CTPAT is a voluntary program focused on supply chain security and built on trust. It is available to members of the trade community who can demonstrate outstanding security practices and have no history of significant security-related incidents. While every application to CTPAT is evaluated individually, applicants should be aware that any existing concerns or issues could lead CBP to determine that the applicant is not eligible to participate in the program.
1. Who is eligible to join CTPAT MSC?
Answer: The CTPAT program allows various company entity types within the global supply chain to apply for participation in its security initiatives. Eligible entities include air carriers, consolidators (such as air freight consolidators, ocean transport intermediaries, and NVOCCs), and customs brokers who facilitate the movement and clearance of goods. Exporters and foreign manufacturers, who produce or ship goods internationally, are also eligible, as well as highway carriers and long-haul highway carriers (operating in Mexico). Additionally, importers, marine port authorities/terminal operators, rail carriers, sea carriers, and third-party logistics providers (3PLs) are all recognized as qualified applicants. These entities play a crucial role in maintaining security standards and ensuring safe trade practices across the global supply chain.
CTPAT eligibility requirements vary depending on the entity type, but all applicants must demonstrate a commitment to enhancing security throughout the supply chain. Eligible Entities:
- Air Carriers, Sea Carriers, and Highway Carriers must have measures in place to protect cargo from tampering or theft and ensure that their vehicles and vessels meet safety standards.
- Consolidators, including air freight consolidators, NVOCCs, and ocean transport intermediaries, must demonstrate secure cargo handling and provide clear visibility into their operational processes.
- Customs Brokers must show they are compliant with Customs regulations and support efforts to prevent illicit activities.
- Exporters and Foreign Manufacturers need to ensure that their production facilities meet security protocols and that goods are properly documented and protected.
- Importers must verify the legitimacy of their sources and their security practices.
- Long-Haul Highway Carriers in Mexico must comply with additional regional regulations while ensuring cargo safety during transit.
- Marine Port Authorities/Terminal Operators, Rail Carriers, and Third-Party Logistics Providers (3PLs) must maintain security for the facilities, equipment, and processes they manage.
In all cases, applicants must have an internal security program in place, maintain thorough documentation, and be able to conduct regular risk assessments to stay compliant with CTPAT standards.
2. What are some of the factors that would deem a company ineligible for CTPAT?
Answer: Several factors can make a company ineligible for the CTPAT program. These include:
- Not implementing or adhering to the MSC for the company’s specific business sector. Such as submitting an application with missing information.
- Inability to demonstrate compliance with CTPAT’s security guidelines during the application process.
- Inability to provide evidence of a structured and documented supply chain security program such as failing to provide sufficient details in the company’s security profile.
- History of significant violations of U.S. customs laws or regulations or poor compliance history with CBP or other relevant authorities.
- Ongoing investigations or unresolved penalties related to customs compliance.
- Prior convictions for criminal activities related to supply chain operations, including smuggling, fraud, or terrorism.
- Association with individuals, entities, or organizations involved in illicit activities.
- Inactive or suspended status as a customs broker, importer, or exporter.
- Not responding to CBP’s requests for additional information or refusal to allow CBP access to facilities or records.
3. Are there any fees associated with applying for CTPAT?
Answer: There are no application fees associated with joining the program. However, businesses may incur internal costs related to meeting the program's security requirements, such as implementing security measures, training personnel, or hiring consultants to assist with compliance, documenting policies and preparing the application.
4. Do all Minimum Security Requirements (MSC) have to be implemented before applying?
Answer: Yes, all MSCs must be in place before applying to the CTPAT program. When applying, the company must complete a detailed security profile through the CTPAT online portal, demonstrating how they meet or exceed each MSC requirement. Inadequate implementation or documentation will lead to the rejection of the application.
5. How long does it take for CBP to make a determination on a new CTPAT application?
Answer: CBP typically takes up to 90 days to approve or deny a CTPAT application after it is submitted. During this time, CBP reviews the application to ensure it meets the program's security criteria. If the application is approved, the company becomes a CTPAT partner and enters into a validation process to maintain membership. If denied, CBP provides feedback, and the company may reapply after addressing any deficiencies.
6. Is there an appeal process if the CTPAT application is rejected?
Answer: CBP does not have an appeal process for denied applications, however, applicants who receive a denial may have the opportunity to resubmit for reconsideration. The process typically involves the following steps:
- Notification of Rejection: CBP informs the applicant of the reasons for the rejection, including any deficiencies or concerns that led to the decision.
- Correcting Deficiencies: The applicant should address the issues outlined by CBP. This may involve enhancing supply chain security measures or providing additional documentation to demonstrate compliance with the program’s requirements.
- Re-Submitting: This submission should include evidence of corrective actions and a detailed explanation of how the deficiencies have been resolved.
- CBP Review: CBP reviews the new supporting materials provided by the applicant. This process may include follow-up communication or additional information requests.
- Final Decision: After reviewing CBP makes a final decision regarding the application. If the appeal is successful, the applicant may proceed with the program. If the appeal is denied, the applicant may have to wait a specified period before reapplying.
Applicants should thoroughly understand the reasons for rejection and take the necessary steps to fully comply with the program's requirements before re-submitting.
The CTPAT program is open to members of the trade community with robust security practices and no history of major security-related incidents. To join, companies must demonstrate their commitment to securing the supply chain and adhere to all program requirements. Since CBP requires a detailed security profile as part of the evaluation process, applicants should ensure all MSCs policies are documented, implemented and being adhered to before applying to CTPAT.
If your company needs guidance in navigating the Minimum Security Requirements, documenting CTPAT policies, securing evidence of implementation or preparing your CTPAT application, Veroot is here to help!