CBP Updates Info on C-TPAT Mutual Recognition

CBP posted an updated document regarding the mutual recognition of Customs-Trade Partnership Against Terrorism (C-TPAT) and foreign industry partnership programs.

Goal is to Recognize Another Country's Security Program

The concept of mutual recognition (MR) is that C-TPAT and a foreign industry partnership program are compatible in both theory and practice, so one program may recognize the validation findings of the other program.

CBP cautions that MR does not exempt any partner, whether domestic or foreign, from complying with other CBP mandated requirements. By the same token, mutual recognition does not replace any of CBP's cargo enforcement strategies. For example, importers still need to comply with the importer security filing requirements. CBP has developed guidance for maintaining the continuity and/or restoring the flow of trade across the Nation’s borders during and after an incident that disrupts the flow of trade at the border ports of entry. Business resumption privileges consideration, however, while envisioned for C-TPAT members, is not a factor that is included in any mutual recognition arrangement.

(The C-TPAT MR process involves the following four phases: (i) a side-by-side comparison of the program requirements; (ii) a pilot program of joint validation visits; (iii) the signing of a mutual recognition arrangement; and (iv) the development of mutual recognition operational procedures.

CBP Has Signed 6 MRAs

CBP has already signed MR Arrangements with New Zealand (June 2007), Canada (June 2008), Jordan (June 2007), Japan (June 2009), Korea (June 2010) and the European Union (May 2012).

(See ITT's Online Archives 12050726 for summary of the mutual recognition agreement with the EU.

Benefits of MRAs

CBP said both Customs Administrations and the private sector reap benefits from a MRA, including:

Common Standard/Trade Facilitation. Companies only have to conform to one set of security requirements. Once a company complies with C-TPAT's criteria, that company essentially complies with the security criteria of those countries the U.S. has reached MR with: Japan, Korea, Canada, New Zealand, and Jordan. Also, since MR is based on having equally stringent minimum security criteria, companies will have an easier task when they have to conduct their required annual self-assessments.

Less Redundancy/Duplication of Efforts. Foreign companies do not have to go through two separate validation visits and companies would only have to go through one revalidation visit in the future.

Risk Assessment Tool. The status of the foreign partnership program participant is recognized by C-TPAT and it is used as a risk-assessment factor.

Efficiency. CBP does not have to expend resources to send its staff overseas to validate a facility that has been certified by a foreign partnership program.

Transparency. Closer collaboration among Customs Administrations and between Customs administrations and their partnership program companies should lead to more transparency in international commerce