Consolidators play key compliance role in security initiatives

KEVIN MAYHEW CONSOLIDATORS WILL become one of the key compliance players in the supply chain to meet the needs of the Customs-Trade Partnership Against Terrorism (C-TPAT) which has been introduced to strengthen overall supply chain and border security for products entering the United States. That’s the view of Bob Kirby, Kent-based MD of ITW Envopak and contributor to the international panel determining the requirements of the initiative. It's a voluntary American government and business initiative which requires the close co-operation of all participants in the supply chain – importers, carriers, brokers, warehouse operators and manufacturers – to create a viable audit chain. Many thousands of companies have realised the benefits of joining, with the result that over 70% of worldwide container movements are now represented. C-TPAT is being driven by America’s Department of Homeland Security (DHS), following the perceived threat posed by extremist groups after the September 11, 2001 World Trade Centre strike. Through the initiative, the United States Customs and Border Protection (USCBP) is asking businesses to ensure the integrity of their security practices and communicate their security guidelines to partners within the supply chain. This is being reinforced by the stipulation for all members to conform with security sealing requirements to ISO (PAS) 17712, which details international standards for the manufacture, classification and usage of mechanical freight container seals. The key component of ISO (PAS) 17712 is its Normative Annexe. This gives the consumer vital information on the type of company that will produce products that meet all the audit and trace requirements of C-TPAT membership. For instance, the ability to maintain records of all products manufactured for a minimum of seven years, according to Kirby. “It is not just for suppliers and importers who will be responsible for ensuring the safe transportation of goods across borders. Shippers and forwarders will also be obliged to meet the C-TPAT regulations and must be able to demonstrate compliance. Failure to comply may result in delays and potential loss of business. Whilst it is currently only the US stipulating full compliance for all goods shipped to and from its borders, an objective of C-TPAT is to internationalise its initiatives. This is resulting in an increasingly high level of inter-governmental cooperation,” Kirby said.