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LEAGUE EXPRESSES CRITICISMS OVER NEW C-TPAT STANDARDS

Arlington, VA – The National Industrial Transportation League (League) in a December 3 letter to the Bureau of Customs and Border Protection (CBP) said it has major concerns over revised security standards that have been proposed by the agency to apply to importers who participate in the program known as the Customs – Trade Partnership Against Terrorism (C-TPAT). Since its inception in 2002, the League has supported this program as the purpose and scope of C-TPAT has been to improve the security of the freight transportation system, while also ensuring to the greatest extent possible the free flow of commerce.

The League’s views were voiced by the organization’s Executive Vice President, Peter J. Gatti. He told the agency that the League’s reactions to the CBP’s proposed plan were based on a review by members who are U.S. importers of a variety of commodities across different supply chains and are themselves participants in C-TPAT.

Gatti noted that while CBP’s efforts to modify its original proposal represents some improvement, the revised proposal particularly as to its approach and standards are in many respects, “still unrealistic, unworkable and vague.” He continued saying that because the new proposed standards for C-TPAT, “are more akin to mandatory obligations and are intended to hold the importer more accountable for the security of its supply chain, significant liability concerns are created by the proposal.”

The League specifically focused its detailed comments on CBP’s proposed requirements concerning: risk assessments; mandatory vs. voluntary requirements; business partnership requirements; container security; and other security requirements.

If CBP were to adopt the proposed standards for importers, the League stressed that the substantial uncertainties associated with the new plan could discourage new companies from signing up for C-TPAT and might force many existing companies not to continue their participation due to new costs and liability risks associated with the proposal as compared to the benefits derived from the program.

CBP in discussions with industry representatives has indicated its intention to put in place the new C-TPAT standards as early as the end of this year. Gatti in response to this timetable said, “The agency should continue to work with industry to develop realistic and workable security measures that are likely to lead to effective security standards.”

For the complete text of the League’s letter to Customs, click here: http://www.nitl.org/CBPFiling.pdf.

The League founded in 1907 represents more than 600 member companies engaged in the transportation of goods in domestic and international commerce. The organization is the oldest and largest trade association in the U.S. representing all sectors of the freight transportation industry including shippers/receivers of goods as well as carriers and other entities involved in the transportation of goods. The League’s shipper members use all modes of transportation to ship a wide variety of goods across the nation and internationally.

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