Glossary > #CTPAT

CTPAT – Customs Trade Partnership Against Terrorism

The Customs Trade Partnership Against Terrorism (CTPAT) is a voluntary program initiated by the U.S. Customs and Border Protection (CBP) in November 2001. It focuses on enhancing the security of the international supply chain in response to the terrorist attacks of September 11, 2001. This initiative serves as a collaboration between the business community and the U.S. government to strengthen border security and ensure the smooth flow of legitimate trade. As part of CBP’s broader strategy, CTPAT plays a key role in minimizing risks associated with terrorism and other illegal activities within the supply chain.

Structure and Functioning of CTPAT

How CTPAT Works

CTPAT operates on a “trust but verify” model, where participating companies voluntarily commit to adhering to specific security standards and best practices. They collaborate with CBP to identify security vulnerabilities and implement necessary measures to protect the supply chain. The process includes:

  1. Risk Assessment: Companies conduct thorough risk assessments to identify potential security gaps.
  2. Application: Companies submit a detailed application and security profile through the CTPAT web portal.
  3. Certification and Verification: CBP reviews the submissions, conducts checks, and verifies compliance with security criteria through on-site visits.
  4. Continuous Improvement: After certification, companies must continually update their security measures to meet evolving threats and standards.

Development of a Pilot Program

In October 2024, Congress passed the Customs Trade Partnership Against Terrorism Pilot Program Act of 2023, authorizing a pilot program for two new categories of entities to participate in CTPAT. These include non-asset-based third-party logistics providers and asset-based third-party logistics providers. This pilot project aims to evaluate whether including these entities can enhance overall security.

Key Participants

CTPAT involves a wide range of participants in the business community, including:

  • U.S. importers and exporters
  • U.S./Canadian and U.S./Mexican road carriers
  • Rail and maritime carriers
  • Licensed U.S. customs brokers
  • Port authorities and terminal operators
  • Freight consolidators
  • Ocean freight forwarders
  • Mexican and Canadian manufacturers

These entities collectively contribute to more than 52% of the value of cargo imported into the United States, demonstrating the extensive reach and influence of CTPAT in global trade networks.

Benefits of CTPAT

Membership in CTPAT provides significant benefits to participating companies, including:

  • Reduced Inspection Rates: Members face fewer inspections at U.S. entry points.
  • Priority Processing: Shipments are processed on a priority basis, reducing border wait times and facilitating faster cargo movement.
  • Access to FAST Lanes: CTPAT-compliant shipments utilize Free and Secure Trade (FAST) lanes at land borders.
  • Supply Chain Security Specialists: Each member is assigned a CBP supply chain security specialist to assist with compliance and security.
  • Mutual Recognition: CTPAT agreements with foreign customs administrations offer reciprocal benefits, further securing global supply chains.
  • Eligibility for Additional Programs: Members may qualify for other U.S. government programs, such as the Importer Self-Assessment Program (ISA) and the FDA Secure Supply Chain Program.

CTPAT and the Global Trade Environment

Mutual Recognition Agreements (MRA)

CTPAT aligns with global security standards through MRA agreements with foreign customs agencies, including Canada, the European Union, and Japan. These agreements facilitate smoother international trade by providing mutual benefits to recognized partners.

Third-Party Logistics (3PL)

Third-party logistics providers play a key role within CTPAT. Eligible 3PLs must be directly involved in cross-border logistics operations and adhere to strict security criteria, ensuring compliance throughout the supply chain.

Evolving Challenges and CTPAT Responses

Supply Chain Disruptions

CTPAT continuously develops its standards to address the complexities of global supply chains and mitigate risks associated with disruptions.

Forced Labor Regulations

CBP has implemented new measures to combat forced labor in supply chains. As of August 2023, CTPAT members must comply with strict regulations to ensure their supply chains are free of forced labor.

How to Join CTPAT

Eligibility Criteria

Entities eligible for CTPAT certification include:

  • Importers and exporters with a presence in the USA
  • Carriers (air, road, rail, and maritime)
  • Port authorities and terminal operators
  • Freight consolidators and customs brokers
  • Third-party logistics providers with assets and facilities in the USA

Application Process

  1. Conduct a risk assessment: Identify and document potential security risks in the supply chain.
  2. Submit an application: Complete the CTPAT application through the CBP web portal system.
  3. Create a security profile: Describe how the company meets CTPAT security criteria.
  4. Verification and certification: CBP reviews the application, conducts a verification visit, and certifies companies that meet the requirements.

Once certified, members are required to adhere to CTPAT guidelines and update their security practices as needed.

CTPAT plays a key role in enhancing the security and efficiency of international trade. By fostering collaboration between the government and the business community, it addresses evolving threats and promotes best practices in supply chain security. As global trade continues to evolve, CTPAT remains a crucial component in safeguarding the integrity of supply chains while facilitating legitimate trade across borders.