Summary

This report is a publicly available version of our report on the Customs-Trade Partnership Against Terrorism (C-TPAT). The Department of Homeland Security (DHS) designated our original report as Limited Official Use because of the sensitive and specific nature of the information it contained. U.S. Customs and Border Protection (CBP), the DHS bureau responsible for protecting the nation's borders at and between the official ports of entry, has the dual goals of preventing terrorists and terrorist weapons from entering the United States and also facilitating the flow of legitimate trade and travel. Approximately 90 percent of the world's cargo moves by container. Addressing the threat posed by the movement of containerized cargo across U.S. borders has traditionally posed many challenges for CBP, in particular balancing the bureau's border protection functions and trade enforcement mission with its goal of facilitating the flow of cargo and persons into the United States. CBP has said that the large volume of imports and its limited resources make it impossible to physically inspect all oceangoing containers without disrupting the flow of commerce, and it is unrealistic to expect that all containers warrant such inspection. To address its responsibility to improve cargo security while facilitating commerce, CBP employs multiple strategies. Among these strategies, CBP has in place an initiative known as C-TPAT, which aims to secure the flow of goods bound for the United States by developing a strong, voluntary antiterrorism partnership with the trade community. C-TPAT members commit to improving the security of their supply chain (flow of goods from manufacturer to retailer) and develop written security profiles that outline the security measures in place for the company's supply chain. In exchange for this commitment, CBP offers C-TPAT members benefits for participating that may reduce the level of scrutiny given to their shipments, potentially resulting in a reduced number of inspections of their cargo at U.S. borders. The program is promising, but previous work has raised concerns about its management and its ability to achieve its ultimate goal of improved cargo security. Given our past concerns about the program's effectiveness and in light of the program's rapid expansion, we examined selected aspects of the program's operation and management. This report addresses the following issues: (1) What benefits does CBP provide to C-TPAT members? (2) Before providing benefits, what approach does CBP take to determine C-TPAT members' eligibility for them? (3) After providing benefits, how does CBP verify that members have implemented their security measures? and (4) To what extent has CBP developed strategies and related management tools for achieving the program's goals?

In return for committing to making improvements to the security of their shipments by joining the program, C-TPAT members receive a range of benefits that reduce the level of scrutiny CBP provides to their shipments bound for the United States. These benefits may change the risk characterization of their shipments, thereby reducing the probability of extensive documentary and physical inspection. Other benefits include access to FAST lanes on the Canadian and Mexican borders, expedited cargo processing at FAST lanes, and an emphasis on self-policing and self-monitoring of security activities. In addition, CBP grants benefits to C-TPAT members that do not directly affect the level of scrutiny given to their shipments. Before providing benefits, CBP uses a two-pronged approach to assess C-TPAT members. First, CBP has a certification process to review the self-reported information contained in applicants' membership agreements and security profiles. Second, CBP has in place a vetting process to try to assess the compliance with customs laws and regulations and violation history of and intelligence data on importers before granting them benefits. CBP believes that this two-pronged approach provides adequate assurance before granting benefits. However, this approach grants benefits to members before they undergo the validation process. After providing benefits, CBP has a validation process to verify that C-TPAT members' security measures have been implemented and that program benefits should continue. However, we found several weaknesses in the validation process that compromise CBP's ability to provide an actual verification that supply chain security measures in C-TPAT members' security profiles are accurate and are being followed. First, the validation process is not rigorous enough to achieve its stated purpose, which is to ensure that the security procedures outlined in members' security profiles are reliable, accurate, and effective. Related to this, CBP has no written guidelines for its supply chain specialists to indicate what scope of effort is adequate for the validation to ensure that the member's measures are reliable, accurate, and effective. In addition, CBP has not determined the extent to which validations are needed. While CBP has recently completed a strategic plan, we found weaknesses in some of the tools it uses to manage the program that could hinder the bureau in achieving the program's dual goals of securing the flow of goods bound for the United States and facilitating the flow of trade. CBP's new strategic plan appears to provide the bureau with a general framework on which to base key decisions, including key strategic planning elements such as strategic goals, objectives, and strategies. However, CBP still lacks a human capital plan, a fact that has impaired its ability to manage its resources. Furthermore, CBP still has not developed a comprehensive set of performance measures and indicators, including outcome-based measures, to monitor the status of program goals. Finally, the C-TPAT program lacks an effective records management system.

Recommendations

Our recommendations from this work are listed below with a Contact for more information. Status will change from "In process" to "Implemented" or "Not implemented" based on our follow up work.

Recommendations for Executive Action