Terror concerns in world trading
and C-TPAT
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| Mr. Walter D’Souza (3rd from left), addressing the seminar. On his right are Mr. Barry Wilkins, Vice President, Pinkerton C&I Inc. and Ms. Bhawna Beri, Manager-Corporate Relations, Pinkerton C&I India Pvt. Ltd. At extreme right is Mr. Krishnendu Biswas, Managing Director, Pinkerton C&I India Pvt. Ltd. |
US Customs seeks to engage worldwide trading community in war against terrorism. In association with its security forces known as Customs Border Protection (CBP), US Customs has launched an initiative called ‘Custom-Trade Partnership Against Terrorism (C-TPAT)’ which seeks voluntary participation from all those involved in global supply chain such as manufacturers, importers, carriers, freight consolidators, customs brokers etc. in ensuring greater safety to the goods being traded and, in turn, promises them speedier customs clearance. C-TPAT calls upon its participants to improve their own existing security practices and those of their business partners involved in the supply chain.
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Benefits offered to C-TPAT Partners
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C-TPAT is a cooperative endeavour, which calls upon the traders to enhance their existing security practices and those of their business partners involved in their supply chains. Once these procedures are in effect, imports of C-TPAT members qualify for expedited CBP processing and reduced inspections at United States ports of entry. |
Launched in November 2001 with seven major US importers, C-TPAT has today over 7,400 participating companies which include US importers, customs brokers, terminal operators, carriers and foreign manufacturers. C-TPAT requires US importers to ensure their suppliers’ compliance with its guidelines through an assessment program. The current security guidelines for C-TPAT program members address a broad range of issues including personnel, physical and procedural security, access controls, education, training and awareness, manifest procedures, conveyance security, threat awareness, and documentation processing.
Under C-TPAT, CBP works with businesses to ensure the integrity of their security practices as well as to verify the security guidelines of their supply chain partners. C-TPAT partners work with CBP to protect their supply chains from concealment of terrorist weapons, including WMDs. In exchange, CBP provides reduced inspections at the port of arrival and expedited processing at the border.
C-TPAT aims at achieving more secure and more efficient worldwide trading environment and thus develops global security standards while working with other nations and their customs administrations, the international law enforcement community, international organizations and the international trading community.
With an objective to disseminating information on how to comprehensively secure one’s supply chain by complying with the C-TPAT guidelines, FIEO Karnataka Chapter, in association with Pinkerton C&I India, organized a Seminar on "C-TPAT – Securing India’s Supply Chain" at Bangalore on 8th August which was attended by more than 70 Indian businessmen exporting to US.
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"US is India’s largest trade partner and foremost export destination accounting for 16.83% of India’s exports and around 6.34% of India’s imports. While the US exports to India have grown by over 35% in 2005-2006, India’s exports to US have also shown a growth of over 26%. With the bilateral trade volume going up, US will continue to be the major market for Indian products and services. The composition of India’s exports has undergone a change over the years. Our exports to the US have been rising mainly on account of significant increases in the exports of diamonds, textiles, and readymade garments, machinery, carpets, footwear and leather products, dyes, iron and steel products, chemicals, edible fruit and nuts and spices, coffee and tea. A handful of items, namely, cut and polished non-industrial diamonds, jewellery, textiles and clothing, carpets, shrimp and other marine products, footwear and leather goods, iron and steel, and cashew nuts, account for over 70% of total Indian exports to the US." Mr. Walter D’Souza Convenor, FIEO Committee on Agro Exports |
How to be a C-TPAT Partner Businesses seeking to join C-TPAT may fill in online electronic application on www.cbp.gov that requires submission of corporate information, a supply chain security profile, and an acknowledgement of an agreement to voluntarily participate. |
Addressing the seminar a Pinkerton representative said, "Apart from the belief in corporate good citizenry, it is imperative that assessing supply chain security procedures and practices improves business efficiency. C-TPAT has a positive effect throughout international business as companies are now requesting security information from their service providers, vendors, suppliers and manufacturers. Many C-TPAT companies are contractually requiring businesses to improve security to meet C-TPAT guidelines. Ultimately, this partnership will help in creating a trust green lane that speeds low risk shipments across all US borders and through US ports of entry and preserve global trade in this time of global terrorism."
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A view of the participants. |
Another Pinkerton representative pointed out that the decision to join C-TPAT was voluntary as all companies might not be in a position to meet the minimum security guidelines under C-TPAT. He said, "All eligible companies that import into the US or provide import cargo movement or handling services should asses their supply chain security procedures to determine if they can qualify. CBP’s intent is not to impose security requirements that will be cost prohibitive. For this reason, US Customs worked in concert with the trading community in developing security criteria and guidelines that reflect a realistic business perspective. Potential C-TPAT participants may find that they already have many of these guidelines in place. C-TPAT is also not intended to create any new ‘liabilities’ for companies beyond existing trade laws and regulations. However, joining C-TPAT will commit companies to follow through on actions specified in the signed agreement. These actions include self-assessing security systems, submitting security questionnaires, developing security enhancement plans, and communicating C-TPAT guidelines to companies in the supply chain."
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Dispelling the notion that increased trade security and facilitation are mutually exclusive and any extra step by the United States to secure borders against the ongoing terrorist threat would only add another barrier to free trade and the efficient movement of cargo, the Pinkerton representative said, the success of C-TPAT clearly demonstrates that increased security can lead to a more efficient and cost effective flow of trade. On the other hand, said he, by participating in this |
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A view of the participants. |
initiative, companies would ensure a more secure supply chain for their employees, suppliers and customers in addition to other benefits offered by CBP.
According to a recent report, the worldwide container traffic is projected to grow to 400-460 million TEUs by 2010 and to 510-610 million by 2015. With the growth in container traffic, security and safety threats are also expected to increase. Stringent physical inspection of goods may help, but programs like C-TPAT seeks to ensure safety without compromising with the speed of delivery.
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FOR PARTICIPATION PLEASE CONTACT: MRD DIVISION, Federation of Indian Export Organisations, Niryat Bhawan, Rao Tula Ram Marg, Opp. Army Hospital Research & Referral, New Delhi- 110 057, Tel: 011-46042114, 46042136-38, 4604 2222, 2615 0101-04; Fax: 011-2614 8194; Email: fieo@nda.vsnl.net.in; fieomrd@yahoo.co.in; anandpseth@fieo.org, or visit: www.fieo.org |
