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FOCUS ON SECURITY: C-TPAT
Voluntary program delivers tangible benefits to participants

Following last year’s terrorist attacks and the subsequent disruptions to international trade, the issue of supply chain security has become a major point of concern among the trading community. New initiatives such as the Container Security Initiative (CSI) and the 30-point Smart Border Declaration signed between the U.S. and Canada are among the programs that have gone a long way to increase cooperation and improve security measures.

Another initiative that is rapidly coming to fruition is the Customs-Trade Partnership Against Terrorism (C-TPAT). Introduced by the U.S. Customs Service (USCS), this new voluntary program requires participants to conduct a thorough self-assessment of their security policies and practices. By joining C-TPAT, companies will be able to ensure a more secure supply chain for their shipments as well as their employees, suppliers and customers.

“Customs is not looking to develop a ‘Fortress America’ mentality with this initiative,” explains Jack Rafferty, Director, Trade & Regulatory Services, PBB Global Logistics. “What they are looking to do is push the border back to the point of origin to better address the terrorism threat to international air, sea, and land shipping.”

Membership has its Privileges
C-TPAT offers several advantages to the overall trade community. Reduced frequency of inspections will result in fewer border delays. Also, as a benefit of the 30-point Smart Border Declaration, the U.S. and Canada will offer an expedited release program called Free And Secure Trade (FAST). By year’s end, the two governments will provide six traffic lanes dedicated to pre-approved low risk truck shipments. C-TPAT participation is a prerequisite to obtain FAST release into the U.S., a critical benefit for businesses operating in a Just-in-Time environment.

Moreover, U.S. Customs will offer other benefits to C-TPAT members including assigned account managers who will work with members to establish a security action plan. Here, Customs will help track participants’ progress in making security improvements, communicating C-TPAT guidelines to their business partners, and establishing improved security relationships with other companies.

In addition, C-TPAT offers companies access to its membership list. This represents an opportunity, considering how C-TPAT participants may prefer to deal with other supply chain partners who are also in the program. For some, access to the membership list will facilitate sourcing, while for others it may actually represent a useful tool for new business development.

Program’s security measures considered good business practice

While C-TPAT is ideal for large companies that rely heavily on international supply chains, small- and medium-sized companies may want to evaluate the requirements of C-TPAT and make their decision to join on a cost-benefit basis.

U.S. Customs doesn’t intend for C-TPAT to be unreasonably expensive or difficult to participate in. And while companies that fail to meet the program’s security commitments can have their benefits suspended, these can be easily reinstated once they have met the standards and/or addressed possible security breaches.

In most cases, USCS will work with participants to help them update and improve their security systems. The requirements are not intended to be onerous – rather they usually involve such basic security practices as background checks, photo IDs, increased lighting and fencing of building perimeters, etc. Even those companies not officially participating in C-TPAT would do well to consider adopting its guidelines in their overall corporate security practices.

“In essence, C-TPAT is simply good business practice,” says Mr. Rafferty. “While the obvious reason to participate is to heighten the security of international trade and transport, other benefits are possible such as reduction in loss, damage, and pilferage. Furthermore, participation can help mitigate liability and establish a safer and more efficient working environment.”

Finally, much like ISO certification, C-TPAT membership can provide good marketing and publicity opportunities for companies because it demonstrates a firm commitment to supply chain security.

Widening the Scope for Security
Importers and commercial air, rail, and sea carriers are eligible to enroll in C-TPAT, as well as brokers, forwarders and Non-Vessel Operating Carriers. Non-resident importers of record are eligible to join C-TPAT, making it a truly international effort. To date, over 300 participants have joined in the U.S. and the program is expected to receive strong cooperation from Canada, Mexico and the international trade community.

Other supply chain participants such as warehouse operators and manufacturers/ shippers will be included in the process in the future. Motor carriers will also be invited to join as the introduction of the FAST program nears. The scope of C-TPAT, combined with the fundamental importance of the U.S. market to many economies, is contributing to similar initiatives around the world.

The Canadian government is refining its Partners in Protection (PIP) program which, like its American counterpart, has its foundations in earlier drug interdiction programs. Under PIP, the government and participating companies agree to a consultative joint plan of action, including training programs and security assessments.

Security and Trade Facilitation: Twin Mandates
Traders accustomed to dealing with the USCS strictly in terms of trade compliance should be aware that C-TPAT will not trigger a Customs compliance audit. Audits related to security and trade compliance are determined and administered independently.

However, U.S. Customs’ dual role of trade facilitation and supply chain security comes together in the Importer Self Assessment (ISA) program, where participants will also be required to enroll in C-TPAT. The opposite, however, is not the case. C-TPAT members do not have to be in the ISA program, as Customs tries to be as inclusive as possible in promoting supply chain security.

U.S. Customs recognizes that close cooperation with the logistics industry will pay huge dividends in the quest for security, which is why it has designed C-TPAT with the entire trading community in mind. Although the industry may never feel the same sense of security it did pre-September 11, initiatives such as C-TPAT are designed to meet the challenges ahead.

PBB’s Role in Supply Chain Security
PBB Global Logistics fully supports the U.S. Customs Service’s and Canada Customs and Revenue Agency’s efforts to combat terrorism and improve supply chain security.

As such, PBB has already filed the necessary agreements with the USCS to participate in C-TPAT. We will also endeavor to ensure that every PBB employee is aware of the C-TPAT/PIP program requirements and is functioning under them. Further, we will work with any importer, manufacturer, shipper, carrier, or other party who seeks our advice regarding C-TPAT/PIP.

For more information about C-TPAT, PIP or other logistics security issues, contact PBB’s Trade & Regulatory Services experts at 1-800-924-4466 or e-mail trs@pbb.com.

UNLOCK THE CHINESE MARKET TODAY WITH PBB’S ACCESS CHINA

With a domestic market of 1.3 billion people, a rising economy and a nation-wide commitment to large infrastructure spending, there’s never been a better time to do business in China. But if you’re still searching for the key to unlocking the Asian market, PBB’s Access China can offer you the perfect solution.

With Access China, North American companies are able to experience significant cost savings by tapping into PBB’s vast network of connections, developed over 20 years of doing business in the country. By leveraging this network, PBB helps companies to source potential Chinese partners and access professional business services such as market research, insurance and translation. In addition, Access China provides expert assistance when it comes to corporate travel and logistics issues.

The centerpiece of PBB’s Access China program is its annual trade mission. With PBB’s China: Trade Mission, participants have the unique opportunity to meet one-on- one with buyers, suppliers, distributors and manufacturers, strategically selected from across China to match their specific business needs.

The third in PBB’s highly successful series of trade delegations to China is already underway, visiting several key Chinese commercial and industrial centers including Beijing, Dalian, Danjing, Wuhan and Shanghai. Several leading firms in the textile, consulting and chemical industries have signed up to take advantage of PBB’s valuable contacts and many participants continue to reap the benefits from previous missions.

“Personal relationships are essential to doing business in China and can take years to nurture and develop,” says Mike Scott, President and CEO, PBB Global Logistics. “But with Access China and our annual trade missions, PBB can help accelerate the process and give North American companies the expertise, experience and connections they need to capitalize on this growing market.”

For a free consultation on how the Access China program can help make China an important part of your business strategy, call PBB at 1-800-924-4466 ext. 7000.

CORPORATE TRAVEL SPECIALISTS OPEN THE DOOR TO THE WORLD

For over 25 years, PBB’s Corporate Travel professionals have been providing personalized and reliable service to a wide range of customers – literally from around the world.

For years, PBB’s knowledge of destinations in emerging markets has been on the cutting edge and nowhere is this more evident than in China. PBB Corporate Travel not only organizes all the events and coordinates travel arrangements during the company’s annual trade mission to China, it has also led private delegations, introducing them to the right contacts.

One of PBB’s most recent delegations involved a group of International MBA students from Wilfred Laurier University in Waterloo, Ontario. Laurier’s School of Business and Economics had envisioned a tour of China to teach students about the challenges of establishing business operations in international markets.

After a series of consultations, PBB’s Travel experts arranged meetings for the students with several high-level corporations in the Shanghai region, including the Shanghai Huaihai Commercial Group, the Huasheng Enterprises Group and the Baoxiniao Group Company Ltd. The result was a hands-on experience that gave the students excellent exposure to how business is done in China.

Likewise, numerous Chinese delegations have relied upon PBB Corporate Travel to manage their official visits to destinations in North America as well as to other destinations such as Egypt and Italy.

PBB recently welcomed Governor Ji Yunshi of the Jiangsu Province on the Canadian leg of his recent economic and trade delegation to North America and Europe. The visit was the fifth high-level Chinese delegation hosted by PBB’s Corporate Travel professionals in the past two years, and the second from Jiangsu.

That PBB is entrusted at the highest levels of industry and government is a testament to its experience, professionalism and reliability. These relationships, in turn, have been instrumental in the great success of PBB’s annual trade mission, which matches North American businesses with potential Chinese partners.

For more information on PBB’s fully integrated travel services, call 1-800-665-2978 or e-mail info@pbbtravel.com .

SUSSESSFUL INITIAL PUBLIC OFFERING STRENGTHENS PBB
PBB Global Logistics Income Fund launched on Toronto Stock Exchange

PBB is entering an exciting new era as it proudly announces the successful completion of its Initial Public Offering on the Toronto Stock Exchange. Effective May 15, 2002, PBB Global Logistics Income Fund (PBB.UN) is a publicly-traded investment on Canada’s largest capital market.

Complementing the company’s strategic plan, the move gives PBB access to new sources of capital to help fund future expansions and acquisitions and to continue to invest in technology. This same strategy has driven the company’s impressive growth in recent years and brought it recognition as one of Canada’s 50 Best Managed Companies in 2000, 2001 and 2002.

The offering was well received by investors, who welcomed PBB’s solid 56-year track record of growth and the quality of its people. Today, with 26,000 customers and over 10,000 transactions a day, PBB is providing a wide range of leading-edge supply chain solutions to businesses in all industry sectors.

Investors were attracted to PBB because of its focus on solutions, offering a single point of contact from Purchase Order to final delivery. With global logistics services including International Freight Forwarding, Customs Brokerage, Warehousing & Distribution, North American Shipping, Parcel Logistics and Trade & Regulatory Services, PBB presents an integrated approach to supply chain management. Businesses benefit from improved efficiency, full shipment visibility, convenience, increased market reach and better service to their customers, giving them a competitive edge in the marketplace.

“As we move forward as a publicly-traded entity,we are very excited by the prospects that lie ahead,” says Mike Scott, President and CEO of PBB Global Logistics. “But we are also remaining true to our core values that have guided us from the very beginning. Since 1946 we have consistently focused on personal customer service and quality excellence.”

Day-to-day operations at PBB are unchanged under the new public structure. The company’s Executive Management team, led by Mike Scott, continues in its role to provide corporate leadership and strategic planning.

“PBB is committed to realizing new global opportunities for our customers,” says Mr. Scott. “Through strategic expansion, service enhancements and investment in technology, we forge ahead in delivering supply chain solutions in a world of international trade.”

PBB WINS TWO PRESTIGIOUS TRANSPORTATION MARKETING AWARDS
Marketing program and ad creative judged best of the best

PBB’s superior creative and innovative marketing strategies have resulted in two prestigious awards from the Transportation Marketing & Communications Association (TMCA). PBB was recognized with a TMCA Award for its highly effective new ad in the Single Advertisement category and for its integrated marketing communications program.

Both awards were presented at the TMCA’s 2002 Annual Conference in Tuscon, Arizona.

“We are honored to receive these highly-competitive awards,” says John Ferguson, Director of Sales & Marketing, PBB Global Logistics. “PBB’s marketing strategy is built upon our expertise in the field of integrated logistics solutions and receiving this recognition is a validation of our ongoing efforts.”

PBB Global Logistics recently began running new ad creative to emphasize the benefits of its full range of customized supply chain solutions and to reinforce its position as a leader in global logistics. Its winning “Okay… Time for Plan B” creative involves a hypothetical, hard-hitting case study that illustrates the difficulty of self-managing a complex international supply chain.

Timely delivery, order accuracy, customer service and shipment visibility are just some of the challenges that must be constantly scrutinized. The anxiety caused by all these concerns is contrasted by PBB’s simple and seamless range of solutions.

Because of its high level of quality, creativity and effectiveness, PBB’s entry was one of only 19 total Awards of Excellence given out in this year’s competition.

The ad appears in a number of North American logistics and supply chain trade publications.

PBB’s winning integrated marketing communications program incorporated a number of diverse, yet interrelated communications strategies including brochures, service-specific sales sheets, newsletters, advertising campaigns, seminars, industry trade shows, digital marketing and web site capabilities.

PBB also reinforced its reputation as an expert in the global logistics field through various feature articles in a range of industry specific and mainstream publications.

The TMCA Awards Program – referred to sometimes as the “Trannies” – recognizes the best communications practices in the transportation and passenger transit industries and is sponsored by the U.S.-based TMCA.

E-PROCUREMENT SOLUTIONS
Workflow Efficiencies through Purchase Order Management

Optimize procurement by integrating your purchasing function into your full supply chain. PBB’s order management application lets you manage purchase orders from creation to completion, enabling you to collaborate on-line with vendors throughout the process for maximum efficiency.

PBB’s e-Procurement solution improves vendor management, reduces cycle time and achieves cost savings for all parties accessing the system. By interfacing with PBB’s range of on-line supply chain management tools, full visibility of the progress of your order is guaranteed.

Why Use PBB’s e-Procurement Service?

• Secure, real-time Web access to purchase order data, facilitating collaboration with vendors around the world.

• Standardized platform for tracking orders reduces uncertainty, delays and paperwork throughout the purchasing process.

• Greater order accuracy and processing – preloaded database of SKUs means less re-keying.

• Customizable event-driven tasks guide all parties to work proactively and ensure quality assurance, with automatic flags to keep orders on track.

• Analyze historical purchase data, compare prices and vendors, ultimately lowering costs of goods and materials.

• Interfaced with PBB’s integrated supply chain services, providing full visibility of order data and physical movement of goods.

Multiple Applications Tailored to Any Supply Chain

With PBB’s e-Procurement system, your purchasing can be managed independently or in conjunction with any of our integrated supply chain services, including International Freight Forwarding, North American Shipping, Customs Brokerage and Warehousing & Distribution. Regardless of the complexity of your supply chain, PBB’s e-Procurement solution provides bottom-line benefits to your purchasing function.

Global Transportation
Order management helps you collaborate with domestic and international suppliers while interfacing with PBB’s freight systems for real-time tracking and tracing of shipments. Establish tasks to remind and streamline key processes such as generation of commercial invoices, application for import permits and document translation.

Customs Brokerage
When a purchase order is created, it automatically populates key trade documents required for import and export shipments. Reduced re-keying of data and immediate access to existing customized tariff databases improve order accuracy. This ultimately reduces the potential for unnecessary border delays and penalties resulting from non-compliance and clerical errors.

Inventory Management
Interfacing with PBB’s Warehousing & Distribution systems, e-Procurement offers the tools to better manage inventory. As vendors respond and update purchase order details in the system, advance shipping notices can be issued automatically and potential back-order situations can be identified and addressed. Increased stock accuracy and fill rates to customers is also ensured, as SKU data from purchase orders feeds into inventory systems.

PBB’s proven expertise in Customs Brokerage, its advanced Internet-based systems and value-added supply chain solutions: it’s an unbeatable combination for global shippers doing business in today’s increasingly complex trade environment.

For Ingram Micro’s import operations, this means accuracy and efficiency in a critical link of its Canadian supply chain.

As the country’s largest global wholesale provider of technology products and supply chain management services, Ingram Micro imports products from all over the world. Ingram Micro Canada has offices and distribution centers located in Vancouver, Montreal and Toronto. The company operates in 37 countries and sells to nearly 170,000 technology solution providers around the world. Top vendors include Hewlett-Packard, Microsoft, Sony, Toshiba, Cisco Systems and Xerox.

Proven Customs Brokerage
For over ten years, PBB has been clearing Ingram Micro’s time-sensitive shipments through Customs efficiently and accurately. Through this partnership, Ingram Micro benefits from over 55 years of Customs Brokerage experience and has access to the expertise of 200 licensed Customs brokers through a network of 70 locations throughout North America.

Timing is a critical element for Ingram Micro. “In our business, success must be 100 per cent,” says Trent Cosgrove, Senior Director International Trade Compliance.“Goods cannot be delayed at the border. PBB has a perfect record clearing our shipments in a timely and accurate fashion. They have never let us down.”

The partnership forged between the two companies reflects their mutual commitment to service excellence. “PBB is committed to meeting our needs, above and beyond ongoing Customs Brokerage expertise,” says Mr. Cosgrove. In fact, PBB’s unique combination of trade planning services, e-globallogistics.comTM systems and integrated supply chain solutions offers Ingram Micro many competitive advantages.

Trade Planning and Research
With tens of thousands of products in its database and roughly a dozen new products being launched every day, HS tariff accuracy is essential for Ingram Micro. PBB’s Trade & Regulatory Services experts are frequently consulted to determine proper tariff classifications and establish rules of origin. With AMPS coming into effect, data accuracy is increasingly important to ensure Customs compliance.

Efficiencies Through e-globallogistics.com™
Several years ago, Ingram Micro became one of PBB’s first clients to realize the benefits of its e-globallogistics.com™ Web-enabled supply chain management tools.

Using any standard Web browser, Ingram Micro inputs CCRA Trade Data, saving time and allowing for precise record-keeping, according to Angela Cummings, Customs Manager, Ingram Micro. “The system is reliable, convenient and allows us to generate activity reports sorted by product, manufacturer, vendor or even transaction number.”

This generates efficiencies, leading to savings in labor costs for Ingram Micro. Interfaced with PBB’s electronic release programs and client tariff databases, e-globallogistics.com™ also improves entry accuracy and reduces the potential for unnecessary delays at the border.

With e-globallogistics.com™, Ingram Micro benefits from full shipment visibility. PBB’s tracking and tracing function provides real-time access to logistics data, from anywhere in the world. “We have trucks rolling in that are crucial to our distribution network,” says Cosgrove. “PBB’s tracking and tracing function allows us to access the details of our shipments.”

PBB is also an important part of Ingram Micro’s Logistics Contingency Plan. On one occasion when its logistics staff was temporarily depleted by 40 per cent, PBB took over a number of functions previously handled by their internal Customs department. “PBB not only took on the challenge, they excelled at it,” says Cosgrove, adding that should he ever find himself faced with the same situation again he would have complete confidence in re-implementing the contingency plan.

A Proud Partnership
With a proven track record in Customs Brokerage and expertise in other supply chain services, PBB Global Logistics continues to provide top-notch service and generate efficiencies for Ingram Micro. The computer products distributor giant frequently recommends PBB’s solutions to its vendors and customers. “We tell them we are happy with PBB,” says Cosgrove. “For Ingram Micro, PBB represents confidence, familiarity, knowledge and commitment. This is a strong marriage.”

NEWS BRIEFS

Executive Briefing Videos Available
PBB recently undertook a cross-continent series of Executive Briefings to share some insight into new government initiatives that affect the North American trading community. Sessions were held in several cities including Toronto, Buffalo, Vancouver, Montreal, Chicago and Cincinnati.

The Canadian and U.S. governments are both implementing a number of major programs which center around two primary themes: trade security and Customs compliance. The scope and breadth of the upcoming changes can be intimidating to businesses that aren’t able to keep up with frequent official announcements and policy updates.

The three-hour seminars covered Customs compliance topics such as the Administrative Monetary Penalty System (AMPS), Customs Self-Assessment (CSA) and Advance Commercial Information (ACI).

At the same time, a series of trade security measures are being introduced on both sides of the border: the C-TPAT program in the U.S. and PIP in Canada. The Smart Border Declaration between the two countries also contains a number of security harmonization efforts affecting importers and exporters.

A videotape of the sessions is available for purchase by calling 1-800-924-4466 x 634 or on-line at www.pbb.com/seminars.

Logistics Solutions Now Offered to/from Mexico
In keeping with PBB’s continued effort to deliver supply chain solutions in Latin America, we have expanded our services. PBB now offers full logistics services along the southern border with Mexico.

For detailed information or quotes involving services to/from Mexico and the U.S. such as air/ocean freight, land transportation and Customs clearance at either side of the border, e-mail mexico@pbb.com. With service offered in both English and Spanish, PBB provides seamless solutions for this rapidly growing trade lane.

Fillable PDF Forms Make Trade Documentation Easy
Filling out common trade documents is now easier thanks to a new series of fillable PDF forms on www.pbb.com. Located in the Trade Documentation section, these forms allow you to complete and print forms using Adobe Acrobat Reader, a free application for viewing PDF files, popular because of their ability to retain the exact look and feel of original documents across various platforms.

Fillable forms available on PBB’s Web site include Canada Customs Invoice, Invoice for U.S. Customs Clearance, NAFTA Certificate of Origin, B13 Export Declaration, as well as documents required for other government agencies such as the FDA and FCC. Download these fillable PDF forms today to add convenience and efficiency to your work!

AMPS NOW JUST AROUND THE CORNER

With the full implementation of the Administrative Monetary Penalty System (AMPS) beginning October 7, 2002, businesses can no longer wait to familiarize themselves with the implications of non-compliance and the new penalty structure.

Established by the Canada Customs and Revenue Agency (CCRA), the chief aim of AMPS is to discourage the violation of regulations under the Customs Act, Customs Tariff and the Special Import Measure Act.

Although it is not meant to be a punitive enforcement program, the CCRA intends to use AMPS as a first response for acts of non-compliance in the majority of cases. Under AMPS, penalties will be assessed against the responsible party whether it is the importer, exporter or carrier. Penalties for failure to report goods or to correct tariff data range from an initial warning up to a maximum of $25,000 Cdn per infraction.

AMPS will apply to both import and export shipments to Canada. Exporters to countries other than the United States will be required to report to the CCRA prior to exportation. This can be in the form of either a paper B13 export declaration or an electronic file via the Canadian Automated Export Declaration (CAED) system. PBB also has the capability to transmit the necessary data on behalf of our clients.

Importers and exporters alike should review their business systems and procedures to ensure that they are fully compliant with Customs requirements. Consultation with a licensed professional can be a critical first step in this process.

For more information about AMPS or any other Customs compliance issue, please contact Trade & Regulatory Services at 1-800-924-4466.