After a series of delays, US Customs and Border Protection (“CBP”) recently announced the rollout of the Customs-Trade Partnership Against Terrorism (“C-TPAT”) program for exporters.  CBP will again accept C-TPAT applications from exporters this month.  A link to CBP’s exporter eligibility requirements and criteria are available here. 

C-TPAT is a voluntary supply chain security program led by CBP that focuses on improving the security of private companies’ supply chains.  Originally developed for companies importing into the United States, importers that are accepted into the C-TPAT program are considered low risk and, according to CBP, can receive benefits including expedited processing of cargo and fewer CBP examinations.

The rollout of C-TPAT for exporters enables companies that export products from the United States to participate to the same extent as importers.  The C-TPAT application process for exporters is completed online and involves two components: (1) a company profile and (2) a security profile.  The company profile section of the application requires the exporter to provide general company information such as addresses, contact persons, and contact information.  The security profile section of the application, however, contains more detailed questions that are used to determine the company’s ability to meet C-TPAT minimum security requirements.  A link to CBP’s C-TPAT minimum security requirements for exporters is available here.

While all companies should take responsibility for the security of their international supply chains, there have been a number of issues with the C-TPAT program for importers over the years.  The C-TPAT program is not governed by statute or regulation.  The obligations on importers in the C-TPAT program have increased without much notice or warning, and many of the stated benefits of participating in the importer program have failed to materialize.

C-TPAT for exporters would have the greatest potential value to companies that export to countries that have signed supply chain security mutual recognition arrangements (“MRAs”) with CBP (i.e., Canada, the European Union, Israel, Japan, Jordan, Korea, Mexico, New Zealand, Singapore, and Taiwan).  Specifically, these MRAs are based on a determination that C-TPAT and the foreign supply chain security program are compatible (e.g., standards, audit procedures, etc.).  To that end, exporters accepted into the C-TPAT program will be more likely to have their shipments receive benefits in the MRA-partner countries (e.g., expedited customs clearance, fewer security-related inspections and controls, etc.). 

According to CBP, in addition to the above mentioned MRA benefits, exporters that are accepted into the C-TPAT program can receive the following benefits:

·         The ability to market themselves as having their supply chains certified by CBP as part of the C-TPAT application process;

·         Prioritized cargo examination over cargo shipped by non C-TPAT members;

·         Prioritized cargo processing over cargo shipped by non C-TPAT members;

·         Prioritized communication and coordination from CBP in the event of business or other disruptions.

·         Access to an assigned C-TPAT Supply Chain Security Specialist;

·         Eligibility to attend C-TPAT training and seminars;

·         Access to the web based C-TPAT Portal system; and

·         Application of a common set of security requirements (i.e., application of the security standards mutually recognized by both CBP and the MRA-partner countries).

If you have any questions about the C-TPAT program for exporters, please contact a member of Baker & McKenzie’s International Trade Group.

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