CTPAT

The United States and the European Union are now collabroating in an effort to increase the safety and efficiency of international shipments. The two parties have implemented a mutual recognition arrangement for their respective supply chain security programs. The equivalent to the CTPAT in the European Union is known as the Authorized Economic Operator Program. This program is what will allow the EU to enforce this agreement. The implementation of the new bilateral agreement will allow:

• US importers authorized under CTPAT to be considered secure
•  exports to receive a lower-risk score by the customs administrations of EU member states; and
• time and money savings.

This program creates an improved supply chain that is secure. The agreement allows importers and exporters to shorten shipping and processing times due to the fewer security related inspections and controls that they are subjected to. The benefits received by both parties are reciprocal when exporting into each others jurisdiction.

However, the agreement contains some exceptions. For instance, only tier 2 and 3 CTPAT importers qualify for full AEO benefits. Additionally, they are also the only importers that may receive lower risk-assesment scores, and consequently, undergo fewer inspections when exporting to an EU member state. Also, CTPAT members must expressly elect for the United States to share certain information with the European Union and certify that their exports meet all applicable requirements. Finally, the mutual recognition agreement will only apply to those CTPAT importers that are also exporters.

The EU and the US have also recently discussed the possibility of a free trade agreement. The mutual recognition agreement will facilitate trade and allow […]

On May 4, 2012, U.S. Customs and Border Protection (CBP) signed a Mutual Recognition Decision (MRD) with the European Union (EU).  This is CBP’s sixth Mutual Recognition Arrangement (MRA) to date.  The other five MRAs include New Zealand (2007), Canada and Jordan (2008), Japan (2009), and Korea (2010).

The MRD with the EU and its 27 Member States will be implemented in two phases:

Phase I will commence in July of 2012, and it will have two components:

1. CTPAT will start to recognize and accept the status of an Authorized Economic Operator (AEO) company in the EU in its overall validation process.  If a CTPAT validation visit is necessary as part of your validation or revalidation process, no such visit will need to take place in order for your company to be in the “Certified/Validated” status if that foreign facility is AEO certified.  Less redundant validations and a faster validation process are two of the benefits under Mutual recognition. A further benefit is that it will be easier for your company to document to your CTPAT Supply Chain Security Specialist (SCSS) that your business partners comply with the CTPAT program’s securitycriteria because these partners are AEO certified and the US recognizes that foreign program as one compatible to CTPAT by the fact that the US signed a MRA with that country.  There will be a period after July 2012 when CTPAT validation visits to AEO members may occur from time to time; the reason for this is that some of these validations […]