CTPAT FAQ

Can we help with your Questions on CTPAT? 

• What is CTPAT?

  CTPAT stands for the Customs-Trade Partnership Against Terrorism. It is a voluntary supply chain security program led by U.S. Customs and Border Protection (CBP), which is part of the U.S. Department of Homeland Security (DHS). CTPAT is designed to strengthen the overall security of the international supply chain, with a particular focus on preventing terrorism and ensuring the safety of goods entering the United States.

  The program is primarily aimed at businesses involved in international trade, including importers, exporters, customs brokers, freight forwarders, and other key players in the supply chain. Participants in the CTPAT program commit to implementing specific security measures to protect their supply chain and to enhance the security of their cargo from the point of origin to its final destination in the United States.

• What is CTPAT certification?

  CTPAT certification is a recognition by U.S. Customs and Border Protection that a particular business has met security standards to protect the international supply chain and facilitate the movement of goods into the United States. Other companies can see that you are CTPAT certified and meet special governmental standards.

• Why is CTPAT important?

  CTPAT (Customs-Trade Partnership Against Terrorism) is crucial for several key reasons:

  1. National Security: CTPAT plays a fundamental role in safeguarding the United States against terrorist threats by enhancing supply chain security. It addresses vulnerabilities in the international trade system, reducing the risk of terrorism and illicit activities.

  2. Supply Chain Resilience: By encouraging businesses to implement security measures and best practices, CTPAT makes the supply chain more resilient. This benefits not only national security but also businesses and consumers by ensuring the reliability of goods and services.

  3. Trade Efficiency: CTPAT streamlines customs procedures, reducing delays and inspections for certified businesses. This facilitates the movement of goods, making international trade more efficient and cost-effective.

  4. Collaboration: The program fosters collaboration between the public and private sectors, promoting information sharing and cooperation to strengthen the overall security of international trade.

  5. Reputation and Trust: CTPAT certification enhances a company’s reputation and trustworthiness as a secure trade partner. It signifies a commitment to responsible trade practices and supply chain security.

  6. Regulatory Compliance: CTPAT helps businesses align with regulatory requirements, reducing the risk of non-compliance penalties and disruptions.

  7. Competitive Advantage: CTPAT-certified companies can gain a competitive edge, as they are perceived as more reliable and secure partners in certain industries.

  In summary, CTPAT is vital for national security, supply chain resilience, trade efficiency, and promoting trust in global trade. Businesses that participate in CTPAT contribute to a safer and more efficient international trade environment.

• What are the benefits on CTPAT certification?

  Becoming CTPAT (Customs-Trade Partnership Against Terrorism) certified involves a series of steps and requirements. It is often beneficial to hire a consultant (like Veroot) to help in this process. Here’s an overview:

  Benefits of participating in CTPAT include:

  1. Reduced inspections: CTPAT members are often subject to fewer inspections and delays at the border, which can lead to faster and more efficient movement of goods.

  2. Enhanced security: By implementing security best practices, participants can better protect their supply chain and reduce the risk of tampering, theft, or terrorist infiltration.

  3. Trade facilitation: CTPAT contributes to the overall efficiency of international trade by streamlining customs procedures and ensuring that compliant businesses receive preferential treatment.

  4. Improved reputation: Being a CTPAT member can enhance a company’s reputation by demonstrating a commitment to supply chain security and responsible trade practices.

• How do I become CTPAT certified?

  Becoming CTPAT (Customs-Trade Partnership Against Terrorism) certified involves a series of steps and requirements. It is often beneficial to hire a consultant (like Veroot) to help in this process. Here’s an overview:

  1. Determine Eligibility: Ensure that your business is eligible to participate in the CTPAT program.

  2. Access the CTPAT Portal: Visit the CTPAT portal on the U.S. Customs and Border Protection (CBP) website.

  3. Complete the Application: Fill out the CTPAT application form within the portal.

  4. Risk Assessment: CBP will conduct a preliminary risk assessment to determine your eligibility for the program.

  5. Supply Chain Security Profile: Develop a comprehensive supply chain security profile that outlines your current security measures and practices.

  6. Self-Assessment Questionnaire: Complete the CTPAT self-assessment questionnaire, which covers various aspects of supply chain security. Be prepared to provide evidence of your security measures and practices.

  7. Security Measures Implementation: Implement security measures based on the CTPAT security criteria.

  8. Security Review: CBP may conduct an on-site security review of your business to assess your compliance with CTPAT security criteria.

  9. Final Validation: Once CBP is satisfied with your security measures and practices, and any necessary corrective actions have been taken, your business will be officially certified as a CTPAT member.

  10. Maintain Compliance: CTPAT certification is not a one-time achievement. Certified members must maintain and continually improve their supply chain security standards. CTPAT Software is very beneficial to helping in this process.

  If you have any questions or need assistance, Veroot can provide guidance and support to help you become CTPAT certified.

• Is CTPAT mandatory?

  While CTPAT membership is not obligatory, many companies choose to participate in the program because it offers several advantages, such as reduced customs inspections, streamlined border crossings, enhanced security, and improved reputation as secure trade partners. These benefits can contribute to more efficient and cost-effective international trade operations. Also you will find many of your business partners may required you belong to CTPAT as a measure of obtaining their hand in business.

• What is a CTPAT audit?

  A CTPAT audit, often referred to as a “Validation,” is a thorough assessment conducted by U.S. Customs and Border Protection (CBP) to verify that a business’s supply chain security measures and practices align with the requirements and standards of the Customs-Trade Partnership Against Terrorism (CTPAT) program. This audit is a critical step in the CTPAT certification process and for maintaining ongoing compliance.

• What is U.S. Customs and Border Protection (CBP) CTPAT validation?

  A CTPAT Validation consists of the following steps:

  1. On-Site Inspection

  2. Security Criteria Evaluation

  3. Review of Documentation

  4. Interviews

  5. Identification of Vulnerabilities

  6. Corrective Action Plan

  7. Final Validation

• Is U.S. Customs and Border Protection (CBP) still doing virtual validations?

  CTPAT validations can be either in person, on-site, or virtual. First-time validations will usually take place at the location that applied but it is up to the discretion of the SCSS. A virtual validation will typically take place over Microsoft Teams, so be sure your computer can run this client.

• How long do validations last?

  Typically CTPAT validations last four to six hours. The more prepared you are, the faster they are over!

• Will all of our locations be included in the validation?

  Not usually. U.S. Customs and Border Protection (CBP) will select one location in the U.S. and, if applicable, one foreign location.

• Who should attend the validation?

  We recommend the following people attend CTPAT Validations:

  • A CTPAT-designated security officer (the point of contact)

  • The business owner or CEO/Manager

  • An IT/Cyber representative

  • An HR representative

  • A warehouse operations manager (if applicable)

• Do I need to get recertified every year once I'm certified?

  Yes, but the technical term is “submitting your annual review”. You must submit an annual review of your security profile each year. This means addressing any changes to the organization, updating the 5-Step Risk Assessment, updating the CTPAT Portal, and uploading new evidences of implementation, and other areas of your CTPAT program that need adjustment.

• What is the Five-Step Risk Assessment?

  The five steps include:

  1. Undergoing an external assessment where security questionnaires are sent out to business partners

  2. Creating an action plan to address vulnerabilities.

  3. Analyzing business partner and region/country risk levels.

  4. Mapping out the cargo/data flow.

  5. Conducting a self-risk assessment as well as a vulnerability assessment.

• What happens if we fail our validation or miss our annual review due date?

  U.S. Customs and Border Protection (CBP) can suspend your CTPAT status until you’re compliant or remove you from the program altogether. So be careful not to miss this date and to look for emails from the CTPAT which are sent as friendly reminders.

• Do I need to provide proof that we are CTPAT compliant?

  Yes. The main security profile will document your CTPAT processes, however, you’ll need to provide Evidence of Implementation (EOI) for each process. In all Veroot provides about 50 processes (called EOI’s) for our clients that cover all 12 aspects of the Minimum Security Criteria.

• What is a security questionnaire and how are they used?

  U.S. Customs and Border Protection (CBP) requires proper vetting of all business partners in your supply chain. To properly vet business partners, you can either

  1) go on-site and perform an audit or

  2) send out a security questionnaire. Security questionnaires are preferred because they help you avoid having to conduct site visits for all key stakeholders while still ensuring they’re meeting Minimum Security Criteria (MSC).

  Once your business partners return the completed questionnaires, it’s your job to review them and make any necessary adjustments to maintain CTPAT compliance. This typically means providing an action plan to any parties who aren’t meeting all of the Minimum Security Criteria (MSC).

• To whom do I need to send my CTPAT security questionnaires?

  According to the U.S. Customs and Border Protection (CBP) regulations, “When a CTPAT member outsources or contracts elements of its supply chain, the member must exercise due diligence (via visits, questionnaires, etc.) to ensure these business partners have security measures in place that meet or exceed CTPAT’s Minimum Security Criteria (MSC).” This essentially means that any entity involved in your supply chain needs to complete a security questionnaire and document that they’re following the requirements outlined in your CTPAT standard operating procedures (SOPs).

• What are the new forced labor requirements?

  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 by forced or indentured child labor. Forced labor requirements are now a must for importers and foreign manufacturers — and are highly recommended for other entities as of January 1, 2023. Additionally, CTPAT members must have a social compliance policy in place if they are an importer or a foreign manufacturer.

• How often do our employees need to be trained on CTPAT standard operating procedures (SOPs)?

  CTPAT Security Awareness Training for employees is a critical part of remaining a CTPAT member in good standing. U.S. Customs and Border Protection (CBP) requires education for all employees on CTPAT Minimum Security Criteria (MSC).