"A lot of companies in Taiwan already have these procedures in place. The ones we've audited normally have some sort of access control, employee screening and physical security in place," he said.
"Generally the level of security across the board is not too bad, so the costs aren't too much," he said, while declining to name how many Taiwanese firms are now C-TPAT-compliant.
According to Macdonald, many local companies have enlisted the aid of security consultants such as Pinkerton to conduct the review and make recommendations on how they can conform to C-TPAT standards.
The system is self-policing, in that customs officials are not planning to personally inspect foreign manufacturers for compliance and the burden of responsibility is on the company.
Despite the current wave of corporate irresponsibility engulfing the US in terms of financial reporting, Macdonald dismisses fears that companies could attempt to falsify their audits so as to reap the benefits of fast customs clearance in the US.
Maintaining reputations
"If there was an occurrence where a weapon of mass destruction was placed in a container causing serious damage to the US, the negative publicity and harm to that company's reputation would certainly outweigh the minor benefits of not accurately reporting security procedures," he said.
"Major US firms were involved in formulation of the requirements so it would be highly unlikely that they would fabricate their responses on the surveys," he said.
Currently the necessity for Taiwanese firms to conform to C-TPAT is being driven by requests from their US clients, but Macdonald predicts that eventually local companies will seek membership due to the benefits of speedy passage through US customs.
"Taiwan firms will take the initiative and go to customs in the US and say we want to be C-TPAT-compliant so they can use that as a competitive advantage and sell this to their customers in the states," he said.
"As current delays could be anything from a couple of hours to a couple of days ... if you're not part of this you're giving your competitor a competitive advantage because they'll be able to get their goods to their client just that bit quicker," he said.
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