After the enactment of the Uyghur Forced Labor Prevention Act (UFLPA) last year, new forced labor requirements were added to the CTPAT Security and Trade Compliance program.
CTPAT, which stands for Customs Trade Partnership Against Terrorism, is a voluntary supply chain security program between U.S. Customs and Border Protection (CBP) and supply chain stakeholders – including importers, carriers, consolidators, licensed custom brokers, and manufacturers. To become a CTPAT member, applicants must agree to implement specific security measures and best practices throughout their supply chain. In return, CTPAT compliant organizations receive advantageous screening processes for their imports and exports.
New forced labor requirements
In late 2022, it was announced that existing CTPAT trade compliance partners must meet new forced labor prevention requirements to retain their status. Since August 1, 2023, CTPAT partners must provide proof to CBP that they meet the following six requirements:
- Implement risk-based mapping: Partners must conduct risk-based mapping that outlines their supply chains in their entirety, including regions and suppliers that they feel pose the most risk for forced labor.
- Create a code of conduct: Partners must put in place a code of conduct statement indicating their position against the use of forced labor in any part of their supply chains.
- Provide evidence of implementation: Partners must provide CBP with evidence of the implementation of their social compliance program, including, if requested, their risk assessment. Examples of evidence include unredacted audits of high-risk supply chains related to forced labor and internal training programs for employees on identifying signs of forced labor.
- Conduct due diligence and training: Partners must provide training to suppliers on their social compliance program requirements that identifies the specific risks and helps identify and prevent forced labor in the supply chain. Training should exemplify the partner’s position against forced labor as stated in its code of conduct and must ensure that the supplier’s business model and code of conduct expressly state that it will not partner with businesses that use forced labor.
- Put a remediation plan in place: Partners must have remediation plans in the event that forced labor is identified in their supply chains. A remediation plan must include the process for disclosing information to CBP and outline the necessary steps for the partner’s employees and suppliers to correct the issue.
- Share best practices: Partners are required to share best practices with the CTPAT Trade Compliance program to help mitigate the risk of forced labor.
In return for providing the above information to CBP, on top of the existing benefits CTPAT Trade Compliance members receive, CBP will offer:
- Priority Review for Shipments Detained Due to Forced Labor: CTPAT members that have goods detained due to forced labor concerns will benefit from prioritized review. Additionally, if CBP does not make a decision within the statutorily defined time periods, merchandise will be deemed excluded.
- Redelivery exemption for goods with suspected ties to forced labor: In instances where goods are cleared for entry, but within 30 days CBP determines that the goods may have ties to forced labor, CBP may require redelivery of the goods until an admissibility decision can be made. CTPAT members are exempt from redelivery and may instead hold their shipments in their facilities, avoiding additional shipping costs.
- Detained Withhold Release Order Shipments Move to Bonded Facility: CTPAT members that have shipments detained will be allowed to move the goods to a bonded facility until CBP makes an admissibility determination. This may also save the importer additional logistics fees.
Understanding CTPAT Minimum Security Criteria
The CTPAT Minimum Security Criteria (MSC) serves as the baseline for securing international supply chains and preventing potential threats, including terrorism, smuggling, and forced labor. These criteria encompass a wide range of security measures, such as:
- Physical Security: Ensuring secure facilities, including fencing, lighting, and surveillance.
- Access Controls: Restricting access to sensitive areas and verifying the identity of all personnel.
- Business Partner Requirements: Vetting and monitoring business partners to ensure they meet security standards.
- Risk Assessment: Conducting regular assessments to identify and mitigate risks across the supply chain.
Compliance with these criteria is mandatory for all CTPAT partners. By meeting these standards, companies not only protect their supply chains, but also enhance their eligibility for benefits such as expedited processing and reduced inspections. Sayari can help you ensure that your supply chain meets these stringent criteria, particularly in the areas of risk assessment and business partner vetting, which are critical for addressing forced labor concerns.
Meet CTPAT requirements with Sayari
To not lose out on the benefits of being a CTPAT Trade Compliance member, importers can leverage a supply chain risk management platform, such as Sayari Map to help them meet these requirements. Sayari Map empowers supply chain risk management, responsible sourcing, sustainability, and procurement teams to quickly map upstream supply chains, identify supply chain risk, and build comprehensive risk adjudication and monitoring workflows. If you’re looking to stay in lock step with regulators, CBP also relies on Sayari data for their forced labor investigations.
>> Learn how to enhance your supply chain audit with Chinese public records <<
Simplify Risk-Based Mapping
Partners must conduct risk-based mapping that outlines their supply chains in their entirety, including regions and suppliers that they feel pose the most risk for forced labor. Sayari can take this one gigantic aspect (supply chain mapping) of your CTPAT application or renewal off your plate! That frees you up for all the other blocking and tackling necessary to make it through the process.
Additionally, Sayari Map supports CTPAT risk-based mapping with its:
- Industry-leading data that gives you insights into the focus regions that leave your supply chain most at risk, with corporate and trade data on over 150 jurisdictions.
- Precomputed UFLPA Risk Indicators and a suite of graph analytics tools to empower import control teams to quickly and confidently identify forced labor within their sub-tier supplier networks.
- DHS CBP UFLPA entity lists enriched with 5,000 previously unidentified subsidiaries, joint ventures, branches, and affiliates.
- Profiles on 1.6 million corporate entities geolocated in Xinjiang Province as well as 91 million Chinese companies, continuously updated to ensure you’re working with current information.
To see exactly how Sayari Map can support your CTPAT compliance efforts, watch our in-house analysts demonstrate techniques for more effective supply chain forced labor risk identification.