Taiwanese manufacturers are being recruited in the fight against terrorism as their US customers tighten security along supply chains to prevent a weapon of mass destruction being brought into North America via a cargo container.
US companies that import goods from Taiwanese manufacturers are requesting they conform to new US custom requirements that bolster the overall security of their facilities, according to Pinkerton Consulting & Investigations which is assisting in the process.
Companies that conform to the requirements will see their goods "fast tracked" through US cargo terminal clearing procedures, which since last September's attacks have slowed dramatically due to heightened alert.
"The most recent concern is terrorists putting weapons of mass destruction into a container," said Barry Wilkins, Pinkerton's director of Global Transportation and Supply Chain Security. "Then they detonate it in a port or city."
The new import system, which was formalized jointly by industry and the US Customs Service in January as part of Washington's effort to bolster security along US borders, is known as the Customs Trade Partnership Against Terrorism (C-TPAT).
US companies that seek to sign on to C-TPAT must agree to conduct a comprehensive review of their entire supply chain and guarantee that every aspect of the chain conforms to enhanced security requirements.
"C-TPAT basically pushes the borders back to the point of origin ... and recognizes that customs can provide the highest level of security only through close cooperation with the ultimate owners of the supply chain -- importers, carriers, brokers, warehouse operators and manufacturers," Wilkins said.
Taiwanese manufacturers that supply US firms seeking C-TPAT certification are being required to conduct self-security audits. Additionally they must ensure the physical security of their facilities, control access to loading dock and cargo areas, implement procedural checks during all movement of goods, conduct thorough background checks of personnel and educate staff on identifying security breaches.
"In doing this customs was brilliant because they have engaged thousands more people in the supply chain in the war against terrorism," Wilkins said.
On the bandwagon
Some 300 US companies have already signed up for the certificate, including heavyweights such as BP America, DaimlerChrysler, Ford Motor Co, General Motors Corp, Motorola, Sara Lee and Target, who were C-TPAT's first participants.
"We've got thousands more warriors in the fight now," he said.
However according to Roy Ian Delbyck, a Hong Kong-based lawyer who represents US and Asian firms involved in the importation of merchandise into the US, the costs of conformation could be steep.
"As C-TPAT is absorbed into the supply-chain process, it will likely result in additional costs for all supply-chain participants. This is particularly bad news for smaller manufacturers," Delbyck told the Hong Kong Shipper's Council earlier this year.
"Larger manufacturers have the resources to absorb added security costs, for example, closed circuit TVs in packing areas and smart cards for employee identification," he said.
But Danny Macdonald, director of operations at Pinkerton in Taiwan, said the general level of security at Taiwanese manufacturers was good and there wouldn't likely be any significant costs involved with conforming to C-TPAT.
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