Pinkerton's Barry Wilkins argues that while C-TPAT may not be perfect, it has been a huge success in mitigating the risks in the global supply chain
Barry J. Wilkins is VP of Global Supply Chain Security Practice for Pinkerton Consulting & Investigations, Raleigh, NC, USA.
He is a member of International Cargo Security Council Board of Directors, Chairman of its Government Affairs Committee and recipient of the 2003 ICSC National Industrial Leadership Award.
Pinkerton was selected by the ICSC to design and implement C-TPAT solutions for members and non-members. ICSC solutions include application assistance, pre-validation reviews, supplier compliance assessments and more.
The ICSC, headquartered in Annapolis, Maryland, is a nonprofit association of 1,200 cargo security professionals worldwide from the entire intermodal supply chain spectrum, including shippers, carriers, service/solution providers, insurance companies, government and law enforcement.
The ICSC was known as National Cargo Security Council for 34 years, but in December 2004 renamed itself to reflect formation of a European Chapter, based in Brussels, Belgium and activities to expand in Mexico and Asia.
From Cargo Security International,
December, 2005.
The ICSC is proud to have been part of the initial meetings that developed C-TPAT. We are firm believers in C-TPAT, and we encourage all of our 1200 members to join.
The program has come a long way from the initial seven members in 2002 to well over 9,000 importers, transportation service providers and foreign manufacturers who are participants today. C-TPAT is working and is here to stay. In fact, in June 2005, the World Customs Organization unanimously adopted the Global Framework to Secure and Facilitate Global Trade which expanded upon many of the requirements in C-TPAT. Other countries like Canada with their Partners in Protection Program (PIP) are adopting supply-chain security programs similar to C-TPAT. "C-TPAT, while not perfect is a huge success and demonstrates what can happen when the trade and government work together."
I recall assisting U.S. Customs in January of 2002 on behalf of the then-National Cargo Security Council in developing the C-TPAT guidelines. What impressed me most was that U.S. Customs, under the leadership of Commissioner Bonner and Assistant Commissioner, the late Ms. Bonni Tischler, was fostering a true partnership with the trade. At that time there were only 7 charter members.
I also recall the largest roundtable in the then 31-year history of the National (now international) Cargo Security Council which was focused on C-TPAT in February of 2003. At that time there were fewer than 500 C-TPAT participants.
Fast forward to September 11, 2005: Terrorism continues, witness the Bali, Madrid and London attacks of recent months, but the world partnership continues to improve the security of its global supply chain, and C-TPAT is a key element in the improvement. On March 25, 2005 U.S. Customs and Border Protection significantly strengthened the requirements of C-TPAT. Now there are over 9,000 participants with more companies signing up daily.
In June 2005, the World Customs Organization (WCO) unanimously adopted an international framework for supply-chain security patterned in large part after the success of C-TPAT.
The ICSC has taken a leadership position in championing C-TPAT and similar programs like Canada's Partners in Protection (PIP). I am proud to be a member of ICSC and to assist companies in C-TPAT participation.
As Scott Smith, Chairman of ICSC summarizes: The ICSC is a strong supporter of C-TPAT and similar programs, and our programs have been a huge success in assisting members and non-members.
We have held approximately a dozen free and paid seminars in the U.S., Asia and Mexico to assist our members and to educate their suppliers. We are planning more in the U.S., Asia, Mexico and Europe in the next six months. Our next C-TPAT training will be December 4-6 in San Francisco. Our website has updated information.
A number of companies have already signed up to have all of their foreign suppliers independently assessed using the ICSC C-TPAT compliance assessment program. We have conducted dozens of C-TPAT compliance assessments of foreign suppliers in Asia, Mexico, Africa, and Latin America— additional companies are signing up daily. Before you decide to incur the expense of having your vendors assessed, check with us to see if they have already been reviewed for compliance.
The ICSC C-TPAT program is unique and cost effective. The reduced assessment fee ($1,000 to $1,500) is paid for by the foreign supplier. When the supplier passes the assessment, they are issued a C-TPAT Certificate of Compliance that they can use with all of their customers avoiding multiple C-TPAT audits with differing recommendations.
As one foreign automobile-part maker stated, "The ICS program is excellent and right on target. For a minimal cost we avoid days of lost staff time supporting multiple customer C-TPAT audits and conflicting recommendations and best of all we have received a C-TPAT compliance certificate that we can use in our marketing."
The importer saves the cost of conducting a C-TPAT assessment and can get a copy of the report from the ICSC at a cost of $150 for members and $200 for non-members. So it pays to belong to the ICSC. For a limited time the ICSC will develop a Risk Based Supplier Compliance Assessment Plan at no cost for any suppliers signing up to the ICSC C-TPAT Compliance Assessment Program.
In addition to the C-TPAT compliance assessment services, ICSC also assists in applying for C-TPAT, developing acceptable C-TPAT policies and procedures, pre-validation readiness and education services. We train in classroom, CD/VHS and eLearning formats.
All of the 100-plus firms that we have assisted with C-TPAT report positive results—fewer inspections, decreased cargo loss and lower transportation costs due to a fewer number of carriers and volume leveraging.
EIGHT KEY REASONS TO PARTICIPATE IN C-TPAT
by Scott Smith Chairman of the ICSC
- Social responsibility - Join in the war against terrorism, smooth the flow of international trade
- Fast lane - Fewer inspections reduce border time, critical if there is another incident
- Reduced cargo loss - Increased security reduces loss
- Account manager assigned - Increased communication/coordination with C&BP
- Cost Savings - C-TPAT is prerequisite for
- Importer Self Assessment Program (ISA) - Self-policing, not Customs verification
- Automated Commercial Environment (ACE) - On-line processing of transactions
- Bi-monthly or Monthly Customs Payments - Reduced administration cost
- C-TPAT is here to stay - Customs has received additional funding for C-TPAT
- Competitive Advantage - Your customers have signed up and expect you to
Brand Protection - You don't want to be associated with a terrorist event
Contact:
ICSC
Tel: +1 410 571 7913
Fax: +1 410 571 8294
E-mail: icsc@cargosecurity.com
Web: www.cargosecurity.com
PINKERTON
el: +1 919 676 1881
Fax: +1919 676 1522
E-mail: barry.wilkins@ci-pinkerton.com
Web: www.ci-pinkerton.com
