Cargo Security
Following the tragic events of 9/11, the Bureau of Customs and Border Protection (CBP), a part of the Department of Homeland Security (DHS) that was formed in response to those events, together with other agencies in DHS, became responsible for ensuring that goods being imported into the U.S. had been secured from terrorist threats. A number of different legal requirements have been instituted, most recently the requirement that importers file an Importer Security Filing (ISF) with each entry of containerized cargo. The US has also worked with numerous port authorities around the world to enhance the security measures taken overseas before cargo whose final destination is the US is laden on a vessel. Air cargo is also subject to enhanced security requirements, including cargo handled by express couriers.
Customs-Trade Partnership Against Terrorism
However, the program that has probably had the greatest impact on importers and foreign suppliers is the Customs-Trade Partnership Against Terrorism (C-TPAT), which CBP first rolled out in 2002. While this, nominally, is still considered a "voluntary" program, market conditions, such as the requirement that C-TPAT members only deal with business partners who are either C-TPAT members or can certify that they meet C-TPAT minimum security standards, suggests that it is, for practical purposes, a requirement for all importers. Security reviews have also been made a standard part of a Customs audit for those companies who are not members of C-TPAT.
C-TPAT Application
The procedure for joining the C-TPAT program, and the conditions for maintain membership in the program are found on the CBP website. Briefly, the applicant, which may be an importer, broker, other party in the supply chain such as a carrier or consolidator, as well as certain foreign suppliers, must respond to the questions on the CBP website which address the security profile of the applicant. A Supply Chain Security Specialist (SCSS) will review the responses and if all are acceptable, will inform the applicant that they have been accepted as a member of the program. In the case of an importer the application will ask questions about the security measures that are in place at all of the locations which handle cargo destined to the U.S. such as factories, consolidators, warehouses, etc. They questions are quite specific, such as what type of physical security is present at the plant, is there a perimeter fence, what type of access controls are in place for visitors and employees, how is inventory guarded, what procedure is followed to load and seal containers, what type of security training and awareness programs are in place, what type of IT security is in place and similar questions that are all designed to allow CBP to acertain whether the facilities met so-called “minimum security requirements.” After an importer is accepted into the program, CBP will schedule a validation, i.e.., a visit to a foreign facility. If the security procedures at the facility are found to be acceptable the importer will become a certified member and be giving a rating of Tier II (meets minimum security standards) or Tier III (exceeds minimum security standards), or will fail the validation and be given an opportunity to address the changes that have been identified or be suspended from the program. Every member has to be re-validated every three of four years, depending on their status in the program.
BRC has assisted many importers in helping them prepare for the application process, assisting in filing the application and preparing companies for a successful validation. Several clients that we have helped have attained Tier III status, a ranking that is achieved by only a few hundred of the ten thousand companies who have joined so far. We have provided guidance on how to evaluate several hundred supply chains that individual companies may have and have provided clients with all the necessary tools needed to remain member in good standing in the program.
- Mar. 18, 2024
- EAPA Final Rule Allows (Representatives of) Parties to Access Business Confidential Information
- Feb. 16, 2024
- Volkswagen High-End Vehicles Detained under Forced Labor Law
- Feb. 15, 2024
- First Bond Guidance in 33 Years Issued
- Feb. 13, 2024
- Indo-Pacific Economic Framework for Prosperity Implemented
- Feb. 12, 2024
- The 2018 Trade War Has Been an Employment Failure
- Feb. 9, 2024
- New Export Control Know-Your-Customer (KYC) Requirements for IaaS Providers
- Feb. 2, 2024
- Court Clarifies What Qualifies as a "Basket Provision"
- Feb. 1, 2024
- Fine Makes Clear That the FTC is Serious About Made in USA
- Jan. 30, 2024
- Sheffield Issues Guide for the Solar or EV Battery Sectors
- Jan. 26, 2024
- Increased Controls of Exports Destined to Russia or Belarus
- Jan. 24, 2024
- Importer Avoids 7% Surprise on Agency Arrangement
- Jan. 22, 2024
- CIT Overturns AD/CVD Evasion Finding
- Jan. 19, 2024
- BIS's Fast-Track to Resolving Voluntary Self-Disclosure
- Jan. 16, 2024
- Drug Cartel Linked to $10.4 million Customs Fraud Penalty
- Jan. 12, 2024
- CBP Attempts to Improve the Entry Type 86 Test with Proposed Modification
- Jan. 9, 2024
- BIS's FAQs Highlight the Complexity of the AC/S IFR
- Jan. 8, 2024
- Customs Will Deactivate 232 Exclusions at 95%
- Jan. 8, 2024
- Customs Publicizes UFLPA Detention Addendum
- Dec. 27, 2023
- USTR Extends Section 301 Exclusions into the New Year
- Dec. 19, 2023
- US and EU Appear to Have Trade Truce Through March 2025
- Dec. 19, 2023
- House Select Committee Advocates Trade Changes with China
- Dec. 14, 2023
- A U.S.-Taiwan Free Trade Agreement is Very Unlikely
- Dec. 11, 2023
- Groups Advocate Blocking "De Minimis" Entries to stop Black-Market Entry of Deadly Drugs
- Dec. 6, 2023
- CBP Counts Down to Lift Off on UFLPA Portal
- Dec. 5, 2023
- Global Arrangement On Sustainable Steel And Aluminum Negotiations Failed, Maybe
- Dec. 4, 2023
- Customs Clarifies "Date of Entry" Meaning
- Nov. 28, 2023
- EPA Finalizes Regulations on PFAS Reporting, Including Reporting of Imported Articles that Contain PFAS Since 2011
- Nov. 28, 2023
- Key Senators Push to Keep China Tariffs
- Nov. 8, 2023
- Focus on AGOA Renewal as GSP Appears to Languish
- Nov. 3, 2023
- Senators Pitch Americas Act as Win-Win, Win-Lose
- Oct. 30, 2023
- Senator Promoting Carbon Border Adjustment Tax
- Oct. 26, 2023
- U.S. Sets Forth Arctic Strategy With Significant New Trade Component
- Oct. 25, 2023
- Asiaway Automotive Components' Mexico Division Hit with Rapid Response Mechanism Review
- Oct. 24, 2023
- Commerce Continues to Issue Semiconductor Restrictions in Bid to Protect Supply Chains
- Oct. 23, 2023
- EU Forced Labor Regulation Advancing
- Oct. 13, 2023
- Understanding the Bureau of Industry and Security's Entity List
- Oct. 11, 2023
- 49 Entities Additions to BIS for Circumvention of Integrated Circuits to Russia
- Oct. 10, 2023
- Semiconductor Rule Finalized by Commerce
- Oct. 5, 2023
- New Trade Cases Filed for Aluminum Extrusions from 15 Countries, Promising Additional Complexity and Liability for More Importers
- Oct. 4, 2023
- Supreme Court Declines to Review Case Arguing Protest Timing
- Oct. 3, 2023
- European CO2 Reporting Requirement Program Cast
- Oct. 2, 2023
- Export Enforcement Five Continues Heightened Controls for Russia
- Sep 27, 2023
- U.S. Companies in China are Feeling Pessimistic and are Acting on the Feeling
- Sep. 25, 2023
- The Food and Drug Administration, U.S. Customs and Border Protection and a Government Shutdown: What Importers Can Possibly Expect
- Sep. 19, 2023
- COAC Recommendations for Customs
- Sep. 14, 2023
- PFAS, PBTs and Regulating Articles under the Toxic Substances Control Act. Are you Prepared?
- Sep. 12 2023
- CIT Finds That Liquidations Do Not (Always) Bar Remedy
- Jun. 2, 2023
- BRC and Attorneys Ranked in 2023 Chambers Guide
- March 2, 2017
- David G. Forgue to Participate in Georgetown International Trade Update
- June 28, 2006
-
Customs-Trade Partnership Against Terrorism: What you Need to Know and What to Expect
By: Frederic D. Van Arnam, Jr. - April 26, 2006
- New C-TPAT Standards for Highway and Sea Carriers
- July 19, 2005
- C-TPAT Applications to be Made On-Line
- Jun. 24, 2004
- Bioterrorism Penalty and Mitigation Guidelines Announced
- Apr. 23, 2004
- Update on FDA Registration and Prior Notice
- October 2003
-
Securing the Supply Chain
By: Frederic D. Van Arnam, Jr. - August 2003
-
Cargo Security -- The Legal Perspective
By: Frederic D. Van Arnam, Jr. - May 2003
-
Cargo Security and U.S. Customs
By: Frederic D. Van Arnam, Jr. and Robert E. Burke
Copyright © Barnes, Richardson & Colburn, LLP. All Rights Reserved
Privacy | Terms
Website by FirmWise