We’ve seen an increase in the number of companies interested in obtaining membership in the US Customs-Trade Partnership Against Terrorism (CTPAT). Let’s look at why that is and what companies should do to prepare for the certification process.
Why are companies prioritizing CTPAT certification?
- Increased stability in times of uncertainty: The CTPAT program provides members with benefits that can help improve predictability and stability, including FAST Lane access, fewer CBP inspections, and a designated Point of Contact within CBP.
- Enhanced supply chain resilience: CTPAT provides tools to assist companies in enhancing internal supply chain visibility and risk management practices, which can be used to prepare for and more quickly respond to supply chain disruptions.
- Response to emerging threats: CTPAT membership involves implementing strong security practices throughout your supply chains, which help combat emerging threats such as cargo theft, contraband smuggling, forced labor, etc.
- Growing demand from partners: Business partners and clients often require or prefer proof of secure supply chain practices to ensure their own supply chains are secure. Membership in CTPAT, or other Authorized Economic Operator (AEO) programs, is the best way to demonstrate credibility and strong practices to business partners.
Who is eligible for CTPAT?
U.S.-based companies – and certain companies based in Canada and Mexico – operating under the below entity types are eligible to apply for CTPAT membership.
- Air Carriers
- Consolidators (Air Freight Consolidators, Ocean Transport Intermediaries, and Non-Vessel Operating Common Carriers (NVOCC))
- License U.S. Customs Brokers
- U.S. Exporters
- Foreign Manufacturers in Canada and Mexico
- Highway Carriers operating in the U.S., Canada, or Mexico
- U.S. Importers of Record
- Long-Haul Highway Carriers in Mexico
- Marine Port Authority and Terminal Operators
- Rail Carriers
- Sea Carriers
- Third-Party Logistics Providers (3PL)
Before beginning your CTPAT application, identify whether your company meets the eligibility criteria specific to your entity type. We’ve made it simple to find out. Check your company’s CTPAT eligibility status here.
Tips for Preparing for Certification
- Conduct a CTPAT assessment. This can be done internally or with third party support. It should include a gap analysis of your company’s current policies and practices against the CTPAT Minimum Security Criteria (MSC)
- Make it a collaborative effort. Success depends on cross-departmental collaboration, including security, HR, IT, etc. Engaging upper-management support early on can also make the certification and ongoing maintenance processes more effective and efficient.
- Establish consistency. CBP requires clear, written procedures that describe how security practices are implemented. Ensure procedures are consistent across all locations and updated. You should also establish an internal monitoring mechanism to make sure procedures are up-to-date and consistent in the future.
- Remember that the Security Profile is key. Don’t rush the development of the security profile, it is the core of your CTPAT application. Be concise but thorough, vague responses and lack of evidence of implementation (EOI) could lead to rejection of the application.
