Recent events have changed the Customs Trade Partnership Against Terrorism (CTPAT) program from what was originally, a truly voluntary program, to a commercial necessity for doing business in the U.S. In the past six months two of my clients have received letters from their customers expressing the strong "suggestion" they become CTPAT certified. 

In one case IBM communicated that the company become CTPAT certified to remain an "approved vendor". In the second case, DaimlerChrysler issued a similar mandate. In the case of IBM the company was required to sign a written commitment. 

CTPAT has now become the equivalent of an ISO certification for security, Large OEM'';s like DaimlerChrysler and IBM who are themselves CTPAT certified, want to protect their own CTPAT status and secure their supply chair by dealing only with CTPAT certified vendors.

Many large retail chains are taking the same approach. In short, while CTPAT is still "voluntary", the threat of losing business from a company's main customer is an important factor in the growth of CTPAT participation. CTPAT has now become a marketing tool, with companies advertising on their websites that the are "CTPAT Certified". It is clear that CTPAT membership has become more than a security issue. It is now one of commercial competitiveness.

Also, there has been some misunderstanding about Mexican companies participation in CTPAT. Mexican companies are the only non -U.S. companies that currently are eligible for CTPAT. This gives them a competitive advantage over exporters in China and other countries that are not yet eligible for CTPAT. Additionally, Mexican companies certified under CTPAT, can participate in another program called FAST (Free and Secure Trade), that enables them to use special fast lanes and smart cards at certain border crossings. However, in this case, not only does the Mexican facility that is the exporter of record need to be CTPAT certified but also the U.S. importer of record, and the trucking companies carrying the goods. All three must be CTPAT members. This is often not understood. 

Customs has indicated that only CTPAT members will be assured of continued access to the U.S. in times of border alerts. If your company has not applied for CTPAT or FAST and you would like more information, including a copy of Customs new CTPAT good practices guidelines, please send an email to lglick@porterwright.com.