Is Your Supply Chain Ready for Customs and Import Changes?

Government moves one step closer to import safety plan, new security criteria

Today’s global economy can mean risky business for consumers and for your supply chain. We all know about the widely publicized danger of lead in some toys imported from China and realize the continued threat that terrorism poses. But have you carefully evaluated the safety of your supply chain, particularly whether your shippers and 3PLs meet new government standards?

In response to an executive order by President Bush, the Interagency Working Group on Import Safety recently released an Action Plan for Import Safety: A Roadmap for Continual Improvement.

At the same time, U.S. Customs and Border Protection announced its minimum security criteria for air carriers participating in the Customs-Trade Partnership Against Terrorism (C-TPAT). The program's director says they plan to have similar security criteria in place covering 3PL providers by early 2008.

Not surprisingly, the government reports and recommendations can be difficult to wade through and interpret. Mike Zachary, Tompkins Associates’ Senior VP of Global Transportation and Logistics Optimization, is in a unique position to help navigate these waters. A long-time maritime consultant, Zachary serves as a member of the Department of Homeland Security’s Container Operation Advisory Committee (COAC).

“Companies need to closely look at their shippers again and make sure they are C-TPAT certified,” Zachary says. “The reality is that some 3PLs who were certified may not qualify under new criteria. Of those 3PLs initially validated in the 2003 to 2006 time frame, nearly 98% have to be re-validated in the next 4 years. And those who view certification as strictly voluntary may end up with a broken supply chain. If you import or export, then you need to be certified.”

Zachary adds that it is also important to create contingencies—and even redundancies—in port and transportation strategies. “Make your policies solidly resistant to security threats and/or natural disasters so that your cargo can easily be transferred to other carriers and ports.”

Other key actions include:

1. Confirming where your 3PLs stand on C-TPAT certification.

2. Understanding emerging customs standards.

3. Knowing the rules on shipping in and out of China (specifically third-party inspection and validation rules).

4. Understanding the Federal Importer Self Assessment (ISA) Program and figuring out if it applies to your company.

5. Being aware of certification deadlines and potential trouble spots.

The US government is poised to make some of the most sweeping changes in import/export regulations in history, and you will want your supply chain to be prepared. “Ensuring the safety of products is an enormous undertaking, and how successfully the government and private sector collaborate with each other will be vital,” Zachary notes.

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About the Company
Tompkins Associates is the leading operations-focused consulting and integration firm specializing in end-to-end supply chain solutions. Customers look to Tompkins' expertise to develop and implement intelligent solutions in distribution center design, distribution network configuration, transportation planning, systems integration, benchmarking and best practices, logistics outsourcing, and supply chain optimization. For more than 30 years, Tompkins has offered a proven track record and deep industry expertise for solutions that reduce costs and improve supply chain performance. The company is headquartered in Raleigh, NC.

For more information, visit www.tompkinsinc.com/industries/ports.asp 

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