| Expert Insight: Guest Contribution |
By Beth Adams,
Supply Chain Security Program Manager
BSI America |
Date:
October 7, 2009 |
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C-TPAT: Today's Consequences of Non-Membership
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To Join or Not to Join - That is the Question
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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:
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1. Global Implications:
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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 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.
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2. A New Customs and Border Protection (CBP) Benchmark:
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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.
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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.
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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.
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Agree or disgree with with our guest contributor's perspective? What would you add? Let us know your thoughts for publication in the SCDigest newsletter Feedback section, and on the website. Upon request, comments will be posted with the respondent's name or company withheld.
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About the Author |
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Beth Adams is a specialist in the import/export community and has focused her career on building company-specific solutions that address the many compliance issues faced by global traders. She joined BSI America in 2009 as the Supply Chain Security Program Manager. In this role, Beth helps companies worldwide to assure a secure and efficient supply chain by providing a full suite of best-in-class compliance management tools and services. BSI’s exclusive, field-based global network of Supply Chain Security assessment professionals, together with its Supplier Compliance Manager® solution, enable the company to bring an unmatched level of depth, breadth, accuracy and relevance to importers and exporters worldwide.
For more information visit: www.bsiamerica.com/supplychainsecurity or email us at:
http://www.bsiamerica.com/en-us/Forms/Contact-us-online-form/
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Adams Says: |
 The probability of a terrorist incident at a US port ranks utmost among potential threats to the global supply chain....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.
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