PREPARING FOR 2020 WHAT IS CTPAT? WHO CAN PARTICIPATE? BENEFITS - - PowerPoint PPT Presentation

PREPARING FOR 2020

AGENDA

WHAT IS CTPAT? WHO CAN PARTICIPATE? BENEFITS NEW MINIMUM SECURITY CRITERIA PREPARING FOR 2020 Q&A

WHAT IS CUSTOMS TRADE PARTNERSHIP AGAINST TERRORISM (CTPAT)?

United States’ international supply chain security program. Created in 2001 in response to 9/11. Partnership between CBP and the trade community designed to protect the country’s borders and supply chain from weapons of mass destruction.

WHAT IS CUSTOMS TRADE PARTNERSHIP AGAINST TERRORISM (CTPAT)?

Set of criteria (MSC) designed to ensure cargo security from point of origin to place

• f final delivery.

Designed to prevent acts of terrorism, narcotics smuggling, human smuggling, agricultural terrorism/pest contamination, cybersecurity attacks, money laundering, and terrorist financing. By meeting criteria, companies are considered “low risk” by CBP and receive certain benefits for their participation.

WHO CAN PARTICIPATE?

U.S. importers and exporters Sea and rail carriers Licensed U.S. Customs brokers. Ocean transportation intermediaries and NVOCCs U.S./Canadian highway carriers (must cross U.S./Canadian border). U.S./Mexican highway carriers (must cross U.S./Mexican border). U.S. marine port authority/terminal operators U.S. freight consolidators. Mexican and Canadian manufacturers. Mexican long-haul carriers.

There are currently over 11,500 CTPAT-certified companies in the U.S.

WHAT IS CUSTOMS TRADE PARTNERSHIP AGAINST TERRORISM (CTPAT)?

Different criteria depending on company type. Current MSC categories: ▪ Business partner selection and screening procedures ▪ Container security and inspection procedures ▪ Seal security ▪ Cargo discrepancy procedures ▪ Physical access controls ▪ Personnel security ▪ Documentation review and storage ▪ Training ▪ Physical security ▪ IT security

CTPAT CERTIFICATION PROCESS

3

Security Profile submission in CTPAT Portal

2

Creation and implementation of all required CTPAT SOPs

1

Ensure all business partners within supply chain meet CTPAT Minimum Security Criteria

CTPAT CERTIFICATION MAINTENANCE

Performance of annual reviews Initial and re-validations every four years

BENEFITS

Reduced number of inspections at the U.S. port of entry Front-of-the-line inspections Access to the Free and Secure Trade (FAST) lanes at land borders Business resumption priority Supply Chain Security Specialist Access to the CTPAT Portal Priority consideration at CBP’s Centers of Excellence and Expertise Increased marketability

NEW MINIMUM SECURITY CRITERIA

Why now?

▪ Legally mandated ▪ Evolution of CBP’s mission ▪ Changing trade landscape ▪ The trade’s experience thus far ▪ Existence of ongoing threats

NEW MINIMUM SECURITY CRITERIA

CORPORATE SECURITY TRANSPORTATION SECURITY PEOPLE AND PHYSICAL SECURITY

NEW MINIMUM SECURITY CRITERIA

Cybersecurity Agricultural security Prevention of Trade Based Money Laundering and Terrorism Financing Use of Security Technology

NEW MINIMUM SECURITY CRITERIA

Certain criteria strengthened from “should” to “must.”

CURRENT PARTNERS

Partners will be validated against the new MSC starting on 1/1/2019

FOREIGN VALIDATIONS

• CBP is required to give advance notice prior to visiting an
• verseas business partner for a validation.
• Typically, 30 days notice is given.
• Importers do not get to choose which supplier is visited: CBP

makes the selection based on travel and budgetary restrictions.

MUTUAL RECOGNITION

• The U.S. currently has Mutual Recognition Agreements (MRAs) in

place with the following countries:

• New Zealand
• Canada
• Jordan
• Japan
• Korea
• European Union
• Taiwan
• Israel
• Mexico
• Singapore
• Dominican Republic
• Peru

CTPAT IN THE FUTURE

• Will CTPAT ever become mandatory for certain commodities?
• No – it is and will stay a voluntary program.
• I do not believe the program will be “easier” or “harder” to

participate in now that the new criteria are in place. There are additional requirements that companies must meet, but most are good business practice that companies may have already implemented solutions to on their own to deal with current threats (e.g. cybersecurity policies).

MOHAWK GLOBAL TRADE ADVISORS

Abby Frank, CCS, CES 315-552-5411 afrank@mohawkglobalta.com https://mohawkglobalta.com/