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CTPAT MSC Foreign Manufacturers Booklet March 2020
CTPAT MSC Foreign Manufacturers Booklet March 2020
CTPAT MSC Foreign Manufacturers Booklet March 2020
Minimum Security
Criteria Booklet
March 2020
FOREIGN MANUFACTURERS
March 2020
FOREWORD
I am pleased to present the Customs Trade Partnership Against Terrorism (CTPAT) Minimum
Security Criteria Booklet for Foreign Manufacturers. Created in partnership with industry, the new
MSC advances the U.S. Customs and Border Protection (CBP) mission of securing the international
supply chain.
The MSC is the culmination of more than 17 years of operational experience in supply chain
security, including over 30,000 CTPAT validations and revalidations. Similar documents have been
created for all business entities eligible for CTPAT membership to support implementation of the
new criteria and requirements.
CBP aims to approach supply chain security comprehensively. To that end, CTPAT incorporated
requirements or recommendations related to cybersecurity, protection against agricultural
contaminants, prevention of money laundering and terrorism financing, and the expansion of
security technology. The MSC maintains flexibility and a risk-based approach, while redefining the
global standard for government-led supply chain security programs.
This product is the result of the collaborative effort of the MSC Working Group (WG). In early 2016, CBP formally requested that the
Commercial Customs Operations Advisory Committee (COAC) establish a working group to review and discuss CBP proposals for the MSC.
The WG was created under the COAC’s Global Supply Chain Subcommittee. The WG includes members of the COAC, as well as individuals
from several CTPAT companies, representatives from major trade organizations and associations, private sector supply chain security
experts, CTPAT Supply Chain Security Specialists, and headquarters program staff.
I would like to thank the private sector individuals from the WG – listed below – for their contributions. The WG was divided into six separate
teams, with each team discussing a different set of criteria proposals.
Brandon Fried – Air Freight Forwarders/COAC Bob Byrne /Alan Kohlscheen – CTPAT Tier III Importer/Exporter – IBM
Eugene Laney – CTPAT Consolidator – DHL Brandon Fried – Air Freight Forwarders/COAC
Alexandra Latham – CTPAT Tier III Importer/COAC – COSTCO Wholesalers Alexandra Latham – CTPAT Tier III Importer/COAC – COSTCO Wholesalers
Dan Meylor – CTPAT Broker – Carmichael Adam Salerno – U.S. Chamber of Commerce/COAC
Adam Salerno – U.S. Chamber of Commerce/COAC Lisa Schulte – CTPAT Tier III Importer – Target Corporation
Michael Young – CTPAT Sea Carrier/COAC – Orient Overseas Container Line Michael White – International Air Transportation Association/COAC
Michael Young – CTPAT Sea Carrier/COAC – Orient Overseas Container Line
Team D
– Purdue Pharma Dave Berry – CTPAT Highway Carrier/COAC – Swift
Barry Brandman – Danbee Investigations Ray Fernandez – CTPAT Tier II Importer – Sealock Security Systems, Inc.
Brandon Fried – Air Freight Forwarders/COAC Chuck Forsaith – CTPAT Tier III Importer/Foreign Manufacturer – Purdue Pharma
Alexandra Latham – CTPAT Tier III Importer/COAC – COSTCO Wholesalers Alexandra Latham – CTPAT Tier III Importer/COAC – COSTCO Wholesalers
Liz Merritt – Airlines for America/COAC Adam Salerno – U.S. Chamber of Commerce/COAC
Adam Salerno – U.S. Chamber of Commerce/COAC Michael Young – CTPAT Sea Carrier/COAC – Orient Overseas Container Line
Michael Young – CTPAT Sea Carrier/COAC – Orient Overseas Container Line
Team F
Stella Bray-Conrad – CTPAT Tier III Importer/Highway Carrier – Walmart Inc. Lana Dresen – CTPAT Foreign Manufacturer – S.C. Johnson and Son, SA De CV
David Blackorby – CTPAT Tier III Importer/Highway Carrier – Walmart Inc. Lenny Feldman – Sandler & Travis/COAC
Theo Miles – CTPAT Tier III Importer/Highway Carrier – Walmart Inc. Kevin J. Hayes – Long Beach Container Terminal/CTPAT Marine Port Terminal Operator
Lisa Gelsomino – Avalon Risk Management/COAC
Vincent Iacopella – CTPAT Broker and Consolidator/COAC – Alba Wheels Up
Alexandra Latham – CTPAT Tier III Importer/COAC – COSTCO Wholesalers
Alexandra Latham – CTPAT Tier III Importer/COAC – COSTCO Wholesalers
Kirsten A. Provence / Kathryn Gunderson – CTPAT Tier III Importer – Boeing Company
Jim Yarbrough – British Standards Institute Liz Merritt – Airlines for America/COAC
Adam Salerno – U.S. Chamber of Commerce/COAC Adam Salerno – U.S. Chamber of Commerce/COAC
Beverley Seif – CTPAT Customs Broker – Mohawk Global Trade Advisors Doug Schneider – World Shipping Council
Michael Young – CTPAT Sea Carrier/COAC – Orient Overseas Container Line Michael Young – CTPAT Sea Carrier/COAC – Orient Overseas Container Line
You are essential to the success of these requirements and serve in a position to inform your colleagues and networks of our efforts to strengthen
the international supply chain. We all reap the benefits of these shared efforts. Thank you for doing your part to protect our nation and support
CBP’s mission. I look forward to continuing our partnership.
Sincerely,
Todd C. Owen
Executive Assistant Commissioner
Office of Field Operations
Page 5
Page 6
TABLE OF CONTENTS
I. Introduction............................................................................................................................................... 9
I.1 Case for Updating and Modernizing the Criteria ................................................................... 9
I.2 Principles Guiding the MSC Modernization ......................................................................... 10
I.3 Approach for Implementing the MSC.................................................................................... 10
The Minimum Security Criteria (MSC) operate as a fundamental set of building blocks to help CTPAT Members develop effective security
practices that will aid them in establishing an overarching supply chain security program designed to mitigate threats to a Member’s global
supply chain.
Expertise and Experience – The new MSC reflect the knowledge accumulated by CTPAT after having an operational Program in place for over 17
years. Many lessons have been learned and several vulnerabilities to the supply chain have been identified after having conducted thousands of
validations around the world, and dozens of post-incident analysis or PIAs. These PIAs take place following a security breach to determine where
the supply chain was compromised. The MSC also reflect the knowledge and expertise of the trade community itself.
Terrorism and Criminal Activity – The global supply chain continues to be targeted by terrorists and criminal organizations, underscoring the need
for CTPAT Members to take increased measures to secure their supply chains. The update to the MSC aims to close gaps in the supply chain
given today’s threat environment. Cyberattacks, for instance, have increased dramatically in the past few years, affecting all types and sizes of
businesses.
Page 9
I.2 Principles Guiding the MSC Modernization
Four key principles guided the process to update the MSC:
Partnership with the Trade – From the beginning of the process, CBP worked hand-in-hand with the COAC’s Global Supply Chain
Subcommittee, CTPAT Members, and other key Trade partners in updating the MSC.
Bidirectional Education – The Trade’s perspectives and recommendations were given full consideration and the MSC reflect the input and
knowledge of both the Trade and CBP.
Consideration for Smaller Businesses – Any new requirements proposed and ultimately adopted by the Program needed to be within the
reach of small and medium-sized enterprises.
Results Driven – New requirements needed to be logical and proven to have a positive impact on the security of the supply chain.
Phase 1 – Cybersecurity; Conveyance and Instruments of International Traffic (IIT) Security; Seal Security
Phase 2 – Education, Training, and Awareness; Business Partner Security; Risk Assessment
Phase 3 – Security Vision and Responsibility; Physical Security; Physical Access Controls
CTPAT validations based on the new MSC will begin in early 2020. CTPAT Members should work closely with their Supply Chain Security
Specialists (SCSS) to ensure their security profile is up to date in the CTPAT Portal and the criteria in this document have been implemented.
Page 10
II. CTPAT ELIGIBLE ENTITY GROUPS AND BENEFITS
CTPAT Membership is open to 12 different business entities in the supply chain:
Impo
Exceeded (Importers Only)
Tier 2
rters Only
Validated
Tier 1
Certified
Page 11
CTPAT SECURITY BENEFITS
CBP affords tangible trade facilitation benefits to CTPAT Members to recognize their demonstrated commitment to employ stronger security
practices throughout their international supply chains. The value of CTPAT membership goes beyond dollars and cents – it includes risk
avoidance, a communal approach to a safer supply chain, the ability to compete for contracts that require CTPAT membership, and the
advantage of the credibility that CTPAT membership affords. The CTPAT benefits package has increased over the years, and the Program
continues to explore additional benefits with the trade community. The current benefit package includes:
• Assignment of a Supply Chain Security Specialist (SCSS): The SCSS serves as an advisor to the company and helps the
CTPAT Member improve and maintain its security posture.
• Advanced Qualified Unlading Approval (“AQUA Lane”): Expedited clearance of sea vessels through the AQUA Lane, creating
an average cost savings of $3,250 per hour per vessel for low risk sea carriers.
• Free and Secure Trade (FAST) Lanes: Shorter wait times at land border ports of entry via the FAST Lanes.
• Front of the Line: When feasible for ports, CTPAT shipments are moved ahead of any non-CTPAT shipments if selected for an
exam. Front of the Line inspection privileges apply to screening by non-intrusive inspection equipment, examinations
conducted dockside or at a centralized examination station, and all other inspections conducted for security, trade and/or
agriculture purposes.
• Reduced Examination Rates: Reduced examination rates leading to decreased importation times and reduced costs.
• Business Resumption: Priority entrance of goods following a natural disaster, terrorist attack, or port closure.
• Mutual Recognition Arrangements (MRAs): Expedited screening with worldwide security partners from a number of foreign
Customs administrations that have signed MRAs with the United States.
• Training Seminars: Access to CTPAT sponsored events such as CBP training seminars and the CTPAT Annual Conference.
• CTPAT Portal: Access to the CTPAT web-based Portal system and a library of training materials.
• Best Practices: Access to CTPAT best practices through guides, catalogs, and training materials.
• Status Verification Interface (SVI) Access: SVI Access that includes the verification of companies yearly.
• Security Validation: As part of the validation or revalidation process, CTPAT Members receive a comprehensive evaluation by a
team of SCSSs, who assess the Member’s security posture.
• SAFETY Act: The SAFETY Act of 2002 created liability limitations for claims resulting from an act of terrorism where Qualified
Anti-Terrorism Technologies (QATTs) have been deployed. The Act applies to a broad range of technologies, including
products, services, and software, or combinations thereof.
Page 12
CTPAT TRADE COMPLIANCE BENEFITS
Trade compliance refers to an Importer’s ability to meet regulatory requirements imposed by CBP and other government entities. To modernize
trade compliance, CTPAT is currently executing the Trusted Trader Strategy, which is transitioning the current Importer Self-Assessment
Program into the new CTPAT Trade Compliance Program. As part of this effort, CTPAT is working with its Trade Compliance stakeholders
to test over 30 benefits and measure their impact on industry. The ultimate goal is for Members to document their return on investment and
quantify the value for their participation in the Program. The transition of CTPAT Trade Compliance will create the United States equivalent of
an Authorized Economic Operator (AEO) Program, addressing both security and customs trade compliance under a single Program.
• National Account Manager (NAM): Access to an assigned National Account Manager (NAM), who acts as an advisor and liaison
between CBP Headquarters and the CTPAT Trade Compliance Member.
• Multiple Business Units: Opportunity to apply for coverage of multiple business units.
• Removal from Focused Assessments Pool: Members are removed from the Regulatory Audit’s (RA) audit pool established for
Focused Assessments. However, Importers may be subject to a single-issue audit to address a specific concern.
• Importer Trade Activity (ITRAC) Data Access and Automation: U.S. Importer Members will be able to access their ITRAC data
directly from the CTPAT Trade Compliance Portal, and Members will be provided with the tools to evaluate that data.
• CTPAT Trade Compliance Portal: (In Development) Access to the Trade Compliance section of the CTPAT Portal to access and
update information related to Trade Compliance.
• Expedited Rulings: Rulings and Internal Requests that are being adjudicated by the National Commodities Division will have
priority and be placed at the front of the queue for processing within 20 days by the receiving office. Rulings that are not bound by
the National Commodities Division’s 20-day limit are also eligible for expedited rulings.
• Release of Goods to Premises for Exam: (In Development) Importers who file an entry in an Automated Commercial
Environment (ACE) will receive a release message and be allowed to remove containers from the port under customs supervision
to a facility of their choosing that contains accommodations CBP considers amenable for a thorough exam.
• Exemption from Random Non-Intrusive Inspections: (In Development) Ability to “opt out” of this incentive entirely or identify the
ports where the Member wants this incentive applied.
• Confidential Manifest Automation: (In Development) The process to request manifest confidentiality for cargo manifest data as
described in 19 CFR 103.31 will be automated through the CTPAT Portal.
Page 13
CTPAT SECURITY AND TRADE COMPLIANCE BENEFITS
The following benefits are available to both CTPAT Security and Trade Compliance Members:
• Penalty Mitigation: CBP’s Fines, Penalties and Forfeitures Division will ensure that the company’s Trusted Trader status is
taken into consideration and that any penalties will be offset by the measure/level of the corrective actions taken to prevent
a future occurrence.
• Marketability of CTPAT Membership: Much like certification with other U.S. government agencies or the International
Standards Organization (ISO), CTPAT membership can raise a Member’s reputation and ability to secure business.
• CTPAT Defender: (Pilot is operational) In an effort to combat Importer identity theft and provide a new benefit to CTPAT
Importers, CBP is in the process of developing a multilevel approach to protect CTPAT participants from exploitation of identity
theft by creating a notification and verification system.
Glo
Tra
Rea bal
ch
nd
Part
ners
for
Com
gB
plia CTPAT
nce
Economic Operator (AEO)
sin
Sec
urity Non-participant in CTPAT Administrations through Mutual
But consistently low risk importers and exporters
Recognition Arrangements
(MRAs).
Page 14
The Program, in consultation with the Trade, determined that a best practices framework created a more agile and effective process, since
a framework – as opposed to a prescriptive list – allows companies to identify or build specific and unique best practices. For CTPAT
purposes, a best practice must meet all five of the following requirements, all of which are subject to verification:
The best practices framework was tested and validated in 2018 by Members of the MSC Working Group.
Page 15
III. MINIMUM SECURITY CRITERIA OVERVIEW / FOCUS AREAS
The new criteria take a more comprehensive approach towards supply chain security; they include new requirements and recommendations
in the following areas:
• Cybersecurity – To help ensure the security of critical IT systems and the trade data that moves across cyberspace;
• Agricultural Security – To protect the supply chain from agricultural contaminants and pests;
• Using security technology, including security cameras and intrusion alarms, to fortify existing physical security requirements.
Other requirements in well-known categories have been strengthened. For example, under the Physical Access Control category, CTPAT
added the requirement that if security guards are used, work instructions for these guards must be outlined in written procedures. Also, in an
effort to highlight an issue of serious concern to CBP and which has had an impact on the supply chain, CTPAT added a recommendation
that addresses a social compliance program.
CTPAT categorized the new criteria into three focus areas: Corporate Security, Transportation Security, and People and Physical Security.
Within these focus areas there are 12 criteria categories that apply across the supply chain to each entity group eligible for CTPAT
membership.
• Ensuring import and export processes follow security protocols and all paperwork is secured;
• Conducting inspections of Instruments of International Traffic such as containers, trailers, and Unit Load Devices (ULDs);
• Complying with security seal protocols; and
• Maintaining operational security of cargo in transit.
Page 16
The new criteria category in this focus area, Agricultural Security, aims to prevent the international supply chain from agricultural pests
and contaminants.
2. Risk Assessment
Corporate Security
3. Business Partner Security
4. Cybersecurity (New)
6. Seal Security
Transportation Security
7. Procedural Security
Page 17
IV. MINIMUM SECURITY CRITERIA FOR FOREIGN MANUFACTURERS
IV.1 Introduction – Key Basics
Port of Import
11 Container Yard
CTPAT recognizes the complexity of international
10 Unloading of Vessel
supply chains, and the diverse business models
Members employ. For CTPAT purposes, a business
model refers to key characteristics about the business Factory
2 Factory Warehouse
1 FACILITY
that are considered when determining if the company SECURITY
12 Rail Transport
RAIL IN
meets the criteria, such as the role of the company 3 Local Truck Transport VESSEL AT PORT
SECURITY
TRANSIT
SECURITY
in the supply chain, size of the business, type of
legal entity, number of supply chains, and number of
FACILITY
business partners. SECURITY
FACILITY SECURITY
TRUCK IN TRANSIT
CTPAT encourages the implementation of security SECURITY 4 CARGO JET IN
TRANSIT SECURITY
FACILITY SECURITY Rail 13
measures based upon risk analysis, and the program Container
Rail Container Yard
Yard
allows for flexibility and the customization of security RAIL IN TRANSIT VESSEL IN
SECURITY TRANSIT
plans based on the Member’s business model and the SECURITY
level of risk as ascertained from the Member’s own risk 5 14 Cargo Jet Transport
assessment. Rail Transport
Some actors in the supply chain, particularly importers 6 Consolidation Facility 15 Local Warehouse
For those criteria that require written procedures, it is understood that these procedures are being followed or have been implemented by the
CTPAT Member – as applicable.
CTPAT defines the supply chain as beginning at the point of origin - where cargo destined for export has been made, assembled, grown and/
or packed for export - and ending at point of distribution.
Page 18
IV.2 Eligibility Requirements
As a voluntary supply chain security program based on trust, CTPAT is open to members of the trade community who can demonstrate
excellence in supply chain security practices and who have had no significant security related events. While each application to the CTPAT
program is considered on an individual basis, applicants need to take into account that if issues of concern do exist, they may result in CBP
determining the applicant to be ineligible for participation in the program.
To qualify for CTPAT as a Foreign Manufacturer, a company must meet the following requirements:
• Be an active Manufacturer incorporated in Mexico or Canada. Copies of the company’s certificate of incorporation must be
made available upon request by CTPAT.
• Have an active U.S. Customs and Border Protection Manufacturer Identification (MID) Number.
• If applicable, Mexican based companies must provide the business’ “Acta Constitutiva”, which lists the full legal name of the
company, and the full name of each owner or officer within the company.
• Mexican based companies must provide the RFC (Registro Federal de Contribuyentes), issued by the Mexican Tax
Administration Service or SAT. The RFC is the unique business/tax identifier made up of letters and numbers. RFCs are
12 characters long for companies, LLCs and partnerships (Persona Moral); or 13 characters long for persons or proprietorships
(Persona Fisica).
• Provide CTPAT with the correct Manufacturer Identification Number or MID number. This MID number must be constructed from
the name and address of the manufacturer where the cargo originated. If an entry filed fails to include a properly
constructed MID number, the entry may be rejected and any associated CTPAT benefits will be negated.
• Designate a company officer that will be the primary cargo security officer responsible for CTPAT.
• Sign the “CTPAT-Partner Agreement to Voluntarily Participate” and demonstrate commitment to the obligations outlined in this
Agreement. This document is signed by a Company officer when the company applies for CTPAT membership via the
CTPAT Portal.
• Complete a supply chain security profile in the CTPAT Portal, identifying how the company meets and maintains the Program’s
MSC for Foreign Manufacturers.
• Maintain no evidence of financial debt to CBP for which the responsible party has exhausted all administrative and judicial
remedies for relief, a final judgment or administrative disposition has been rendered, and the final bill or debt remains unpaid at
the time of the initial application or annual renewal.
Page 19
IV.3 Minimum Security Criteria
Change New
By Category
Strengthened No Change Must/ Must Should
Should
CORPORATE SECURITY
1. Security Vision & Responsibility
For a CTPAT Member’s supply chain security program to become and remain effective, it must have the support of a company’s upper
management. Instilling security as an integral part of a company’s culture and ensuring that it is a companywide priority is in large part the
responsibility of the company’s leadership.
Should
Must/
ID Criteria Implementation Guidance
Page 20 Note: Criteria ID numbers not listed are not applicable to Foreign Manufacturers
Should
Must/
ID Criteria Implementation Guidance
Page 21
CORPORATE SECURITY Must/
Change New Strengthened No Change Must Should
2. Risk Assessment Should
The continuing threat of terrorist groups and criminal organizations targeting supply chains underscores the need for Members to assess
existing and potential exposure to these evolving threats. CTPAT recognizes that when a company has multiple supply chains with
numerous business partners, it faces greater complexity in securing those supply chains. When a company has numerous supply chains, it
should focus on geographical areas/supply chains that have higher risk.
When determining risk within their supply chains, Members must consider various factors such as the business model, geographic location
of suppliers, and other aspects that may be unique to a specific supply chain.
Key Definition:
Risk – A measure of potential harm from an undesirable event that encompasses threat, vulnerability, and consequence. What determines
the level of risk is how likely it is that a threat will happen. A high probability of an occurrence will usually equate to a high level of risk. Risk
may not be eliminated, but it can be mitigated by managing it – lowering the vulnerability or the overall impact on the business.
Should
Must/
ID Criteria Implementation Guidance
The overall risk assessment (RA) is made up of two key parts. The
first part is a self-assessment of the Member’s supply chain security
practices, procedures, and policies within the facilities that it controls
to verify its adherence to CTPAT’s minimum-security criteria, and an
overall management review of how it is managing risk.
Page 22 Note: Criteria ID numbers not listed are not applicable to Foreign Manufacturers
Should
Must/
ID Criteria Implementation Guidance
When developing a process to map supply chains, high risk areas are
the first to be considered.
The international portion of the risk assessment should document
When documenting the movement of all cargo, the Member is to
or map the movement of the Member’s cargo throughout its supply
consider all applicable involved parties - including those who will only
chain from the point of origin to the importer’s distribution center. The
be handling the import/export documents such as customs brokers
mapping should include all business partners involved both directly and
and others that may not directly handle the cargo, but may have
indirectly in the exportation/movement of the goods.
operational control such as Non Vessel Operated Common Carriers
2.2
(NVOCCs) or Third Party Logistics Providers (3PLs). If any portion of
As applicable, mapping should include documenting how cargo moves
the transport is subcontracted, this may also be considered because
in and out of transport facilities/cargo hubs and noting if the cargo is
the more layers of indirect parties, the greater risk involved.
“at rest” at one of these locations for an extended period of time. Cargo
is more vulnerable when “at rest,” waiting to move to the next leg of its
The mapping exercise involves looking more in-depth at how your
journey.
supply chain works. Besides identifying risks, it may also serve to find
areas where a supply chain is inefficient, which may result in finding
ways to decrease costs or lead times for receiving products
Page 23
CORPORATE SECURITY Must/
Change New Strengthened No Change Must Should
3. Business Partners Should
CTPAT Members engage with a variety of business partners, both domestically and internationally. For those business partners who directly
handle cargo and/or import/export documentation, it is crucial for the Member to ensure that these business partners have appropriate
security measures in place to secure the goods throughout the international supply chain.
When business partners subcontract certain functions, an additional layer of complexity is added to the equation, which must be considered
when conducting a risk analysis of a supply chain.
Key Definition:
Business Partner – A business partner is any individual or company whose actions may affect the chain of custody security of goods being
imported to or exported from the United States via a CTPAT Member’s supply chain. A business partner may be any party that provides a
service to fulfill a need within a company’s international supply chain. These roles include all parties (both directly and indirectly) involved
in the purchase, document preparation, facilitation, handling, storage, and/or movement of cargo for, or on behalf, of a CTPAT Importer or
Exporter Member. Two examples of indirect partners are subcontracted carriers and overseas consolidation warehouses – arranged for by
an agent/logistics provider.
Should
Must/
ID Criteria Implementation Guidance
The following are examples of some of the vetting elements that can
help determine if a company is legitimate:
• Verifying the company’s business address and how long they have
been at that address;
• Conducting research on the internet on both the company and its
principals;
CTPAT Members must have a written, risk based process for screening
• Checking business references; and
new business partners and for monitoring current partners. A factor that
• Requesting a credit report.
Members should include in this process is checks on activity related
3.1
to money laundering and terrorist funding. To assist with this process,
Examples of business partners that need to be screened are direct
please consult CTPAT’s Warning Indicators for Trade-Based Money
business partners such as manufacturers, product suppliers, pertinent
Laundering and Terrorism Financing Activities.
vendors/service providers, and transportation/logistics providers. Any
vendors/service providers that are directly related to the company’s
supply chain and/or handle sensitive information/equipment are
also included on the list to be screened; this includes brokers or
contracted IT providers. How in-depth to make the screening depends
on the level of risk in the supply chain.
Page 24 Note: Criteria ID numbers not listed are not applicable to Foreign Manufacturers
Should
Must/
ID Criteria Implementation Guidance
Page 25
Should
Must/
ID Criteria Implementation Guidance
Page 26
Should
Must/
ID Criteria Implementation Guidance
Page 27
Should
Must/
ID Criteria Implementation Guidance
Section 307 of the Tariff Act of 1930 (19 U.S.C. § 1307) prohibits the
importation of merchandise mined, produced or manufactured, wholly
or in part, in any foreign country by forced or indentured child labor –
including forced child labor.
CTPAT Members should have a documented social compliance program
in place that, at a minimum, addresses how the company ensures
Forced Labor is defined by the International Labor Organization’s
3.9 goods imported into the United States were not mined, produced or
Convention No. 29 as all work or service exacted from any person
manufactured, wholly or in part, with prohibited forms of labor, i.e.,
under the menace of any penalty and for which the said person has
forced, imprisoned, indentured, or indentured child labor.
not offered himself voluntarily.
Page 28
CORPORATE SECURITY Must/
Change New Strengthened No Change Must Should
4. Cybersecurity Should
In today’s digital world, cybersecurity is the key to safeguarding a company’s most precious assets – intellectual property, customer
information, financial and trade data, and employee records, among others. With increased connectivity to the internet comes the risk of
a breach of a company’s information systems. This threat pertains to businesses of all types and sizes. Measures to secure a company’s
information technology (IT) and data are of paramount importance, and the listed criteria provide a foundation for an overall cybersecurity
program for Members.
Key Definitions:
Cybersecurity – Cybersecurity is the activity or process that focuses on protecting computers, networks, programs, and data from
unintended or unauthorized access, change or destruction. It is the process of identifying, analyzing, assessing, and communicating a
cyber-related risk and accepting, avoiding, transferring, or mitigating it to an acceptable level, considering costs and benefits taken.
Information Technology (IT) – IT includes computers, storage, networking and other physical devices, infrastructure and processes to
create, process, store, secure, and exchange all forms of electronic data.
Should
Must/
ID Criteria Implementation Guidance
Note: Criteria ID numbers not listed are not applicable to Foreign Manufacturers Page 29
Should
Must/
ID Criteria Implementation Guidance
Page 30
Should
Must/
ID Criteria Implementation Guidance
Cybersecurity policies and procedures must be reviewed annually, or An example of a circumstance that would dictate a policy update
4.6 more frequently, as risk or circumstances dictate. Following the review, sooner than annually is a cyber attack. Using the lessons learned from
policies and procedures must be updated if necessary. the attack would help strengthen a Member's cybersecurity policy.
Page 31
Should
Must/
ID Criteria Implementation Guidance
Access to IT systems must be protected from infiltration via the use of MFAs can assist in closing network intrusions exploited by weak
strong passwords, passphrases, or other forms of authentication, and passwords or stolen credentials. MFAs can assist in closing these
4.8 user access to IT systems must be safeguarded. attack vectors by requiring individuals to augment passwords or
passphrases (something you know) with something you have, like a
Passwords and/or passphrases must be changed as soon as possible token, or one of your physical features - a biometric.
if there is evidence of compromise or reasonable suspicion of a
compromise exists. If using passwords, they need to be complex. The National Institute
of Standards and Technology’s (NIST) NIST Special Publication
800-63B: Digital Identity Guidelines, includes password guidelines
(https://pages.nist.gov/800-63-3/sp800-63b.html). It recommends
the use of long, easy to remember passphrases instead of words with
special characters. These longer passphrases (NIST recommends
allowing up to 64 characters in length) are considered much harder to
crack because they are made up of an easily memorized sentence or
phrase.
Personal devices include storage media like CDs, DVDs, and USB
If Members allow employees to use personal devices to conduct
flash drives. Care must be taken if employees are allowed to connect
company work, all such devices must adhere to the company’s
4.10 their personal media to individual systems since these data storage
cybersecurity policies and procedures to include regular security
devices may be infected with malware that could propagate using the
updates and a method to securely access the company’s network.
company’s network.
Page 32
Should
Must/
ID Criteria Implementation Guidance
Data backups should take place as data loss may affect individuals
within an organization differently. Daily backups are also
recommended in case production or shared servers are compromised/
lose data. Individual systems may require less frequent backups,
Data should be backed up once a week or as appropriate. All sensitive depending on what type of information is involved.
4.12
and confidential data should be stored in an encrypted format.
Media used to store backups should preferably be stored at a facility
offsite. Devices used for backing up data should not be on the same
network as the one used for production work. Backing up data to a
cloud is acceptable as an “offsite” facility.
Page 33
TRANSPORTATION SECURITY Must/
Change New Strengthened No Change Must Should
5. Conveyance and Instruments of Should
At the point of stuffing/loading, procedures need to be in place to inspect IIT and properly seal them. Cargo in transit or “at rest” is under
less control, and is therefore more vulnerable to infiltration, which is why seal controls and methods to track cargo/conveyances in transit
are key security criteria.
Breaches in supply chains occur most often during the transportation process; therefore, Members must be vigilant that these key cargo
criteria be upheld throughout their supply chains.
Key Definition:
Instruments of International Traffic (IIT) – IIT includes containers, flatbeds, unit load devices (ULDs), lift vans, cargo vans, shipping tanks,
bins, skids, pallets, caul boards, cores for textile fabrics, or other specialized containers arriving (loaded or empty), in use or to be used in
the shipment of merchandise in international trade.
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If the inspections are supervised, the supervisor should also sign the
checklist.
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Based on risk, management personnel should conduct random Supervisory searches of conveyances are conducted to counter
searches of conveyances after the transportation staff have conducted internal conspiracies.
conveyance/Instruments of International Traffic inspections.
As a best practice, supervisors can hide an item (like a toy or colored
The searches of the conveyance should be done periodically, with a box) in the conveyance to determine if the field test screener/
5.8
higher frequency based on risk. The searches should be conducted conveyance operator finds it.
at random without warning, so they will not become predictable.
The inspections should be conducted at various locations where the Supervisory personnel could be a security manager, held accountable
conveyance is susceptible: the carrier yard, after the truck has been to senior management for security, or other designated management
loaded, and en route to the United States border. personnel.
For land border shipments that are in proximity to the United States Cargo at rest is cargo at risk. Scheduled stops would not be covered
5.16 border, a “no-stop” policy should be implemented with regard to by this policy, but would have to be considered in an overall tracking
unscheduled stops. and monitoring procedure.
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TRANSPORTATION
Change
SECURITY
New Must/ Must Should
Strengthened No Change
6. Seal Security Should
The sealing of trailers and containers to attain continuous seal integrity, continues to be a crucial element of a secure supply chain. Seal
security includes having a comprehensive written seal policy that addresses all aspects of seal security, such as using the correct seals per
CTPAT requirements; properly placing a seal on IIT, and verifying that the seal has been affixed properly.
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These written procedures must be maintained at the local operating level so that
they are easily accessible. Procedures must be reviewed at least once a year
and updated as necessary.
Seal Discrepancies:
• Retain altered or tampered seals to aid in investigations.
• Investigate the discrepancy; follow-up with corrective measures (if warranted).
• As applicable, report compromised seals to CBP and the appropriate foreign
government to aid in the investigation.
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All CTPAT shipments that can be sealed must be secured immediately The high-security seal used must be placed on the secure cam
after loading/stuffing/packing by the responsible party (i.e. the shipper position, if available, instead of the right door handle. The seal must
or packer acting on the shipper’s behalf) with a high-security seal be placed at the bottom of the center most vertical bar of the right
that meets or exceeds the most current International Organization for container door. Alternatively, the seal could be placed on the center
6.2
Standardization (ISO) 17712 standard for high-security seals. Qualifying most left-hand locking handle on the right container door if the
cable and bolt seals are both acceptable. All seals used must be secure cam position is not available. If a bolt seal is being used, it is
securely and properly affixed to Instruments of International Traffic that recommended that the bolt seal be placed with the barrel portion or
are transporting CTPAT Members’ cargo to/from the United States. insert facing upward with the barrel portion above the hasp.
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TRANSPORTATION SECURITY Must/
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7. Procedural Security Should
Procedural Security encompasses many aspects of the import-export process, documentation, and cargo storage and handling
requirements. Other vital procedural criteria pertain to reporting incidents and notification to pertinent law enforcement. Additionally, CTPAT
often requires that procedures be written because it helps maintain a uniform process over time. Nevertheless, the amount of detail needed
for these written procedures will depend upon various elements such as a company’s business model or what is covered by the procedure.
CTPAT recognizes that the technology used in supply chains continues to evolve. The terminology used throughout the criteria references
written, paper-based procedures, documents, and forms. Electronic documents and signatures, and other digital technologies, however, are
also acceptable ways to document required procedures.
The CTPAT Program is not designed to be a “one size fits all” model. Each company must decide (based on its risk assessment) how to
implement and maintain procedures. However, it is more effective to incorporate security processes within existing procedures rather than
create a separate manual for security protocols. This creates a more sustainable structure and helps emphasize that supply chain security is
everyone’s responsibility.
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As documented evidence of the properly installed seal, digital Photographic evidence may include pictures taken at the point of
photographs should be taken at the point of stuffing. To the extent stuffing to document evidence of the cargo markings, the loading
7.5
feasible, these images should be electronically forwarded to the process, the location where the seal was placed, and properly
destination for verification purposes. installed seal.
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TRANSPORTATION SECURITY Must/
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8. Agricultural Security Should
Agriculture is the largest industry and employment sector in the U.S., an industry threatened by the introduction of foreign animal and plant
contaminants such as soil, manure, seeds, and plant and animal material which may harbor invasive and destructive pests and diseases.
Eliminating contaminants in all conveyances and all types of cargo may decrease CBP cargo holds, delays and commodity returns or
treatments. Ensuring compliance with CTPAT’s agricultural requirements will also help protect a key industry in the U.S. and the overall global
food supply.
Key Definition:
Pest contamination – The International Maritime Organization defines pest contamination as visible forms of animals, insects or other
invertebrates (alive or dead, in any lifecycle stage, including egg casings or rafts), or any organic material of animal origin (including blood,
bones, hair, flesh, secretions, excretions); viable or non-viable plants or plant products (including fruit, seeds, leaves, twigs, roots, bark); or
other organic material, including fungi; or soil, or water; where such products are not the manifested cargo within instruments of international
traffic (i.e. containers, unit load devices, etc.).
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PEOPLE AND PHYSICAL SECURITY Must/
Change New Strengthened No Change Must Should
9. Physical Security Should
Cargo handling and storage facilities, Instruments of International Traffic storage areas, and facilities where import/export documentation is
prepared in domestic and foreign locations must have physical barriers and deterrents that guard against unauthorized access.
One of the cornerstones of CTPAT is flexibility, and security programs should be customized to fit each company’s circumstances. The need
for physical security can vary greatly based on the Member’s role in the supply chain, its business model, and level of risk.
The physical security criteria provides a number of deterrents/obstacles that will help prevent unwarranted access to cargo, sensitive
equipment, and/or information, and Members should employ these security measures throughout their supply chains.
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All cargo handling and storage facilities, including trailer yards and
9.1 offices must have physical barriers and/or deterrents that prevent
unauthorized access.
Gates where vehicles and/or personnel enter or exit (as well as other It is recommended that the number of gates be kept to the minimum
9.4 points of egress) must be manned or monitored. Individuals and vehicles necessary for proper access and safety. Other points of egress would
may be subject to search in accordance with local and labor laws. be entrances to facilities that are not gated.
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At a minimum, these policies and procedures must stipulate: Security technology needs to be tested on a regular basis to ensure it
is working properly. There are general guidelines to follow:
• That access to the locations where the technology is controlled or
managed is limited to authorized personnel; • Test security systems after any service work and during and after
major repairs, modifications, or additions to a building or facility. A
• The procedures that have been implemented to test/inspect the system’s component may have been compromised, either intentionally
technology on a regular basis;
or unintentionally.
• That the inspections include verifications that all of the equipment is
working properly, and if applicable, that the equipment is positioned • Test security systems after any major changes to phone or
correctly; internet services. Anything that might affect the system’s ability to
communicate with the monitoring center should be double-checked.
9.8 • That the results of the inspections and performance testing is
documented; • Make sure video settings such as motion activated recording;
motion detection alerts; images per second (IPS), and quality level,
• That if corrective actions are necessary, they are to be implemented as have been set up properly.
soon as possible and the corrective actions are documented;
• Make sure camera lenses (or domes that protect the cameras) are
• That the documented results of these inspections be maintained for a
sufficient time for audit purposes. clean and lenses are focused. Visibility should not be limited by
obstacles or bright lights.
If a third party central monitoring station (off-site) is used, the CTPAT
Member must have written procedures stipulating critical systems • Test to make sure security cameras are positioned correctly and
functionality and authentication protocols such as (but not limited to) remain in the proper position (cameras may have been deliberately or
security code changes, adding or subtracting authorized personnel, accidentally moved).
password revisions, and systems access or denials.
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Access controls prevent unauthorized access into facilities/areas, help maintain control of employees and visitors, and protect company
assets. Access controls include the positive identification of all employees, visitors, service providers, and vendors at all points of entry.
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A cargo pickup log must be kept to register drivers and record the
details of their conveyances when picking up cargo. When drivers arrive
to pick up cargo at a facility, a facility employee must register them
in the cargo pickup log. Upon departure, drivers must be logged out.
The cargo log must be kept secured, and drivers must not be allowed
access to it.
The cargo pickup log should have the following items recorded: A visitor log may double as a cargo log as long as the extra
10.4
information is recorded in it.
• Driver’s name;
• Date and time of arrival;
• Employer;
• Truck number;
• Trailer number;
• Time of departure;
• The seal number affixed to the shipment at the time of departure.
This criterion will help shippers and carriers to avoid fictitious pickups.
Fictitious pick-ups are criminal schemes that result in the theft of
cargo by deception that includes truck drivers using fake IDs and/or
Prior to arrival, the carrier should notify the facility of the estimated time fictitious businesses set up for the purpose of cargo theft.
of arrival for the scheduled pick up, the name of the driver, and truck
10.7
number. Where operationally feasible, CTPAT Members should allow When a carrier has regular drivers that pick up goods from a certain
deliveries and pickups by appointment only. facility, a good practice is for the facility to maintain a list of the drivers
with their pictures. Therefore, if it is not feasible to let the company
know which driver is coming, the company will still be able to verify
that the driver is approved to pick up cargo from the facility.
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Arriving packages and mail should be periodically screened for Examples of such contraband include, but are not limited to,
10.8
contraband before being admitted. explosives, illegal drugs, and currency.
If security guards are used, work instructions for security guards Though guards may be employed at any facility, they are often
must be contained in written policies and procedures. Management employed at manufacturing sites, seaports, distribution centers,
10.10
must periodically verify compliance and appropriateness with these storage yards for Instruments of International Traffic, consolidator, and
procedures through audits and policy reviews. forwarders operating sites.
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PEOPLE AND PHYSICAL SECURITY Must/
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11. Personnel Security Should
A company’s human resource force is one of its most critical assets, but it may also be one of its weakest security links. The criteria in this
category focus on issues such as employee screening and pre-employment verifications.
Many security breaches are caused by internal conspiracies, which is where one or more employees collude to circumvent security
procedures aimed at allowing an infiltration of the supply chain. Therefore, Members must exercise due diligence to verify that employees
filling sensitive positions are reliable and trustworthy. Sensitive positions include staff working directly with cargo or its documentation, as
well as personnel involved in controlling access to sensitive areas or equipment. Such positions include, but are not limited to, shipping,
receiving, mailroom personnel, drivers, dispatch, security guards, any individuals involved in load assignments, tracking of conveyances,
and/or seal controls.
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Written processes must be in place to screen prospective employees CTPAT is aware that labor and privacy laws in certain countries may
and to periodically check current employees. Application information, not allow all of the application information to be verified. However,
11.1
such as employment history and references, must be verified prior to due diligence is expected to verify application information when
employment, to the extent possible and allowed under the law. permitted.
CTPAT Members must have an Employee Code of Conduct that A Code of Conduct helps protect your business and informs
includes expectations and defines acceptable behaviors. Penalties employees of expectations. Its purpose is to develop and maintain
and disciplinary procedures must be included in the Code of a standard of conduct that is acceptable to the company. It helps
11.5 Conduct. Employees/contractors must acknowledge that they companies develop a professional image and establish a strong
have read and understood the Code of Conduct by signing it, ethical culture. Even a small company needs to have a Code of
and this acknowledgement must be kept in the employee’s file for Conduct; however, it does not need to be elaborate in design or
documentation. contain complex information.
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PEOPLE AND PHYSICAL SECURITY Must/
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12. Education, Training and Awareness Should
CTPAT’s security criteria are designed to form the basis of a layered security system. If one layer of security is overcome, another layer
should prevent a security breach, or alert a company to a breach. Implementing and maintaining a layered security program needs the active
participation and support of several departments and various personnel.
One of the key aspects to maintaining a security program is training. Educating employees on what the threats are and how their role is
important in protecting the company’s supply chain is a significant aspect to the success and endurance of a supply chain security program.
Moreover, when employees understand why security procedures are in place, they are much more likely to adhere to them.
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Understanding the training and being able to use that training in one’s
position (for sensitive employees) is of paramount importance. Exams
CTPAT Members should have measures in place to verify that the
12.4 or quizzes, a simulation exercise/drill, or regular audits of procedures
training provided met all training objectives.
etc. are some of the measures that the Member may implement to
determine the effectiveness of the training.
As applicable, based on their functions and/or positions, personnel Quality training is important to lessen vulnerability to cyberattacks. A
must be trained on the company’s cybersecurity policies and robust cybersecurity training program is usually one that is delivered
12.8
procedures. This must include the need for employees to protect to applicable personnel in a formal setting rather than simply through
passwords/passphrases and computer access. emails or memos.
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CTPAT PROGRAM
CBP.GOV/CTPAT