Stricter C-TPAT to offer prompt clearance
January 14, 2005

Importers that adhere to the very best security practices will get long-promised expedited clearance for their cargo before the end of the year, according to Robert C. Bonner, Commissioner of Customs and Border Protection.

Bonner told reporters...that his agency plans to take its Customs-Trade Partnership Against Terrorism to a higher level by offering what he called "C-TPAT-Plus" companies that have gone beyond the minimal requirements for the anti-terror program immediate clearance of cargo on arrival in the U.S.

Bonner was the keynote speaker at the agency's fifth trade symposium.

"My vision is to provide them this year with the "green lane", and that means no inspections upon arrival, immediate release, because we have validated that they in fact are using the best supply-chain best practices," Bonner said.

Those practices include validated supply-chain security from the point of origin at a foreign manufacturer; the use of a "smart" container equipped with high-security seal and internal sensors to detect tampering, and shipment through a port.... that participates in Customs' Container Security Initiative.

Those steps "sufficiently removes the risk, that we are better off devoting our inspectional resources to non-C-TPAT shipments or less secure shipments," Bonner said.  He declined to predict how many containers may get the green lane treatment by the end of the year.  Importers may still have containers stopped for random inspections, or if there is tactical intelligence that a container should be inspected.

Participants in C-TPAT generally may expect to meet more demanding "security criteria," although Bonner avoided calling them standards.  The agency released a new C-TPAT Strategy, which has been derived in part from the draft standards that Customs began circulating among industry leaders last October.

However, Bonner said that the C-TPAT benefits will increase along with the government's expectations.  He said a C-TPAT company is six times less likely to have its cargo stopped for security, and four times less likely to be inspected for trade-compliance reasons than a non-C-TPAT company.

Bonner said Customs will issue a C-TPAT "annual statements" to participants to show financially how companies have benefited from the program.

This article was extracted from the January 13, 2005 Edition of "The Journal of Commerce".

Return to Newsletter Front Page

Certifying for Release via Entry Summary on multiple Ultimate Consignee Shipments
January 10, 2005

U.S. Customs has issued a National Directive that they will no longer allow entry filers (brokers) to "certify for release via entry summary" on multiple Ultimate Consignee shipments.  This process allowed U.S. Customs Brokers to just declare the highest valued Ultimate Consignee.  U.S. Brokers have been using the process for some clients.  Customs has not put a stop to this work-around and made the new directive retroactive to January 1, 2005.

Effective immediately, each item going to each Ultimate Consignee must be declared separately to Customs.  Remember, the Customs definition of Ultimate Consignee is, "The party in the U.S. to whom the foreign company sold the imported merchandise" (meaning the buyer).  Therefore if there are multiple buyers and multiple actual consignees on a single shipment, each item for each buyer has to be transmitted separately to Customs in order for goods to be released.  Further, when the shipment shows up at the border the physical paperwork also needs to list the actual consignees in addition to the Ultimate Consignees (buyers).

Shippers should change paperwork in reporting correct information immediately.

Also keep in mind MULTIPLE ULTIMATE CONSIGNEES & shipment that are NOT subject to FDA-PN, each line valued at or over $2000 needs an Ultimate Consignee with a valid IRS# and each line valued under $2000 needs a consignee listed with a name and address (IRS# is optional).

Carriers, this also means separate transactions requiring separate advance cargo reporting.

Third C-TPAT draft spells out importer checks on foreign suppliers
12 Jan 2005

The following article is excerpted from the 11 January 2005 edition of “American Shipper”.

U.S. importers will need to verify that overseas suppliers and transportation providers have appropriate security procedures in place to prevent a terrorist weapon being inserted in a shipping container, but will not be required to distribute a security questionnaire to their vendors, under the latest iteration of revised criteria for participation in the Customs-Trade Partnership Against Terrorism.

The dropping of the security questionnaire as a mandatory step for members of the voluntary trusted shipper program is the biggest change between the second and third drafts of U.S. Customs and Border Protection's new C-TPAT security criteria.

CBP is under pressure to put teeth in the program so that companies that sign up follow through on promises to tighten supply chain security procedures in exchange for fewer cargo exams and other benefits.

The third draft … instructs importers to require business partners "not already C-TPAT certified, to demonstrate that they are meeting C-TPAT security criteria via written/electronic confirmation (e.g., contractual obligations; via a letter from a senior business partner officer attesting to compliance; a written statement from the business partner demonstrating their participation in C-TPAT or an equivalent (World Customs Organization) accredited security program administered by a foreign customs authority; or, by providing a completed importer security questionnaire)."

The document raises questions again about how importers, without clear instructions, are supposed to go about vetting their overseas suppliers.

According to the draft document, which was distributed to a select group of importers and trade associations Friday, importers would be required to follow-up and verify a vendor's compliance. Such a process would help identify if the business partner outsources part of its own production or transportation and push C-TPAT criteria down to the original service provider.

CBP has requested organizations that received the draft submit their feedback by Friday [14 January] according to an industry source.

The document also does not address the question of importer liability, an issue raised by the National Industrial Transportation League in its comments to CBP on the second draft …. The freight group expressed its concern that C-TPAT members could be held liable to mandatory standards in the event of an incident outside their control.

Return to Newsletter Front Page

Government Computer News
New presidential directive targets maritime security
By Patience Wait  GCN Staff

President Bush has signed a national security directive that calls for a plan to use existing capabilities to integrate maritime security intelligence on a global basis.

The president signed National Security Presidential Directive 41/Homeland Security Presidential Directive 13 late last month, according to a Port Security News report earlier today.

The directive said the government needs a way to integrate all intelligence on the location, identity and operational capabilities and intentions of potential threats to U.S. interests at sea.

The Maritime Security Policy does not outline extensive new initiatives to strengthen security at the nation’s 350-plus seaports. Instead, it stresses integrating existing federal policies and programs, including the Container Security Initiative, Operation Safe Commerce and the Customs-Trade Partnership Against Terrorism.

A new senior steering group for maritime domain awareness will coordinate national efforts to develop enhanced capabilities to “identify threats in the maritime domain as distant from our shores as possible.” Officials from the Defense and Homeland Security departments will lead the new group.