Customs-Trade Partnership Against Terrorism (“C-TPAT”) is a voluntary certification program that creates a relationship between Customs and Border Protection (“CBP”) and an importer exporter, importers, customs brokers, carriers, and other eligible entities to improve the trade of goods through the international supply chain. According to CBP, C-TPAT benefits include a reduced number of inspections and priority processing when CBP inspections do occur. Furthermore, C-TPAT members are eligible to participate in CBP programs such as the Importer Self Assessment (“ISA”), Free and Secure Trade program (“FAST”), and access to CBP training seminars open only to certified members.
In order to meet C-TPAT qualifications eligible companies must submit a Memorandum of Understanding and complete a Supply Chain Profile Questionnaire. This profile requires a comprehensive internal review of their supply chain security procedures according to CBP guidelines. After submission of the Memorandum and Questionnaire, C-TPAT participants must undergo a validation process in which CBP verifies that the information submitted is accurate and being followed. Our firm assists companies in applying and maintaining certification in C-TPAT.
1. What is C-TPAT?
Customs-Trade Partnership Against Terrorism is a voluntary partnership program between the U.S. Customs and Border Protection (CBP) and private companies. The program is designed to improve the security of the entire supply chain, from manufacturers to transportation and logistics providers. Companies who participate in C-TPAT must undergo a rigorous vetting process to ensure they are meeting strict security criteria. In exchange, they are granted certain benefits, such as reduced inspections and expedited processing times.
2. Benefits of C-TPAT
Participating in C-TPAT offers numerous benefits for businesses, including reduced supply chain disruption, faster border clearance times, improved security measures, and enhanced reputation. In addition, Customs-Trade Partnership Against Terrorism companies are seen as trusted partners by the CBP and are less likely to be flagged for inspections or audits.
3. How to ensure C-TPAT compliance
The key to ensuring compliance with C-TPAT is to maintain diligent documentation and tracking processes. This means having clear records of all suppliers, vendors, and partners in the supply chain, as well as implementing and enforcing strict security protocols. Companies must also regularly reassess their security measures to ensure they are up-to-date and effective in addressing new threats.
4. Common C-TPAT violations
Some common violations of C-TPAT include failure to maintain proper security protocols, inadequate documentation, and failure to vet suppliers in the supply chain. To avoid these violations, companies should conduct regular risk assessments and take corrective action when necessary.
5. Consequences of non-compliance
Failure to comply with Customs-Trade Partnership Against Terrorism requirements can lead to serious consequences, such as revocation of benefits, increased scrutiny, penalties, and fines. In addition, non-compliant companies may face reputational damage, loss of customers, and legal action.