CBP Posts New C-TPAT Risk Assessment Information

U.S. Customs and Border Protection (CBP) recently posted risk assessment information for C-TPAT on its web site. Along with this document, they also posted frequently asked questions (FAQ) related to the supply chain security risk assessment. The Supply Chain Security Specialists have been making comments related to specific risk assessment activities during validation and revalidation reviews.

Click HERE to view the "C-TPAT 5 Step Risk Assessment Process Guide"

Click HERE to view the FAQs.

For organizations that are members of C-TPAT, check the documents section in your secure portal for additional risk assessment documents and information from other workshops conducted earlier this year.

CBP Trade Symposium 2009 - Wednesday Update

On Tuesday afternoon, CBP kicked off the 2009 Trade Symposium for attendees in Washington and the inaugural webcast. On Tuesday, attendees heard good news that CBP will use informed compliance mechanisms such as warning letters and increased inspections for ISF violations starting on January 26, 2010. Acting Commissioner Ahern stated CBP would be using the least punitive methods when the full compliance phase begins. On Wednesday, this was repeated by Richard DiNucci. He also stated that CBP would be looking for evidence of progress in the implementation of ISF during the flexible enforcement period as one of the primary mitigating factors. CBP doesn’t want to hold the cargo hostage, and they don’t necessarily want your money – they want the data. Supply the data and you get the cargo. Instead of using the catch phrase from the movie Jerry McGuire - "show me the money" the new phrase for CBP should be "show me the data."

The first glitch for those attending by webcast came before the session on International Property Rights Enforcement. The webcast disappeared into cyberspace, so we missed the IPR and ISA presentations. The good news is that the ISA presentation is available on the CBP web site.

Fortunately, those of us attending by webcast were able to rejoin the live sessions starting with the keynote address by Jane Holl Lute. Next came a lively and informative presentation on C-TPAT. Key takeaways from this session include the following:

· The C-TPAT member’s responsibilities do not end after validation.
· One of the biggest reasons violations occur is that procedures were in place and NOT followed.
· It’s not over when the cargo crosses the border. A large number of violations occur in transit from the border to the final destination.
· Technology is great, but you must know how to use it
· The most commonly breached criteria are conveyance, container, business partner and personnel security.
· The highest contributing factor for breaches is internal conspiracy.
· The most frequent location of compromise is in transit from the border.
· For those with procedures in place, those procedures were not followed in 83% of the incidents.
· If you have procedure and they aren’t followed, CBP will suspend you.
· The presentation contained a great list of best practices for carriers.

To wind up the day, we heard about ISF from a variety of perspectives including representatives from importers, shippers, carriers, trade associations and brokers. A lot of great information was presented by each speaker. One comment about ISF recordkeeping caught the Wizard’s attention. The comment was made that there was no mention of recordkeeping in the ISF rule, but the trade should consider keeping related documentation for five years. CBP addresses this same issue in the ISF FAQs, but uses a little stronger language to encourage maintenance of the records.

“The new regulations do not contain specific record keeping requirements other than retention of powers of attorney (see 19 CFR 149.5(c)). However, ISF parties should retain records necessary to demonstrate compliance with ISF filing requirements. In addition, the general 19 U.S.C. § 1508 recordkeeping requirements may be applicable to the ISF filer.”

One could also argue that 19 CFR 163.1 (a) and the Appendix to Part 163 imply that all records may not be specifically listed, but if they are related to an importation, they should be maintained. We’d like to hear your thoughts on maintaining records for 10+2 filings. The Wizard would maintain them. Better safe than sorry! Along with "show me the data" we can add "show me the records."

We’ll see you out in cyberspace for the last day of the symposium on Thursday. Kudos to CBP for the stellar organization for this year’s event and to the speakers for the insightful and informative presentations

CBP News

1. CBP 2009 Trade Symposium

The 2009 Trade Symposium is scheduled for December 8 – 10, 2009. Click HERE to view the symposium topics and schedule. Registration for the conference is currently full, but CBP is offering the option to attend by webcast. For only $35, participants will be able to view and interact online.


2. Updated ABI Software Vendors List

CBP updated its ABI Software Vendors List on 11/9/2009. This list contains the company name, address, phone number and email contact information along with the types of services provided. U.S. Customs and Border Protection (CBP) only collects the information and does not provide any endorsements as to the nature, extent or quality of the services that may be provided.


3. American Recovery & Reinvestment Act Funds

Check out updates on how CBP is using the funds received from American Recovery and Reinvestment Act (ARRA). CBP appropriated $420 million for constructing 24 new land ports of entry, primarily along the northern border and making repairs to existing land ports.


4. CBP Announces New Intellectual Property Bonds

U.S. Customs and Border Protection has established new bond options for intellectual property rights (IPR) owners. The owners will use this bong to obtain samples of imported merchandise suspected of violating a copyright, trade name or trademark registered by the IPR owner. IPR owners may use either a continuous or single transaction IPR sample bond. A continuous IPR sample bond has the advantage of covering multiple IPR sample transactions, across all ports of entry with a single bond and reduces the administrative burden for CBP to track single transaction IPR bonds.


5. C-TPAT Enforcement & Appeal Process

This new document provides an overview of the reasons for suspending or removing C-TPAT members from the program. Members may be immediately removed for aggravated circumstances such as providing false information or intentionally disregarding the program’s requirements. For lesser violations, members may be suspended and provided with an opportunity to comply with the requirements in order to resume active membership.

Once a security related incident or other program violation occurs, C-TPAT officials determine the appropriate next steps on a case-by-case basis. To be reinstated into the program after an incident or violation, the company must agree to a corrective action plan that identifies specific objectives and periods within which those objectives should be reached. In addition, the company must consent to un-announced visits by C-TPAT staff to monitor progress. In the case of a failed validation, the company must demonstrate that it has successfully addressed all vulnerabilities and complied with all other requirements before being fully reinstated.

Companies that are suspended or removed may appeal this decision to CBP HQ. CBP will decide the appeal in a timely fashion.


6. CBP Updates ISF FAQ

U.S. Customs and Border Protection (CBP) recently updated its "Frequently Asked Questions" document on Importer Security Filing (ISF). The document contains new information about liquidated damages, duplicate filings, Instruments of International Trade (IIT), empty containers and garments on hangers. Information about bill of lading numbers, bonds, progress reports and U.S. Goods Returned has been updated.

How Safe Is Your Office?

On Saturday, the front page of our local newspaper contained not only the news of the tragic shooting in Texas, but another shooting in an office in Orlando, Florida. While the investigation in Texas is ongoing, the Florida incident stemmed from the shooter being fired by his employer two years ago. My first thought was sadness for the lives cut short and sympathy for the loved ones they left behind. After those thoughts came the question about the safety of our own offices.

Most of you reading this blog are involved in some type of international compliance and likely work for a C-TPAT compliant company, so your offices must be secure, right? According to your procedures, your company states that they may search vehicles and requires all visitors to sign in, but are these procedures followed? Several years ago disgruntled employee shot his supervisor at a company where I worked and the company had excellent security policies. Could an angry ex-employee gain access to your facilities? Now, I’m not suggesting that every business install metal detectors to screen for guns and knives, but I am suggesting that we might take a closer look to see if we are practicing what our procedures say we are. If we don’t have procedures in place yet, then it’s time to implement them. Along the same lines, does your company have any procedures for identifying employees who may pose a danger to others? Again, I’m not suggesting that we sit around and scrutinize our co-workers. Hey, we all have some little quirks, but what is the policy for handling someone who demonstrates an unusual temper or shows signs of substance abuse?

Spend some time reviewing your current procedures. Even better, try testing them. Send an unknown person into your facilities and see how far they get before being stopped by an employee. Ask random employees how they would handle an employee suspected of substance abuse or who showed violent behaviors. Review the results, analyze the risk potential for incidents of violence in your workplace and modify or create procedures as necessary. Not only will these precautions protect your company’s most important assets, the employees, but they will improve your C-TPAT compliance!

Note: We will return with our weekly study of the HTS next Monday.

ISO/PAS 17712 Container Seals Required Effective October 15

On Thursday August 7, U.S. Customs and Border Protection issued a notice in the Federal Register reminding shippers and importers that pursuant to 6 USC §944, all loaded containers arriving by vessel at a port of entry in the U.S. on or after October 15, 2008, are required to be sealed with a seal meeting the ISO/PAS 17712 standard.

The ISO/PAS 17712 standard requires that container freight seals meet or exceed certain standards for strength and durability so as to prevent accidental breakage, early deterioration (due to weather conditions, chemical action, etc.) or undetectable tampering under normal usage. ISO/PAS 17712 also requires that each seal be clearly and legibly marked with a unique identification number.

Tanks and non-standard containers, such as open top containers, that cannot accommodate a seal meeting the ISO/PAS 17712 standard are not subject to the requirement. C-TPAT members are already required to use ISO/PAS17712 approved security seals.

Containers arriving on or after October 15 without the required seal will be subject the party responsible for the violation to a civil penalty. CBP will phase in the penalty assessments for these violations. Vessel operators are reminded that they must transmit all seal numbers via the Vessel Automated Manifest System 24 hours before cargo is laden aboard a vessel at a foreign port.

CBP Introduces Revised Agreement

As the C-TPAT program evolves, changes to certain processes and procedures are necessary to improve the efficiency and effectiveness of the program. When applicants for membership in C-TPAT complete the online application in the Security Link Portal, they are required to accept the C-TPAT Agreement to Voluntarily Participate. In compliance with the SAFE Port Act, CBP created a revised agreement for C-TPAT participants. The new agreement updates the most recent version of the agreement to include the changes that have occurred since the introduction of C-TPAT in 2001. Current members are not required to sign the agreement or submit additional information; however, CBP encourages members to review the new agreement because continued membership indicates that the participant concurs with the new agreement.

Some of the revisions to the agreement include:

• Use of the term “Partners” for all parties instead of carriers, importers, brokers, etc.


• Addition of the requirement to cooperate with validation and re-validation process under Partner’s agreement.


• Shortened version of the Partner’s agreement to comply with the program requirements in place of multiple statements in the old version about developing written and verifiable processes followed by the list of major processes.


• Addition of the statement that CBP will conduct validation within one year of the Partner’s certification.


• More CBP responsibilities than in the original agreement


• Provisions for C-TPAT participants to verify information via Status Verification Interface


• Opportunities for C-TPAT Partners to participate in the Mutual Recognition Program

We have included a link to each document so that you can review each and make note of the changes. Click on the appropriate link to view the old and revised versions of the C-TPAT Agreement to Voluntarily Participate:

(Old) C-TPAT Agreement to Voluntarily Participate
(Revised) C-TPAT Agreement to Voluntarily Participate