Customs-Trade Partnership Against Terrorism - Supply Chain Best Practices
Andrew Maner, Chief of Staff, Office of the Commissioner-Moderator
Robert Perez, Director, C-TPAT, Office of Field Operations
Leslie Cazas, Senior Manager, Customs and Trade Administration, Nissan
Peter H. Powell, Sr., CEO, C.H. Powell Company
John J. Hyde, Director, Security and Compliance, Maersk Sealand
Andrew Maner, Chief of Staff, Office of the Commissioner discussed the importance of partnering to help prevent future terrorist attacks. Customs has partnered with the Congress, with foreign governments (for example, the Container Security Initiative), with other U.S. Government agencies, and especially with the trade community through initiatives like C-TPAT. Mr. Maner cited the shortsightedness of some of the stated reasons not to join C-TPAT (such as "Our attorneys didn't like the MOU") in light of the risks if the trading system is shut down. This panel will discuss C-TPAT benefits, development of the right skill sets, validation and verification, and overall best practices.
Robert Perez, Director, C-TPAT, Office of Field Operations said the goal of C-TPAT is to create a more secure supply chain that is also more efficient. The 1115 C-TPAT members, including 764 importers, 252 brokers or forwarders, and 99 carriers, represent 34% of U.S. imports by value, 55 of the top 100 importers by volume of containers, and 32 of the top 50 ocean carriers, reflecting 93% of U.S.-bound container cargo.
This fiscal year Customs will focus on delivering benefits such as reduced exams for C-TPAT members, creating C-TPAT security specialists, and conducting anti-terrorism training and security validations.
Customs would like to expand C-TPAT abroad, and will work with trade associations to develop industry-specific supply chain standards.
Next quarter Customs will have the first of several C-TPAT training conferences, which will share best practices and look at trends and technological solutions.
Customs is considering ways to conduct security validations-not audits-and will work with the trade to develop this program. The purpose of validations will be to share best practices, make recommendations, and strengthen the trade's relationship with Customs. Ongoing accountability and oversight of security practices, by both C-TPAT partners and Customs, is critical to the success of the program.
Leslie Cazas, Senior Mananter, Customs and Trade Administration, Nissan explained the chronology of the steps her company took to join C-TPAT once it satisfied initial concerns about confidentiality and cost-benefit issues. Since joining in June 2002, Nissan has surveyed its logistics suppliers and foreign vendors and drafted a security profile. It has then systematically identified possible gaps, and developed and prioritized solutions.
Peter H. Powell, Sr., CEO, C.H. Powell Company pointed out that companies of all sizes should participate in C-TPAT because "good supply chain security is good supply chain management."
John J. Hyde, Director, Security and Compliance, Maersk Sealand discussed his company's progress improving the security practices of its 300 offices worldwide. This extensive, global effort involves terminal operators and cargo of all types, including hazardous materials.
Panel II Questions
What about checking U.S. containers when they are exported to a CSI country?
The U.S. has offered CSI reciprocity to all countries. So far, Canada has accepted.
Can a defense contractor participate in C-TPAT?
A defense contractor could be a good participant. C-TPAT is evolving and will include more sectors.
What were the results of the Nissan security profile?
Working with its chief of security, Nissan is rolling out a global plan that starts at the foreign factories and involves vendors, inventory controls, and other elements. A key element of security in the supply chain is controlling access.
Can you expand on the importance of BASC?
BASC is a very successful industry-led organization. It is more business than Customs driven. We look to continue and expand BASC.
What if the C-TPAT member does not comply with its obligations?
If Customs finds noncompliance-for example, if the security profile is not being done-benefits could be suspended. But Customs would rather work to improve things. Validation is integral to C-TPAT, and everyone will get some validation as part of the process. We have completed an initial draft how this will work, and will share this with the trade.