Customs Trade Partnership against Terrorism

The Customs-Trade Partnership Against Terrorism (C-TPAT) is a voluntary supply chain security program led by U.S. Customs and Border Protection (CBP) and focused on improving the security of private companies' supply chains with respect to terrorism. The program was launched in November 2001 with seven initial participants, all large U.S. companies. As of December 1, 2014, the program has 10,854 members. The 4,315 importers in the program account for approximately 54% of the value of all merchandise imported into the U.S.

Companies who achieve C-TPAT certification must have a documented process for determining and alleviating risk throughout their international supply chain. This allows companies to be considered low risk, resulting in expedited processing of their cargo, including fewer Customs examinations.

According to U.S. Customs and Border Protection, the benefits of participating in C-TPAT could include:

Using the right technology, the processes of supplier data collection, organization, and risk analysis can be done easily, without requiring large investments into IT infrastructure or resources. The primary goal of the C-TPAT program is not to add more work for the importer or the companies participating, but to help improve the security of all global supply chains.

U.S. Senators Susan Collins and Patty Murray have introduced a bill in Congress, the GreenLane Maritime Cargo Security Act, which would enhance these potential benefits for companies at the highest level of security within C-TPAT.

Mutual Recognition (MR) refers to those activities relates with the signing of a document between foreign Customs Administration that allows an exchange of information aiming to improve supply chain security. The signed document, or MR, indicates that security requirements or standards of the foreign partnership program, as well as its validation procedures are similar. The essential concept of a Mutual Recognition Agreement (MRA) is that C-TPAT and the foreign program are compatible in both theory and practice so that one program will recognize the validation findings of the other program.

The following programs have Mutual Recognition with C-TPAT:

Through this initiative, CBP is asking businesses to ensure the integrity of their security practices and communicate and verify the security guidelines of their business partners within the supply chain.

When customs administrations offer tangible to businesses that meet minimum security standards and follow best practices, those businesses are known as “trusted traders.” This concept is internationally accepted and is entrenched in protocols such as the World Customs Organization SAFE Framework of Standards.

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