Wednesday, January 7, 2009

C-TPAT-Worthy? Prove It!

(DC Velocity – Mark B. Solomon)

The U.S. Bureau of Customs and Border Protection (CBP) has a message for non–asset-based third-party logistics service providers (3PLs) that want to join the Customs-Trade Partnership Against Terrorism (CTPAT): Prove you belong.

Effective January 1, 3PLs will not be considered for C-TPAT participation if they do not own aircraft, warehouses, vehicles, or other transportation assets. Entities that only provide services in domestic commerce will also be excluded. The reason, CBP says, is that those companies are “unable to enhance supply chain security throughout the international supply chain” and thus do not qualify for C-TPAT enrollment. (Under C-TPAT, companies submit plans to CBP that show they have tight security measures in place throughout their supply chains. Those that pass an audit of their security standards and procedures receive expedited clearance for cargo entering U.S. commerce.)

As part of the implementation process, CBP has launched an online “C-TPAT enrollment sector” that gives 3PLs an opportunity to demonstrate that they meet the criteria for acceptance into the program. Each applicant must pass an initial review. After it clears that hurdle, it must then undergo a second and more rigorous screening to determine if it passes muster. Read more here.