Issue 398, April 3, 2003
One year ago, the U.S. Customs Service launched its supply chain security program under the moniker C-TPAT (Customs Trade Partnership Against Terrorism). Most observers agree that the program has been a big success with over 2,000 companies enrolled. Benefits of C-TPAT enrollment include, fewer cargo exams, quick cargo release, dedicated commercial lanes and priority use of ACE. Ancillary benefits include a more secure supply chain, reduced cargo theft and greater protection of company resources and personnel. Just last week U.S. Customs announced an increase in the number of C-TPAT verifications and the establishment of C-TPAT verification teams throughout the country to perform on-site security audits.

While C-TPAT has been a big success in the United States, there remains one weak link in the supply chain, namely that the program is not available to foreign manufacturers and foreign customs brokers. While a majority of U.S. importer enrollees are requiring that their foreign vendors and service providers initiate their own supply chain security, there are no formal security programs, subject to official oversight and verification.

As a way of formally establishing supply chain security outside the United States and particularly in Mexico, the U.S. Customs Service has re-established its support for the Business Anti-Smuggling Coalition (BASC) program. BASC is an industry driven security program, which is supported by the U.S. Customs Service. The BASC program was established in 1996 by a group of industry leaders to promote supply chain security and to prevent drug smuggling in legitimate cargo. In fact, when U.S. Customs established the C-TPAT program, many of the security procedures were originally adopted from the BASC program. At the present time, BASC is available in most countries in South America and in a several European Countries. BASC is recognized by the World Customs Organization and is expanding to many countries throughout the world.

To enroll in BASC, companies in Mexico (maquiladoras, national manufactures, Mexican customs brokers and Mexican trucking companies) must join through a locally established BASC chapter. Chapters presently exist in Mexico City, Monterrey, Juarez and Tijuana. Most Chapters offer BASC enrollment outside their region and throughout all of Mexico. It is the role of the Chapter to assist its members with supply chain security. Chapters perform on-site security audits, offer security recommendations, training and confirm whether the company has sufficient security to qualify. Chapters coordinate directly with the U.S. Customs Service to perform onsite supply chain security verifications. With approval of the U.S. Customs Service, the company is officially enrolled in the BASC program. BASC participants receive many of the C-TPAT benefits, including fewer exams and quicker cargo releases. For example, in Juarez, BASC participants are eligible to use a special FAST lane. Official enrollment in either the BASC or C-TPAT program is required in order to take advantage of the FAST lane (C-TPAT enrollment for the U.S. Importer and U.S. Customs Broker and BASC enrollment for the Foreign Manufacturer, Mexican Customs Broker and Mexican Trucking Company).

At the present time, BASC is the only option for supply chain security in Mexico officially recognized by the U.S. Customs Service. To promote supply chain security throughout the supply chain, we recommend that companies seriously consider enrollment in the BASC program or require that their vendors or service providers enroll in BASC.

Our contributing writer, Steven B. Zisser, is an attorney/international trade management specialist in the San Diego border community of Otay Mesa, where he specializes in U.S. Customs and International Trade. He can be reached at (619) 671-0376 or via email.

Please note that due to the complex nature of the subject matter, DHL Danzas Air & Ocean cannot be responsible for actions taken by the reader in reliance on the information contained herein without prior consultation with DHL Danzas Air & Ocean.