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CTPAT/AEO – Supply Chain Security Management

Assess your security risks based on the Minimum Security Criteria (MSC) for U.S. Customs and Border Protection compliance.

Essential Details

 

AIAG members developed the first common system for automotive importers and their supply chain business partners complying with the Customs Trade Partnership Against Terrorism (CTPAT), the U.S.-based Authorized Economic Operator (AEO) program.


What is CTPAT?


CTPAT is a federal government program set up by the U.S. Customs and Border Protection (CBP) that allows companies shipping goods and materials into the country to become certified as a low-risk security threat. Certification means that cargo can move more quickly through U.S. Customs checkpoints.


Much like OEA in Mexico, and PIP in Canada, this cooperative, voluntary government-sponsored initiative intends to improve international supply chains and border security. As one of the largest and most complex parts of the U.S. Department of Homeland Security, CBP and its CTPAT program prioritize keeping terrorists and their weapons out of the country.


In order to be CTPAT certified or compliant, a supply chain partner must meet CBP’s minimum security requirements by answering a set of questions as part of a risk assessment. In recent years, CBP has taken a stronger enforcement posture to prevent and penalize the importation of goods produced using forced labor into the United States. As such, all AIAG CTPAT/AEO – Supply Chain Security Management risk assessments address CBP mandatory forced labor requirements. AIAG continues to work closely and strongly with CBP to ensure compliance throughout participating supply chains. 


The AIAG CTPAT/AEO Program


In collaboration with OEMs and suppliers, AIAG has developed the first common system that automotive importers and their supply chain business partners use to comply with CTPAT/AEO requirements. The CTPAT/AEO – Supply Chain Security Management Program is a subscription-based service that allows trade partners to complete one risk assessment that is universally accepted by all participants. AIAG regularly monitors CBP changes to CTPAT and incorporates them into the system to ensure ongoing compliance. CBP has named the AIAG system an official best practice.


The system includes:

  • Risk assessments tailored to each type of supply chain business partner — including manufacturers, highway, rail, air, and sea carriers, and more

  • Associated corrective actions required to meet the most current Minimum Security Criteria (MSC) required by CBP


Benefits of the system:

  • Extensive data security capability

  • Global threat assessment information available for all countries and can be evaluated by specific trade lanes

  • Importers and their supply chain business partners have a common process to request, complete, and evaluate supply chain security

  • Reporting capability can be used when conducting supplier security validations and as supporting supply chain security documentation for material supplied to CBP

  • Suppliers with multiple importer customers need only answer one risk assessment

  • Business partner risk assessment information is tagged to help automotive importers visually identify and track their supply chain risks

Participating Importers
Adient USA LLCIsuzu Logistics North America, Inc.
American Honda Motor Co., Inc.Kongsberg Automotive
Cooper Standard North American DivisionMazda North American Operations - Service Parts
General Motors CompanyMazda North American Operations - HV Production/Manufacturing
Honda Canada Inc.Mitsubishi Motors North America, Inc.
Honda de MexicoVolvo Cars Corporation
Honda of Canada ManufacturingYangfeng Automotive Interiors
Honda Trading America Corporation

Recognizing Authorized Economic Operators (AEOs)


Customs officials in every participating country need to confidently recognize the AEO program(s) of other nations for these programs to work efficiently. This recognition is formalized through Mutual Recognition Agreements (MRAs), which, according to CBP, indicate the security requirements or standards of the foreign industry partnership program, plus its verification procedures. 

The CTPAT/AEO – Supply Chain Security Management risk assessment simplifies administration of the entire CTPAT program, allowing companies to maintain CTPAT status and comply with CBP’s recommended 5-Step Risk Assessment Process. 

FAQs

What is CTPAT?

Close

CTPAT is a federal government program set up by the U.S. Customs and Border Protection (CBP) that allows companies shipping goods and materials into the country to become certified as a low-risk security threat. Certification means that cargo can move more quickly through U.S. Customs checkpoints.

Learn More

Does AIAG provide training in customs & trade?

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Yes, AIAG offers a comprehensive suite of training programs and educational resources designed to help automotive professionals navigate complex global trade regulations and maintain compliance.

Our premier offering is the Automotive Trade Compliance Masterclass, a CBP-accredited, virtual training program that provides deep insights into import and export processes, valuation, and classification. Additionally, AIAG provides targeted training and resources on key regional policies, including USMCA content reporting, Automated Commercial Environment (ACE) reports, and CTPAT security compliance. These programs are designed to help both OEMs and suppliers reduce administrative risks and streamline cross-border operations.

Automotive Trade Compliance Masterclass

Do you have some type of a Risk Assessment I can distribute to my suppliers under CTPAT assessing border security compliance?

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Yes. AIAG offers a subscription-based CTPAT and AEO Supply Chain Security Management Program that features a standardized, universally accepted risk assessment tool. Developed in collaboration with OEMs and suppliers, this system allows your supply chain partners to complete a single risk assessment that can be shared with multiple customers. The assessment is tailored to specific business types, such as manufacturers and carriers, and aligns with the latest Minimum Security Criteria required by U.S. Customs and Border Protection, including mandatory forced labor compliance requirements. Using this shared system reduces administrative burdens and helps you visually track and manage security risks across your supply chain.

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How does the Automotive Industry Action Group (AIAG) security management risk assessment support compliance with Customs Trade Partnership Against Terrorism (CTPAT) and Authorized Economic Operator (AEO) requirements?

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AIAG supports compliance by providing a standardized, subscription-based risk assessment system developed in collaboration with leading OEMs and suppliers. This cooperative platform allows trade partners to complete a single, comprehensive security assessment that is universally accepted by all participating importers, significantly reducing redundant administrative work across the supply chain.

The assessment is tailored to specific business types, including manufacturers and carriers, and is continuously updated to align with the latest Minimum Security Criteria from U.S. Customs and Border Protection. To address modern regulatory priorities, the system also incorporates mandatory forced labor compliance requirements. Recognized by customs authorities as an industry best practice, this unified approach helps organizations maintain their certified status, accelerate customs clearance, and proactively manage global security risks.

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What steps should OEMs and supplier importers take to implement the AIAG standardized security risk assessment within their supply chain operations?

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Implementing the AIAG CTPAT and AEO Supply Chain Security Management Program involves a straightforward, collaborative process designed to align your partners with U.S. Customs and Border Protection requirements.

First, organizations subscribe to the program to access the centralized platform. Once onboarded, importers can request that their supply chain partners complete the standardized risk assessment. Because the system is tailored by business type, suppliers complete only the sections relevant to their operations, such as manufacturing or highway transport.

Next, suppliers complete a single assessment that is securely stored and can be shared with multiple participating customers, eliminating redundant requests. Importers then use the built-in reporting and tagging tools to visually identify risk areas, manage corrective actions, and satisfy the CBP recommended 5-Step Risk Assessment Process.

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How do the latest security criteria from U.S. Customs and Border Protection impact companies participating in CTPAT, and how should organizations update their risk assessments to stay compliant?

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The latest Minimum Security Criteria from U.S. Customs and Border Protection place a stronger emphasis on supply chain visibility, particularly regarding mandatory forced labor compliance and global security requirements. To maintain certified status and ensure faster cargo clearance, participating companies must actively update their security risk assessments to reflect these evolving enforcement priorities.

To stay compliant without increasing administrative overhead, organizations can utilize the AIAG CTPAT and AEO Supply Chain Security Management Program. AIAG continuously monitors customs updates and integrates them directly into a standardized, subscription-based assessment system. This allows importers and suppliers to easily update their profiles, address new security criteria, and complete the recommended 5-Step Risk Assessment Process within a single, universally accepted platform.


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What are the most common security gaps identified during AIAG risk assessments for supplier importers, and what corrective actions are typically recommended?

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Common security gaps identified during assessments typically involve physical security, such as compliance with ISO 17712 standards for high-security seals, and procedural vulnerabilities, including the integration of mandatory forced labor due diligence into existing supply chain workflows. As U.S. Customs and Border Protection updates its Minimum Security Criteria, many organizations find their existing internal policies have not kept pace with these evolving enforcement priorities.

To address these gaps, the AIAG CTPAT and AEO Supply Chain Security Management Program provides built-in, automated corrective actions tailored to your specific business type. When a vulnerability is flagged, the platform guides suppliers through step-by-step remediation measures required to meet current customs expectations. This structured approach helps companies close security loopholes, document their compliance efforts, and successfully complete the CBP recommended 5-Step Risk Assessment Process.

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Want to get involved?

Contact our Supply Chain team at +1 (248) 358-3570 or email us to learn more. 

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