers
– Freight Forwarders
– International carriers
 Company Business Partner
Requirements Implementation
• Letter will be sent to every supplier asking
– Are you an importer?
– Are you a member of C-TPAT?
• If supplier is a C-TPAT member, send me
their SVI number
• If not
– Complete security checklist
– Send letter signed by Corporate officer stating
agreement to comply with C-TPAT requirements
– List other security programs in which they currently
participate
 Risk-Based Approach
• Rate suppliers based on:
– Availability of product (single source)
– Type of merchandise
– Location of shipment origin
– Location of receiving facility
– Volume of business
– Number of plants served
– Past experience with supplier
 Security Checklist
• Review with suppliers
• Key requirements
– Business partner requirements
– Threat awareness and suspicious shipment training
– Physical access controls
• C-TPAT Checklist.xls
 C-TPAT Web Portal
• Completion required by October 1st

• C-TPAT, Security Profile

 C-TPAT Best Practices
• Team Approach
• Container inspection
• Trailer/container seals

• More best practices are available at:

http://www.cbp.gov/xp/cgov/import/commerc
ial_enforcement/ctpat/security_criteria/
 Team Approach to Security
Management
• Set up a multi-functional security team to
handle C-TPAT implementation and
application.
• Members could include:
– Purchasing
– Sales
– Logistics
– Warehouse
– Human Resources
– IT
– Engineering
 Container Inspection
Before loading conduct a 7-point inspection of
the container

Front Wall –
measure
distance inside
and out
 7-point container inspection
• Walls (right side and left side)
• Ceiling and roof

Check right side

and left side of
walls
Look for
irregularly
spaced panels
in ceiling
 7-point container inspection
• Outside/undercarriage

Check for
compartments
under trailer
and in landing
gear
 7-point container inspection
• Floor

Check for
holes in floor
or difference
in the wear or
age of the
wood
 7-point container inspection
• Doors
 Concealment methods
• Money leaving US
• Drugs/WMD entering US
 Check the roof
• Drugs found inside a false roof on a trailer
 Concealment methods
• Drugs concealed inside patio bricks
 Container/Trailer Seals
Container/Trailer Seal Selection

• Seals must meet or exceed ISO PAS 17712

for high security seals
• High security seal types include
– Bolt seals
– Cable seals
 Seal Types

Cable seals
must be made
of braided
cable that
will fray
when cut
 Container seal use

Hasp is not
Cable seal is place used as seal
around the keeper point
bars.
Cable is pulled tight
and lock is flush
against door.
 Trailer Seal Use and Control
• Seals must be kept in a secure location
• Access to seals should be limited to one or
two people only
• Each seal used must be tracked when
shipping and upon receipt
 C-TPAT Best Practices
For more C-TPAT best practices, look for the
C-TPAT Best Practices Catalog at
http://www.cbp.gov/xp/cgov/import/commerc
ial_enforcement/ctpat/
 How to Apply for C-TPAT
• All applications must be submitted online
• Online application available at
http://www.cbp.gov/xp/cgov/import/commercial_enforcemen
t/ctpat/online_app
/

• Information required:
– Importer of Record number
– Company information
– Point of Contact must be officer of the company
• You will be contacted by CBP within a few
days to submit your security profile
 Any questions??

For more information, contact