What's New in CTPAT. Logo and Abbreviation Current Membership Trusted Trader Best Practices Minimum Security Criteria Outreach/Training

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1 What s New

2 Our Mission Detect and prevent terrorists and terrorist weapons from entering the United States, while facilitating the orderly and efficient flow of legitimate trade and people at and through our Nation s borders.

3 What's New in CTPAT Logo and Abbreviation Current Membership Trusted Trader Best Practices Minimum Security Criteria Outreach/Training

4 CTPAT Membership 11,180 Air Carrier 38 Consolidator 852 Exporter (58-T3) 391 Foreign Based MPTO 6 Foreign Manufacturer 1597 Highway Carrier - U.S. / Canada 1854 Highway Carrier - U.S. / Mexico 874 Importer (343-T3) 4092 Licensed U.S. Customs Broker 838 Mexican Long Haul Highway Carrier 385 Rail Carrier 11 Sea Carrier 77 Third Party Logistics Provider 104 U.S. Marine Port or Terminal Operator 61 September 20, 2017

5 Trusted Trader Trusted Trader Strategy Integrates the CTPAT and ISA programs into a consolidated program that includes both supply chain security and trade compliance AEO standard Increasing benefits for CBP and traders Global Reach Partnership CTPAT, Trade Compliance, PGAs and MRA and AEOs Trusted traders receive facilitated benefits globally CTPAT, Trade Compliance and PGAs Trusted traders receive benefits at partner government agencies Supports a scalable program, integrated with PGAs and aligned with leading AEO programs Moves toward whole of government approach to supply chain security via PGA engagement Compliance Security CTPAT, Trade Compliance Traders are ISA compliant and meet CTPAT security requirements CTPAT Traders are members of CBP s voluntary supply chain security program Non-participant in CTPAT But consistently low risk importers and exporters

6 Trusted Trader Trusted Trader Matrix Building the Catalog Created a tool to categorize program benefits status, applicable entities, and perceived return on investment (ROI) Catalog Snapshot Partnered with pilot participants to review and refine the catalog Prepared to use catalog to explain benefits to PGAs and external stakeholders Catalog Benefits Jul 2017 Aug 2017 Provide a consolidated resource categorizing all existing and proposed benefits Track Engagement Sep 2017 Nov 2017 Develop a Participant Engagement Tracker to manage issues and participant get-backs Measure Success Sep 2017 Dec 2017 Create a Benefits Metrics Dashboard with key success metrics to analyze and report on benefits

7 Trusted Trader Trusted Trader Pilot Phase I: FY 2014 FY 2016 Selected 9 pilot participants from 56 applicants Validated pilot incentives for inclusion in initial offering Phase II: FY 2016 FY 2018 Created a roadmap of the future vision for the Trusted Trader strategy Working closely with 7 pilot participants to develop and test benefits Developed a unified database to catalog and evaluate pilot benefits Developing Trade Compliance in CTPAT portal Phased Rollout: Begin FY 2019 Prioritize and evaluate impact of benefits with pilot participants Establish trade compliance standard of operation and implement new benefits Operationalize program and transition ISA members to Trade Compliance Engage international partners and MRA-AEOs

8 CTPAT Aligning with TTP CTPAT is working with the TTP to align the application, certification, validation, and reporting process for both programs. Validations together will not always be possible (but it is our goal) CTPAT Portal will be updated to accommodate the TTP

9 TTP Incentives: Exemption from comprehensive audits (not exempt from reviews or site visits based on concerns) Expedited Internal Advise And Rulings from Regulations & Rulings Expedited Cargo Release exempt from random NII exams Provided with free Importer Trade Activity (ITRAC) Data Assigned a NAM Enhanced Prior Disclosure Participation can be considered as a mitigating factor in cases of penalties or liquidated damages.

10 Best Practices Best Practices Catalog 2006 Addendum in Partners from small, medium, large enterprises/entities met with CBP in June Best Practice Framework was developed intended to withstand the test of time First tests were conducted Feb. 6 - Mar. 6, 2017

11 Best Practice Framework (continued) 5 Step Evaluation Process Evidence of Implementation Documented Process Senior Management Support System of Checks and Balances Innovative Business Processes/Technologies for the appropriate business size/model/industry

12 Minimum Security Criteria Why Update the MSC? Increasing Threats Threats against the US and its partners have increased and evolved since program started. Case for Change Since CTPAT s inception over 15 years ago, the MSC has not been updated nor reviewed, which presents an opportunity to leverage vast program experience. MSC Legal Mandates SAFE Port Act 2006: Section 211 (b) mandates that the MSC be reviewed at least once every year to update requirements as necessary in partnership with the trade community. Section 101 of TFTEA also calls for CBP to consult with the trade. Increase in Trade Trade has increased dramatically in the last 15 years and how trade is conducted has changed as well. Strengthen Border Environment Highway carriers face the most challenges in the supply chain particularly along the Southern border. Better Reflect CBP s Mission Part of CBP s mission is to both protect and enforce USDA laws/regulations. Agricultural security issues must be addressed.

13 Minimum Security Criteria How is it Being Updated? COAC Working Group Six teams conducted formal indepth reviews of the MSC 10 COAC members 30 Private Sector Representatives 11 Supply Chain Security Experts and Association Representatives 10 CBP HQ and Field Personnel Tool Development Internal tools were created to facilitate further review Dashboard Registry Follow-up Discussions Multiple iterations were conducted to facilitate review Numerous conference calls/ s (60-70 calls) focused on attaining consensus Two working group meetings in Washington DC to go over teams products. 7 webinars over 14+ hours focused on detailed edits

14 Next Steps Minimum Security Criteria Evaluate Jan April 2017 Review and strengthen the MSC by engaging COAC working group, teams, CTPAT personnel, and others in the Trade community. Refine & Validate Prioritize & Engage Implement April Aug 2017 Aug Sept 2018 Oct 2018 (Begin phased roll-out) Synthesize proposed MSC, evaluate impact, and continue to refine in coordination with private sector counterparts. Further refine MSC, develop priority implementation plan, and engage with the Trade community for wider input. Implement new MSC with a phased approach for new and existing C-TPAT members. Key Takeaways MSC is not currently finalized and is still being validated Implementation will be phased over time to prioritize feasibility MSC will build on what is already currently implemented

15 Training/Outreach Training during validations/revalidations Tell us what you need. CTPAT Overview Portal Overview Container Security Threats and Trends

16 Discussion and Questions

17

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