Time to Get C-TPAT Certified

C-TPAT is one of those unwieldy Washington bureaucratic acronyms that, to say the least, hardly trips lightly off the tongue. What's lacking in linguistic grace, though, is more than made up for in clout. Certification as a member in good standing by the Customs-Trade Partnership Against Terrorism is going to be increasingly critical to world traders shipping goods into the U.S.

Most Tier One manufacturers are attuned to the importance of C-TPAT. The current 8,200 C-TPAT members account for about 40 percent of all the cargo (by dollar volume) arriving in U.S. ports.

But many small and medium sized enterprises, confused by the certification process, have been slow to participate. This is certain to prove a costly oversight in the future. Failure to be C-TPAT certified is going to impair the efficiency of supply chains and distribution networks as the shipments of non-members are six times more likely to be held for inspection at the port or border.

There's good cause for smaller companies to feel overwhelmed. The measures used to establish C-TPAT eligibility can appear intimidating. In its latest iteration (the fourth), C-TPAT criteria require that security measures (with appropriate documentation) be implemented throughout the supply chain beginning with foreign point of origin and carrying through all intermediate stops. This includes not only container security, inspection, seals and storage, but also controls on all personnel with physical access to shipments.

With detailed requirements on such things as manifests, background checks, fencing, locking devices and even IT password protection, it's understandable why smaller enterprises are slow to enroll. But, the Department of Homeland Security is committed to C-TPAT (funding for fiscal 2006 is budgeted to increase by some 15% to $54.3 million) and it's not going away. Denial, burying one's head in the sand and hoping the problem of port security will pass, is definitely not a shrewd strategy for these times.

A smarter approach is to lay aside the fear factor and seize the opportunity to become certified. And, it is an opportunity. The obvious one is fast-track clearance at ports and borders. But there are others, associated with the process of subjecting the disparate elements of the supply chain to the tight scrutiny entailed by a security audit. Think of it as getting a double bang for your buck.

In keeping with our commitment to helping our readers succeed, WORLD TRADE and our colleagues at Security Magazine are sponsoring a one and one-half day conference on "Terrorism and the Global Supply Chain" with a dedicated half-day workshop on C-TPAT certification followed by one-on-one sessions offering personalized guidance from experts. All attendees will also receive a CD Rom (and hard copy) on "Everything You Need to Know About Becoming a C-TPAT Member." The sessions will take place April 28 and 29 in Costa Mesa, California, at the Westin Hotel. For details, see www.worldtrademag.com.

We know of no other such event comparable to this. I'll be there, moderating the proceedings, and hope those of you who have been delaying getting C-TPAT certification will attend too.

Neil Shister is the current Editor of World Trade. You can reach him at shistern@worldtrademag.com.

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