What impact does C-TPAT have?

Suppliers face stricter supervision

First, as business partners of US importers, local manufacturers/suppliers will face higher security program requirements and more stringent supervision from importers. Since March 25, 2005, CBP has further tightened the security requirements for its US importer members, including requiring importers to establish written and verifiable procedures to select business partners, including manufacturers, product suppliers and sellers; importers must also have documents to prove that business partners throughout the supply chain meet the security standards of C-TPAT (or the standards of equivalent supply chain security programs implemented by foreign customs authorities).

Service Competitive Differentiators

As a member of C-TPAT, both importers and carriers can distinguish their goods and services from competitors. For non-C-TPAT members (such as foreign manufacturers, warehouse operators, etc.), they also face certain market pressures and consider inviting third-party certification bodies to review their security procedures and issue certificates similar to ISO 9000 to show the outside world that they have followed relevant supply chain security guidelines.

Supply chain security becomes part of global sourcing requirements

Importers/countries (not limited to the United States, regardless of whether they are C-TPAT) are concerned about supply chain security, which will make security considerations part of the procurement requirements. Importers will place security responsibilities on manufacturers through orders, certificates, codes of conduct, dealer manuals, etc.

Background: C-TPAT anti-terrorism program was developed by the U.S. Department of Homeland Security Customs and Border Protection after the 9/11 incident to protect the U.S. homeland security. Through anti-terrorism factory inspection, the factory's products can enter the U.S. through a fast track, reduce customs inspection links, ensure the safety of goods, and thus win the favor of American buyers.
Most retailers and traders in the United States have joined the program. Wal-Mart, TRU and TJX have taken the lead in promoting anti-terrorism factory inspections to their overseas suppliers, and their partners are all Intertek.