1. TRADITION SERVICE HONOR Customs-Trade Partnership Against Terrorism (C-TPAT) June 2002

2. Customs-Trade Partnership Against Terrorism Priority Goals of the U.S. Customs Service 1. Border Control and Trade Facilitation –Programs to combat international terrorism –Improve flow of trade w/o impairing homeland security 2. Investigations –Disrupt terrorist financing 3. Managing and Modernizing –Rapidly modernize USCS information systems June 2002

3. Customs-Trade Partnership Against Terrorism Highest priority: Increase border security v. terrorist threat Looking for: Industry leaders u Secure facilities / conveyances u Screen employees u Influence business partners u Work with Customs June 2002

4. THE PARTNERSHIP CHALLENGE (2001 National Statistics - FISCAL YEAR) Data Source: OMR Data Warehouse (10/20/2001) 11,281,774 214,610 5,709,974 SEA 79,674,743 839,221 125,226 AIR 387,862,588 129,576,724 11,186,909 LAND 2,257,608 June 2002

5. Customs-Trade Partnership Against Terrorism What is C-TPAT? Customs and the trade community working together to: l Ensure national security at the U.S. Border and beyond l Strengthen supply chain l Exchange ideas and knowledge l Facilitate legitimate trade June 2002

6. Building upon Customs programs... Carrier Initiative Program (CIP) Business Anti-Smuggling Coalition (BASC) Americas Counter Smuggling Initiative (ACSI) Low-Risk Importer program (LRI) Container Security Initiative (CSI) Customs-Trade Partnership Against Terrorism June 2002

7. Enhancing security within each segment of the supply chain Production Transportation Importation Distribution Customs-Trade Partnership Against Terrorism June 2002

8. C-TPAT partners will include: Importers Carriers Manufacturers / suppliers Brokers Warehouses Customs-Trade Partnership Against Terrorism June 2002

9. C-TPAT requirements C-TPAT requirements Businesses must apply and agree to Conduct a comprehensive security self-assessment Submit a completed supply chain security profile questionnaire to Customs Develop and implement a program to enhance security throughout their supply chains Communicate & promote C-TPAT guidelines to other companies in the supply chain Customs-Trade Partnership Against Terrorism June 2002

10. Customs-Trade Partnership Against Terrorism Potential benefits of C-TPAT Secure supply chain Reduced number of inspections Assigned account manager Possible low-risk treatment for all LRI company divisions Access to the C-TPAT membership list Eligibility for account-based processes An emphasis on self-policing, not customs verifications Eligibility for Importer Self Assessment Program June 2002

11. Status, next steps, vision: l Charter members enlisted l Engaged low-risk importers l Open enrollment for importers l Carriers and brokers eligible in Summer of 2002 l Foundation for future customs strategies in trade & security Customs-Trade Partnership Against Terrorism June 2002

12. Customs-trade Partnership Against Terrorism Partnership is the key! Border Security June 2002