The lingering impacts of the pandemic on supply chains, including shipping, shortages, and rapid inflation, support US Customs and Border Protection (CBP) expanding their signature supply chain security program to address certain critical economic security issues. The Customs Trade Partnership Against Terrorism (CTPAT), developed in the aftermath of the 9/11 terrorist attacks, established a shared responsibility between the trade and government to maintain the processes, systems, and skills required to secure the US import supply chain from security threats.
Internationally, the US championed creation of the World Customs Organization’s (WCO’s) SAFE Framework and the Authorized Economic Operator (AEO) program based on CTPAT. AEO programs promote internationally recognized standards aimed at both securing supply chains and facilitating legitimate low-risk trade. CBP’s current effort to expand CTPAT could unnecessarily extend AEO standards, deter industry participation, and undermine the effectiveness of the program. CBP’s new CTPAT minimum security criteria to address forced labor and potential use of the program to address environmental provisions in trade agreements pose challenges in areas which lack established global standards. It is imperative that as program expansions are considered, these new requirements are implemented in a way that protects the US economy without undermining customs and business operational efficiency.
Companies will continue to invest and participate in the full scope of CTPAT programs, provided there are tangible trade facilitation benefits that meaningfully improve operational efficiency. Critical to the success of CTPAT expansion and the intended laudable goals is that these voluntary programs remain flexible and commercially relevant. As CTPAT marks its 20th anniversary, it is time to return to the core of the program — highly secure and compliant supply chains tied to tangible, meaningful trade facilitation benefits.