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C-TPAT: Today's Consequences of Non-Membership

To Join or Not to Join - That is the Question

By Beth Adams, BSI

Still hedging your bets before joining C-TPAT? If so,

you’re not alone: At the end of 2008, tens of thousands

of companies, representing close to fifty percent of all

U.S. imports by value, had yet to join the program.

(On the flip side, of course, this statistic alludes to the

program’s impressive success: Over 4200 importers

are now on board, representing more than fifty percent

by value.)

In past years, the decision “not to decide” has made some sense. As

supply chain professionals know too well, adding any new process to

the status quo is far from easy. Even when it will lead to greener

pastures, putting a new initiative in place takes time, effort, money,

politicking, and unwavering diligence. C-TPAT’s uncertain success in

its early years, moreover, justified for many the “wait and see”

approach as a strategic choice.

With recent changes on U.S. and international fronts, however,

deciding whether and when to join C-TPAT has become more critical

than ever. The consequences for today’s non-members have risen

both in number and magnitude of potential risk. If you are among

those now in budgeting mode, in fact, this just may be the time to

firm up your company’s C-TPAT decision.

Following are three key factors that non C-TPAT importers now need

to consider:

1. Global Implications

If you aren’t yet familiar with the 2005 Framework of Standards to

Secure and Facilitate Global Trade (SAFE), now is the time. In

layman terms, SAFE is a commitment by World Customs

Organization (WCO) member countries to implement trade security

programs (akin to C-TPAT) that provide benefits to businesses that

Expert Insight

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meet SAFE-defined standards and best practices. Complete with capacity-building,

SAFE is making a real and rapid impact worldwide. To date, 157 of the 171 WCO

member countries have signed on. If they don’t already, your foreign business

partners will soon have strong incentive to implement new standards – and to

require you to do the same.

2. A New Customs and Border Protection (CBP) Benchmark

For companies citing C-TPAT’s voluntary status as a reason to delay or forego

membership, it’s time to reconsider. While CBP states that the program will remain

voluntary, CBP also points out that the program is now codified in the SAFE Port Act

and is here to stay. Moreover, CBP has been increasingly vocal in alerting importers

that trade security and enforcement will only heighten in the years ahead. C-TPAT,

like the Importer Security Filing and Additional Requirements (“10+2”) Rule and the

Container Security Initiative (CSI), is but one in a growing number of inter-working

CBP initiatives, and importers are responsible to remain actively engaged.

3. A Greater Terrorist Threat

Leading risk analysts concur: the probability of a terrorist incident at a US port ranks

utmost among potential threats to the global supply chain. Are you prepared to

endure such a tragedy? Only companies with a Risk-based program can effectively

monitor their supply chain risk. Moreover, such an event will likely prompt the

immediate shutdown of all U.S. ports; member shipments – and only member

shipments – will be given priority when operations resume. Non C-TPAT shipments

go to the end of the line, period.

Core Issue

During your next planning meeting, ask your fellow decision-makers just one

question: How important is a functional global supply chain to our company’s core

business? If the answer is anything other than “not at all,” congratulations. Your C-

TPAT decision has been made.

Beth Adams is a specialist in the import/export community at BSI and has focused

her career on building company-specific solutions that address the many compliance

issues faced by global traders.

About BSI

BSI is the world's leading quality management systems registrar. Founded in 1901,

BSI has certified over 80,000 locations in more than 120 countries. Many 'Global

500' companies have chosen BSI as their preferred ISO 9001, ISO/TS 16949, ISO

14001, ISO 13485, ISO/IEC 27001and now BS 25999 registrar. BSI's registration

experience covers virtually every industrial and commercial sector (i.e. automotive,

aerospace, chemical and allied processes, IT/software, service).

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BSI, Inc. is headquartered in Reston, Virginia, with offices in Toronto, Canada, and

Mexico City, Mexico to serve the North American market. BSI is truly a pioneering

organization. It was the world's first national standards body, and a founding

member of the International Organization for Standardization (ISO). BSI facilitated

and published the first commercial standards to address quality management

systems, environmental management systems, occupational health and safety

management systems, project management and information security management.

www.bsiamerica.com/supplychainsecurity

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