1. What is C-TPAT compliance assessment as offered by ICSC?

Under C-TPAT, importers are required to assess their supply chains. Based upon a documented risk-assessment process, non-C-TPAT-eligible business partners are subject to verification of compliance with C-TPAT security criteria by the importer. The International Cargo Security Council’s C-TPAT assessment process enables importers to meet this requirement cost-effectively. ICSC’s C-TPAT compliance assessment is an on-site review of relevant policies, procedures, and practices—in other words, an evaluation of a facility’s compliance with C-TPAT. Successful facilities receive a certificate of compliance from ICSC that is valid for one year.

The cost of the assessment varies by location, and is generally $1,000 to $1,500 per facility, plus travel costs, if any. ICSC selected Pinkerton Consulting & Investigations to conduct C-TPAT compliance assessments because Pinkerton has a global presence and can often do the assessments with minimal travel expense. Reports of factories that have successfully undergone assessment are available to ICSC members at $150 per report ($200 to nonmembers).

The importer benefits because the business partner pays for the assessment. The business partner benefits because it is a competitive advantage to be C-TPAT compliant, but most importantly because the ICSC certificate is generally recognized by other clients. This avoids the unnecessary time and expense of having to undergo multiple C-TPAT assessments. Companies that have successfully completed an assessment and are C-TPAT compliant are listed on the ICSC Web site in the “members only” section. For more information on compliance assessment, visit http://www.cargosecurity.com/ncsc/education-CTPAT.asp.

2. Why should manufacturing and transportation companies serving U.S. importers (i.e., trade/supply chain partners of U.S. importers) send employees to a half-day C-TPAT seminar?

C-TPAT requires that importers ensure that their business partners are aware of and in compliance with C-TPAT requirements. ICSC is conducting C-TPAT seminars in Asia, Europe, Canada, and Mexico. These seminars are specifically designed for employees of manufacturing and transportation companies serving U.S. importers. Relevant employees in this context include security, operations, shipping, and trade/customs compliance personnel.

Attendees of these seminars will be provided with a clear understanding of C-TPAT guidelines and will receive information to help them meet the requirements of the U.S. importers they serve. They also will be provided a better understanding as to how ICSC services can assist them.

3. Does C-TPAT require supply chain partners of U.S. importers to apply for participation in C-TPAT with the U.S. government?

No. However, most U.S. importers expect that their eligible business partners, such as transportation service providers and factories in Mexico and Canada, will join C-TPAT. Some importers require that those eligible business partners join C-TPAT to continue business relationships. For more information on this, go to http://www.cbp.gov/xp/cgov/import/commercial_enforcement/ctpat/security_criteria/.

4. What kinds of businesses can apply for C-TPAT?

• U.S. importers of record
• U.S./Canada highway carriers
• U.S./Mexico highway carriers
• Rail carriers
• Sea carriers
• Air carriers
• U.S. marine port authority/terminal operators
• U.S. air freight consolidators, ocean transportation intermediaries, and non-vessel-operating common carriers
• Mexican manufacturers
• Certain invited foreign manufacturers
• Licensed U.S. customs brokers

5. What are the benefits of a C-TPAT seminar for supply chain partners of U.S. importers?

C-TPAT requires that U.S. importers work with their supply chain partners to ensure that important security measures are in place and adhered to throughout their supply chain. By attending a seminar, supply chain partners will understand what security measures they must and/or should have in place if they are to continue to maintain a working relationship with U.S. importers. ICSC’s C-TPAT seminars provide a detailed understanding of the requirements at a minimal expense.

6. What are the benefits of C-TPAT compliance assessment?

As noted in the answer to question No. 1 above, it is a cost-effective solution to demonstrate compliance for both the importer and the importer’s business partners. By having a compliance assessment conducted, a facility receives the ICSC compliance certificate, which is recognized by most U.S. companies and can be used as evidence of compliance with other customers, thereby reducing the need to have multiple audits by multiple customers.

7. Is C-TPAT compliance assessment approved by the U.S. government?

U.S. Customs and Border Protection cannot endorse any company or organization, but it is aware of the ICSC C-TPAT program. The assessment program is comprehensive and covers all of the elements of the C-TPAT requirements.

C-TPAT (Customs-Trade Partnership Against Terrorism) is a voluntary government-business initiative to enhance international supply chain and U.S. border security. U.S. Customs and Border Protection (CBP), part of the U.S. Department of Homeland Security, administers C-TPAT. The basic premise of C-TPAT is that CBP can provide the highest level of cargo security only through close cooperation with those involved in the global supply chain: manufacturers, importers, carriers, freight consolidators, and customs brokers. Under C-TPAT, CBP works with businesses to ensure the integrity of their security practices as well as to verify the security guidelines of their supply chain partners.

8. What is the certificate of C-TPAT compliance issued by ICSC?

The certificate of compliance is issued to facilities with procedures and practices in place to meet the requirements of C-TPAT. The certificate can be used with other customers, and it provides a competitive advantage. The certificate demonstrates that an independent third party has verified compliance with C-TPAT.

9. Some of the C-TPAT seminars offered by ICSC are in conjunction with other associations. Why?

Many organizations are concerned about supply chain security. ICSC sometimes works with organizations to promote best practices in supply chain security. Such associations share common concerns about international trade and security issues.

10. Why should I consider other C-TPAT solutions offered by ICSC through Pinkerton?

ICSC has been a supporter of C-TPAT since its inception in 2002; indeed, ICSC was part of the team that developed C-TPAT. After a competitive bidding process, ICSC chose Pinkerton to provide a variety of C-TPAT solutions. ICSC chose Pinkerton because of its supply chain security experience, C-TPAT expertise, and global coverage. Through its partnership with Pinkerton, ICSC offers application assistance, pre-validation reviews, compliance assessments, CD-based education, and much more. For further information, visit http://www.cargosecurity.com/ncsc/education-CTPAT.asp

11. Does participation in C-TPAT offer imports into the United States a “fast lane”?

Yes. U.S. Customs and Border Protection (CBP) provides expedited entry to C-TPAT compliant participants. CBP states that non-participants are six times more likely to get a security-related container inspection and four times more likely to get a trade-related container inspection.

Businesses must apply to participate in C-TPAT, completing an application with CBP. Full participation in C-TPAT offers the potential of fewer border delays (reduced CBP inspections and priority processing for any inspections) as well as more secure and efficient supply chains.

12. Isn’t C-TPAT just a way for companies to skirt the regulations?

No. CBP is very serious about C-TPAT and has been conducting more and more validations. It has suspended the C-TPAT participation of more than 45 companies to date. Companies should only join if they are committed to complying with the requirements.