C-TPAT Program now mandated by Congress
   The passage of the SAFE Port Act by Congress is certain to usher in some changes in the C-TPAT Program. The new legislation officially recognizes C-TPAT.  It authorizes the Secretary of Homeland Security, acting through the CBP Commissioner, to establish officially the C-TPAT program.  Participants in C-TPAT will be classified in three tiers.  This tier system simply will recognize categories of participants with a tier 3 participant being one who would do substantially more to protect the supply chain and, therefore, receive greater benefits in moving the goods. Any significant importer wil want to be a tier 3 participant.  Section 212 of the new Act discusses those eligible for participation in C-TPAT as follows:  "Importers, customs brokers, forwarders, air, sea, land carriers, contract logistics providers, and other entities in the international supply chain and intermodal transportation system are eligible to apply to voluntarily enter into partnerships with the Departmnet under C-TPAT."  This section 212 appears to open the door for shippers' associations as "contract logistics providers" to participate in C-TPAT.  We will need to await the promulgation of new regulations by CBP.  It will become critical for shippers' associations to be able to participate in C-TPAT since we anticipate a firm requirement by CBP that tier 3 participants use only other C-TPAT participants in the supply chain.

AISA Sets Out to Accredit Shippers' Associations
    AISA has as a goal over the next year to develop an AISA accreditation program that will certify to the general shipping public that an accredited shippers' association  will follow a best practices regimen that includes, among other things, a framework of rules, relationships, and processes within which and by which fiduciary authority is exercised and controlled. In short, AISA intends to develop standards that will give the members of an accredited shippers' association confidence that the accredited shippers' association is using best practices to comply with the laws and regulations, to comply with security initiatives, to meet its fiduciary responsiblities, to ensure strong membership participation, and to otherwise give the shippers' association the greatest opportunity to be a fiscally responsible entity. AISA intends to reach out to its own shippers' association members as well as non-members for industry input.    

Service Contracts, Association Contracts
     We have reported on the opportunities available to shippers' associations in the international field to enter into service contracts with both ocean carriers and non-vessel operating common carriers. This enables an association to lock in rates and rules for a finite duration normally one year. The critical reason for associations to take advantage of contracts with the carriers is to avoid the uncertainty of subjecting the cargo to changing taiff rates. What has been overlooked for the most part is the opportunity that shippers' associations have to enter into individual written contracts with their members respecting the cargo movements.

Bylaws of Associations and Opportunities
    Normally shippers' associations as business entities have incorporated under a non-stock state incorporation statute which fits the cooperative venture. As with most corporations directors routinely adopt bylaws to govern the relationship between the corporation and its members. These bylaws merit close attention since the document normally will be judged to be a contract between the member and the corporate association. Under those circumstances there are a number of provisions that are includable in bylaws such as arbitration provisions which could reduce the cost to all parties in the event of a dispute. 


To learn more about AISA NEWS and the benefits of membership in AISA, please contact Bill Clark, President, AISA, at (202) 628-0933 or by e-mail at info@shippers.org.