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i.e.Now |
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| What's Up with Committees: Special Report on PIP Survey Results |
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After it was identified as the top advocacy issue for members in I.E.Canada’s 2009-2010 Member Survey for the second consecutive year, the association’s Trade Security Committee (TSC) developed a survey of members in order to gain insight into the challenges and benefits that companies are experiencing with the modernized Partners in Protection (PIP) program. The survey was circulated to all I.E.Canada members in February 2010 and attracted over 50 responses. Members shared their experiences with the modernized PIP program application and site validation process; their overall satisfaction levels with the program and how it is being administered; and how they would like to see the program improved. Results of the PIP survey will be shared with CBSA. Joy Aldous, director, Trusted Trader Programs, CBSA will participate in a joint meeting of the Trade Security Committee (TSC) and the Customs & Legislation (C&L) Committee on June 14, 2010. During that meeting the survey results will be discussed, as well as progress towards full harmonization of the PIP and C-TPAT programs scheduled for December 2010, and the future of trusted trader programs generally, which include Customs Self-Assessment (CSA), Partners in Compliance and Free and Secure Trade (FAST). PIP Membership and Application Process Approximately 63% of survey respondents identified themselves as legacy members of the original PIP program. Of these 81% had reapplied for the new modernized PIP program. Moreover, some of those that had not reapplied indicated that they would be applying. A number of respondents were not legacy members but had applied for the modernized PIP program. Sixty one percent of respondents indicated that they and/or an affiliated company are members of the C-TPAT program. Not all of these are PIP members. Respondents that had not applied for the modernized program or were not intending to apply cited lack of sufficient benefits; inability to obtain management “buy-in”; and other security-related priorities as some of the reasons. The process for completing and/or transmitting the application itself was most commonly citied by respondents as the single difficulty of greatest concern during the application process. Some suggested that completion of the application would have been more straightforward if the PIP and C-TPAT applications had been harmonized. It is noteworthy, however, that several respondents indicated that they experienced no difficulties with the process at all. Breakdown of responses (31) to question regarding greatest difficulties during application process for modernized PIP program:
A significant number of companies appear to be experiencing delays with the application and certification process: 47% of respondents whose applications were being processed indicated that they had submitted their applications 18 weeks ago or more. Of those respondents who already had their PIP certification, 42% indicated that it took more than four months for their companies to receive their site validation. Some respondents commented that it took almost a year to obtain certification, while others are still waiting for their site validation to be scheduled with CBSA. Comments regarding the site validation process were quite favourable. Respondents generally had no issues with the site validation process and found CBSA officers to be well organized. Some respondents reported that CBSA officers provided valuable recommendations to assist them in improving their supply chain security measures. Of respondents to the relevant question (21), 57% reported that their companies spent $50,000 or less to meet the requirements of the modernized PIP program. Note, however, that 24% did not know how much had been spent. In their comments, some respondents explained that security measures were already built into their company’s practices as part of C-TPAT participation or due to corporate policy. Breakdown of responses (37) regarding expenditures to meet the requirements of the modernized PIP program:
Benefits and Challenges of PIP Program 1. Fewer CBSA inspections; Respondents also identified a number of additional benefits they would like to see under the PIP program, including a web portal as a communication tool with CBSA; lower insurance rates; priority movement during business resumption in the event of a border disruption; information from CBSA regarding high risk scenarios, as well as recommendations on program enhancement; on-line training tools; joint application processes with C-TPAT; an annual conference of PIP members; access to the FAST lane for companies that are not members of the CSA program; and mutual recognition with other security programs. Respondents identified the business partner requirements as the single biggest challenge associated with the modernized PIP program. Business partner requirements also appear to be a significant reason for companies to join PIP and other supply chain security programs. Thirty three percent of all survey respondents reported that they had received requests from customers to participate in the PIP program and a few commented that they have received requests from U.S. customers to participate in C-TPAT. In turn, 41% of all survey respondents had requested their suppliers to participate in the PIP program or other supply chain security programs. Breakdown of responses (37) to question regarding biggest challenges companies face in meeting the requirements under the modernized PIP program:
Some of the “other” challenges identified in meeting the PIP requirements included the time involved; justifying the cost to return on investment; ensuring documentation for processes was current internally; completing the application which was found to be time consuming and duplicative; and satisfying the security seal requirements. Survey respondents were also asked to identify the features they would like to see in a PIP web portal. In order of popularity, they were ranked from the provided list as follows: 1. Ability to update company security profile and other information to CBSA; Overall Satisfaction Levels with PIP Program In their comments, respondents generally encourage the continued enhancement of the PIP program and recommend that CBSA dedicate more effort to marketing the benefits of the program. They suggest that increased communication and transparency in the application process and administration of the program would encourage additional participation and alleviate some of the challenges currently being experienced. Seventy five percent of respondents to the relevant question (65% of total survey respondents) would recommend participation in the PIP program. If you would like more information about the PIP Program Survey Report and Trade Security Committee or any of our other committees, please feel free to contact Amesika Baëta, Committee Director. This article was written by Carol Osmond, vice president, policy, and Amesika Baëta, committee director. |
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I.E.CANADA NEWS
Disclaimer - I.E.Now is designed to provide members with the most up-to-date trade information from a variety of sources. The information we feature does not necessarily reflect the association's opinion on a given international trade issue. While every effort has been made to ensure the accuracy of the information notedin the daily e-mail, government policies are constantly evolving. The Canadian Association of Importers and Exporters Inc. cannot assume any responsibility for actions taken solely or principally on the basis of the information provided.
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