COAC seeks answers about C-TPAT benefits

COAC seeks answers about C-TPAT benefits    U.S. Customs and Border Protection needs to speed up validations of corporate supply chain security practices so companies can quickly realize full benefits of the Customs-Trade Partnership Against Terrorism, a federal advisory group recommended yesterday.
   Members of the agency’s Advisory Committee on Commercial Operations (COAC) expressed concern that companies may not be eligible for the top-tier of “green lane” benefits under development if the process for checking whether a company is following its agreed upon security plan takes months or years. Commissioner Robert Bonner has said CBP is ready to waive time-consuming inspections at the border for companies that take extra precautions.
   The final step in the C-TPAT process is to validate companies through on-site visits to make sure their foreign manufacturing or distribution facilities are following through with the importer’s security plan. There is a backlog of companies waiting for validations because CBP lacked the manpower to conduct the verifications.
   CBP’s latest figures show 9,234 companies enrolled in C-TPAT (up from 9,083 three weeks ago), of which 564 have been validated (up from 455 seven weeks ago). There are 922 validations underway, up from 400 three weeks ago.
   CBP has enough resources to complete validations within established timeframes, Ed Moriarty, a C-TPAT program manager, assured the group. The agency has 71 supply chain specialists to conduct site visits and interviews, up from 69 in April’s status report, with funding for 157 positions, he said.
   Moriarty, who will soon leave the C-TPAT program to become port director at Philadelphia’s airport, said using third-party companies to help pick up the slack on supply chain certifications isn’t part of CBP’s model at the moment, but Elaine Dezenski, acting assistant secretary for border and transportation security at DHS wouldn’t rule out the possibility of using private sector contractors.
   “We need to look at ways to leverage private sector resources. We need to keep our mind open to where that might be appropriate,” she said.
   Jonathan Gold, vice president for global supply chain policy at the Retail Leaders Industry Association, and others also worried about perceived eagerness on CBP’s parts to suspend C-TPAT privileges for companies found to have misidentified cargo, illegal contraband not related to terrorism slipped into their shipments or other security gaps.
   CBP conducts a post-seizure analysis and allows companies to explain how the breakdown happened and to implement improved security procedures to prevent future lapses, Moriarty explained. A serious breakdown in security, such as insufficient controls to prevent narcotics being smuggled in a shipment, requires the immediate cancellation of C-TPAT benefits, he said.
   “If you are unable to sustain supply chain security for drugs it raises questions about your ability to maintain security for other types of contraband,” Deputy Commissioner Deborah Spero said.
   Some importers say their foreign manufacturers complain about being bombarded by security questionnaires from C-TPAT companies, but CBP officials ruled out a standardized form or sharing of supplier security profiles, saying each supplier-importer relationship is different. Importers may have different security requirements for their suppliers, officials said.
   “Generally, in this area, we feel more is better,” Michael Mullen, director of trade relations, said.
   In other C-TPAT news, William Heffelfinger, deputy assistant commissioner for field operations, said he would make it a priority to get a C-TPAT Web portal for industry outreach, education and training set up as soon as possible.