In 2001, the U.S. Customs and Border Protection (CBP)
created CTPAT (Customs-Trade Partnership Against Terrorism) to improve security throughout the supply chain in the US.
In a nutshell, CTPAT members voluntarily adopt a set of rigorous security practices that allow the CBP to allocate its resources to higher-risk shipments and providers.
The CBP then facilitates easier trade for CTPAT members via benefits that
- A reduced number of inspections when they do occur
- Priority for these inspections
- Access to FAST lanes at US land borders
- A designated customs agent
There are currently over 10,000 CTPAT members from all parts of the supply chain, including air carriers, consolidators, cross-border highway carriers, marine
port authorities, ocean carriers, rail carriers, terminal operators, third-party logistics providers (3PLs), customs brokers, and importers.
Fast-passes don’t come cheap
Qualifying for CTPAT requires a major investment in security infrastructure.
In May 2019, the CBP updated its CTPAT minimum security criteria (MSC) for the first time in over a decade, adding many new requirements such as a documented security review policy and annual supply chain risk assessments.
Members are now require enhanced physical security measures as well, such as surveillance cameras and in-container tracking devices.
With so many new requirements, it’s hard to know what to do first, and CTPAT members are scrambling to find cost-efficient solutions that will allow them to remain compliant.
Visibility and predictive analytics
Supply chain visibility is a critical component of CTPAT compliance, especially when using third-party logistics
Contguard’s in-container devices are one of the most accurate and cost-effective ways ensure that partners meet the requirements. These devices are used to track real-time temperature, humidity, and impact from origin to destination. For example, they allow providers to prevent, detect, or deter unauthorized personnel from gaining access to goods and putting shipments at risk.
The updated CTPAT requirements also require ongoing risk assessments to address security vulnerabilities before problems occur. Smart analytics based on AI and IoT technology, like those provided by
Contguard, make it simple to conduct accurate, real-time risk analysis. For example, Contguard identifies points on the supply chain that are especially vulnerable to security breaches. Clients can then address the vulnerabilities or choose alternate routes and maintain CTPAT compliance.
Get started ASAP
CTPAT members are expected to implement the
new requirements throughout the remainder of 2019 and validations on the new criteria will begin in early 2020.
Contguard’s cutting-edge tracking technology together with smart analytics offers a simple and cost-effective to stay on top of compliance regulations and
continue to benefit from the perks of CTPAT membership.