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Supply Chain Security Programs

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Ensuring the security of your supply chain is one of the best ways to avoid costly disruptions and delays and provides tangible benefits such as protecting your cargo and mitigating terrorist interdiction. In today’s trading environment, supply chain security is no longer an option, it is a necessity. See below for more information on supply chain security programs in the US and beyond.

Customs-Trade Partnership Against Terrorism (CTPAT)

The international terrorist threat has not diminished, and unfortunately, experts agree that it is not so much a matter of if, but of when, another attack will take place. Even if such an event occurs outside of the United States, it could trigger the US to employ a “Fortress America” stance, resulting in the closure of all US ports of entry for both commercial and non-commercial traffic. This will prove to be even more costly and time consuming for unprepared importers, because when the border reopens, it will be those importers who have secured their supply chains that will be given preferential expedited treatment with respect to the clearance of their merchandise. US Customs gives this preferential treatment to certified partners in US Customs and Border Protection’s “Customs – Trade Partnership Against Terrorism,” or “CTPAT.”  Other member benefits include reduced Customs inspections and access to Free and Secure Trade (FAST) lanes at land border crossings. Don’t be left standing in line while your cargo sits, contact Trade Compliance Professionals today for information on how we can help your organization become a certified CTPAT partner.

Partners In Protection (PIP)

Partners in Protection (PIP) is a voluntary program where businesses and the Canada Border Services Agency (CBSA) work together to enhance border and trade security. Among the many member benefits are expedited border clearances by using the designated Free and Secure Trade (FAST) lanes, lower examination rate at the border, and status as a Trusted Trader in Canada and in other countries under the CBSA’s growing list of mutual recognition arrangements (MRAs). In 2008 the US entered into a Mutual Recognition Arrangement (MRA) with Canada, indicating that the security requirements or standards of CBSA’s Partners in Protection, as well as its verification procedures, are the same or similar to those of the Customs Trade Partnership Against Terrorism (CTPAT) program.

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Authorized Economic Operator

An Authorized Economic Operator (AEO) is a business that has been approved to move international goods while meeting customs regulations and supply chain security standards. AEOs are also known as “trusted traders”. The EU established its AEO Program based on internationally recognized standards. Similar to CTPAT and PIP, it is a partnership program between the customs authority and the economic operators. In 2012 the US entered into a Mutual Recognition Arrangement (MRA) with the EU ,indicating that the security requirements or standards of the EU’s Authorized Economic Operator program, as well as its verification procedures, are the same or similar to those of the Customs Trade Partnership Against Terrorism (CTPAT) program.

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