PRESS RELEASE: February 22, 2006

C-TPAT Challenge to Freight Forwarders

Hong Kong --- More and more freight forwarders in Hong Kong are facing much challenge to boost up their existing security systems to fulfill C-TPAT security requirements and the audits conducted by their customers (manufacturers) and overseas agents in U.S. in order to retain the business.


With the effective of the new importer criteria in March 25, 2005, importers which are C-TPAT certified in U.S. should work with these business partners to ensure that new security measures are in place and adhered to throughout their supply chain. In 2005, CBP has completed 900 validations and will accelerate its efforts this year to assist C-TPAT members continuously strengthening their entire supply chain.

“According to the importer criteria, those business partners of C-TPAT importers must require them to demonstrate that they are meeting C-TPAT security criteria via written/electronic confirmation e.g. providing a completed security questionnaire.” said Mr. Jimmy Pang, Vice President of Supply Chain Security Association.

“Based upon a documented risk assessment process, the business partners must be subjected to verification of compliance with C-TPAT security criteria by the importer.” He continued.

“Within these few weeks, we have received numerous enquiries from freight forwarders, which have business with U.S., on the consultation on developing C-TPAT supply chain security management.” “In some case, they are facing challenges due to the urge requests by their business parties in their supply chain” Mr. Pang said.

Forwarders need to conduct a comprehensive risk assessment in their supply chain and develop a supply chain security system which covers not only its operational procedures, but also the procedures for Container Security, Container Inspection, Physical Access Controls, Personnel Security Procedural Security, Security Training and Threat Awareness, and Information Technology Security.

“We are keeping our eyes on Customs and Border Protection (CBP) for the latest development on the criteria for sea carriers, air carriers and foreign manufacturers sectors which may cause another wavy challenge to the industries as C-TPAT is now becomes one of the essential elements of global trade.” He concluded.

About Alliance Management Consulting Limited

Alliance Management Consulting Limited focuses on providing management consulting & training services, specializing in Supply Chain industry. Our client includes: IBM, KWE, Lucent, MOL, NEC, NNR, TNT, Yamato, & other 250 logistics companies. We are also the pioneer of providing logistics security consultation (TAPA, CSI, ISO 27001, RAR, C-TPAT, ISO…) in Shanghai, Beijing, Xiamen& Hong Kong in China, Singapore, Taiwan, Japan and more in Asia.We are the solely commercial institute also certified by HK CAD to conduct the RAR (ICAOannex 17) security training. For more information, please visit us at www.alliancemc.com.hk

About Customs-Trade Partnership Against Terrorism (C-TPAT)

C-TPAT is a voluntary government-business initiative to build cooperative relationships that strengthen and improve overall international supply chain and U.S. border security. C-TPAT recognizes that U.S. Customs and Border Protection (CBP) can provide the highest level of cargo security only through close cooperation with the ultimate owners of the international supply chain such as importers, carriers, consolidators, licensed customs brokers, and manufacturers. Through this initiative, 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.

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