U.S. completes first C-TPAT validations in China

U.S. and Chinese Customs officers have conducted the first joint security audit of domestic Chinese manufacturers and logistics providers whose customers participate in the Customs-Trade Partnership Against Terrorism.

The two sides are cooperating on a trial program that would allow U.S. inspectors access to validate the supply chain security practices of Chinese suppliers. U.S. Customs and Border Protection said the pilot project involved examining the supply chains of three U.S. importers who source most of their products from China.

Chinese Customs conducted the validation exercise using C-TPAT minimum-security criteria as a guide and with CBP supply chain specialists alongside to provide technical assistance.

U.S. officials hope the pilot project will lead to more regular visits of Chinese suppliers as part of the effort to prevent terrorists from secreting weapons in a shipping container for an attack.

China is the only country that has refused to allow access to U.S. Customs teams seeking to validate that foreign suppliers are following security plans submitted by their U.S. import customers and approved by CBP. Under C-TPAT, companies that take steps to meet minimum-security criteria for their particular industry sector are potentially subject to fewer time-consuming inspections and receive a handful of other trade facilitation benefits, such as front-of-the-line privileges for containers that are selected for automated imaging at the port. Importers are expected to require foreign suppliers to follow the same criteria in order to be eligible for the benefits.

More than 300 companies that don't have significant import operations in countries outside of China have been unable to receive credit towards reduced inspections because of CBP's inability to verify their supply chain practices. Only a dozen companies have taken advantage of a one-year trial program to use certified for-hire auditors to conduct on-site inspections on behalf of CBP.

Chinese officials finally agreed last fall to allow U.S. supply chain specialists to check the compliance of Chinese vendors, but a cooperative approach took several months to work out.

CBP said the three U.S. importers invited to have their Chinese facilities examined were selected based on their export volume, product type and location.

Last year CBP validated more than 3,000 overseas supply chains.

Source: American Shipper