Factory Security Audit ReportProvided ByVendor Name: Test Rite Int Co.,LtdFactory Name: NingBo BenBen Electrical Appliance Co.,LtdFactory ID (if applicable):N/AReport No: FS-CP-SH-07304Audit Date: 2011/11/09Audit Type: Initial AuditFactory Score: 94%Factory Risk Level: LowOmega Compliance is Accredited byUS CustomsTable of ContentsSECTION A: INTRODUCTION (3)SECTION B: EXECUTIVE SUMMARY (4)SECTION C: CORRECTIVE ACTION PLAN (7)SECTION D: BEST PRACTICE RECOMMENDATIONS (15)SECTION E: FACTORY SECURITY TOUR (17)Section A: IntroductionThe purpose of this audit is to assess the degree to which the factory’s security procedures adhere to the applicable C-TPAT Security Criteria established by the U.S. Customs and Border Protection.This report details the integrity of the factory’s security procedures vis a vis the C-TPAT Security Criteria. Through Omega Compliance’s Corrective Action Plan, this document also communicates the deadline for the correction of any non-compliance.Below is a procedural overview of how Omega Compliance conducts C-TPAT audits.meeting1. Opening¾ A short summary of the methods and procedures used during the audit.¾Establish the official communication links between the audit team and the auditee.¾Confirm that all necessary resources and facilities are available to the audit team.review2. Document¾Review the factory’s security policy, procedures and all relevant records.tour3. Factory¾Evaluate the physical security of the factory.interview4. Management¾Interviews with representative(s) who oversee(s) Human Resources, Security, Shipping, Warehousing and IT and a review of their corresponding security procedures.Interview5. Employee¾Interviews with randomly selected employees to ascertain their overall security awareness.6. Closingmeeting¾Present any non-compliance to the factory’s senior management ensuring that they clearly understand the results of the audit.Section B: Executive SummaryFactory Profile:Factory Name: NingBo BenBen Electrical Appliance Co.,Ltd Address 1: Lingang Development Zone, Ninghai Address 2: N/ACity: Ningbo CityState: Zhejiang ProvinceCountry: China 345612Phone: 86-574-65168999Fax: 86-574-65233866Email: wang@Website: Total number of workers: 71Number of permanent workers: 71Number of temporary workers: 0Number of migrant/overseasworkers:Religions of workers: N/ANationalities of workers: ChineseBusiness Overview: Type of Industry: Electrical Goods Principle Product:Lamps and Lanterns Years in business at this location:3 yearsHas the factory undergone a C-TPAT audit for another U.S. importer before? No If so, list the name of each importer: N/A Has the factory undergone a C-TPAT validation by U.S. Supply Chain Security Specialist?NoIf so, list the date of validation and any security upgrades made:N/A Is the factory eligible to join as a C-TPAT member administered by U.S. Customs? No Has the factory been invited to join as a C-TPAT member by U.S. Customs? No Does the factory participate in any other security initiatives?No If so, please list them: N/AFactory Management’s Attitude:The factory management was cooperative, positive and granted the auditor full access during the audit. They agreed upon the importance of supply chain security and expressed their commitment to the US Customs C-TPAT Initiative.Remediation Issues:Non-compliances were found pertaining to the following:B. Physical Access ControlsC. Personnel SecurityD. Procedural SecurityE. Security Training and Threat AwarenessF. Physical SecurityG. Information Technology SecurityPlease refer to the Corrective Action Plan for details.Conclusion:After considering the factory management’s attitude and the findings of the audit, the risk level for this factory is Low.Section C: Corrective Action PlanFindings and Recommendations:B: Physical Access ControlAudit Finding: 1. No controlled access or monitoring of CCTVC-TPAT Requirement: In accordance with the U.S. Customs and Border Protection C-TPATSecurity Criteria, CCTVs should be monitored and have controlledaccess.Finding Details: It was noted that CCTVs are not monitored and do not havecontrolled access.Recommendation: The facility is advised ensure that CCTVs are monitored and havecontrolled access.YesFacility Agreed to TakeAction?Remediation Date: 2012-02-09Audit Finding: 2. Visitors are not required to provide photographic evidenceof their identity on arrivalC-TPAT Requirement: In accordance with the U.S. Customs and Border Protection C-TPATSecurity Criteria, photo identification should be presented fordocumentation purposes on arrival.Finding Details: It was noted that visitors are not required to present photoidentification for documentation purposes on arrival. Recommendation: The facility is advised to request each visitor to present photoidentification for documentation purposes on arrival.YesFacility Agreed to TakeAction?Remediation Date: 2012-02-09Audit Finding: 3. Vendors are not required to present vendor or photoidentification on their arrivalC-TPAT Requirement: In accordance with the U.S. Customs and Border Protection C-TPATSecurity Criteria, vendor ID and/or photo identification should bepresented for documentation purposes on arrival.Finding Details: It was noted that vendors are not required to present vendor or photoidentification on arrival.Recommendation: The facility is advised to request each vendor to present vendor IDand/or photo identification for documentation purposes on arrival.YesFacility Agreed to TakeAction?Remediation Date: 2012-02-09C. Personnel SecurityAudit Finding: 4. Security Guards not informed of lost ID badgesC-TPAT Requirement: In accordance with the U.S. Customs and Border Protection C-TPATSecurity Criteria, the facility should ensure that security guards areinformed of any lost employee identification badges.Finding Details: It was noted that the facility does not ensure that security guards areinformed of any lost employee identification badges. Recommendation: The facility is advised to ensure that security guards are informed ofany lost employee identification badges.YesFacility Agreed to TakeAction?Remediation Date: 2012-02-09D. Procedural SecurityAudit Finding: 5. No consideration of a contractor’s financial stabilityC-TPAT Requirement: In accordance with the U.S. Customs and Border Protection C-TPATSecurity Criteria, the facility should consider the contractor’s financialstability when selecting the contractors to be used.Finding Details: It was noted that the facility does not consider a contractor’s financialstability when selecting the contractors to be used. Recommendation: The facility is advised to consider each contractor’s financial stabilitywhen selecting a contractor.YesFacility Agreed to TakeAction?Remediation Date: 2012-02-09E. Security Training and Threat AwarenessAudit Finding: 6. Documented security procedures not displayedC-TPAT Requirement: In accordance with the U.S. Customs and Border Protection C-TPATSecurity Criteria, documented security procedures should bedisplayed throughout the facility on bulletin boards and posters, forexample.Finding Details: It was noted that the facility does not display its security proceduresthroughout the facilityRecommendation: The facility is advised to display documented security proceduresthroughout the facility, on bulletin boards and/or posters, for example.YesFacility Agreed to TakeAction?Remediation Date: 2012-02-09F. Physical SecurityAudit Finding: 7. No CCTV or alarm systemC-TPAT Requirement: In accordance with the U.S. Customs and Border Protection C-TPATSecurity Criteria, alarm systems and video surveillance camerasshould be utilized to monitor premises and prevent unauthorizedaccess to the loading/unloading areas, packing areas and finishedgoods storage areas.Finding Details: It was noted that the facility does not have an alarm system in thepacking areas.Recommendation: The facility is advised to install an alarm system and videosurveillance cameras in the loading/unloading areas, packing areasand finished goods storage areas.YesFacility Agreed to TakeAction?Remediation Date: 2012-02-09G. Information Technology SecurityAudit Finding: 8. Passwords do not consist of a combination of letters andnumbersC-TPAT Requirement: In accordance with the U.S. Customs and Border Protection C-TPATSecurity Criteria, individual passwords used should consist of acombination of letters, numbers and symbols that cannot be personalidentifiers.Finding Details: It was noted that when employees change their passwords, they arenot required to include both letters and numbers. Recommendation: The facility is advised to inform employees that passwords shouldinclude a combination of letters and numbers.YesFacility Agreed to TakeAction?Remediation Date: 2012-02-09Audit Finding: 9. Login attempts are not controlledC-TPAT Requirement: In accordance with the U.S. Customs and Border Protection C-TPATSecurity Criteria, users should be locked out of the system after 3unsuccessful attempts to login.Finding Details: It was noted that users are not locked out of the IT system after 3unsuccessful attempts to login.Recommendation: The facility is advised to lock the IT system after 3 unsuccessfulattempts to login. The user should then have to contact the ITadministrator.YesFacility Agreed to TakeAction?Remediation Date: 2012-02-09Corrective Action Plan ConfirmationThe factory acknowledges the audit findings and the corrective actions Omega Compliance recommends.Ms Cassie Wang / 2011/11/09Ms Cassie Wang / Sales Representative Signature & Date – Factory Representative Printed Name & TitleChopCompanyRoye Li / 2011/11/09Simon Zhuang / Compliance Auditor Signature & Date – Omega Auditor Printed Name & TitleSection D: Best Practice RecommendationsThe below findings are recommendations only, not requirements.Audit Finding: 1. Employee badges are not reviewed on an annual basisBest Practice: According to the CBP Best Practices, the factory should require allemployee identification badges to be reviewed on an annual basisand renewed if necessary.Finding Details: It was noted that the facility does not require all employeeidentification badges to be reviewed on an annual basis and renewedif necessary.Recommendation: The facility is advised to require all employee identification badges tobe reviewed on an annual basis and renewed if necessary.Audit Finding: 2. Visitors not subject to metal detector/scanner screeningBest Practice: According to the CBP Best Practices, visitors should be subject tometal detector/scanner screening.Finding Details: It was noted that the facility does not subject visitors to metaldetector/scanner screening.Recommendation: The facility is advised to subject visitors to metal detector/scannerscreening.Audit Finding: 3. No x-ray of visitor’s personal belongingsBest Practice: According to the CBP Best Practices, the facility should ensure thatvisitors are subject to x-ray of personal belongings.Finding Details: It was noted that the facility does not conduct an x-ray of visitor’spersonal belongings.Recommendation: The facility is advised to ensure that visitors are subject to x-ray ofpersonal belongings.Audit Finding: 4. Container/trailer door hinges are not taped with tamper-proofsecurity tapeBest Practice: According to the CBP Best Practices, the facility should ensure thatcontainer/trailer door hinges are taped with tamper-proof securitytape.Finding Details: It was noted that the facility does not ensure that container/trailerdoor hinges are taped with tamper-proof security tape. Recommendation: The facility is advised to ensure that container/trailer door hinges aretaped with tamper-proof security tape.Audit Finding: 5. Multiple seals are not usedBest Practice: According to the CBP Best Practices, the facility should ensuremultiple seals used to seal containers/trailers at the point of stuffing. Finding Details: It was noted that the facility does not ensure multiple seals are usedto seal containers/trailers at the point of stuffing Recommendation: The facility is advised to ensure multiple seals are used to sealcontainers/trailers at the point of stuffingAudit Finding: 6. No electronic intrusion detection devicesBest Practice: According to the CBP Best Practices, the facility should ensure thatelectronic intrusion detection devices are used to seal containers,trailers or truck cargo holds.Finding Details: It was noted that the facility does not use electronic intrusiondetection devices to seal containers, trailers or truck cargo holds. Recommendation: The facility is advised to ensure that electronic intrusion detectiondevices are used to seal containers, trailers or truck cargo holds.Audit Finding: 7. “Smart” seals are not usedBest Practice: According to the CBP Best Practices, the facility should use “smart”seals (such as RFID) to seal containers or truck cargo holds.Finding Details: It was noted that the facility does not use “smart” seals (such asRFID) to seal containers or truck cargo holds.Recommendation: The facility is advised to use “smart” seals (such as RFID) to sealcontainers or truck cargo holds.Audit Finding: 8. Insufficient CCTV recordsBest Practice: According to the CBP Best Practices, the facility should maintainCCTV records for at least 2 months.Finding Details: It was noted that the facility does not maintain CCTV records for atleast 2 months.Recommendation: The facility is advised to maintain CCTV records for at least 2months.Section E: Factory Security Tour Please find below a photographic presentation of the factory site.Factory Gate Parking Lot for Visitor’s CarLoading & Unloading Truck Punching SectionSanding Section Injection SectionAssembling & Packaging Section CCTV RecordFinished Goods Warehouse Loading & Unloading AreaPersonal Lockers Dormitory。