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C-TPAT Audit Report

Client ABC Importers AI Service No O-cn-1234567

Supplier No information provided Auditor John Lu

Factory Apparel Factory Limited Audit Date XXXXX

General Overview of the Audit’s findings

Fields Score / 5 Weight /5 Weighted Score
Outside barriers and physical security 2 1 2
Factory employee security 3 1 3
Factory internal security 1 1 1
Shipping dock securities 0 1 0
Key control and seal control 3 1 3
Security process 2 1 2
Container or merchandise movement 3 1 3
Computer systems controls 3 1 3
total 8 17

Overall Score 4.25/10

Important remarks
General comment:
1. The factory site is too narrow to easily operate the shipping dock, container yards and even the
parking area.
2. They lack any knowledge of C-TPAT regulations.

For Part 2 Outside barriers and physical security:

3. The vehicle entrances and exits are not manned or monitored at all.
4. Lighting is installed inside and outside of every exit, but not enough lighting is installed at cargo
handling areas, storages areas and fence lines.
5. Not all incoming and outgoing cargo vehicles are checked.
6. The shipping and receiving parking lots are not separated from other parking lots.
7. Vehicles are not prohibited from parking near cargo conveyances.

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For Part 3 Factory employee security
8. The factory has no process to investigate the employees’ background.
9. The factory has no process to ensure that employees only can access work areas to perform their
work duties.
10. The orientation training does not include challenging and reporting unidentified persons to security
or management personnel.

Part 4 - Factory internal security

11. The factory has not performed a background check of its security guards.
12. No written procedure is in place that addresses challenging and removing unauthorized/unidentified
persons.
13. The factory did not require visitors to provide photo ID for identification.
14. No identification process is implemented before a vehicle may enter the facility.
15. The factory has no Threat Awareness Program to help employees recognize a threat by terrorist.
16. Incoming and outgoing cargo vehicles are not checked by the factory.
17. The factory has not developed a program in which contractors are selected by considering their
financial stability and corporate history.

Part 5 - Shipping Dock securities

18. Anyone one can enter the shipping dock area without restriction.
19. Workers can bring personal items into the shipping area without restriction.
20. Employee and visitor parking areas are not separated from the cargo loading area.
21. An Employee Security Awareness Program regarding cargo integrity, recognizing internal
conspiracies, and protecting access controls is not available.
22. Vendor and visitor vehicles are not inspected.

For Part 6 Key Control and Seal Control

23. The factory has no procedure to report and take action when a container seal is found missing.

For Part 7 Security process

24. The factory only checks the floor of containers and not according to 7-Point Inspection.
25. The factory could not provide any evidence to indicate that they use seals that meet or exceed the
ISO PAS 17712 standard.
26. No written procedure is in place to report unauthorized entry into containers or container storage
areas.
27. The factory has no procedure in writing that ensures shipping documents are accurate, complete,
legible, and protected against exchange, loss or introduction of erroneous information.

For Part 8 Container or merchandise movement

28. The factory has not developed a procedure for drivers to report any in-transit delay to factory
officials.
29. Drivers are not instructed to report any attempts to gain access to the shipment by unauthorized

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persons.
30. When selecting carriers, the factory does not consider the carriers' financial stability and corporate
history.

For Part 9 Computer Systems controls

31. No procedure is utilized to document computer systems control - including safeguarding computer
access.

Index:

Part 1 Factory profile 4

PART 2 OUTSIDE PHYSICAL SECURITY AND BARRIERS 7

PART 3 FACTORY EMPLOYEE SECURITY 9

PART 4 FACTORY INTERNAL SECURITY 11

PART 5 THE SHIPPING DOCK SECURITIES 13

PART 6 KEY CONTROL AND SEAL CONTROL 14

PART 7 SECURITY PROCESS 15

PART 8 CONTAINER OR MERCHANDISE MOVEMENT 16

Part 9 Computer Systems controls 17

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Part 1 Factory profile

General information
1 Date of foundation 2005
2 Legal status Domestic private investment
3 Location No.1 Road, ShenZhen
4 Area Guangdong Province
5 Number of office staff 15
6 Total number of workers 90
7 Contact person Mr. Li/ General Manager
8 Main products Handbag / Backpack / Waistbag / Icebag
9 Main market USA / Germany / France / Italy / Denmark
10 Business license Certificate No.: 12340256787
11 Annual turnover USD2000000 (2007) Trend:
for the past 3 years Rising from 2008
USD1800000 (2008)

USD1900000 (2009)

Communication infrastructures
12 Telephone sets 11 pieces
Fax machines 1 piece
Computers 11 pieces
Internet Access type ADSL
Digital camera 2 pieces

Facility Structure
13 No. of buildings
Workshop One 3-storey building about 1,500 square meters
Warehouse Two rooms at 1/F of one 3-storey building about
200 square meters
Container yards 100 square meters
Others About 1,000 square meters used as dormitory,
kitchen and canteen
Trucks owned By Company ABC Trading Co., Ltd.
Percent of goods exported to US 20%
By air 0
By sea 100%

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Related pictures

Silk screen Printing section Packing section

Sample room Warehouse

Dormitory Dormitory room

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Canteen Kitchen

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Part 2 - Outside barriers and physical security

Checkpoints Finding/comments
1. Factory is not enclosed within a secure fence The factory has a secure fence and lockable
and lockable gates. Fence isn't inspected on a gates. The fence is inspected by security
routine basis. guards per hour.
2a. Gates through which vehicles enter or exit are Neither the vehicle entrances nor exits are
not always manned or monitored. manned or monitored at all.
2b. Gates through which people enter or exit are Security guards monitor people when they
not always manned or monitored. enter the gate.
All windows, doors, gates – seen on the
3. Windows, doors, gates are not secured with
factory tour - are secured with lockable
lockable devices.
devices
Lighting is installed at inside and outside of
4. There is not adequate lighting inside or outside:
the exits; however there is not enough
entrances/exits, cargo handling and storages
installed at cargo handling areas, storage
areas, fence lines and parking areas.
areas and fence lines.
5. No alarms and/or video surveillance cameras Alarms and video surveillance cameras are
are used to monitor the facility. available.
6. Gates are not monitored by patrolling guards According to security guard interviews, they
during non–operating hours. patrol the gate per hour.
7. Incoming and outgoing cargo vehicles are not Not all incoming and outgoing cargo vehicles
checked by an additional or separate process. are checked.
8. Shipping/receiving parking lots are not Shipping and receiving parking lots are not
separated from all other parking lots separated from all other parking lots.
9. Vehicles are not prohibited /prevented from Vehicles are not prohibited from parking near
parking near cargo conveyances. cargo conveyances.
Security guards are assigned to monitor the
10. Parking lots are not monitored
parking lots.

Score : 0 1 2 3 4 5

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Related pictures

Not enough lamps Not enough lamps at fence lines

Shipping and common parking lots Shipping and common parking lots
located in the same area located in the same area

Lamp on top of gate Alarm installation

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Video surveillance Video surveillance

Factory gate lock Metal grills on outside of windows

Part 3 Factory employee security

Checkpoints Finding/comments
1. No process is in place to perform background
screening of prospective employees; such as a The factory has no process to investigate
check of employment history and references employee backgrounds.
(consistent with local regulations).
2. No documented procedure exists for the From management interviews and document
issuance, removal or changing of access devices review, the factory appears to have the
(key cards, ID badges, etc.). concerned procedure in place.
3. Employee records are not reviewed before entry The HR department has established these
into and exit from the facility. records.
4. Employees have access to more areas than just The factory has no process to control
those necessary for performing their duties. employee access to work areas other than

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those used to perform their duties.

5. No procedure is in place to remove factory According to management interviews and

identification and systems access keys from document review, the factory has developed
terminated employees. the procedure to control it.
6. New employee orientation does not include The orientation training does not include
procedure on challenging and reporting challenging and reporting unidentified
unidentified persons to security or management persons to security or management
personnel. personnel.
According to worker interviews and
7. This facility does not have a security awareness
document review, the factory has a security
program in place for all personnel.
awareness program.
According to worker interviews and
8. This facility does not have a process in place
document review, the factory does require all
requiring all personnel to participate in the
personnel to participate in a security
security awareness program.
awareness program.

Score : 0 1 2 3 4 5

Related pictures

Joining factory notice Factory monitoring procedure

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Part 4 - Factory internal security

Checkpoints Finding/comments
1. No security guards on duty 24 hours a day, 7
Security guards are on duty at 24 hours a
days a week. If not, is a part-time security
day and 7 days a week.
service used? If neither, explain.
2. Security guards have not undergone a The factory has not checked security guard
background check and necessary training backgrounds or provided concerned training.
3. No written procedure in place addressing the
The factory has not developed the concerned
challenging and removing of
procedure.
unauthorized/unidentified persons?
4. Visitors don't present a photo ID for
The factory does not require visitors to
identification and/or are not accompanied or
provide the photo ID for identification.
monitored while at the facility.
5. Positive driver identification is not necessary No identification is checked before vehicles
before a vehicle may enter the facility. may enter the facility.
6. A Threat Awareness Program is not maintained The factory has not developed the concerned
in order to recognize a threat by terrorist? program.
7. The interior of buildings in the facility is not The security guards patrol the factory at
patrolled by guards regular intervals.
8. The placement of cameras does not provide an The factory has equipped the necessary
adequate view of activities in relevant areas. video surveillance cameras.
9. Guards and/or security personnel do not have According to what was seen during the
keys to facility gates factory tour, the security guards have keys.
10. Incoming and outgoing cargo vehicles are not Incoming and outgoing cargo vehicles are
checked by additional or separate processes. not checked by the factory.
11. When selecting the contractors used by the
The factory has not developed a program to
company, the company does not consider the
select the contractor based on their financial
contractor's financial stability and corporate
stability and corporate history.
history.

Score : 0 1 2 3 4 5

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Related pictures

Monitor at top of the door in dormitory

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Part 5 Shipping Dock securities

Checkpoints Finding/comments
1. Shipping dock isn't restricted to authorized Anyone can enter the shipping dock area
employees only. without restriction.
2. Employees are permitted to bring personal The workers can bring personal items into
items into the shipping area. the shipping area without restriction.
3. Container or truck loading is not performed with The packing department supervisor is
only factory supervision. assigned to control it.
4. Employee and visitor parking areas are not Employee and visitor parking areas are not
separated from the cargo loading area. separated from the cargo loading area.
5. An Employee Security Awareness Program
regarding cargo integrity, recognizing internal The factory has not developed the concerned
conspiracies, and protecting access controls is not program.
available or used.
6. If allowed to enter facility area, vendor and Vendor and visitor vehicles are not
visitor vehicles are not inspected. inspected.

Score : 0 1 2 3 4 5

Related pictures

Visitor parking areas are not separate from the cargo loading area, and anyone can
enter the area.

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Part 6 - Key Control and Seal Control

Checkpoints Finding/comments
The packing department supervisor is
1. Persons other than authorized employees have responsible for distributing the keys and
access to keys and container seals. container seals, and only assigned workers
have access.
According to records review, the packing
2. A Key Control Log is not maintained indicating
department supervisor is responsible for
the name and date of keys taken and returned,
distributing and maintaining keys and
and by whom.
container seals.
3. A Container Seal Control Log is not maintained
indicating seals currently on hand and seals used
The documents and records are kept for at
during the past 120 days - by seal number - with
least 6 months.
the date the seal was used, the container #, and
employee name who used the seal.
4. No procedure is used indicating how to report a
missing container seal (contact person, action to The factory has no such procedure.
take).
5. The facility does not keep records of seal
According to a review of documents and
numbers together with truck license/ with driver
management interviews, the documents and
name/time and date of loading/the
records are kept at least 6 months.
container/cargo conveyance number.

Score : 0 1 2 3 4 5

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Part 7 Security process

Checkpoints Finding/comments
1. A 7-point inspection is not made of the
container before loading to check for tampering The factory only checks the floor of each
(front wall, left and right side walls, floor, container.
ceiling/roof, doors and undercarriage).
According to management interviews, each
2. Seals on outbound containers are not checked
seal is compare with the shipping document
to ensure that they match shipping documents.
before used.
The factory cannot provide any evidence to
3. A seal other than an ISO PAS 17712 High
indicate that they used seals that meet or
Security Seal is used on shipping containers.
exceed ISO PAS 17712 standard.
4. Employees other than designated, appointed
The packing department supervisor is
employees may install a seal to an outbound
assigned to control the seals.
container.
5. Empty and loaded containers are stored in All containers are guarded by security
unsecured, unguarded area? guards.
6. Written procedure is not in place to report
unauthorized entry into containers or container The factory has no such procedure.
storage areas.
7. Written procedures are not in place that ensure
shipping documents are accurate, complete, The factory has no such documentation
legible, and protected against exchange, loss or procedure.
introduction of erroneous information.
8. There is no one responsible for issuing and The export department supervisor is
tracking seals assigned to control it.
The factory management confirmed that all
9. Trucks are not sealed after loading is complete.
trucks are immediately sealed after loading.
10 Seal numbers are not verified at the time of The export department supervisor is
final sealing before departure. assigned to verify it.
11. Cargo units are not identified, labeled, and The cargo units are identified, labeled and
weighed before loading. weighed before loading.

Score : 0 1 2 3 4 5

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Part 8 - Container or Merchandise Movement

Checkpoints Finding/comments
The export department supervisor is
1. Drivers picking up cargo are not positively
assigned to identify the drivers before the
identified before cargo is released to them.
cargo is released.
2. Container seal numbers aren't verified against The export department supervisor is
shipping documents when departing the factory. assigned to verify the documents.
3. Factory officials do not have outlined a
According to document review and the
safe/secure transit route to the shipment
management interviews, the factory
destination or have not instructed drivers to only
provides a secure transit route to its drivers.
use this route?
4. Drivers are not instructed to report any delay in The factory has not developed concerned
transit to factory officials. instructions for its drivers.
5. Drivers are not instructed to report any
The factory has not developed concerned
attempts to gain access to the shipment by
instruction for the drivers.
unauthorized persons?
6. When the container is turned over to the next
supply chain link, the seal number is not verified This item is not available.
against the accompanying documentation
7. When the container is turned over to the next
supply chain link, the seal is not checked to ensure This item is not available.
it is intact
8. For conveyance entries/exits, logs are not
maintained with truck license information/with The factory maintained the records at least 6
driver's name/with time and date of entry/exit/ months.
name of the guard/
9. When selecting carriers, the facility does not
consider the carriers' financial stability and The factory has not developed the process.
corporate history

Score : 0 1 2 3 4 5

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Related pictures

Conveyance logs

Part 9 - Computer Systems controls

Checkpoints Finding/comments
Each computer has an individually assigned
1. Computers don't have individually assigned
password and the factory changes the
passwords which are changed periodically.
passwords semi-annually.
The office staffs have their own individual
2. Computer access isn't limited to authorized
password and can only access approved
employees only.
information.
3. Procedures are not utilized to document
computer systems control - including The factory has not developed the process.
safeguarding computer access?

Score : 0 1 2 3 4 5

END
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