The Customs-Trade Partnership Against Terrorism (CTPAT) program, administered by the U.S. Customs and Border Protection (CBP), has updated its criteria to enhance its forced labor security. Compliance with the new forced labor requirements in the CTPAT Trade Compliance program will yield three additional benefits, as announced by the CBP. This update is a response to the increasing concern surrounding forced labor in global supply chains and is aimed at improving the integrity and security of the supply chain while preventing the entry of goods produced with forced labor into the U.S.
The CBP will provide the following three additional benefits to companies that comply with the new forced labor requirements, outlined by CTPAT:
- Prioritized review: If a partner company has shipments detained due to forced labor, their admissibility packages will be prioritized for review by the appropriate Center of Excellence and Expertise. This prioritization will ensure that the processing of the package is given priority above other non-partner packages received within the Center team or division.
- Hold shipments: If a partner company has shipments arrive at their facility that are later determined to be held due to ties to forced labor, they may hold their shipments intact at their facility rather than redelivering them to CBP until an admissibility determination is made or until a physical inspection is required.
- Move goods to bonded facility: If a partner has a shipment detained by CBP due to a withhold release order, they will be allowed to move the goods to a bonded facility to be held intact until an admissibility determination is made by CBP.
Foreign Trade Zones (FTZs) are considered a best practice in the CTPAT world. FTZs are secure areas located within the United States where foreign and domestic merchandise can be stored, exhibited, or processed without being subject to CBP duties, taxes, and other charges. The benefits of operating in an FTZ include duty deferral, inverted tariff benefits, and improved supply chain security.
ITC Diligence International Inc. is a leading provider of compliance solutions for global trade. Experts in CBP compliance, ITC Diligence International Inc. can help companies comply with the new forced labor requirements in the CTPAT Trade Compliance program and assist in operating within an FTZ. Services include risk assessments, supplier assessments, compliance program development and implementation, and training. Additionally, they also help companies establish and operate in an FTZ, including assistance with the application process, ongoing compliance, and reporting requirements.
These new forced labor requirements in the CTPAT Trade Compliance program are aimed at improving the integrity and security of the supply chain while preventing the entry of goods produced with forced labor into the U.S. Compliance with these requirements will yield three additional benefits, as announced by CBP. Operating in an FTZ is considered a best practice in the CTPAT world, and ITC Diligence International Inc. can assist companies in complying with the new requirements and implementing these best practices.