1. 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

2. 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

3. 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