Third Party Logistics Providers have a direct impact on the security of our Nations Borders.
As International Trade Volume increases, the burden of security in the United States continues to rise. Millions of containers come in and out of our country every day and a large amount of those containers are care handled by 3 Party Logistics Providers (3PL's).
3PL's are under increasing pressure from their clients to become C-TPAT Certified. At SGT, we help answer some of the most common questions and have the resources to help businesses become C-TPAT Certified.
What are the requirements?
- Be directly involved in the handling and management of the cargo throughout any point in the international supply chain, from point of stuffing, up to the first U.S. port of arrival. Entities which only provide domestic services and are not engaged in cross border activities are not eligible.
- Manage and execute these particular logistics functions using its own transportation, consolidation and/or warehousing assets and resources, on behalf of the client company.
- Does not allow subcontracting of service beyond a second party other than to other CTPAT members (does not allow the practice of “double brokering”, that is, the 3PL may contract with a service provider, but may not allow that contractor to further subcontract the actual provision of this service).
- Be licensed and/or bonded by the Federal Maritime Commission, Transportation Security Administration, U.S. Customs and Border Protection, or the Department of Transportation.
- Maintain a staffed office in the United States.