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White House Releases Global Supply Chain Security Strategy

Nation2Nation N2N — Sun, 29 Jan 2012 00:02:35 +0000

DOWNLOAD NATIONAL STRATEGY FOR GLOBAL SUPPLY CHAIN SECURITY

The White House has released a report entitled NATIONAL STRATEGY FOR GLOBAL SUPPLY CHAIN SECURITY.

- / N2N / – International trade has been and continues to be a powerful engine of United States and global economic growth. In recent years, communications technology advances and trade barrier and production cost reductions have contributed to global capital market expansion and new economic opportunity. The global supply chain system that supports this trade is essential to the United States’ economy and is a critical global asset.
Through the National Strategy for Global Supply Chain Security (the Strategy), we articulate the United States Government’s policy to strengthen the global supply chain in order to protect the welfare and interests of the American people and secure our Nation’s economic prosperity. Our focus in this Strategy is the worldwide network of transportation, postal, and shipping pathways, assets, and infrastructures by which goods are moved from the point of manufacture until they reach an end consumer, as well as supporting communications infrastructure and systems.

The Strategy includes two goals:
Goal 1: Promote the Efficient and Secure Movement of Goods – The first goal of the Strategy is to promote the timely, efficient flow of legitimate commerce while protecting and securing the supply chain from exploitation, and reducing its vulnerability to disruption. To achieve this goal we will enhance the integrity of goods as they move through the global supply chain. We will also understand and resolve threats early in the process, and strengthen the security of physical infrastructures, conveyances and information assets, while seeking to maximize trade through modernizing supply chain infrastructures and processes.

Goal 2: Foster a Resilient Supply Chain – The second goal of the Strategy is to foster a global supply chain system that is prepared for, and can withstand, evolving threats and hazards and can recover rapidly from disruptions. To achieve this we will prioritize efforts to mitigate systemic vulnerabilities and refine plans to reconstitute the flow of commerce after disruptions.

Nation2Nation publishes articles of interest to professionals involved in Supply Chain Security, Supply Chain Management, Logistics, Import Export, International Trade, Border Security, Transportation, Transportation Safety, Trucking, Railroad, Air Freight, Maritime and Cargo Management. Contact Jeff Platts at contact@nation2nation.net.

7 Myths About C-TPAT Certification

Nation2Nation N2N — Mon, 21 Nov 2011 00:43:45 +0000

- / N2N / – As a C-TPAT (Customs-Trade Partnership Against Terrorism) consultant I find there are a number of myths, or misconceptions about C-TPAT Certification. It seems that these myths continue to float around the industry because I keep running into them. Here’s a few of the myths:

1) My company is too small to be C-TPAT Certified – The size of a company or the number of employees has no bearing on a company’s eligibility for C-TPAT Certification. I’ve successfully assisted companies with as few as 3 employees.

2) Our company is a customs bonded warehouse and we handle a lot of international cargo. That makes us eligible for C-TPAT Certification, right? – Wrong. The largest factor in determining eligibility for C-TPAT Certification is whether or not the company has influence on cargo prior to it entering the U.S. (influence at the foreign factory, foreign trucking, foreign agent, etc.) Most Customs Bonded Warehouses have nothing to do with cargo prior to it entering the U.S.

3) If our company becomes C-TPAT Certified and then later loses the certification U.S. Customs will penalize us. – Not True. A company that loses its certification either by choice or because of non-compliance loses the benefits of being C-TPAT Certified, but U.S. Customs won’t treat you any differently than any other non-C-TPAT Certified company. If a company has lost its certification due to security violations they may have some trouble because of those violations, but they would have had those problems whether they were certified or not.

4) I am an importer and my customs broker told me that being C-TPAT Certified is a big pain in the neck and could cause us trouble with U.S. Customs. – This simply isn’t true. U.S. Customs loves for importers to be C-TPAT Certified because they have a high level of influence over the foreign factory where the containers are loaded. Maintaining a C-TPAT Security Program shouldn’t take more than 2 or 3 hours a month for most small importers. The truth is that Non-C-TPAT Certified customs brokers are afraid of losing their importer clients who become C-TPAT Certified because certified companies are encouraged to only use other C-TPAT Certified companies in their supply chain whenever possible. It’s also less work for the importer if they use only C-TPAT Certified customs brokers because the screening process is much less work. Non-C-TPAT Certified customs brokers realize that there is a strong possibility that they may lose a good customer if the importer becomes certified. This also applies to Non-CTPAT certified NVOCC’s.

5) Having a C-TPAT Compliance program is just as good as being C-TPAT Certified. – Again, not true. If a company is eligible for C-TPAT Certification, that is what they should do. If they only go as far as being compliant without actually becoming certified they lose the benefits that come with being C-TPAT Certified. Don’t get me wrong, being C-TPAT Compliant is a good thing for companies that aren’t eligible for C-TPAT Certification (domestic trucking, customs bonded warehouse, draymen, most 3PL’s). I have helped many non-eligible companies to implement a C-TPAT Compliant program, so I understand the pluses and the minuses. But if your company is eligible for certification (importers, NVOCC’s – International Freight Forwarders, Cross-Border Highway Carriers, Customs Brokers, some 3PL’s, some Foreign Manufacturers) you’ve already done 90% of what it takes to become C-TPAT Certified, so going the last mile makes good sense.

6) My company is an NVOCC, but we can’t get C-TPAT Certified because we don’t have a warehouse… we only process paperwork. – All NVOCC’s are eligible for C-TPAT Certification as long as they meet the other criteria. Having a warehouse neither helps or hinders the process. I have helped many NVOCC’s to obtain C-TPAT Certification, some with warehouses and some without. Every NVOCC that we have set out to get certified has been successful in obtaining the certification.

7) I heard that when you’re C-TPAT Certified CBP conducts surprise visits. This would be very disruptive to my business. – I have never heard of CBP conducting a surprise visit for C-TPAT purposes. Here’s how the process works: No agent visit is required to be approved for C-TPAT Certification. Companies are certified based on review of their security profile on the CBP Portal and review of supporting documentation and evidence of compliance that is also uploaded to the portal. The Certification process usually takes 2 to 3 months. It can happen in as little as one month (I had this happen once) or it can go longer than 4 months. There are some waiting periods involved where the applicant can do little or nothing to hasten the process. After Certification the CBP is supposed to conduct an on-site validation survey within one year. It’s not unusual for it to take even longer than a year. The CBP agent (Supply Chain Security Specialist – SCSS) makes an appointment with the company, usually 1 to 3 months in advance.

Jeff Platts is the president of Combination Sales, Inc., a consulting firm that specializes in assisting companies with C-TPAT Certification, C-TPAT Compliance and ITAR (international Traffic in Arms Regulations) Compliance. Jeff can be reached at jeff@combinationsales.com or 714-788-1531

Download Free PDF – All About C‐TPAT Portal Release 65

Nation2Nation N2N — Fri, 11 Nov 2011 18:09:32 +0000

DOWNLOAD C-TPAT_PORTAL RELEASE 65 UPDATE

- / N2N / – On November 12th, 2011 a new release of the C-TPAT web portal will be deployed. The new release adds many new functions for the trade including a rewrite of the “Validation Response” page. Also included is an adjusted scorecard which is viewable after the completion of the validation response process. More information about the new page and the response scorecard can be found at www.cbp.gov/CTPAT.

Some Key Points of the new release are:
• Response to trade feedback on the validation scorecard – give trade credit for response actions.
• Validation Response page rewritten to differentiate treatment of Actions Required and Recommendations for adjusted score.
• A partner is now asked if they implemented a recommendation or not. If not, credit for that recommendation is not added to the score

Also included in the new release is an Adjusted Scorecard
• Built off the Validation Scorecard.
• Returns partial points for Actions Required and Recommendations that are resolved in the Response Process.
• Returns full credit for all Best Practices.
• C‐TPAT CANNOT generate an adjusted score for previous responses.

Included is a new Response Page
• Recommendations are now treated differently than Actions Required. Partners are asked if they have implemented the recommendation? Yes or No details are required about the implementation or the lack thereof.
• Partners will now be asked to upload “Evidence of Implementation” to the Response page and criteria section.

DOWNLOAD C-TPAT_PORTAL RELEASE 65 UPDATE

Can a Canadian-Based Non-Asset 3PL be C-TPAT Certified?

Nation2Nation N2N — Tue, 28 Jun 2011 20:23:06 +0000

- / N2N / – As a C-TPAT (Customs-Trade Partnership Against Terrorism) consultant I often get inquiries from companies about the subject of C-TPAT Certification. Here’s an inquiry I received recently, followed by my reply.

THE INQUIRY:

We are a non asset based 3 PL company working out of Canada. One our major U.S. customers is updating their records & have asked if we are C-TPAT certified. From the information that I have 3PL’s can not get certification. Is that correct?

MY REPLY:

Your company probably is not eligible for C-TPAT Certification for 2 reasons:

1) Except in the case of some manufacturers, having an office staffed in the U.S. is a requirement.

2) U.S. based 3PL’s are technically eligible for C-TPAT Certification, but from a practical standpoint very few qualify. This is because in order for a company to be eligible they must demonstrate that they have some level of influence over the cargo prior to it entering the U.S. Most U.S. 3PL’s are not involved in international shipments until they are already in the country.

The company that is asking you about C-TPAT certification is doing what they are required to do, which is to determine which of their business partners are C-TPAT Certified and which are not. Those that are not C-TPAT Certified are required to be “fully compliant” with all C-TPAT requirements even though they themselves are not eligible. This is usually accomplished by requiring the non-C-TPAT certified company to complete a security questionnaire, and in some cases, do an on-site audit at the business partner’s office.

Jeff Platts – C-TPAT Consultant - jeff@combinationsales.com – 714-788-1531

US – China Work Together to Prevent Nuclear Smuggling

Nation2Nation N2N — Wed, 26 Jan 2011 19:08:58 +0000

WASHINGTON D.C. – The Department of Energy’s National Nuclear Security Administration (NNSA) today announced the signing of a memorandum of understanding (MOU) with China that paves the way for the establishment of a radiation detection training center in Qinhuangdao, China. Deputy Secretary of Energy Daniel Poneman and Vice Minister SUN Yibiao of the General Administration of China Customs signed the MOU in a ceremony at DOE headquarters in Washington. The signed comes as part of Chinese President Hu Jintao’s state visit to Washington, DC.

“This agreement represents the shared commitment of both the United States and China to enhance global peace and security by working to prevent nuclear smuggling,” said Deputy Secretary of Energy Daniel Poneman. “Preventing illicit transfers of nuclear materials is a critical part of NNSA’s efforts to implement President Obama’s goal of securing vulnerable nuclear material around the world. The success of this program is due in no small part to continued and future cooperation and support from partners such as the People’s Republic of China.”

NNSA is working to expand and strengthen nonproliferation efforts throughout East Asia. Through its Second Line of Defense (SLD) program, NNSA will provide radiation detection equipment and support the development of training materials for use at the Qinhuangdao Training Center. The radiation detection training facility at the Qinhuangdao Training Center will be the first of its kind in the region.

This agreement will complement ongoing cooperative efforts established by a 2005 MOU to combat nuclear and radiological smuggling. The 2005 agreement supports NNSA’s Megaports Initiative, which is working to equip the Yangshan Deepwater Port in Shanghai with radiation detection equipment.

NNSA’s SLD program works collaboratively with foreign governments at land border crossings, airports and seaports to install specialized radiation detection equipment, mobile radiation detection equipment, and associated communications equipment. Through its SLD program, NNSA also provides training to host government law enforcement officers and other personnel to detect smuggled nuclear and other radioactive materials.

CBP Seizes 4.4 Million Counterfeit Marlboro Cigarettes at Seaport

Nation2Nation N2N — Sat, 15 Jan 2011 19:23:43 +0000

Los Angeles – / N2N / - U.S. Customs and Border Protection (CBP) import specialists and officers at the Los Angeles/Long Beach seaport complex intercepted and seized a shipment of counterfeit Marlboro cigarettes arriving from China with an estimated manufacturer’s suggested retail price of $1.1 million.

Counterit Marlboro Cigarettes seized by U.S. Customs

As an attempt to mislead CBP and circumvent U.S. federal laws, smugglers falsely invoiced the shipment as “hang tags and hang plugs”. Examination of the merchandise revealed a total of 22,170 cartons equivalent to more than 4.4 million individual cigarettes in violation of the Marlboro Light 100’s and Marlboro Gold Pack trademarks.

“This seizure is a fine example of the hard work the men and women of CBP perform to protect the American consumer and the economic vitality of our country,” said CBP Acting Director of Los Angeles Field Operations. “Preventing the importation of illegal merchandise continues to be a top priority for CBP.”

CBP officers seized a total of 22,170 cartons equivalent to over 4.4 million individual cigarettes in violation of the Marlboro Light 100’s and Marlboro Gold Pack trademarks.

Counterfeit cigarettes not only affect trademark owners, but defraud consumers and deprive government of tax revenue. Consumers think they pay less for a genuine product, when in reality they pay less for a product of substandard quality.

More than 4.4 million counterfit Marlboro Lights and Marlboro Gold Pack cigarettes were hidden by smugglers in a container that arrived in Los Angeles / Long Beach from China

Organized crime organizations smuggle counterfeit cigarettes because of the substantial profits it generates. Much of these profits fund other criminal activities including money laundering and terrorism.

Importers violating intellectual property rights may be subject to civil penalties and/or criminal prosecution. The domestic value of this shipment was estimated at $443,400.

In fiscal year 2009, 14,841 seizures of counterfeit and pirated goods with a total domestic value of $260.7 million were intercepted by CBP at U.S. ports of entry.

783 Pounds of Marijuana in False Wall of Refrigerated Trailer

Nation2Nation N2N — Sun, 02 Jan 2011 19:17:22 +0000

Calexico, Calif. – / N2N / – U.S. Customs and Border Protection officers working at the Calexico cargo port of entry yesterday discovered 783 pounds of marijuana in a false front wall compartment of a refrigerated trailer pulled by a 2000 Freightliner tractor.

The driver, a 53-year-old male Mexican citizen from Mexicali, and the tractor and trailer entered the port for inspection at about 10:30 a.m. with cargo manifested as coriander, beets, and spinach. During the inspection, a CBP officer noticed discrepancies with the cargo and referred the conveyance and driver for an in-depth examination.

Officers scanned the tractor and trailer with the port’s gamma-ray imaging system which revealed anomalies within the front wall of the refrigerated trailer. Upon a closer look at the trailer, officers discovered a false front wall. They drilled a hole though the front wall and extracted a green leafy substance that field-tested positive for marijuana.

Officers subsequently extracted 43 large wrapped packages of marijuana, valued at almost $356,000, from the false wall compartment.

CBP seized the conveyance and marijuana. The driver was arrested and transported to the Imperial County Jail.

Source = CBP

CBP Notifies C-TPAT Partners to Watch for Seasonal Spike in Marijuana Smuggling

Nation2Nation N2N — Wed, 15 Dec 2010 17:47:19 +0000

- / N2N / – In an effort to enhance communication with the its members, C-TPAT routinely highlights security matters for the purpose of raising awareness and renewing partner vigilance regarding supply chain security. During the fall months, C-TPAT tends to see an increase in marijuana smuggling incidents from Mexico.
Containers/trailers can be compromised at any point in the supply chain, but they are especially vulnerable while in transit to the border. Ensuring proper container inspections and sealing procedures are being followed at the point of loading coupled with close monitoring of cargo movements are critical security measures, which can mitigate the risk of compromise. In those cases where the subcontracting of highway carrier service is taking place to non-member companies, C-TPAT participants need to make sure that carrier is meeting the program’s security criteria. Truck driver security training is also a simple yet important way to reduce risk as well as making sure all equipment is in good working order. CBP Ports along the Southwest border report that C-TPAT company drivers frequently request to be sent for secondary exam due to their self developed risk indicators e.g. directed to pick up a trailer at a first time or unknown location. Actions such as these can make it much more difficult for drug trafficking organizations to target C-TPAT shipments.

This is also an opportunity to reiterate the program’s views concerning reporting possible narcotics smuggling activity. Clearly embedded in the program’s security criteria is the recognition that C-TPAT members must have procedures in place to record and immediately report anomalies to CBP. This is a fundamental part of the program.

Many members have developed quick response notification protocols beginning with the 1-800-BE ALERT (1-800-232-5378) watch line and which includes local POE Management/watch commanders at the land border ports of entry as well as their assigned SCSS. Members are also developing proactive contingency plans and “what if” scenarios in case compromise occurs in order to be ready to react very quickly to determine where the breakdown occurred. These procedures are in addition to those which are required in accordance with foreign government laws.

There have been reports that some members might choose not to report a suspected anomaly or known incident for fear of jeopardizing their C-TPAT status. The CBP enforcement posture is available on the CBP website and it is important to emphasize that should a breach of the supply chain occur involving a C-TPAT member, CBP will conduct a Post Incident Analysis and the level of cooperation, including self-reporting, by the C-TPAT member is factored into the ultimate resolution of the incident. Where companies/drivers do alert CBP in advance of arrival of the shipment, CBP views this information favorably.

Please find additional contact information below and as always CBP appreciates member ingenuity and diligence to secure all cargo shipments destined to the United States.

To find your local CBP Port telephone number, please click the link below:

http://www.cbp.gov/xp/cgov/toolbox/ports/

CBP general inquires: 1-877-CBP-5511 or International Callers: (703) 526-4200
TDD: 1-866-880-6582

Laredo, Tx
Laredo SENTRI Jose Cabrera (956) 523-7399
Command Center (956) 693-5753

El Paso, Tx
El Paso SENTRI :
Arnoldo Gomez (Chief): (915) 872-4706
Margie Guerrero (Supervisor): (915) 872-4705
Command Center: (915) 633-7351

Tucson, Az
Nogales SENTRI: (301) 444-1112
San Luis SENTRI: (928) 627-8854 or 8855
Command Center (Nogales): (520) 375-7585
Command Center (Tucson ): (520) 407-2336

San Diego, Ca
Otay Mesa SENTRI Chief Cole: (760) 768-4814
Otay Mesa SENTRI LANE: (619) 690-7600
San Ysidro SENTRI LANE: (619) 671-8973
Command Center San Ysidro: (619) 690-8882
Command Center Otay Mesa: (619) 671-8998
Command Center – Calexico (East & West): (760) 768-4814

Service Port-Nogales ( 2604)
SENTRI/FAST Enrollment Center (520) 375-5801

Port of Entry- Hidalgo/Pharr, TX (2305)
Hidalgo Port of Entry, TX (956) 843-5701
Pharr Port of Entry, TX (956) 283-2147
SENTRI/FAST Enrollment Center, McAllen, TX (956) 618-1680

Port Of Entry-Brownsville/Los Indios (2301)
Brownsville POE – general phone (956) 983-5800
Brownsville & Matamoros Bridge (956) 548-2759
Gateway International Bridge (956) 548-2744 Ext: 1122
Los Indios Free Trade Bridge (956) 361-0070

Service Port-Laredo (2304)
Lincoln Juarez Bridge (956) 693-5755
Gateway to the Americas (956) 523-6901
World Trade Bridge Commercial (956) 794-9401

CBP Announces Expanded 2011 Supply Chain Security Training Seminar

Nation2Nation N2N — Sun, 05 Dec 2010 15:58:40 +0000

- / N2N / – U.S. Customs and Border Protection will be hosting the 2011 C-TPAT Supply Chain Security Training Seminar. This year, CBP will be hosting two seminars due to the interest of previous events and to expand the opportunity to as many member companies to attend as possible. The first seminar will be held in San Diego, California on March 29-31, 2011. The second seminar will be held in New Orleans, Louisiana on June 8-9, 2011. This year’s theme is “A Decade of Supply Chain Security and Innovation”.

Registration for the seminar is free, but only C-TPAT certified or validated companies may attend. CBP allows each company to have up to two (2) employees attend either event, but not both. The seminar in San Diego will be limited to 1,200 participants. The seminar in New Orleans will be limited to 600 participants.

In San Diego there will be two sessions:
Session 1 – Tuesday & Wednesday, March 29-30, 2011
Session 2 – Wednesday & Thursday, March 30-31, 2011
Schedule:
Monday, March 28, 2011
4:00 PM to 8:00 PM – Registration

Tuesday, March 29, 2011
7:00 AM to 8:00 PM – Registration
8:30 AM to 5:00 PM – Supply Chain Security Workshops

Wednesday, March 30, 2011
7:00 AM to 5:00 PM – Registration
8:30 AM to 5:00 PM – General Session

Thursday, March 31, 2011
8:30 AM to 5:00 PM – Supply Chain Security Workshops

Location:
Manchester Grand Hyatt San Diego
One Market Place
San Diego, California, 92101

In New Orleans there will be one session:
Schedule:
Tuesday, June 7, 2011 4:00 PM to 8:00 PM – Registration

Wednesday, June 8, 2011 7:00 AM to 5:00 PM – Registration
8:30 AM to 5:00 PM – General Session

Thursday, June 9, 2011 8:30 AM to 5:00 PM – Supply Chain Security Workshops
Location:
New Orleans Marriott 555 Canal Street New Orleans, LA 70130

Expenses for lodging are the responsibility of the C-TPAT members. You should not make reservations at the hotels until you have received confirmation of your attendance. Those members who successfully register for the first seminar will not be eligible to register for the second seminar.

These seminars are open to certified C-TPAT members only. Attendees should be individuals directly responsible for the implementation of the C-TPAT program throughout the organizations’ supply chain.
T
he agenda for both seminars will focus on facing the challenges of balancing security needs and economic efficiency in today’s environment. In addition to significant program updates, joint CBP/Trade presentations, panel discussions, and seminar workshops will be conducted.

This years C-TPAT Training seminars will include topics such as:
- Anatomy of a PIA
- Conducting a Supply Chain Security Risk Assessment
- Evidence of Implementation/Documentation
- Suspensions and Removals
- CBP Risk Indicators
- Developing a Security Training & Awareness Program
- Proactive Approaches to Security Breach Prevention

There will be no registration fee for this seminar; however space is limited to 1,200 participants in San Diego and 600 participants in New Orleans.

C-TPAT Training Seminar Registration for both conferences will be conducted via an on-line registration process beginning January 5, 2011. Registration will open at 12:00 Noon Eastern Standard Time (9:00 AM Pacific Standard Time). Each company will be required to pick one seminar only for two participants. You must have your C-TPAT account number to register. If you do not have it immediately available, you will not be able to register in a timely manner!

Attendees will be selected based on certified membership status and on a first come first served basis. Tier 3 members will be given preference for the event they choose. Attendance is limited to a maximum of two (2) persons per C-TPAT certified account. At least one person registering to attend must be a designated point of contact (POC) listed in the company’s C-TPAT Portal account. At time of registration, members will be required to provide identifying information exactly as it appears in the C-TPAT Portal account. Identifying information will include: company name, C-TPAT account number, and POC email addresses. Information not accurately matching the information contained in the C-TPAT Portal may delay registration processing.

Free Download U.S. Customs 2010 C-TPAT Partner Survey

Nation2Nation N2N — Mon, 27 Sep 2010 15:13:40 +0000

- / N2N / – U.S. Customs released its 2010 C-TPAT Survey. C-TPAT stands for “Customs-Trade Partnership Against Terrorism”. The 164 page document surveys C-TPAT Partners and compares their responses to a similar survey conducted in 2007. The Survey is very comprehensive and presents a lot of meaningful data that builds a strong case for C-TPAT Certification as a means for companies to increase customers, increase sales revenue. Efficiency improvements are also noted as port and border wait times and the number of CBP inspections is reduced. Also, the ability of importers to reliably predict arrival shows marked improvement.

Download the free 2010 C-TPAT Partner Survey PDF here.