U.S. Customs and Border Protection recently highlighted how the Customs Trade Partnership Against Terrorism could benefit participating small businesses adjusting to the expected increase in customs enforcement activity under a recent executive order from the White House.
The EO directs CBP to take a number of actions to intensify customs enforcement, with a strong emphasis on importer accountability and vetting, foreign importer restrictions, disclosure obligations, and higher penalties. The most immediate practical effect will likely be an increase in bonding, data submissions, and compliance requirements for importers of record, especially foreign IORs. However, none of the directed actions are immediate and instead are likely to be implemented via rulemaking, giving importers and others time to comment and adjust operations as needed.
CBP Executive Assistant Commissioner for Field Operations Diane Sabatino said CTPAT offers small businesses “a proven security framework,” suggesting that participation in this program could make it easier to comply with CBP’s anticipated measures. CTPAT currently includes CTPAT Security, in which partners take steps to ensure supply chain security, and CTPAT Trade Compliance, which allows importers to assume responsibility for monitoring their own compliance with trade laws and regulations. In return for meeting minimum security criteria across 12 categories, participants receive benefits that can reduce regulatory burdens and mitigate enforcement actions, including the following.
- lower inspection rates, which means faster movement of goods and reduced storage costs
- expedited processing at the border, including access to Free and Secure Trade lanes, which speeds delivery of products to market and cuts costs
- resilience against supply chain threats and minimization of disruptions through compliance with CTPAT security criteria
- continuity planning tools to mitigate risks and recover from supply chain disruptions
- increased credibility to larger partners and customers
- access to a dedicated portal to manage security profiles and access program resources
CBP is encouraging eligible small businesses to join CTPAT to leverage these advantages as the agency moves toward implementing the measures set forth in the EO.
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