C-TPAT SECURITY AWARENESS TRAINING Presented at: XXXXX As a Basis for Individual Facility Training

C-TPAT Background U.S. Government’s Response to 9/11 Recognized need to strengthen borders and control possible terrorist infiltration of the int’l supply chain U.S. Customs and Border Protection under the “new” Department of Homeland Security C-TPAT program started in 2003 with voluntary applications for importers, carriers, brokers, freight forwarders Incentive based: COMPANY XXXXXXXXXXXX benefits from participation

C-TPAT Benefits Reduced Cargo Inspections Fewer enforcement examinations and trade inspections Tiered system Certified Validated (minimum) Validated (exceeds standards; has best practices) FAST Lanes for expedited cargo processing: CA and MX Mitigation of penalties Communications portal (2006) Best practices catalog (2005) Expedited ruling requests Possible “green lane”

C-TPAT Background (cont’d) March 25, 2005, CBP publishes detailed C-TPAT Security Criteria Phase I Container Security, Physical Security, Physical Access Controls Phase II Personnel Security, Procedural Security, IT Security Security Training and Threat Awareness Phase III: Business Partner Requirements

Security Training and Threat Awareness Purpose: To train employees to recognize and be aware of the threat posed by terrorists at each point in the supply chain. Employees must be aware of emergency procedures the company has in place. “safe” rooms, evacuation procedures Employees must know how to report situations that may compromise security (who, what, when). Each facility has guidelines and emergency numbers

Your facility: Emergency “Safe” room What to do if there is a Hazmat situation Where to meet outside the facility in case of an evacuation Numbers to call: (posted in _________) When to call: (posted in ___________)

Phase I: Container Security Inspection/storage of containers and seals Employees should immediately report to their supervisors, customs coordinator and plant manager any signs of: Container (or trailer) damage; Broken container (or trailer) seals; Unauthorized personnel in container/trailer storage areas; Paperwork discrepancies (unaccounted for cargo, missing cargo).

Phase I: Physical Security Employees should immediately report: Damage to exterior fencing, lighting and the building structure; Defective locking devices and signs of tampering or forcing locks in the building or along the fence line; Missing keys and access cards or the use of keys and cards by unauthorized personnel; Any damage to the alarm systems or video surveillance systems.

Phase I: Physical Access Controls IMPORTANT AREA OF EMPLOYEE PARTICIPATION Employees should know fellow co-workers and challenge unauthorized personnel to identify themselves when seen on the premises. Employees should notify the head of security about ANY unauthorized personnel on premises. (follow reporting chain for each facility)

Phase I: Physical Access Controls (cont’d) Employees must wear badges at all times and should report cases where: Visitors and delivery personnel are not wearing identifying badges while on the facility premises Any proposed break in procedure “I just need to drop something off….” (follow reporting chain for each facility)

Phase II: Personnel Security HR is responsible for verifying previous employment, background checks, termination procedures Remove access keys, cards, IT passwords Follow all written procedures Employees should immediately report if terminated employees try to access the facility premises. “Most Wanted” wall

Phase II: Procedural Security Shipping employees must: Inspect trailer before loading for any damage 7-point test, especially if trailer was in storage Verify paperwork and seal number Cargo integrity (correct quantity, weight, description) Properly affix seal (or seals if multiple stops) Report any signs of tampering or suspicious activity Follow written procedures: keep logs updated

Phase II: Procedural Security Receiving employees must: Verify that cargo specifications match paperwork Verify seal number Check for exterior signs of tampering After unloading, check interior for tampering Report any signs of tampering or suspicious activity Make sure container/trailer is properly reloaded or stored Follow all written procedures: keep all logs updated

Phase III: Business Partner Requirements All business partners (manufacturers, product suppliers, vendors) should meet C-TPAT criteria (or equivalent foreign supply chain security system) for their own business, subject to COMPANY XXXXXXXXXXXX verification. COMPANY XXXXXXXXXXXX employees must target business partners that are C-TPAT certified. CBP Status Verification Interface (SVI) Plant managers should be advised of partners that do not meet C-TPAT criteria, so a change in supplier may be considered.

Security Awareness for Guards First line of defense: the perimeter Check for damage to facility, unauthorized entry of persons and vehicles Report breaches IMMEDIATELY Guards are responsible for verifying incoming and exiting trailers and containers Paperwork (shipping or receiving) Seals Driver IDs Visitors: ID and appointment checked before allowed to enter Delivery drivers: ID and delivery approval before entry Employees: ID required, survey employee parking, watch for terminated employees Follow all written procedures; log all persons/vehicles

Recognizing Internal Conspiracies Employees not in appropriate work spaces at appropriate time Example: assembly line personnel in warehouse Excessive contact with outside personnel Shoe example Parking violations Next to containers/trailers No employee parking permit displayed “Can you do me a favor…?”

Security Awareness and You C-TPAT brings the responsibility for supply chain security to each individual. All COMPANY XXXXXXXXXXXX employees should participate in keeping their part of the supply chain as strong as possible at their facility. Always be aware of potential security threats Follow procedures Report suspicious activity