Rollout of Upgrades to CTPAT Expected in October
BALTIMORE -- More than 15 years after CBP implemented the Customs-Trade Partnership Against Terrorism (CTPAT) program, it's time to raise the standards for supply chain security, said Liz Schmelzinger, CTPAT director at CBP. "CTPAT is 17 years old now," she said, and "really not as effective as it used to be." Most pressing is the need for companies to examine cybersecurity aspects of the supply chain, she said, as the risk of data breaches and cyberattacks continues to grow.
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Schmelzinger's team consulted deeply with trade professionals on what needs to change, and is in a pilot program for trusted traders with seven companies, including Apple, Northrop Grumman and Toyota. A nationwide education campaign about the new standards for minimum security criteria to get certification will begin shortly with webinars and workshops at CTPAT field offices, and for 90 days, CBP will accept feedback and questions. She asked attendees at the American Association of Exporters and Importers annual conference not to approach the program changes as finished, and said their feedback should not be along the lines of "I vote no."
Instead, participants should bring their ideas on how changes could benefit business while still improving national security. A phased rollout will start in October 2018, as CBP will transition more than 330 Importer Self-Assessment members to the trade compliance portion of CTPAT. One of the last elements of the changes will be efforts toward preventing contaminants and pests in agricultural shipments, and the proper use of wood packaging for those shipments, because an international process is underway to come up with agricultural security standards. The first phase will include cybersecurity, conveyance security and seal security.
She said she recognizes that the promise of fewer examinations and easier passage of goods hasn't always followed certification, partly because partner agencies don't look at trusted trader programs the same way that CBP does. "I feel there’s a dialogue that needs to happen in the whole U.S government about the trusted trader program," she said. "Other agencies have the opportunity to intervene in the importation process. And sometimes that’s not convenient. To the extent they have their own trusted trader programs, we want to sit down [and talk.] Is there a way to have that trusted status recognized throughout the entire government?"
Ted Henderson, director of customs for U.S. at Expeditors, said even if there isn't a clear savings in time, as a customs broker, he clearly sees the benefit of the processes companies have to go through to qualify for CTPAT.
He recalled a customer that was evaluating Mexican parts in its supply chain very carefully, and that process "ultimately exposed a narcotics ring that had infiltrated their supply chain," he said, and were planning to use the legitimate shipments as cover for narcotics smuggling. The company notified Mexican law enforcement, and the would-be smugglers were arrested, he said. He said he's seen importers suspended from CTPAT in the past because of drug activity, but he was pleased that no penalty was given this time. "It was an active recognition by CBP that the importer was taking steps to secure their supply chain and deserved a pat on the back for it," he said.