Logistics, Trade Administration and Supply Chain

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...

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...

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...

The contracting of management and/or execution of a business or operational function to an external third party contractor or sub-contractor. Outsourcing can refer to either a product or service but most commonly refers to services. Outsourcing has been a feature of the business world for hundreds of years and it is simply a typical modernised term for "contracting out". Note that the business or operational function can be outsourced to either a domestic or foreign third party contractor. The key factor here is that the service be performed by an external third party contractor, not simply by a department or division of the same company. Benefits of outsourcing: the acquisition of specialized services required on a limited or temporary basis; quick solution to a temporary overload work or task; ability to concentrate on the organization's focus on its core competencies; potential to save money. Almost any business or operational function can be outsourced,...