Supply Chain Security Observation (SCSO) Objective To provide an observational perspective of the importer’s supply chain security procedures and highlight areas of potential concern. Bring the importer’s attention to potential risk areas in its supply chain To be done concurrently with the Focused Assessment PAS because many of the same documents will apply . What is a Supply Chain: The sequence of suppliers and value added events which contribute to the creation and delivery of a good or service to an end customer. There are thousands of companies that have not joined C-TPAT and security chain specialists only have very limited resources to evaluate CTPAT members let alone non CTPAT OT has determined that RA can evaluate the Supply Chain security while doing FA audits of NON CTPAT importers. Obtain information through performance of an SCSO

Supply Chain Security Observation Done concurrently during an FA audit of non C-TPAT companies Auditors gain an understanding of a company's Supply Chain Security procedures Issue an SCSO audit report Auditors will: evaluate the importers’ responses to the Supply Chain Security Questionnaire Interview personnel Make physical observations through tour of facilities Review other relevant docs obtained during FA The report can be used by: Port personnel, CBP National Targeting and analysis group and C-TPAT

Supply Chain Security Observation Process-Auditor’s Role Entrance Conference Supply Chain Security Questionnaire Tour of Facilities/Plant Interview Personal Obtain Documentation Summarize results Exit Conference Company may provide comments Issue Report Auditors gain an understanding of the importer’s SCS procedures and will highlight areas of potential concern. Auditors will: evaluate the importers’ responses to the Supply Chain Security Questionnaire Interview personnel Make physical observations through tour of facilities Review other relevant docs obtained during FA