Logistics, Trade Administration and Supply Chain

INTRODUCTION In wake of the September 11, 2001 terror attack on the US establishment, the Bureau of Customs & Border Protection (CBP) initiated a tighter security at US borders and cautioned the business community on the possible breaches in cargo security. It also prompted CBP to initiate a security program known as the Customs-Trade Partnership Against Terrorism (C-TPAT). This joint initiative between the CBP and the business community worldwide will not only help to strengthen the supply chain security but it will also give visible benefits to those companies choosing to participate. In exchange for implementing improve security measures and communicating security requirements to their business partners, importers can expect to reduce inspection proceedings and achieve quicker of imported freight. COURSE OBJECTIVES The objective of this program is to provide awareness on the various proceedings outlined in C-TPAT to enhance security throughout the supply chain in a...

The Shipper's Export Declaration (SED) is a document prepared by the shipper and presented to a government authority specifying goods expected along with their quantities, weight and destination. Each country has its own SED form. Certain elements are likely to be required in the SED for all countries. The SED typically includes the following elements: Name and address of seller, Name and address of buyer, Issuance date, Export license number (if required, based on certain countries' requirements and goods exported), Country of origin of the goods shipped, Country of final destination of the goods, Quantity and description of the goods, Country of export statistical classification number (some countries do not require this information for shipments under a certain level), Shipping details like, weight of the goods, number of packages and shipping marks and numbers. The SED is used by a nation's customs authority to control exports and compile trade statistic...

C-TPAT qualifications for air carriers: Active air carrier transporting cargo shipments to the US; Have an active Airline Code registered with CBP; Possess a valid continuous international carrier bond registered with the CBP; Have designated company official that will be the primary cargo security officer responsible for the C-TPAT program; Commit to maintaining C-TPAT security guidelines for air carriers; Create and provide CBP with a C-TPAT supply chain security profile, which identifies how the air carrier will meet, maintain and enhance internal policy to meet the C-TPAT security guidelines for air carriers. Security Guidelines for Air Carriers Air Carriers must conduct a comprehensive assessment of their international supply chain based on the C-TPAT security guidelines. Where an air cargo outsource or contracts elements of their supply chain such as conveyance, foreign facility, domestic warehouses or any other elements, the air carrier must work with these busi...

Rail carrier must have written and verifiable processes for the screening of new business partners, including the carrier's agents, sub-contracted rail carriers, service providers as well as screening procedures for new customers, beyond financial soundness issues to include security indicators. These processes apply to business partners and service providers not eligible for C-TPAT membership. Security Procedures Written procedures must be in place to address specific factors or practices, the presence of which would trigger additional scrutiny by the rail carrier. The US CBP will work in partnership with the rail carriers to identify specific information regarding what factors, practices, circumstances or risks are relevant. For business partners eligible for C-TPAT endorsement (importers, ports, terminals, brokers, consolidators, etc), the rail carrier must have documentations like C-TPAT certificate, SVI number, etc indicating whether these business partners are or are...

Rail carriers must carry out a comprehensive assessment of their security practices based on the C-TPAT minimum security criteria. Recognizing that rail carriers do not control their shippers and have a common carrier obligation to transport goods tendered to them, rail carriers shall work with their shippers on their security practices as set forth in these criteria. These minimum security criteria are fundamentally designed to be the building blocks for rail carriers to institute effective security practices designed to optimize supply chain performance to mitigate the risk of loss, theft and contraband smuggling that could potentially introduce terrorists and implements of terrorism into the global supply chain sector. Rail carriers should periodically assess their degree of vulnerability to risk and should prescribe security measures to strength or adjust their security posture to prevent security breaches and internal conspiracies. The determination and scope of criminal el...

Sea carriers must have written and verifiable procedures for the screening of carrier's agents and other service providers contracted to provide transportation services for the carrier. Sea carriers also must have screening procedures for new customers, beyond financial soundness issues to include indicators of whether the customer appears to be a legitimate business and/or posses a security risk. Sea carriers shall also have procedures to review their customer's requests that could affect the safety of the vessel or the cargo or otherwise raise significant security questions, including unusual customer demands, such as specific stowage placement onboard the vessel (beyond a request for below deck or on deck stowage). Security procedures Sea carriers must have written or web-based procedures for screening of new customers to whom they issue bills of lading, which identify specific factors or practices, the presence of which would trigger additional scrutiny by the sea ...

Sea carriers must conduct a comprehensive assessment of their security practices based on the C-TPAT minimum security criteria. Where a sea carrier does not control a specific element of the cargo transportation service it has contracted to provide, such as a marine terminal operator or a time chatered vessel with whom it has contracted, the sea carrier must work with these business partners to seek to ensure that pertinent security measures are in place and adhered to. The sea carrier is responsible for exercising prudent oversight for all cargo loaded on board its vessel, pursuant to the applicable laws and regulations and terms of this program. C-TPAT recognizes the complexity of the international supply chains and security practices and endorses the application and implementation of security measures based upon risk. Therefore, the program also allows for flexibility and the customization of security plans based on the member's business model or requirements. Security me...

Container integrity must be maintained to protect against the introduction of unauthorized materials and/or persons. At the point of staffing, procedures must be in place to properly seal and maintain the integrity of the shipping containers. A high security seal must be affixed to all loaded containers bound for the United States. All seals must meet or exceed the current PAS ISO 17712 standards for high security seals. Container Inspections Procedures must be in place to verify the physical integrity of the container structure prior to stuffing, to include the reliability of the locking mechanism of the doors. A 7-point checklist or inspection process is recommended for all containers based on the following circumstances: Front Wall Left Side Right Side Floor Ceiling/Roof Inside/Outside Doors Outside/Undercarriage Container Seals Written procedures must also elaborate how seals are to be controlled and affixed to the laden containers, to include procedures for...

In the last episode on March 2012 , we had given some brief introduction on what is C-TPAT and now, we are going to continue with the topic today which covers the requirements for importers. C-TPAT Security Criteria for Importers Importers must conduct a comprehensive assessment of their international supply chains based on the C-TPAT security criteria. Where an importer outsource or contracts elements of their supply chain, such as foreign facility, conveyance, domestic warehouse or other elements, the importer must work with those business partners in order to ensure that pertinent security measures are in place and adhered to throughout their supply chain. The supply chain for C-TPAT purposes is defined from the point of origin (manufacturer, supplier or vendor) through to point of distribution and recognizes the diverse business models C-TPAT members employ. C-TPAT recognizes the complexity of international supply chain and endorses the application and implementation of se...