United States. U.S. Immigration and Customs Enforcement has awarded A.O. Smith C-TPAT Tier III, this is the highest category granted to an importing company. The American Customs-Trade Association Against Terrorism, C-TPAT, is a voluntary program run by Customs Enforcement and aimed at improving national security in the cargo industry; the initiative began in November 2001 (following the attacks of 11 September) with seven companies. The C-TPAT Tier III is a recognition granted to a limited number of companies, which have detailed security programs to protect their facilities and supply chains from terrorism, smuggling and narcotics. To achieve this achievement, the company must pass a rigorous inspection, as well as be recommended to the director of the C-TPAT Bradd Skinner. In 2007, only 17 of the 6,000 importing companies in the United States obtained Tier III recognition. "A. O. Smith was one of the first companies to voluntarily participate in the C-TPAT program," said Paul W. Jones, executive director of the organization, adding that "we believe that maintaining safe operations around the world is important for employee safety and contributes to business success."
A.O. Smith applies innovative technology and energy-efficient solutions to products worldwide. The company is a leader in the manufacture of both residential and commercial water heaters, it is also one of the leading producers of electric motors; its facilities in Mexico and the United States were validated by the C-TPAT in May, July and December 2007. During this period, 36 good practices of the entity were identified, among them the periodic visits made by the company's representatives to its business partners to audit security practices, in addition to requiring action plans in case of finding any anomaly.
Staff are also trained to inspect incoming and outgoing dispatches; Likewise, the facilities in Mexico have inspection processes for all vehicles and visitors entering the plants. "Officials found that all of our locations had similar practices when they conducted the audits in 2007," said Kathleen Neal, chief commercial officer of A.O. Smith, "consistency is very important when you're being considered for this recognition," she added.
Some of the benefits of C-TPAT's accreditation of the company include, for example, fewer inspections for company shipments that must cross the U.S.-Mexico border, as well as fewer inspections of international shipments. "To maintain the benefits of acquiring Tier III status, we must continue to improve our supply chain security practices," Neal said.
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