CBP Timeline for C-TPAT Exporter Program Uncertain

FOXBOROUGH, Mass. -- The timeframe for a Customs-Trade Partnership Against Terrorism (C-TPAT) component for exporters remains in flux as problems with hardware forced the delay of a C-TPAT portal update, said George Rudy, CBP supervisor of C-TPAT Evaluations and Assessments. Rudy spoke Nov. 6 at the Northeast Cargo Symposium, a Coalition of New England Companies for Trade (CONECT) event (here). He discussed a number of efforts to improve the program, including newly added benefits and work to reach a mutual recognition arrangement with China.

The C-TPAT exporter component, known as exporter entity will launch sometime after the agency finishes the first phase of the portal update, known as Portal 2.0, with the first validations expected "hopefully" sometime next year. There's been some confusion among industry due to the recent release of information about the new component despite not yet enrolling interested companies, he said. CBP already allows for importers that also export to get benefits under the mutual recognition arrangements (MRAs) with Japan and the European Union (see 14100306).

Despite the setback with Portal 2.0, CBP is preparing for the rollout in other areas, he said. The agency has already started training for the supply chain security specialists and Rudy outlined C-TPAT for exporters with the Bureau of Industry and Security on Nov. 5, he said. Some details are still being considered, though CBP would like to keep the validations for both importing and exporting to a single event, rather than requiring separate import and export validations, Rudy said. Using a single validation is possible because the reviews will likely be very similar, he said. The agency plans to approve or reject C-TPAT exporter applications within 90 days, as it does currently for other C-TPAT applicants, he said.

Meanwhile, CBP continues to add to the perks of C-TPAT, he said. The Department of Homeland Security recently approved Tier 3 C-TPAT services to be automatically eligible for a federal liability protection program, said Rudy. The liability protection for Tier 3 C-TPAT members comes through the Support Anti-terrorism by Fostering Effective Technologies (SAFETY) Act of 2002, which is meant to protect providers of anti-terrorism technologies from litigation resulting from acts of terrorism. The DHS approved "Block Designation," which allows for a streamlined procedure for getting SAFETY Act coverage, for such C-TPAT members in September (here).

The agency is also actively working to allow joint validations and a mutual recognition arrangement with China, he said. Timing for an MRA with China isn't certain, considering the agency very recently finished up an MRA with Mexico (see 1410200023), he said. CBP also plans to allow the Transportation Security Administration to take over air carrier validations by the end of the year, he said. Under the shift, the TSA will provide CBP with the air carrier information for validation, he said.