C-tpat - Understanding How It Could Affect Your Canadian Exports

By Author: Rob Parker
Total Articles: 311
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Even at the time, the terrorist attacks in 2001 on the United States were expected to change virtually everything about how life was conducted in North America, and over time that has proven to be true. While the evidence of these changes might not be obvious in the life of the individual, there have certainly been great changes when it comes to the conduct of anything that crosses over borders, including trade between Canada and the United States.

One of the measures that were proposed by the United States Congress was the Customs-Trade Partnership Against Terrorism, or C-TPAT. The idea was introduced in November of 2001, shortly after the attacks on the Eastern United States. The Customs-Trade Partnership Against Terrorism is designed to combat terrorism by regulating the supply chain of products that go over the border, both from and into the US and Canada. While the government initiated and regulates this partnership, at this time it is a voluntary program.

Because of the voluntary nature of the C-TPAT agreement, it may be that it will not affect your exports at all; after all, the business you are exporting ...
... to may not be a member of the standards. However, many United States based businesses are finding that participation in the program is beneficial to their business, both in terms of goodwill and actual dollars saved in less restrictions imposed by government bodies. In fact, various bills have appeared before the US Congress, which seek to ensure several benefits to C-TPAT members, including less inspections and less delay when the inspections are under way.

For Canadian Exports, this means that a voluntary inclusion as a C-TPAT member may help your products reach their destinations faster than non-involvement. While this is undoubtedly a bit of a bullying tactic, the fact is that the rules have changed and business can't be conducted the same way as it was a decade ago. Simply by suggesting that C-TPAT involvement will mean less delay and inspection fees, the US Congress has guaranteed that non involvement will incur additional costs to doing business.

In the long run, Canadian exporters that comply with C-TPAT regulations (and that includes training and other forms of education) will have an edge over competitors.