C-TPAT Best Practices. Wayne Kornmann Director, Long Beach C-TPAT Field Office
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2 C-TPAT Best Practices Wayne Kornmann Director, Long Beach C-TPAT Field Office 2
3 C-TPAT Best Practices Overview What are Best Practices? C-TPAT Best Practice Catalog How Do Importers Achieve Tier 3 Status? 3
4 What are C-TPAT Best Practices? Security measures that exceed C-TPAT Minimum Security Criteria Have written policies and procedures that govern their use Employ a system of checks and balances Incorporate management support Permanent part of a company s business processes Best Practices do not have to be costly to business 4
5 C-TPAT Best Practice Catalog Where did the best practices come from? Best practices were identified by Supply Chain Security Specialists during C-TPAT validations and site visits made from Over 1,000 validation reports reviewed Developed for the trade to use in strengthening their company s supply chain security program 5
6 Best Practices - Examples Management Support A Supply Chain Security Committee was established by senior company executives to evaluate the company s overall supply chain security and make recommendations for improvement The Supply Chain Security Committee included senior management from key departments such as IT, Shipping & Receiving, Human Resources, Security, Finance, Traffic, etc. Some committees included operational supervisors and line employees On-going committee meetings held to discuss findings & recommendations, prepare policies and brief senior management 6
7 Best Practices - Examples Business Partner Requirements Security requirements were incorporated into contracts with foreign service providers. Language required that: Security vulnerabilities and weakness must be addressed immediately Companies were subject to random security audits A vendor manual is completed and given to each factory. The vendor must acknowledge that they received the manual and understand the requirements addressed in the manual The manual contains supply chain security requirements, labor practices and other business policies The manufacturer can only use freight forwarders approved by the company 7
8 Best Practices - Examples Container Security An air carrier will not accept containers or ULDs from unknown customers Known customers are advised that cargo is subject to random inspections Carrier conducts and documents inspections on all empty containers and places a seal on the container Container seals are placed on container by shipping manager. Seal number(s) documented on the bill of lading (BOL) A guard and driver witness the sealing and initial BOL The factory sends the seal number(s) electronically to the highway carrier and importer Guard at outbound gate verifies the seal number against BOL Importer verifies seal number when container arrives in U.S. 8
9 Not a C-TPAT Best Practice 9
10 Best Practices - Examples Conveyance Monitoring A highway carrier installed panic buttons in each tractor. In case of emergency, the driver can press the button which sends an alarm signal to the the dispatch office and 5 managers cell phones The dispatch office will determine driver location via GPS Company personnel or local law enforcement are dispatched A truck driver must check-in with dispatcher at various points during route Dispatcher notates times and location Route times were previously established by company If there are time discrepancies or driver fails to check in, the company will send out security, notify CBP/law enforcement or take other actions (per SOP/management) Company has a truck disabler that can shut off engine 10
11 Do You Know How Your Cargo Is Handled and Moved Overseas? 11
12 How Can My Company Achieve Tier 3 Status? Importer must be a C-TPAT certified and validated member Must meet all C-TPAT Importer minimum security criteria Review and adopt actions required and recommendations found in C-TPAT Validation Report Review the Best Practice Catalog and discuss security improvements within your company and with business partners and service providers Consult with your assigned Supply Chain Security Specialist Implement security improvements or Best Practices and integrate into standard business processes Ensure security procedures are documented, tested, audited, and reviewed on a periodic basis 12
13 Thank You
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