Opinion: Carrying the Burden of Border Safety
B>By William Evans
I>Senior Vice President, Corporate Compliance
arthco International
Yet, thanks to U.S. Customs and Border Protection and its Trade Partnership Against Terrorism program, C-TPAT, which created supply chain security recommendations that unify the entire logistics community, this burden has been lightened.
Formed just after the Sept. 11, 2001, attacks, C-TPAT was the result of a meeting of 60 industry and Customs representatives who were assembled to discuss the multitude of new issues that were threatening border security.
Coming together in a series of meetings to figure out ways to combat terrorism and how to ensure that the entire logistics community would cooperate, the committee emerged with a series of recommendations that companies would have to meet to become a C-TPAT member.
A voluntary program only open to a select group of importers at first, C-TPAT membership was deemed “attractive” as it led to a host of exclusive benefits:
LI> Fewer inspections.
LI> An assigned Customs account manager.
LI> Access to “Green Lanes” for faster shipping routes.
Within the first year, many of the industry’s leaders had applied for C-TPAT status. Now, three years later, C-TPAT membership has been extended and strongly advised for just about the entire industry. The number of disadvantages for not joining have begun to influence companies, even more so than the advantages:
LI> Increased review of data.
LI> Increases in requests for information.
LI> Lack of expedited processing times.
Seeing membership as a “sound business decision,” as Customs Commissioner Robert Bonner called it, C-TPAT currently has more than 5,000 members, including importers, international carriers, port authorities, terminal operators, customs brokers and freight forwarders.
How does it ensure border and transportation safety? Participation in C-TPAT means meeting a variety of guidelines that strengthen our borders and overall transportation industry. However, the requirements are quite strict as they affect the entire supply chain — from manufacturer to distributor to exporter or importer.
In essence, the guidelines implement what Customs calls “relationship development” that ensures every participant in the distribution process is following secure supply-chain processes from point of origin to final arrival.
At the heart of Customs’ initiative is what it calls “cooperative relationship” building. Existing on several levels, these relationships will be the driving force behind the success of the program.
The first relationship is between suppliers and importers. Enforcing tighter security measures on both sides, this relationship guarantees that nothing is overlooked in the distribution process.
The second essential relationship to the program’s success is the one between businesses and government. Customs said this can be mutually useful because it offers actions that benefit both parties when done consistently.
Stressing the importance of these relationships, Customs’ Bonner said, “The partnership will work best only if it is comprehensive” — meaning that the program can only reach its fullest potential if the entire commercial shipping business participates.
To participate in C-TPAT, interested organizations must sign an agreement that commits them to certain actions mandated by the program. These requirements include self-assessment of supply-chain security based on C-TPAT guidelines (available online at www.customs.gov) and then implementing a security program based on these guidelines.
Once a company is accepted into the program, completes the self-assessment and restructures its security program, it must also simultaneously communicate the new security guidelines to others in the supply chain while taking steps to integrate these measures into their relationships.
The final process is the validation of the supply-chain security profile presented to CBP by the participant. Using a staff of supply chain security specialists, CBP visits with the participant and some of its foreign suppliers in order to ensure that the procedures outlined are in fact practiced on a daily basis.
This final step allows Customs to work toward its goal of creating a streamlined program that encompasses the entire commercial shipping process.
According to high-ranking officials, C-TPAT is here to stay. In fact, at the 2003 Annual Trade Symposium in Washington, D.C., Secretary of Homeland Security Tom Ridge said, “We all ought to compete to get into [C-TPAT] as quickly as possible. And companies that are validated under this program and their high standards can qualify for time and money-saving incentives, such as fewer exams and fast lanes at the borders.”
Ridge concluded by saying, “Perhaps the biggest benefit is the example it sets for the rest of the business community. Companies that join this program are leaders. They set the bar high for those who will follow, and they offer proof that homeland security can actually add to, not detract from, the bottom line.”
Barthco International, a global logistics provider with headquarters in Philadelphia, has 21 offices throughout the world. The author served as a member of the C-TPAT advisory committee.
This story appeared in the March 8 print edition of Transport Topics. Subscribe today.
