FREE DOWNLOAD – C-TPAT COSTS & SAVINGS REPORT – 2011

- / N2N / – The 2011 C-TPAT Costs & Savings Survey (CSS) is a drill-down view of the detailed costs and savings experiences of a small sample of C-TPAT members. The CSS was developed and executed separately from the larger membership survey that was done in 2010. This approach was intended to enhance the response rate of the 2010 membership survey by simplifying it, and it was successful – the response rate to the 2010 membership survey was substantially higher than in the 2006 survey.

The tremendous range and detail of the experiences reported in the 2011 CSS illustrates very well the variety and scope of issues confronted by C-TPAT members. But this range also limits the generalizability of the results. For example, direct cost savings as a result of C-TPAT membership ranged from $50 to $52 million among the roughly one-quarter of respondents
who reported direct cost savings. Implementation costs ranged from $280 to $4 million among the three-quarters of respondents who said they incurred such costs.

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.

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

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 us at: contact@nation2nation.net.

- / N2N / - The Department of Homeland Security’s Private Sector Resources Catalog has been completely updated and reorganized to ensure that you and your organization can quickly and easily find all the resources that you need.  The first catalog to be targeted specifically towards private sector partners and encompassing the entire Department, this document collects the training, publications, guidance, alerts, newsletters, programs, and services available to the private sector across the Department. Recognizing the breadth and diversity of the available resources as well as the Department’s continually evolving work, this catalog will be updated regularly to publicize new resources and increase private sector awareness.

In order to face the new threats and evolving hazards of today’s security environment, we must develop and maintain critical homeland security capabilities at all layers of our society. We all share the responsibility to build all-hazards preparedness and resiliency into our way of life. As outlined in the Quadrennial Homeland Security Review Report, this enterprise approach is composed of multiple partners whose roles and responsibilities are distributed and shared among a broad-based community with a common interest in the public safety and well-being of America and American society.

Here are some of the topics covered in the newly revised catalog:

• Preventing Terrorism & Enhancing Security
• Bombing Prevention
• General Physical Assessment Tools
• Hazardous Materials Transportation Security
• Mass Transit & Rail Security
• Nuclear Security
• Land Transportation
• Terrorism Prevention
• Securing & Managing our Borders
• Trade Facilitation
• Enforcing & Administering our Immigration Laws
• Safeguarding & Securing Cyberspace
• Cybersecurity assessment Tools
• Ensuring Resilience to Disasters
• Disaster Response Laws & Regulations

pso-private-sector-resource-catalog-3 FREE DOWNLOAD
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.

pso-private-sector-resource-catalog-3 FREE DOWNLOAD

- / 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

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.

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

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.

“This is a great accomplishment for our trade partnership program considering the program began with seven original members in 2001,” said C-TPAT Director, Bradd Skinner. “Achieving 10,000 members indicates that the program is meeting the needs of the trade community, while the member survey results will assist us in taking C-TPAT to the next level.”

The newest member of C-TPAT is Vaughan Furniture Company Inc., located in Galax, Va. Vaughan Furniture has been in business for 87 years and employs 34 people.

C-TPAT was designed so all businesses, regardless of size, could participate in global supply chain security. Approximately half of C-TPAT members companies are small or mid sized, having less than fifty employees. C-TPAT importer partners are responsible for approximately 50 percent by value of all imported merchandise into the U.S. C-TPAT is the first and the largest anti-terrorism partnership program throughout the world and it continues to set the global standard for supply chain security.

C-TPAT is a voluntary government-business initiative to build cooperative relationships that strengthen and improve overall international supply chain and U.S. border security. C-TPAT recognizes that U.S. Customs and Border Protection can provide the highest level of cargo security only through close cooperation with the ultimate owners of the international supply chain such as importers, carriers, consolidators, licensed customs brokers, and manufacturers. Through this initiative, businesses become members to ensure the integrity of their security practices and communicate and verify the security guidelines of their business partners within the supply chain.

Source = CBP

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.

C-TPAT COMPILANT LOGO

Once the bill has been passed CBP will have 60 days to define the criteria for non-asset logistics providers.

There is certain to be a rush of logistics companies to become C-TPAT Certified after the passage of this bill. Logistics providers should strongly consider becoming C-TPAT Compliant immediately, because this will make certification a substantially easier and faster process once it is available.

Here’s the full bill:

111th CONGRESS, 2d Session, H. R. 5619

IN THE HOUSE OF REPRESENTATIVES

June 28, 2010

Mr. OWENS introduced the following bill; which was referred to the Committee on Homeland Security

A BILL

To amend the SAFE Port Act to provide for the eligibility of certain third party logistics providers for participation in the Customs-Trade Partnership Against Terrorism program.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. ELIGIBILITY OF CERTAIN THIRD PARTY LOGISTICS PROVIDERS FOR PARTICIPATION IN C-TPAT PROGRAM.

(a) In General- Section 212 of the SAFE Port Act (Public Law 109-347; 6 U.S.C. 962) is amended by inserting after ‘contract logistics providers,’ the following: ‘non-asset based third party logistics providers that arrange international transportation of freight, including motor carrier brokers of property licensed by the Department of Transportation,’.

(b) Effective Date-

(1) IN GENERAL- The amendment made by subsection (a) takes effect on the date of the enactment of this Act and applies with respect to applicants seeking to participate in the Customs-Trade Partnership Against Terrorism (‘C-TPAT’) program on or after the date on which the regulations published pursuant to paragraph (2) take effect.

(2) REGULATIONS- The Secretary of Homeland Security, acting through the Commissioner responsible for United States Customs and Border Protection of the Department of Homeland Security, shall publish in the Federal Register criteria for participation in C-TPAT program of non-asset based third party logistics providers described in section 212 of the SAFE Port Act, as added by subsection (a), not later than 60 days after the date of the enactment of this Act.

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.com.