Field Operations

Presentation Overview  Current Enrollment Numbers  2009 in Review/Accomplishments  2010 Work Plan

Field Operations Current Enrollment Numbers As of January 14, 2010 Certified Partners Initial Validations Completed Re-Validations Completed Total C-TPAT Validations Completed Importers4,3603,9901,6025,592 Carriers (ALL)2,6422,7821,7964,578 Brokers ,367 Consolidators ,024 Marine Port Authorities & Terminal Ops Foreign MFRs ,157 3PL22505 Total9,6559,3324,47913,811

Field Operations Validations and Revalidations 2009 (By C-TPAT office) TargetInitial Validations Completed Number of Re-Validations Totals per Office %Target Completed Buffalo % Herndon % Houston % Los Angeles % Miami % Newark % New York % Total3,1981,1752,2433,418107%

Field Operations 2009 Review Conducted 3,418 validations which included 4,131 physical site visits both domestically and internationally. Conducted the first annual Northern Border Highway Carrier conference and four hands-on Southwest Border workshop sessions in addition to carrying out the Annual C-TPAT conference. Instituted three new validation procedures to further enhance supply chain security: 1.Unannounced Visits to members previously involved in a security incident as a condition of reinstatement. Unannounced visits are conducted with the companies consent. A total of 17 unannounced visits were conducted in Revisits are conducted to ensure that corrective actions have been implemented to address security deficiencies that were identified during a previously conducted validation. A total of 47 revisits were conducted during Benefits Withheld - Upon completing an initial validation if actions required are cited then Tier 2 benefits are being withheld until the actions required are addressed. During 2009, there were 146 companies whose benefits were withheld.

Field Operations 2009 Review con’t Created an Evaluation and Assessment Branch – Consisting of seven Supervisory SCSS’s and branch Chief. Their mission is to critically evaluate validation activities and take corrective actions in a timely manner if needed. Implemented Automated Validation Reports for all sectors. Created a sophisticated Sharepoint application to track SCSS travel throughout the world. Established seven Field Training Coordinators positions to develop and administer on-going training for each office. Reach out to field office personnel to assist HQ to develop and deliver various training sessions. Prior sessions included: 1.Safety for International Travelers 2.Utilizing Open Sources of Information to Increase Awareness of Security Issues Worldwide 3.Verifying Compliance of Security Criteria C-TPAT continued to internationalize the core principals of C-TPAT with the international community. A Mutual Recognition Arrangement was signed in June 2009 with Japan inaddition to previous arrangements with Canada, New Zealand and Jordan.

Field Operations 2010 Work Plan Highlights The program has set a target of 2,800 validations in The validation workload has been allocated accordingly among the seven field offices based upon staffing and other variables. We will accelerate the re-validation cycle for more than 76 Mexican Manufacturers determined to be of higher risk. We will withhold FAST lane privileges for newly-certified Mexico Highway Carriers until successful validations have been completed. The period of time to get the validation report to the partner will be 60 days as opposed to 90 days. More to be discussed at the C-TPAT conference in Anaheim. -Identity theft workshop.