A. O. Smith Receives C-TPAT Tier III, Highest Security Status for Importing Companies
May 22 2008 - 12:07PM
PR Newswire (US)
MILWAUKEE, May 22 /PRNewswire-FirstCall/ -- The U. S. Customs and
Border Protection has given A. O. Smith Corporation Customs-Trade
Partnership Against Terrorism (C-TPAT) Tier III status, the highest
status offered to an importing company. C-TPAT Tier III is given to
a limited number of companies that have comprehensive programs in
place to secure their facilities and supply chain from terrorists,
smuggling, and narcotics. A company must pass a thorough inspection
by Customs and Border Protection and be recommended to C-TPAT
Director Bradd Skinner to achieve Tier III status. The Customs and
Border Protection granted Tier III status to 17 companies in 2007.
There are approximately 6,000 importing companies in the U. S. "A.
O. Smith was one of the first companies to voluntarily participate
in the C-TPAT program when it began," Paul W. Jones, chairman and
chief executive officer of A. O. Smith Corporation. "We believe
that maintaining secure operations worldwide is important to the
safety of our employees and contributes to the success of our
business." A. O. Smith's U. S. and Mexican facilities were C-TPAT
validated in May, July, and December 2007, an action that led the
way to the company earning Tier III status. During the validation
process, CBP representatives identified 36 best practices at the
company. Among those best practices: -- Top management at the
corporation demonstrated its support of the C-TPAT program and
encouraged the formation of C-TPAT compliance teams at all company
facilities worldwide; -- The company provides all employees
worldwide with copies of its Guiding Principles to Ethical Conduct
and requires employees to complete online ethics training programs;
-- Representatives from the company visit all business partners'
facilities periodically to audit their security practices. If
issues are found during the verification audits, the suppliers are
required to submit a written corrective action plan. A. O. Smith
monitors compliance with these plans and results attained; --
Members of A. O. Smith's compliance group provide C-TPAT training
to suppliers during the company's annual supplier summits; -- The
company has a documented tractor, trailer, container inspection
process and trains its personnel in how to inspect incoming and
outgoing shipments; In addition, all A. O. Smith facilities in
Mexico have secure perimeters and procedures to inspect all
vehicles and visitors who come to the plants. "The CBP
representatives found that all of our facilities had similar best
practices when they conducted the validation audits in 2007,"
Kathleen Neal, director-trade compliance for A. O. Smith, said.
"Consistency counts when you are being considered for Tier III
status." Tier III status will result in significantly fewer
external agency inspections for A. O. Smith shipments crossing the
border between Mexico and the U. S. as well as fewer external
agency inspections of overseas shipments. "In order to maintain our
Tier III benefits, we must continue to maintain and improve our
supply chain security practices," Neal said. A. O. Smith
Corporation, with 2007 sales of $2.3 billion, is a global leader
applying innovative technology and energy-efficient solutions to
products marketed worldwide. The company is one of the world's
leading manufacturers of residential and commercial water heating
equipment, offering a comprehensive product line featuring the
best-known brands in North America and China. A. O. Smith is also
one of the largest manufacturers of electric motors for residential
and commercial applications in North America. DATASOURCE: A. O.
Smith Corporation CONTACT: Media Inquiries, Mark A. Petrarca,
+1-414-359-4100, or Analyst-Investor Inquiries, Craig Watson,
+1-414-359-4009, both of A. O. Smith Corporation Web site:
http://www.aosmith.com/
Copyright