Click to edit Master title style. Columbus Importer & Broker Association Jul 17 th

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1 Click to edit Master title style Columbus Importer & Broker Association Jul 17 th

2 Click Agenda to edit Master title style Introduction What is C-TPAT? Participants Requirements Container inspection Operational and Office requirements Benefits Q & A

3 Click to edit Master title style JACOBSON COMPANIES PETER KNAPP US and International third party logistics provider and warehousing company ABOUT THE COMPANY Founded in 1968, Jacobson Companies is a national third-party logistics (3PL) and warehousing company dedicated to helping customers manage their supply chain management activities to achieve a greater return on assets. More than two years ago, Jacobson expanded their portfolio in International Logistic Services to offer their customer true end-to-end solutions. Jacobson is one of the top three leading warehousing providers in the United States and currently has more than 7,000 employees in more than 200 operations around the globe. Information management, along with supply chain from origin to destination, is one of the key value drivers in Jacobson s proposition. COMPANY LOCATIONS USA: Worldwide: Iowa (HQ) Hong Kong, China, Singapore, Vietnam 42 offices in 38 States Taiwan, Indonesia, Malaysia and Dubai CUSTOMER TYPES Warehousing and Distribution Domestic and International Freight Management Packaging and Manufacturing Staffing International Ocean and Air Freight Forwarding Origin Consolidation and Deconsolidation, Contract Logistics ABOUT PETER KNAPP, PRESIDENT JACOBSON GLOBAL LOGSITICS Peter Knapp joined Jacobson Companies as President ILS in January of He has 25 years experience in the logistics and transportation industry. Mr. Knapp is responsible for all of the Jacobson Companies operations and business activities outside of the United States, including Contract Logistics, Transportation Freight Management, and International Freight Forwarding. Mr. Knapp came to Jacobson Companies from APL Logistics Singapore, where he has been VP of APL Logistics, Global Warehousing since August of His career began with Haniel Logistics, a leading European Logistics company, followed by more than 15 years of executive management in DHL Supply Chain, the Logistics Arm of Deutsche Post. Mr. Knapp managed business development in Asia, Latin America and various countries throughout Europe. He was heavily involved in the extensive acquisitions of Deutsche Post, most recently in Asia where he assumed responsibilities for integration in China. Mr. Knapp holds a degree from the Deutsche Verkehrsakademy in Bremen/Germany. CONTACT PETER (515) Dixon Street Des Moines, IA 50313

4 Click What to is C-TPAT edit Master? title style C-TPAT: Customs-Trade Partnership Against Terrorism C-TPAT is a voluntary government-business initiative that builds cooperative relationships that strengthen and improve overall international supply chain and U.S. border security. C-TPAT is widely recognized as one of the most effective means of providing the highest level of cargo security through close cooperation with international supply chain businesses such as importers, carriers, consolidators, licensed customs brokers, and manufacturers. Through this initiative, U.S. Customs and Border Protection (CBP) is asking businesses to ensure the integrity of their security practices and communicate and verify the security guidelines of their business partners within the supply chain..

5 Click Most important to edit Master enabler title for style US trade C-TPAT is a supply chain security program for international cargo and conveyances. It increases, security measures, practices and procedures throughout all sectors of the international supply chain. (from Point of Stuffing through the first US Port of Arrival) To put in a simple way, C-TPAT is a joint program between US Government (CBP) and Cooperation in International Supply Chain. The main purpose is to reduce the chance as much as possible of terrorism and terrorist weapon into the US. C-TPAT is not a hurdle but a very effective tool to foster effective and fast cross border transportation from and to the US without compromising on Safety. Currently C-TPAT has more than active corporations and organizations making this the largest program in the world. EU AEO is the European corresponding regulation, established in 2007 and still in some implementation stages (some countries).

6 Click Participants to edit Master (Global) title style Importers Canadian and Mexican Manufacturers Custom Broker Transportation companies (cross border) Dray companies All carrier modes (Air, Ocean, Sea, Courier) Marine and Airport Authorities, Terminal operators Logistic service providers Consolidators

7 Click C-TPAT to Minimum edit Master Security title style Criteria Business Partner Requirements (Finance) Security Procedures (Finance & Office) Container Security (W/H) Physical Access Control (Office & W/H) Personnel Security (HR) Procedural Security (Office & W/H) Security Training and Threat Awareness (available JGL Intranet) Physical Security (W/H) Information Technology Security (IT)

8 Click C-TPAT to Minimum edit Master Security title style Criteria Business Partner Requirements Written and verifiable processes for the Screening and Selection of business partners -- Proper licenses -- Insurance -- Security Profile (if not C-TPAT) -- Seal Agreement -- Security Agreement -- Agency Agreement (International Agents only) All Business Partner need to commit to C-TPAT Security Guidelines Periodically performance review of business partners is a clear responsibility of any C-TPAT certified company.

9 Click C-TPAT to Minimum edit Master Security title style Criteria Security Procedures (Finance & Office) Required for any Port of Origin Participation/Certification in Foreign Customs Administrations Supply Chain Security Programs Service Provider Screening and Selection Procedures -- Proper licenses -- Insurance -- Security Profile (if not C-TPAT) -- Seal Agreement -- Security Agreement -- Agency Agreement (International Agents only) Customer Screening Procedures -- Credit Review (US based) -- Valid stamped Business Registration Review (Asia based) -- Credit Application -- Contract (if applicable)

10 Click C-TPAT to Minimum edit Master Security title style Criteria Container Security (W/H) Container Inspection -- 7-points ( wall to ceiling ) inspection process is recommended for all containers Container Seal -- Seal Number -- Procedures for recognizing and reporting compromised seals and/or containers -- Seal & Container Inspection Training -- Seal Procedure Container Storage -- Must be stored in a secure area to prevent unauthorized access and/or manipulation -- Procedures for reporting and neutralizing unauthorized entry into containers or container storage area.

11 Click Container, to edit Tractor/Trailer Master title style inspection Do it right the first time!

12 Click Container to edit Master Inspection title style * Empty containers arriving at the facility might not always be empty! Inspect 12

13 Click Container to edit Master Inspection title style Ammunition/Weapons: Inspect 155-Millimeter Howitzer Shell 13

14 Click Container to edit Master Inspection title style Ammunition/Weapons: Inspect 500-LB Spent Training Missile 14

15 Click Container to edit Master Inspection title style Stowaways: Inspect 32 Illegal Stowaways! 15

16 Click Container to edit Master Inspection title style Contraband: Inspect Over 3,000 lbs. of Cocaine! 16

17 Click Container to edit Master Inspection title style 7-Point Container Inspection Process: Procedures must be in place to verify the physical integrity of the container structure prior to stuffing, to include the reliability of the locking mechanisms of the doors. A 7-point Container Inspection Process is recommended for all containers. Inspect 17

18 Click Container to edit Master Inspection title style 7-Point Container Inspection Process: 1. Outside/ Undercarriage (before entering facility) 2. Inside/ Outside doors 3. Right side 4. Left Side 5. Front Wall 6. Ceiling/Roof 7. Floor (Inside) 7 Point 18

19 Click Container to edit Master Inspection title style 7-Point Container Inspection Process: 1. Outside/ Undercarriage (before entering facility) 2. Inside/ Outside doors 3. Right / Left side 5. Front Wall 6. Ceiling/Roof 7. Floor (Inside) 5. Front Wall 6. Ceiling/ Roof 7-Point Container Inspection 3. Right Side 7 Point 4. Left Side 7. Floor (Inside) Outside/ Undercarriage 2. Inside/Outside Doors

20 Click 7-Point to edit Container Master title Inspection style 1. Undercarriage: Inspect prior to entering facility Support beams should be visible 7 Point Under 20

21 Click 7-Point to edit Container Master title Inspection style 2. Outside/Inside Doors: Secure and reliable locking mechanisms Look for different color bonding material Loose Bolts Plates and repairs 7 Point Doors 21

22 Click 7-Point to edit Container Master title Inspection style 3 & 4. Right/Left Sides: Unusual repairs to structural beams. Repairs to the walls on the inside of the container must be visible on the outside. Use tool to tap side walls. Listen & feel for hollow sound! 7 Point Sides 22

23 Click 7-Point to edit Container Master title Inspection style 5. Front wall: Blocks and vents are visible. Use tool to tap front wall. Listen and fell for hollow sound! Range finder, measuring tape and/or string can be utilized to determine the length of container. 7 Point Wall 23

24 Click 7-Point to edit Container Master title Inspection style 6. Ceiling/ Roof: Ceiling is a certain height from floor. Blocks & vents are visible. Uncomfortable feeling inside container. Repairs to the ceiling on the inside of the container should be visible on the outside. Use tool to tap ceiling. Listen for hollow sound. 7 Point Ceiling 24

25 Click 7-Point to edit Container Master title Inspection style 7. Floor: Floor should be a certain height from the ceiling Floor should be flat. Do not need to step up to get inside! Different floor heights Unusual repairs 7 Point Floor 25

26 Click Container to edit Master Inspection title style Seal Verification and Inspection Process: After seal(s), container, tractor and trailer pass all inspections, the container/trailer doors can be opened. Seals should be kept for investigative purposes! Verify 26

27 Click Container to edit Master Seal inspection title style The process steps are: Seal Affixing Process Seal Verification and Inspection Process 7-Point Container Inspection Process 27

28 Click Container to edit Master Seals title style Seal Affixing Process: Written procedures must stipulate how seals are to be controlled and affixed to loaded containers - to include procedures for recognizing and reporting compromised seals and/or containers to U.S. Customs and Border Protection or the appropriate foreign authority. Affix Seal 28

29 Click Container to edit Master Seals title style Seal Affixing Process: Only designated, authorized employees must distribute and affix container seals for integrity purposes. The fewer people who have access to seal(s), the better! Unauthorized employees must never handle container seals! Affix Seal 29

30 Click Container to edit Master Seals title style Seal Affixing Process: At point of stuffing, procedures must be in place to properly seal and maintain the integrity of shipping containers. All seals used must meet or exceed the current PAS/ ISO standards for high security seals. Affix Seal Seals should be affixed to the right door of the container on the hasp that has the welded rivet. This practice will raise the level of security for your shipment. After the seal is affixed to the container, an authorized employee should make sure that the seal is secure by pulling down on it. 30

31 Click Container to edit Master Seals title style Seal Affixing Process: Affix Seal Seals should be affixed to the right door on the hasp that has the welded rivet. 31

32 Click Container to edit Master Seals title style Seal Affixing Process: Verify Seal Make sure seal is affixed properly, then pull down on seal. 32

33 Click Seal to Inspection edit Master title style Seal Verification and Inspection Process: A seal inspection process should be implemented throughout the supply chain. The V.V.T.T. Seal Inspection Process is a good example of one: V View seal & container locking mechanisms. V Verify seal number for accuracy. Verify Seal T Tug on seal to make sure it is affixed properly. T Twist & Turn seal to make sure it does not unscrew. 33

34 Click Seal to Inspection edit Master title style Seal Verification and Inspection Process: View seal & container locking mechanisms. Excessive damage to the seal or locking mechanisms must be reported to a Supervisor before opening the container. Verify Seal 34

35 Click Seal to Inspection edit Master title style Seal Verification and Inspection Process: View seal & container locking mechanisms. Different brand Verify Seal One brand Different brands of seals attached together. 35

36 Click Seal to Inspection edit Master title style Seal Verification and Inspection Process: View seal & container locking mechanisms. Verify Seal Look for loose bolt and hasp. 36

37 Click Seal to Inspection edit Master title style Seal Verification and Inspection Process: Verify seal number for accuracy. Compare with shipping documents, and look for alterations to the seal numbers! Verify Seal 37

38 Click Seal to Inspection edit Master title style Seal Verification and Inspection Process: Verify seal number for accuracy. Verify Seal Seal number manifested is correct. Wrong seal brand normally used by company. Can you tell this seal # has been stamped by hand? 38

39 Click Seal to Inspection edit Master title style Seal Verification and Inspection Process: Verify seal number for accuracy. Verify Seal Original number s sanded off. 39

40 Click Seal to Inspection edit Master title style Seal Verification and Inspection Process: Tug on seal to make sure it is affixed properly. Seals that come apart must be reported to a Supervisor before opening the container. Human error might cause this to happen, or the container might have contraband inside! Verify Seal 40

41 Click Seal to Inspection edit Master title style Seal Verification and Inspection Process: Tug on seal to make sure it is affixed properly. Verify Seal Seal stem is bent. Seal does not lock properly. 41

42 Click Seal to Inspection edit Master title style Seal Verification and Inspection Process: Tug on seal to make sure it is affixed properly. Verify Seal Glue inside locking mechanism. Seal does not lock properly. 42

43 Click Seal to Inspection edit Master title style Seal Verification and Inspection Process: Twist & Turn seal to make sure it does not come off. Seals are threaded, so they can be unscrewed. These altered seals are reusable throughout the supply chain for multiple attacks! Verify Seal 43

44 Click Seal to Inspection edit Master title style Seal Verification and Inspection Process: Twist & Turn seal to make sure it does not unscrew. Verify Seal Twist counter-clockwise to unscrew. 44

45 Click Seal to Inspection edit Master title style Seal Verification and Inspection Process: Twist & Turn seal to make sure it does not unscrew. Verify Seal Multiple tampered seals. 45

46 Click Container to edit Master Inspection title style Inspection of Cargo: A cursory inspection of cargo should be conducted when container/trailer doors are opened. If contraband is encountered, close container/trailer doors and contact a Supervisor. The Supervisor will contact the proper authorities and CBP. Overages or shortages of cargo should be documented and recorded. These records may be needed to conduct future investigations! Verify 46

47 Click C-TPAT to Minimum edit Master Security title style Criteria Physical Access Control (Office & W/H) Employee Employee Identification System (Photo ID Badge / Key Card, Identification) Employee should be trained to challenge unauthorized person in restricted area Visitors Control Visitor Log, Temporary Badge Building Access Doors, Gates with Password or Guards Deliveries Must present Photo ID or Vendor ID Challenging and Removing Unauthorized Persons

48 Click C-TPAT to Minimum edit Master Security title style Criteria Personnel Security (HR) Pre-Employment Verification Employment history and references must be verified prior to employment Record Keeping/Preservation Employee information including the name, date of birth, national ID number, position held, to CBP upon written request Background checks / investigations This includes criminal check, a background check, and a drug test. Personnel Termination Procedures Remove identification; facility and system access for terminated employees. JGL HR Termination Policy

49 Click C-TPAT to Minimum edit Master Security title style Criteria Procedural Security (Office, W/H & IT) Documentation Processing OP/CS send Booking Form with Cargo Info to US offices via or Operation System Pre-Booking/Manifest Form Manifesting Procedures Create Cargo Manifest after receiving the shipment at Origin Report if any discrepancies (US side) Shipping & Receiving Shipment details check when receiving in W/H, report to OP if there s any problem Cargo Discrepancies Shortage, overages and any discrepancies must be reported Notify Shipper, US office, Consignee

50 Click C-TPAT to Minimum edit Master Security title style Criteria Physical Security (W/H) Fencing (recommended ) Gates and Gate Houses (mandatory) Parking (recommended) Building Structure (mandatory) Locking Devices and Key Controls (mandatory) Lighting (mandatory) Alarms Systems & Video Surveillance Cameras (recommended) Site Security Minimum Standard Documents including: Weekly Building Inspection Report Site Security Plan Part I, II Site Security Minimum Standards Training Manual

51 Click C-TPAT to Minimum edit Master Security title style Criteria Information Technology Security (IT) Password Protection -- Account, Intranet Log-in -- Company Password Policy Access Control -- User setup policies & procedures -- User termination policies & procedures -- Operating system menu controls Accountability -- Identify the abuse of IT including improper access, tampering or the altering of business data -- All system violators must be subject to appropriate disciplinary actions for abuse. -- Audit Policy

52 Click C-TPAT to Benefits edit Master (1/2) title style C-TPAT offers businesses an opportunity to play an active role in the war against terrorism. By participating in this first worldwide supply chain security initiative, companies will ensure a more secure supply chain for their employees, suppliers and customers. In addition, CBP offers the following benefits to C-TPAT members: A reduced number of inspections and reduced border wait times. A C-TPAT supply chain specialist to serve as the CBP liaison for validations, security issues, procedural updates, communication and training. Access to the C-TPAT members through the Status Verification Inter face Self-policing and self-monitoring of security activities In the Automated Commercial System (ACS), C-TPAT certified importers receive reduced selection rate for Compliance Measurement Examinations (-3X in FY 2003) and exclusion from certain trade-related local and national criteria.

53 Click C-TPAT to Benefits edit Master (2/2) title style C-TPAT certified importers receive targeting benefits by receiving a credit via the CBP targeting system. Certified C-TPAT importers are eligible for access to the FAST lanes on the Canadian and Mexican borders. Certified C-TPAT importers are eligible for the Office of Strategic Trade s (OST) Importer Self-Assessment Program (ISA) and have been given priority access to participate in the Automated Commercial Environment (ACE). C-TPAT certified highway carriers, on the Canadian and Mexican borders, benefit from their access to the expedited cargo processing at designated FAST lanes. These carriers are eligible to receive more favorable mitigation relief from monetary penalties. C-TPAT certified Mexican manufacturers benefit from their access to the expedited cargo processing at the designated FAST lanes. All certified C-TPAT companies are eligible to attend CBP sponsored C-TPAT supply chain security training seminars.

54 Click Additional to edit material Master and title links style

55 Click to edit Master title style C-TPAT Validations Company Legal Name: SVI: glocon00491 Global Container Line, Inc. (Consolidator) Certified, Non-Importer, Validation Completed Company Legal Name: SVI: stobro01193 Jacobson Global Logistics, Inc. (Customs Broker) Certified, Non-Importer, Validation Completed Company Legal Name: SVI: stocon06285 Jacobson Global Logistics, Inc. (Consolidator) Certified, Non-Importer, Validation Completed

56 Click to edit Master title style Thank You

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