IMPORTANCE OF PICKING A FORWARDER THAT IS C-TPAT CERTIFIED

 WHAT IS C-TPAT?

Customs-Trade Partnership against Terrorism (CTPAT) is a program that was formed in the aftermath of 9/11 to protect and strengthen foreign trade and US border security. All the CTPAT-certified organizations must adhere to fulfill the specific security requirements of the program. These requirements apply to the various parties in the gamut of the trade community, including the manufacturing and distribution facilities, third-party logistics providers (3PLs), and carrier partners. Many best shipping company in India are participants in C-TPAT to build cooperative relationships that strengthen overall supply chain and border security. 

The CTPAT is vital to international trade as it helps strengthen border security and protect the global supply chain by preventing any terrorism threat. The CTPAT, a voluntary public-private sector partnership program, is a minuscule part of the US Customs Border Protection (CBP), both aiming to make border security more stringent and facilitate the free flow of global trade. Reduced number of CBP examinations, shorter waiting time at the border, etc., are some benefits that the CTPAT partners enjoy from being part of the initiative.

 

HOW DOES CTPAT WORK?

The CTPAT-compliant companies have to address a wide range of security issues. They must present security profiles that identify the actions they intend to implement for aligning security throughout the supply chain. The organizations must chart an agreement to work with the CBP to protect the supply chain, identify security gaps, and implement specific security measures/best practices.

 

HOW TO GET C-TPAT CERTIFIED?

● Regulatory Authority for the C-TPAT Certification

The primary regulatory authority for C-TPAT Certification is the US Customs and Border Protection.  The C-TPAT certification allows the exporter to secure the benefits of different programs provided by other customs and border protection authorities.

 

● Procedure for Application for a C-TPAT Certification

The application process is done through an online C-TPAT Certification portal. The designated officer will fill in the application in the C-TPAT portal.

The Company Portal Section will ask for information such as address and relevant contact information of the company.

Once this is completed, the "Submit" button must be clicked.

When this is finished, an account is created on the C-TPAT certification portal.

The designated officer must fill the company information in the designated Security Profile.

In the security profile, there is a section known as the Supply Chain Security Specialist (SCSS), which will check the requirement if the company or entity meets the eligibility criteria for the certification.

Once this is done, the company will become a member of the C-TPAT.

The SCSS will contact your company to conduct an information audit to understand if the requirements have been complied with for the C-TPAT certification.

If the SCSS finds the practices adopted by your company meet the minimum security requirements, then Tier- II status will be granted to your company.

After this is carried out, your company can enjoy the full benefits of the C-TPAT certification. Getting    C-TPAT certified protects the shipping freight forwarding companies from potential security threats.

There are 12 different types of business entities that are eligible for CTPAT membership, including importers, exporters, carriers, third-party logistics (3PL) providers, consolidators, and customs brokers.

WHAT ARE THE BENEFITS OF CTPAT?

The C-TPAT certification is an abbreviation for Customs-Trade Partnership against Terrorism, a voluntary certification for security of the respective supply chain systems of private companies and international companies that import goods and services into America. The C-TPAT Certification is required for increasing the amount of security when it comes to compliance-related to Anti-Terrorist Laws.

The CTPAT compliant organizations and partners enjoy plenty of advantages. These include playing an active role in collaborating with the US government in its fight against terrorism. By doing this, companies will be better able to identify the various security vulnerabilities and accordingly take corrective actions to mitigate risks.

The key benefits of the CTPAT are as under:-

1)     A reduction in the number of CBP examinations

2)     Front of the line inspections

3)     The chance of getting exemption from stratified exams

4)     Shorter wait times to get goods cleared at the border

5)     Availability of a supply chain security specialist

6)     Access to Free and Secure Trade (FAST) lanes at the land borders

7)     Access to the CTPAT web-based portal system

8)     Access to a library of training materials

The possibility of being a trusted trade partner by foreign customs administrations that have signed mutual recognition with the US

The chance of being eligible for other popular US government pilot programs, such as the Food and Drug Administration’s Secure Supply Chain program

Can enjoy priority business resumption in the event of a natural disaster or terrorist attack

Can become eligible to participate in the Importer Self-Assessment Program (ISA)

Get priority consideration at CBP’s industry-focused Centers of Excellence and Expertise.

WHO IS ELIGIBLE FOR CTPAT CERTIFICATION?

There are 12 different types of business entities that are eligible for the CTPAT membership. These include importers, exporters, carriers, 3PLs, consolidators, and customs brokers.

Mentioned below are the eligibility criteria for the importers. To obtain the CTPAT membership, they must:-

1)     Be an active US importer or non-resident Canadian importer who has imported goods into the US within the past 12 months

2)     Have an active US Importer of Record (IOR) number

3)     Have a valid continuous import bond registered with the CBP

4)     Have an operational business office in the US or Canada

5)     Designate a primary cargo security officer who will ensure compliance with the various aspects of the CTPAT

6)     Commit to maintaining the CTPAT supply chain security criteria as stated in the CTPAT Importer Agreement

7)     Complete the supply chain security profile in the CTPAT portal. This involves identifying its development, maintenance, and enhancement of the internal policy to comply with the CTPAT importer security criteria

Owes no unpaid debt to the CBP at the time of the application for which a final judgment or administrative disposition has been rendered

HOW AFM UTILIZES C-TPAT initiative?

The number one benefit of being part of the CTPAT initiative is that a forwarder works directly with the U.S. Government and Border Patrol to keep the country’s borders secure. Also, being CTPAT certified could potentially mean:

●Less CBP exams

●Shorter wait times at borders

●Expedited resumption of business after a disaster

 

WHAT COULD HAPPEN IF A COMPANY ISN’T CTPAT CERTIFIED?

It’s important to remember that the CTPAT is a voluntary organization. You don’t have to become CTPAT compliant. What’s more, bypassing this program won’t lead to any direct harm or loss of funding for your organization. Joining or not is completely up to you.

That said, there are a number of benefits that come with becoming CTPAT compliant. For this reason, all eligible organizations should strongly consider going through the process.

If a forwarder is not CTPAT certified, there is an increased risk of delays due to multiple examinations and inspections or having goods held indefinitely.

The goal of CTPAT is to protect the U.S., but it also may help forwarders speed up your supply chain. If a company is not CTPAT-certified, it may slow down business, which is costly for all involved.

It is vital to pick a freight forwarder with CTPAT certification. As your agent in the supply line, a CTPAT-certified forwarder may get your goods and supplies to their destination faster, at lower costs, and with little-to-no risk of security breaches. 

By becoming CTPAT compliant, an organization makes a voluntary effort to protect the U.S. border. The organization also commits to combat terrorism and nefarious activity that threatens operational stability to partner organizations, infrastructure, and the general public. 

Many top freight forwarding companies in India take part in the program and hence take pride in being part of a large-scale security network that helps them  protect the country from persistent and dangerous threats. 

In exchange for supporting their initiative, the CBP classifies members as low risk. As a result, members receive more leeway. It’s similar to how the Transportation Security Administration (TSA) gives screened PreCheck members greater freedom to move through security.