This guide outlines Flexport’s commitment to international supply chain security and provides actionable best practices for our partners. As a CTPAT and AEO participant, we work to facilitate legitimate cargo flow while preventing security threats.

“C-TPAT is dedicated to meeting the needs of our members while also promoting the highest possible level of cargo security. We hope that this best practices update will be helpful to all.” — Bradd Skinner, Director, C-TPAT

Mission and Purpose

As a CTPAT and AEO participant, our mission is to:

Prevent terrorist and/or terrorist weapons from entering into the supply chain at any point. We do this by partnering with various agencies such as Customs and Border Protection (CBP) and Authorized Economic Operator (AEO) programs. We also work with our partners, such as yourself, to enhance the security of the international supply chain.

Facilitate the flow of legitimate cargo by vetting our business partners, and maintaining the security of physical cargo and information pertaining to those shipments.

Internalize the core principles of supply chain security through our engagement with our partners on a daily basis and supporting international initiatives surrounding supply chain security.

Benefits of Adopting Security Measures

There are multiple international programs that our partners may benefit from joining. An introduction to these programs and reference will follow. You may request additional information by contacting Flexport’s compliance team at compliance@flexport.com.

• Customs Trade Partnership Against Terrorism (CTPAT)
  • Customs and Border Protection (CBP)
• Authorized Economic Operator (AEO)
  • World Customs Organization (WCO) or equivalent
• Partners in Protection (PIP)
  • Canada Border Services Agency (CBSA)

How Flexport Identifies Best Practices

The best practices outlined in this document, if adopted, will protect the security of the supply chain and its members. As the global supply chain grows more secure, all countries will become more effective and efficient at preventing terrorist activities, weapons of mass destruction, narcotics, and other contraband from entering the country. We require all members to adhere to Minimum Security Criteria (MSC) and these best practices will help to maintain those requirements.

Business Partner

• All partners in your supply chain should be vetted before the start of business engagement and routinely reviewed through audits, questionnaires, or 3rd party support.
• Supply chain issues should be recorded and addressed with the partner and escalated as needed.
• Supply chain partners should support engagement in various supply chain security programs such as CTPAT, AEO, PIP and more.

Conveyance Security

• Use ISO/PAS 17712 certified high security seals on all shipments.
• Perform a 7-point container inspection on all standard containers and a 17-point inspection on all conveyances, including full truck inspections, reefers, etc.
• Train all employees on container inspection and record inspections using the 7/17 point checklist (provided in the reference section). Take photos when possible.

Physical Access Control

• Ensure that as employees enter the facility, their identification (badges) are visible at all times and that employees do not allow anyone to enter with them without authorization.
• All visitors, contractors, maintenance workers, or other non-employee persons must sign in and present identification before entering a facility. These persons should be escorted at all times.
• Ensure that the exterior doors and windows of buildings are secured at all times, including loading zones, perimeter gates, waiting areas, and other areas. Any issues should be resolved immediately.

Personnel Security

• Employees should be vetted prior to being hired, including contract or temporary positions. This can include background checks, drug testing, and more, depending on local laws and regulations.
• Employees should have an employee code of conduct to review and agree to prior to beginning employment.
• Policies and procedures should be in place for monitoring employee activity and, if needed, the revocation of access to buildings, technology, or information.

Procedural Security

• Use tamper-evident tape with serial numbers to seal cartons, and verify the seal numbers against the packing list when loading and at the final destination.
• Schedule all pickups and deliveries and confirm with the logistics partner the delivery details, including the transportation company, driver (if available), and receipt of all documents in advance.
• Maintain security of all documents and information pertaining to shipments, such as route details, packing details, and related information.

Physical Security

• All employees should be aware of their responsibilities related to physical security, including proper role-based training.
• Unauthorized persons should be immediately engaged and appropriately escorted to the proper sign-in area and around the premises at all times.
• Alarm systems should be routinely inspected, and employees should have a readily available emergency contact sheet for emergencies.

Security Training / Threat Awareness

• Require new employees to complete a multi-module security training program emphasizing recognition of internal conspiracies, cargo security, facility access control, and mail handling procedures.
• Conduct a semi-annual security awareness training seminar for all U.S.-based suppliers, customers, and other business partners.

Information Technology Security

• All employees should sign a code of conduct relating to business technology usage, renewed as needed.
• Companies should have written, comprehensive cybersecurity policies and procedures.
• Information must be protected by sufficient software and hardware safeguards, and data must be deleted according to NIST standards when required.

Additional – Agriculture Security

• Inspect all containers and conveyances for signs of pest infestation, including plants, pests, and soil buildup.
• Clean containers of all debris, such as trash, soil, and packaging materials, before loading.
• Train all employees on proper container inspection procedures.

Additional Considerations – Forced Labor

• “Forced labor occurs when individuals are compelled against their will to provide work or service through the use of force, fraud, or coercion.” - CBP
• All parties should ensure end-to-end supply chain management, from raw material sourcing through production, logistics, and fulfillment, is free of forced labor.
• Many countries have enacted forced labor initiatives, including:
  • United States
  • International Labour Organization (36 countries as of 2023)

FAQs

What are common supply chain security issues?

• Incorrect or improper placement of container seals
• Compromised seals during transport
• Adulterated containers or conveyances (e.g., hidden compartments, fake walls)
• Unauthorized access to facilities or shipment information

How do I avoid common supply chain security issues?

• Utilize seal logs and secure seals when not in use, restricting access
• Perform the VVTT (View, Verify, Tug, Twist) method to ensure proper seal placement
• Inspect all containers prior to loading and record inspections using the 7/17-point container inspection checklist, taking photos when possible

How do I address supply chain security issues if they occur?

• Immediately secure the freight, if safe to do so, and notify your supply chain partner
• Contact local emergency services if needed to help secure cargo, facilities (in cases of unauthorized persons), or potential hazardous goods or substances
• Participate in international supply chain security programs such as CTPAT, AEO, and PIP

Commitment and Content

Please follow the resource links within this page to learn more about the various programs referenced in this best practices guide.

Flexport highly recommends that all partners participate in these voluntary programs to enhance supply chain security globally and benefit from incentives such as:

• Reduced theft and losses
• Reduced number of examinations
• Front-of-the-line inspections
• Shorter wait times at the border
• Direct contact with agencies via an assigned security partner
• And more

Flexport is committed to supply chain security and supporting its partners.

For questions or concerns, contact: compliance@flexport.com

“Supply chain security is the frontline defense, protecting against terrorism and preserving industry continuity amidst potential disruptions. It reminds us of the shared responsibility we bear, fostering resilience throughout the supply chain lifecycle.” — Ryan Tanner, Compliance Director, Flexport