Customs Corner: CTPAT Minimum Security Criteria Changes and Covid-19 Pandemic Led to Loss of Members

SEATTLE (Scrap Monster): The Customs-Trade Partnership Against Terrorism (CTPAT) program has been losing members through both program withdrawals and suspensions for failure to comply with program requirements. The primary issues appear to be the changes in the Minimum Security Criteria that members must meet, and changes in the finances and/or importing activities of many companies due to the Covid pandemic.

Customs and Border Protection (CBP) reported on CTPAT during a Virtual Trade Week program in early September. CTPAT still maintains about 1,400 total members, including importers, certain exporters, brokers, carriers, and other logistics providers. About 53.4% of U. S. imports by value are CTPAT certified, which is important to CBP as it allows the agency to focus on more problematic transactions. CBP would like to get back to previous program numbers and increase them if possible, so is working to identify the problems and issues facing participants, and to add benefits to bring back old and bring in new members.

CBP adopted new Minimum Security Criteria during 2019, giving participants an extended timetable to update their profiles on the CTPAT website responding to the new criteria. Among other concerns, new Criteria include Forced Labor and Wood Packaging Materials (WPM) modules.

Involuntary suspensions or removals from the program – some 53 during this fiscal year – have been due to the failure to update or respond to the new requirements. If not remedied in a timely manner, suspended companies will be removed from the program. There have also been issues on the southern border, where some CTPAT companies have been caught up in the massive increase in narcotics seizures. CBP works with those companies to develop training and communications to assist in reducing problems.

Attrition from voluntary withdrawals has, according to responses from those companies, been primarily due to financial and staff reductions responding to the pandemic, so that company resources are no longer sufficient; and to changes in import procedures or supply chains. It seems likely that the new Security Criteria have had some effect, but the extent is unclear.

One possible new benefit being considered includes some assistance in dealing with a withhold release order for goods made from forced labor. There is also some discussion on integrating the WPM module with pre-approvals by CBP and/or accredited inspectors at the time of shipment. Further efforts at mutual recognition of the new criteria by similar agencies of other countries are in process. CBP is similarly working to develop a virtual validation process, initially to replace and more long term perhaps supplement in person validations.

CTPAT remains an important part of CBP’s cargo security efforts. Members will continue to receive at least some benefits and special support, and integration of the importer self-assessment program into CTPAT is ongoing.

Courtesy: AIIS