CBP picks 10 inspection firms for C-TPAT pilot

CBP picks 10 inspection firms for C-TPAT pilot U.S. Customs and Border Protection last week announced the selection of 10 companies that are eligible to provide third-party security audits in China for companies participating in the Customs-Trade Partnership Against Terrorism.
   The border security agency has established a one-year pilot program at the request of Congress to assess the use of outside auditors to check the supply chain security practices of companies that sign up as trusted traders. Companies that voluntary join C-TPAT promise to follow approved security plans that meet minimum criteria, and require their overseas suppliers to implement the same internal shipment controls to ensure a container is not tampered with by criminals or terrorists. In exchange, CBP treats the companies as low risk and reduces the scoring that could trigger an automated exam at the foreign load port or port of entry.
   CBP has said it would only run the third-party validation program in China because that is the sole country the agency’s own security specialists cannot gain access to vet the C-TPAT company’s supply chain and extend trade facilitation benefits.
   The 10 private sector inspection services approved for the pilot by CBP are:
   * ABS Group.
   * Cotecna.
   * CSC C/STR — Cal Safety Compliance Corp.
   * Det Norske Veritas.
   * Intertek.
   * Omega Compliance.
   * Pinkerton.
   * Sharp Global.
   * SGS North America.
   * TUV Rheinland.
   The companies provide varying types of service ranging from trade and C-TPAT consulting, vessel classification, supplier quality control inspections and compliance auditing.
   CBP received 24 applications of which 16 met the selection criteria. Most of the disqualified firms didn’t apply for SAFETY Act protection as required by the solicitation, officials previously said. Congress passed the Support Anti-Terrorism by Fostering Effective Technology Act in 2002 to provide liability and insurance protection for companies offering technologies and services for homeland security purposes. It is designed as an incentive for companies that might hold back from developing and commercializing technologies that could save lives out of fear that they will be sued if a product failure contributes to the successful execution of a terrorist attack.
   Companies were evaluated on stated requirements for compatible data collection capability and electronic transmission of results to CBP, training programs for auditors, fee schedule, employee background checks and other factors. Inspection services have to sign non-disclosure forms and attest that they are free from any conflict of interest with the importer that pays for the service.
   The agency said on the C-TPAT page of its Web site that it is now assembling the final list of C-TPAT certified companies that predominantly import from China that are eligible to hire third-party validators. It said it plans to notify those companies by July 18 about the private auditors available to them, along with contact information. CBP officials have previously stated that there are about 300 companies that import 75 percent or more of their merchandise from China, and therefore do not have other trade lanes for CBP to review for their adherence to the C-TPAT standards. Those companies, therefore, are unable to qualify for reduced inspection levels.
   CBP has stated that use of private contractors is strictly voluntary and that importers will have to pay for the service. Survey results will be forwarded to CBP for review and final determination of a company’s C-TPAT status.