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C-TPAT Audit Report


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.

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 Audits 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
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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
USD2000000 (2007)
USD1800000 (2008)
11 Annual turnover
for the past 3 years
USD1900000 (2009)
Trend:
Rising from 2008

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

Facility Structure
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
13
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
and lockable gates. Fence isn't inspected on a
routine basis.
The factory has a secure fence and lockable
gates. The fence is inspected by security
guards per hour.
2a. Gates through which vehicles enter or exit are
not always manned or monitored.
Neither the vehicle entrances nor exits are
manned or monitored at all.
2b. Gates through which people enter or exit are
not always manned or monitored.
Security guards monitor people when they
enter the gate.
3. Windows, doors, gates are not secured with
lockable devices.
All windows, doors, gates seen on the
factory tour - are secured with lockable
devices
4. There is not adequate lighting inside or outside:
entrances/exits, cargo handling and storages
areas, fence lines and parking areas.
Lighting is installed at inside and outside of
the exits; however there is not enough
installed at cargo handling areas, storage
areas and fence lines.
5. No alarms and/or video surveillance cameras
are used to monitor the facility.
Alarms and video surveillance cameras are
available.
6. Gates are not monitored by patrolling guards
during nonoperating hours.
According to security guard interviews, they
patrol the gate per hour.
7. Incoming and outgoing cargo vehicles are not
checked by an additional or separate process.
Not all incoming and outgoing cargo vehicles
are checked.
8. Shipping/receiving parking lots are not
separated from all other parking lots
Shipping and receiving parking lots are not
separated from all other parking lots.
9. Vehicles are not prohibited /prevented from
parking near cargo conveyances.
Vehicles are not prohibited from parking near
cargo conveyances.
10. Parking lots are not monitored
Security guards are assigned to monitor the
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
located in the same area
Shipping and common parking lots
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
check of employment history and references
(consistent with local regulations).
The factory has no process to investigate
employee backgrounds.
2. No documented procedure exists for the
issuance, removal or changing of access devices
(key cards, ID badges, etc.).
From management interviews and document
review, the factory appears to have the
concerned procedure in place.
3. Employee records are not reviewed before entry
into and exit from the facility.
The HR department has established these
records.
4. Employees have access to more areas than just
those necessary for performing their duties.
The factory has no process to control
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
identification and systems access keys from
terminated employees.
According to management interviews and
document review, the factory has developed
the procedure to control it.
6. New employee orientation does not include
procedure on challenging and reporting
unidentified persons to security or management
personnel.
The orientation training does not include
challenging and reporting unidentified
persons to security or management
personnel.
7. This facility does not have a security awareness
program in place for all personnel.
According to worker interviews and
document review, the factory has a security
awareness program.
8. This facility does not have a process in place
requiring all personnel to participate in the
security awareness program.
According to worker interviews and
document review, the factory does require all
personnel to participate in a security
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
days a week. If not, is a part-time security
service used? If neither, explain.
Security guards are on duty at 24 hours a
day and 7 days a week.
2. Security guards have not undergone a
background check and necessary training
The factory has not checked security guard
backgrounds or provided concerned training.
3. No written procedure in place addressing the
challenging and removing of
unauthorized/unidentified persons?
The factory has not developed the concerned
procedure.
4. Visitors don't present a photo ID for
identification and/or are not accompanied or
monitored while at the facility.
The factory does not require visitors to
provide the photo ID for identification.
5. Positive driver identification is not necessary
before a vehicle may enter the facility.
No identification is checked before vehicles
may enter the facility.
6. A Threat Awareness Program is not maintained
in order to recognize a threat by terrorist?
The factory has not developed the concerned
program.
7. The interior of buildings in the facility is not
patrolled by guards
The security guards patrol the factory at
regular intervals.
8. The placement of cameras does not provide an
adequate view of activities in relevant areas.
The factory has equipped the necessary
video surveillance cameras.
9. Guards and/or security personnel do not have
keys to facility gates
According to what was seen during the
factory tour, the security guards have keys.
10. Incoming and outgoing cargo vehicles are not
checked by additional or separate processes.
Incoming and outgoing cargo vehicles are
not checked by the factory.
11. When selecting the contractors used by the
company, the company does not consider the
contractor's financial stability and corporate
history.
The factory has not developed a program to
select the contractor based on their financial
stability and corporate 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
employees only.
Anyone can enter the shipping dock area
without restriction.
2. Employees are permitted to bring personal
items into the shipping area.
The workers can bring personal items into
the shipping area without restriction.
3. Container or truck loading is not performed with
only factory supervision.
The packing department supervisor is
assigned to control it.
4. Employee and visitor parking areas are not
separated from the cargo loading area.
Employee and visitor parking areas are not
separated from the cargo loading area.
5. An Employee Security Awareness Program
regarding cargo integrity, recognizing internal
conspiracies, and protecting access controls is not
available or used.
The factory has not developed the concerned
program.
6. If allowed to enter facility area, vendor and
visitor vehicles are not inspected.
Vendor and visitor vehicles are not
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
1. Persons other than authorized employees have
access to keys and container seals.
The packing department supervisor is
responsible for distributing the keys and
container seals, and only assigned workers
have access.
2. A Key Control Log is not maintained indicating
the name and date of keys taken and returned,
and by whom.
According to records review, the packing
department supervisor is responsible for
distributing and maintaining keys and
container seals.
3. A Container Seal Control Log is not maintained
indicating seals currently on hand and seals used
during the past 120 days - by seal number - with
the date the seal was used, the container #, and
employee name who used the seal.
The documents and records are kept for at
least 6 months.
4. No procedure is used indicating how to report a
missing container seal (contact person, action to
take).
The factory has no such procedure.
5. The facility does not keep records of seal
numbers together with truck license/ with driver
name/time and date of loading/the
container/cargo conveyance number.
According to a review of documents and
management interviews, the documents and
records are kept at least 6 months.


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


Score : 0 1 2 3 4 5





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


Score : 0 1 2 3 4 5

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Related pictures

Conveyance logs


Part 9 - Computer Systems controls
Checkpoints Finding/comments
1. Computers don't have individually assigned
passwords which are changed periodically.
Each computer has an individually assigned
password and the factory changes the
passwords semi-annually.
2. Computer access isn't limited to authorized
employees only.
The office staffs have their own individual
password and can only access approved
information.
3. Procedures are not utilized to document
computer systems control - including
safeguarding computer access?
The factory has not developed the process.


Score : 0 1 2 3 4 5






END