CTPAT_AEO - Supply Chain Security Management (2024)

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?

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.

Global

Miscellaneous

Supply Chain Security