C-TPAT participation increasing
By Larry Thomas -- Furniture Today, October 6, 2008
HIGH POINT — A five-year-old U.S. government initiative to combat terrorism in the nation's ports appears to be gaining traction among furniture importers — most of whom view participation in the program as a competitive advantage.
The voluntary program known as C-TPAT, the Customs-Trade Partnership Against Terrorism, requires participating importers, customs brokers, ocean carriers, trucking companies, port authorities and terminal operators to conduct a rigorous analysis of security throughout their supply chain.
And while such audits can be time consuming and detail-oriented, most furniture executives agree it's beneficial to not only the nation's border security, but to their own businesses.
“It has helped us sell,” said Don Essenberg, executive vice president and chief marketing officer of Magnussen Home. “It is one more problem we have solved for our (retail) customers.”
Late last year, Magnussen was certified as a Tier 3 C-TPAT partner, signifying the highest level of compliance with security guidelines set forth by the U.S. Customs and Border Protection office (CBP).
Only about 250 of the approximately 8,500 certified C-TPAT partners have achieved Tier 3 certification, according to the customs office.
“It has reinforced our position of being truly professional and ahead of the curve in logistics,” Essenberg said.
Rob Pisani, a internationally known trade lawyer and frequent speaker at furniture industry events, said the benefits of certification far outweigh the paperwork, and he regularly urges furniture importers to join C-TPAT.
“Heaven forbid, if there's another emergency, your goods will go to the back of the line,” he said of those who don't have certification.
During non-emergency times, importers who are C-TPAT certified benefit from reduced inspections by customs officials, expedited cargo processing, and access to a “best practices catalog” used by other participants in the program.
“It remains a voluntary partnership … but its requirements have become stricter and the CBP has beefed up its validation procedures,” said Pisani, who was a senior U.S. Customs Office attorney before entering private practice.
Certification now requires applicants to address C-TPAT guidelines that cover procedural security, physical security, personnel security, security education and training, access controls and manifest procedures. A CBP security specialist works with applicants to ensure guidelines are being met.
Once a company is validated as a C-TPAT partner, the company must be revalidated every three years to make sure it is still in compliance with security guidelines and has implemented any new procedures C-TPAT has developed.
“Security has always been in our DNA, but this has helped us organize our security work in a more strategic fashion,” said Earl Agron, vice president of security at APL, an ocean carrier that counts many furniture importers as customers.
Agron said the benefits of C-TPAT certification aren't quite as direct for a service provider such as APL, but it has helped the carrier attract and retain shipping customers who are seeking, or have already received certification.
That's because APL doesn't have to complete a security questionnaire for importers evaluating their supply chain, which should speed the certification process for customers, he explained.
“Most importers are going to encourage their service providers to obtain certification,” said Agron.
