The Regulation
The Customs-Trade Partnership Against Terrorism (CTPAT) is a voluntary program created by US Customs and Border Protection (CBP) in which the agency partners with companies to strengthen supply chains and secure national borders. The program, introduced in the wake of the Sept. 11, 2001 terrorist attacks, aims to engage businesses in combatting terrorism and identifying security concerns within global supply chains.
In exchange for collaboration on security measures, CTPAT members receive faster cargo clearance, reduced costs, fewer CBP examinations, and predictability in logistics. To qualify, companies must conduct a detailed self-assessment of the security of their supply chain, examining suppliers, personnel, IT, and more, and be validated by CBP. Beginning in 2023, companies must prove their supply chains do not contain forced labor. According to CBP, more than 11,400 partners have joined the program, amounting to about 52% of cargo by value coming into the US.
What This Means
Participating members include importers, exporters, air, sea, rail, and highway carriers, customs brokers, consolidators, third-party logistics providers (3PLs), and more. To determine their eligibility, potential members must meet a specific Minimum Security Criteria (MSC) for their business entity type:
- Minimum Security Criteria vary between entity types, but participating organizations must generally provide verification of active registrations with CBP and other relevant government agencies, prove they have no active financial debt to CBP, appoint a designated primary cargo security officer, and complete a supply chain security profile
- In August 2023, CBP implemented new Forced Labor MSCs that require importers, exporters, and foreign manufacturers to have a documented social compliance program to ensure products were not mined, produced, or manufactured using forced labor. The six criteria include:
- Risk-based business mapping that outlines complete supply chains and highlights outsize forced labor risk factors
- A code of conduct to represent a company's position against forced labor
- Evidence of implementation such as internal training documents or audits of high-risk supply chains
- Due diligence and training to educate their suppliers
- A remediation plan in the event forced labor is found in their supply chains
- Shared best practices to help mitigate forced labor among other CTPAT members
After initial certification, members must undergo a revalidation every four years. However, some companies may need to be revalidated more frequently if their facilities are in high-risk locations or have had past security incidents.
Members are also expected to conduct an annual self-review of their program and update their supply chain security profile in the CTPAT portal to confirm information is accurate.
Who It Matters For
CTPAT affects organizations from across the trade community, offering a meaningful way for companies to collaborate directly with CBP to streamline trade and bolster national security. Joining CTPAT can unlock significant advantages, by reducing business disruptions, improving the ability to plan and predict logistics, and affording access to Free and Secure Trade (FAST) Lanes at land borders.
However, the recent addition of minimum forced labor requirements adds an additional layer of complexity to achieving CTPAT readiness. Traditional compliance processes that are dependent on manual methods across teams do not offer the depth of insights required to fully map supply chain risks.
Many importers and potential CTPAT members have little visibility beyond their Tier 1 suppliers, leaving them exposed to risks and additional hurdles in mapping their value chains. That in turn makes it difficult to pass the program’s verification process. This underscores the need for a greater level of visibility into n-tier value chains and knowledge of products’ origins down to raw materials.
How Altana Helps
Altana, the world's first Value Chain Management System, empowers customers to build a robust compliance foundation that supports long-term success in CTPAT and beyond:
See exposure to forced labor and other compliance risks upstream and downstream, built from detailed material flow visibility and based on your actual product information. This includes shipment data detailing the transformation of goods across tiers of your supply chain.
Focus on areas of exposure with access to supplier tiers dynamically and at scale. Altana offers high-fidelity transaction data combined with corporate ownership structures, enabling companies to identify and trace relationships for entities that pose risks. Screen new and existing suppliers and products against each CTPAT requirement with tailored insights and AI decision support.
Act across your value chains to get every compliance job done. Triage potential risks, collect and verify documentation from distant suppliers, or build audit trails. Create, manage, and file mandated regulatory reports, and escalate concerns both internally and to upstream suppliers from a shared source of truth.
Customers like US Customs and Border Protection, Boston Scientific, L.L. Bean, Maersk, and the UK Department of Business and Trade use Altana to build secure, resilient, efficient, and sustainable global value chains. This comprehensive approach not only meets current regulatory requirements, but also prepares organizations for future global trade challenges.
Take the Next Step
In today’s interconnected global trade environment, taking command of your extended supplier and distribution networks is critical. Discover how Altana's Value Chain Management System can help you navigate global trade compliance and attain certification for trusted trader programs like CTPAT.
