As global trade continues to shift and grow, CTPAT (Customs Trade Partnership Against Terrorism) must evolve with it. CTPAT started as a post 9/11 security initiative and now has become a key part of how companies manage supply chain risk. However, with new challenges ranging from cybersecurity threats to changing compliance standards, CTPAT is moving into a new chapter. In this blog, we will look at the trends that are likely to mold the future of the CTPAT program and what companies can expect moving forward.
Technology is Changing the Game
- Technology is quickly becoming a huge part of supply chains, and CTPAT is no exception. Technology is playing a bigger role in how companies stay compliant and secure. Looking towards the future, businesses may be expected to show that they’re using technology for smarter risk management. If you’re a part of the CTPAT program, now is a good time to reassess your digital tools and see what might need leveled up.
A Bigger Spotlight on Forced Labor
- Forced Labor enforcement is becoming a huge priority for CBP, and its starting to show up in CTPAT. Companies are now being asked to take a closer look at their Business Partners, especially if they are in a high risk area, and document how they’re ensuring the goods they use are being sourced responsibly. This ties into a growing focus on ethical sourcing overall.
More Global Collaboration
- CTPATs focus is not just about U.S borders anymore. The program is expanding its partnerships with other countries through Mutual Recognition Agreements (MRAs), which help improve security across the board. This global focus means that being a member of the CTPAT program could soon involve even more benefits than before. An example would be, quicker customs clearance in other countries as well. Staying up to speed with these developments can make operations for your business a lot smoother worldwide.
Resilience Takes Center Stage
- Within the past few years, it has become apparent that supply chains need to be ready for anything. Be it a pandemic, a natural disaster, or political disruptions, CTPAT is beginning to incorporate this mindset into its framework. The CTPAT program is putting more emphasis on resilience, encouraging businesses to think outside of security and focus on long-term stability. They are pushing companies to start rethinking their sourcing strategy, building in different forms of backups, and/or start developing stronger emergency plans. Being prepared is becoming a major part of CTPAT compliance.
CTPAT is clearly moving in a direction that reflects the ever changing/evolving words of global trade. Whether it is staying up to date with technology, tackling Forced Labor concerns, or building more resilient operations, the CTPAT program continues to evolve and we need to ensure our business evolves with it. Staying informed and being proactive will help ensure your company does not only meet future requirements but also gets the most value out of being part of the CTPAT program. These upcoming trends are not just about compliance; they are opportunities to strengthen your supply chain for the years to come! If you are looking to strengthen and update your CTPAT Supply Chain policies/procedures, give us a call here at Veroot!