CTPAT_AEO - Supply Chain Security Management (2024)

  • HOME
  • INTERNATIONAL
  • Log in

SUPPLY CHAIN MANAGEMENT

  • Upcoming Events

Menu

  • Active Projects
  • Essentials of Supply Chain Management
  • Materials Management
    • (MMOG/LE) Global Materials Management Operations Guideline
    • (EDI) Electronic Data Interchange
  • Finished Vehicle Logistics
    • Battery Electric Vehicle (BEV)
    • Connected Vehicle
    • Damage Claims Reporting
    • CTPAT/AEO – Supply Chain Security Management
    • ACE and Automated Systems Reporting for Export and Import
    • United States-Mexico-Canada Agreement (USMCA)
    • Labeling Standards
    • (RFID) Radio Frequency Identification
  • Cyber Initiative
  • GLOBAL AUTOMOTIVE PURCHASING AND SUPPLY CHAIN NETWORK (GAPSCN)
    • Tomorrow's Leaders Today
    • Student Membership
  • Global Supplier Visibility Map
  • Industry Recovery
  • Self-Assessments
  • Publications
  • Trainings
  • eLearnings
  • Events
  • Webinars
  • Supply Chain Store
  • Home/
  • Supply Chain Management/
  • /
  • CTPAT/AEO – Supply Chain Security Management

¿Le gustaría saber sobre el programa cadena de suministro como CTPAT y AEO? haga clic aquí!

  • What is CTPAT?
  • AIAG's CTPAT Program
  • Mutual Recognition of AEOs

What is CTPAT?

NEW REQUIRED Minimum-Security Criteria (MSC) was rolled out in 2020 by U.S. Customs and Border Protection under the CTPAT Program.

Customs Trade Partnership Against Terrorism (CTPAT) is a federal government program set up by the US Customs and Border Protection (CBP) that allows companies shipping goods and materials into the country to become certified as a low-risk security threat. Certification means that cargo can move more quickly through US customs checkpoints.

These voluntary government sponsored initiatives such as CTPAT, Organización de los Estados Americanos OEA Mexico, Authorized Economic Operator AEO Europe and Asia and Partners in Protection (PIP) are cooperative programs aimed at strengthening and improving international supply chains for better border security. CBP is one of the U.S. Department of Homeland Security's largest and most complex components, with a priority mission of keeping terrorists and their weapons out of the US.

In order to be CTPAT certified or compliant, a supply chain partner must meet the Minimum-Security requirements as defined by CBP by answering a set of questions applied via a risk assessment.

Note that CBP has taken a stronger enforcement posture to prevent and penalize the importation of goods into the United States using forced labor. Merchandise found to be in violation is subject to exclusion through withhold release orders and/or seizure by CBP and includes the possible criminal investigation of the importer.

The CTPAT/AEO – Supply Chain Security Management program has implemented under all its Risk Assessments the set CBP mandatory forced labor requirements. AIAG continues to work closely and strongly with CBP ensuring compliance is adhered to throughout our supply chains.

What is AIAG's CTPAT/AEO – Supply Chain Security Management Program?

CTPAT_AEO - Supply Chain Security Management (3)

CTPAT_AEO - Supply Chain Security Management (4)

CTPAT_AEO - Supply Chain Security Management (5)

CTPAT_AEO - Supply Chain Security Management (6)

CTPAT_AEO - Supply Chain Security Management (7)

CTPAT_AEO - Supply Chain Security Management (8)

CTPAT_AEO - Supply Chain Security Management (9)

CTPAT_AEO - Supply Chain Security Management (10)

AIAG, in collaboration with OEMs and suppliers, has developed a common system to be used by automotive importers and their supply chain business partners to comply with CTPAT/AEO requirements. This is the first common industry CTPAT risk assessment along with associated corrective actions based on the updated Minimum-Security Criteria (MSC) required by U.S. Customs and Border Protection (CBP). risk assessments are tailored for each type of supply chain business partner, including foreign manufacturers, highway, rail, air, and sea carriers, plus more!

Benefits include:

  • Changes to the CTPAT program by CBP are monitored and incorporated into the system automatically.
  • Common risk assessments are available for different partner types along with their associated corrective actions.
  • Extensive data security capability.
  • Global Threat Assessment information is available for all countries and can be evaluated by specific trade lanes.
  • Importers and their supply chain business partners have a common process to request, complete, and evaluate supply chain security.
  • Named as Best Practice by U.S. Customs and Border Protection (CBP).
  • New Minimum-Security Criteria published by U.S. Customs and Border Protection is developed by AIAG into common partner type risk assessments, which are reviewed and approved by all subscribed importers.
  • Reporting capability can be used when conducting supplier security validations and as material supplied to CBP to provide supporting supply chain security documentation.
  • Suppliers that have multiple importers as customers need only answer one risk assessment.
  • Business Partner risk assessment’s information is tagged to help the automotive importers visually identify and track their supply chain risks.
  • And much more!

Mutual Recognition of Authorized Economic Operators (AEOs)

For AEOs to be efficient, customs officials in the United States and other countries need to be confident and mutually recognize the AEO program(s) of other nations. This is done through Mutual Recognition Agreements (MRAs), which, according to CBP, indicate the security requirements or standards of the foreign industry partnership program, plus its verification procedures. These are the same or similar with those of CTPAT.

These voluntary government sponsored initiatives such as CTPAT, (USA), Organización de los Estados Americanos/OEA (Mexico), Authorized Economic Operator/AEO (Asia and Europe) and Partners in Protection/PIP (Canada), are cooperative programs aimed at strengthening and improving international supply chains for better, more efficient border security.

The CTPAT/AEO – Supply Chain Security Management risk assessment simplifies administration of the entire CTPAT program, allowing companies to proactively prepare for certification, manage the program to maintain CTPAT Status, and comply with CBP’s recommended 5-Step Risk Assessment Process. The CTPAT/Supply Chain Security Program is a subscription-based service that allows trade partners to complete one risk assessment that's universally accepted by all participants.

Forced Labor / Human Rights

AIAG previously had the honor of having CTPAT Director Manuel Garza speak at our annual Customs Town Hall on the subject of forced labor. He noted the following:

  • CBP has taken a stronger enforcement posture to prevent and penalize the importation of goods into the United States using forced labor. Merchandise found to be in violation is subject to exclusion through withhold release orders and/or seizure by CBP and includes the possible criminal investigation of the importer.

The CPTAT Trade Compliance program will be implementing mandatory forced labor requirements in the near term and is working with the CTPAT Security team to ensure the requirements for both programs are aligned.

Via our risk assessments, AIAG’s SCS CTPAT Program has addressed the required Minimum Security Criteria of forced labor rolled out in 2020.

With further legislation being implemented, AIAG has also kicked off a Forced Labor / Human Rights Ad Hoc Group made up of a cross-functional group of customs and trade and sustainability SMEs.

These importers are participating in the Supply Chain Security - CTPAT/AEO Program:

Importers

Current Importers

  • Adient USA LLC
  • American Honda Motor Co., Inc.
  • Cooper Standard North America Division
  • General Motors Company
  • Honda Canada Inc.
  • Honda de Mexico
  • Honda of Canada Manufacturing
  • Honda Trading America Corporation
  • Isuzu Logistics North America, Inc.
  • Kongsberg Automotive
  • Mazda North American Operations - Service Parts
  • Mazda North American Operations – HV Production/Manufacturing
  • Mitsubishi Motors North America, Inc.
  • Volvo Car Corporation
  • Yanfeng Automotive Interiors

CTPAT_AEO - Supply Chain Security Management (11)

CTPAT_AEO - Supply Chain Security Management (12)

CTPAT_AEO - Supply Chain Security Management (13)

CTPAT_AEO - Supply Chain Security Management (14)

CTPAT_AEO - Supply Chain Security Management (15)

CTPAT_AEO - Supply Chain Security Management (16)

CTPAT_AEO - Supply Chain Security Management (17)

CTPAT_AEO - Supply Chain Security Management (18)

CTPAT_AEO - Supply Chain Security Management (19)

CTPAT_AEO - Supply Chain Security Management (20)

CTPAT_AEO - Supply Chain Security Management (21)

CTPAT_AEO - Supply Chain Security Management (22)

CTPAT_AEO - Supply Chain Security Management (23)

CTPAT_AEO - Supply Chain Security Management (24)

CTPAT_AEO - Supply Chain Security Management (25)

CTPAT_AEO - Supply Chain Security Management (26)

CTPAT_AEO - Supply Chain Security Management (27)

CTPAT_AEO - Supply Chain Security Management (28)

CTPAT_AEO - Supply Chain Security Management (29)

CTPAT_AEO - Supply Chain Security Management (30)

CTPAT_AEO - Supply Chain Security Management (31)

CTPAT_AEO - Supply Chain Security Management (32)

CTPAT_AEO - Supply Chain Security Management (33)

CTPAT_AEO - Supply Chain Security Management (34)

Get In Touch!

If you are interested in the CTPAT/AEO – Supply Chain Security Management Program and would like more information or a free demonstration of the program, fill out the form below and an AIAG representative will contact you.

Related Training Courses

ACE Reporting Demonstrations for Export and Import - Our courses provide attendees with the skills and knowledge to navigate the ACE Reports tool and take advantage of its various capabilities.

HTS Harmonized Tariff Schedule Overview - Ensure that you are compliant with customs regulations and paying the proper duty on your products. The Harmonized Tariff Schedule Overview (HTS) provides duty rates for virtually every item that exists.

USMCA Content Reporting - 1 Day - Developed by volunteers from OEMs, heavy truck manufacturers, and Tier 1 suppliers – along with guidance from trade compliance experts – this 1-day course offers a moderately condensed version of our original 2-day USMCA training.

USMCA Content Reporting - 2 Day - The new USMCA Content Reporting course – developed by OEM, supplier, and free trade agreement experts – is an in-depth, comprehensive training geared toward automotive trade compliance practitioners and working managers.

Additional Resources

  • Global
  • Miscellaneous
  • Supply Chain Security

Miscellaneous

Uyghur Forced Labor Prevention Act Guidance | U.S. Customs and Border Protection - 2022553 KB Operational Guidance For Importers On The Uyghur Forced Labor Prevention Act (UFLPA)167 KB Strategy Prevent Importation of Goods Manufactured with Forced Labor in China1,321 KB

Program Management:Supply Chain Team- (248) 358-3570

Upcoming Supply Chain Events

2024 Supply Chain Conference You spoke, we listened! In response to industry feedback for this year's Supply Chain Conference, we're slashing registration rates to just $99 per ...6/20/2024

2024 North American Customs and Trade Town Hall Registration isopen for the North American Customs and Trade Town Hall! View Event Agenda TRADE. KNOWLEDGE. The Automotiv...11/7/2024

CTPAT_AEO - Supply Chain Security Management (2024)

FAQs

What is CTPAT AEO certified? ›

Customs Trade Partnership Against Terrorism (CTPAT) is a federal government program set up by the US Customs and Border Protection (CBP) that allows companies shipping goods and materials into the country to become certified as a low-risk security threat.

What does CTPAT stand for? ›

CTPAT: Customs Trade Partnership Against Terrorism | U.S. Customs and Border Protection.

What are the three main areas of focus when you complete a CTPAT pip security inspection? ›

CBP categorized the new criteria for importers into three focus areas: Corporate security. People and physical security. Transportation security.

What is supply chain security management? ›

Supply chain security is a subset of supply chain management that addresses the threats posed by external suppliers, vendors, resellers, logistics, and transportation. These include physical attacks and cyber attacks that target third parties, which are perceived to have weaker defenses than target organizations.

How long does it take to get CTPAT certified? ›

How long does it take to be CTPAT certified? CTPAT partners agree to implement a set of minimum-security criteria and be certified and validated by the CBP agency. The process begins online at cbp.gov. and usually takes 9 months to a year to complete.

What is CTPAT security criteria? ›

CTPAT recognizes that when a company has multiple supply chains with numerous business partners, it faces greater complexity in securing those supply chains. When a company has numerous supply chains, it should focus on geographical areas/supply chains that have higher risk.

What is a CTPAT supply chain? ›

C-TPAT is a voluntary program. It enables CBP to enhance and streamline cargo security through close cooperation with the principle stakehold- ers of the international supply chain such as importers, carriers, consolidators, licensed cus- toms brokers, and manufacturers.

How to check if a company is CTPAT certified? ›

If you wish to verify their participation, you may ask to see a copy of the letter sent by the Assistant Commissioner/Office of Field Operations notifying them that they have successfully passed the certification process. For additional information, you can contact the C-TPAT office at (202) 344-1180.

Who needs CTPAT certification? ›

Air carriers, consolidators, cross-border highway carriers, marine port authorities, ocean carriers, rail carriers, terminal operators, third party logistics (3PLs) providers, customs brokers, and importers are eligible for C-TPAT certification in the United States.

How much does CTPAT cost? ›

According to official CBP data, more than 11,400 partners have been accepted into the CTPAT program. According to the US agency, “there are no costs associated with joining the program.

Can a warehouse be CTPAT certified? ›

The CTPAT certification is granted based on an extensive and detailed set of criteria. A warehouse must demonstrate its adherence to these stipulations, clearly listed in the CTPAT requirements checklist, to achieve certification.

What are the benefits of being CTPAT certified? ›

7 Benefits of Becoming C-TPAT Certified
  • A dedicated supply chain security specialist plus access to educational resources. ...
  • Faster transport of goods across the border. ...
  • Priority consideration following an emergency. ...
  • Lower fines. ...
  • Potential for more business. ...
  • Site, personnel, and data security. ...
  • Improved internal processes.

What are the 5 supply chain management? ›

What Are the Five Components of Supply Chain Management?
  • Planning and Analysis. You can't put a solid plan into motion without proper planning. ...
  • Sourcing (Procurement) ...
  • Manufacturing and Production (Operations) ...
  • Distribution (Transportation, Warehousing, & Logistics) ...
  • Returning (Reverse Logistics)

What are the key elements of supply chain security? ›

7 Best Practices to Mitigate Supply Chain Security Threats
  • Mitigating Vulnerabilities and Penetration Testing. ...
  • Identifying and Encrypting Data. ...
  • Establishing Controls and Visibility. ...
  • Implementing a Digital Transformation to Secure the Supply Chain. ...
  • Planning and Orchestrating Incident Response. ...
  • Managing Third-Party Risk.

What is the meaning of AEO certified? ›

AEO is an internationally recognized quality mark indicative of the fact that the procedures related to Customs clearances in the supply chain of the entity are efficient, compliant and secure.

What is the AEO equivalent in the US? ›

AEO Programs: North America

In Canada, the program operates under the name Partners in Protection (PIP), in the United States it is known as Customs Trade Partnership Against Terrorism (CTPAT), and in Mexico the program is called Authorized Economic Operator (AEO).

What does AEO mean? ›

The abbreviation AEO stands for “Authorised Economic Operator.” It is a status granted to an economic operator as a concept that is based on the partnership between customs and business. The AEO is used to determine a reliable and trustworthiness of the economic operator.

What is an AEO in customs? ›

These standards includes the concept of an Authorized Economic Operator (AEO) whereby a party engaged in the international movement of goods is approved by Customs as compliant with the supply chain security standards, and given benefits, such as simplified Customs procedures and reduced Customs intervention.

Top Articles
Latest Posts
Recommended Articles
Article information

Author: Carmelo Roob

Last Updated:

Views: 5515

Rating: 4.4 / 5 (65 voted)

Reviews: 80% of readers found this page helpful

Author information

Name: Carmelo Roob

Birthday: 1995-01-09

Address: Apt. 915 481 Sipes Cliff, New Gonzalobury, CO 80176

Phone: +6773780339780

Job: Sales Executive

Hobby: Gaming, Jogging, Rugby, Video gaming, Handball, Ice skating, Web surfing

Introduction: My name is Carmelo Roob, I am a modern, handsome, delightful, comfortable, attractive, vast, good person who loves writing and wants to share my knowledge and understanding with you.