What This Bill Does
This bill requires the Secretary of Homeland Security to run a test program to see if certain freight companies should be allowed to join CTPAT (an anti-terrorism partnership with U.S. Customs). The test program will last at least one year and no more than five years to measure whether these companies would help with port security and supply chain safety.
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Who It Affects
- The Secretary of Homeland Security
- Non-asset-based third-party logistics providers (companies that arrange shipments internationally but do not own warehouses)
- Asset-based third-party logistics providers (companies that own and operate their own warehouses and storage)
- U.S. Congress and its Homeland Security and Finance committees
- The Comptroller General of the United States
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Key Provisions
- The Secretary of Homeland Security must publish rules in the Federal Register no later than one year after this law passes that spell out what companies must do to join the test program (Sec. 3(a)(2))
- Maximum of 10 non-asset-based logistics companies and maximum of 10 asset-based logistics companies can participate voluntarily in the pilot program (Sec. 3(c)(1))
- The pilot program must run for at least one year after the rules are published and end no later than five years after that date (Sec. 3(c)(3) and (c)(4))
- Within 180 days of ending the pilot program, the Secretary must send a report to Congress about what the program found and any recommendations (Sec. 3(d))
- The Comptroller General must send Congress a report within one year of this law passing that evaluates how well CTPAT is working, including an analysis of security problems and their causes (Sec. 4)
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What Changes
If this becomes law, the Secretary of Homeland Security will test whether two types of freight companies can join the existing CTPAT program to improve port security and prevent supply chain problems. Congress will receive findings from this test program and a separate report assessing CTPAT's overall effectiveness.
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Important Definitions
- **CTPAT:** The Customs Trade Partnership Against Terrorism, a program established to partner with private companies on security
- **Non-asset-based third-party logistics provider:** A company that arranges international freight transportation but does not own its own warehouses or equipment
- **Asset-based third-party logistics provider:** A company that owns and operates its own warehouses and equipment to handle shipping services for customers
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Effective Date
Not specified in bill text
[118th Congress Public Law 98]
[From the U.S. Government Publishing Office] [[Page 138 STAT. 1575]] Public Law 118-98
118th Congress An Act To require a pilot program on the participation of non-asset-based third-party logistics providers in the Customs-Trade Partnership Against Terrorism. <<NOTE: Oct. 1, 2024 - [S. 794]>> Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, <<NOTE: Customs Trade Partnership Against Terrorism Pilot Program Act of 2023. 6 USC 961 note.>> SECTION 1. SHORT TITLE. This Act may be cited as the ``Customs Trade Partnership Against Terrorism Pilot Program Act of 2023'' or the ``CTPAT Pilot Program Act of 2023''.
SEC. 2. DEFINITIONS. In this Act: (1) Appropriate congressional committees.--The term ``appropriate congressional committees'' means-- (A) the Committee on Homeland Security and Governmental Affairs and the Committee on Finance of the Senate; and (B) the Committee on Homeland Security and the Committee on Ways and Means of the House of Representatives. (2) CTPAT.--The term ``CTPAT'' means the Customs Trade Partnership Against Terrorism established under subtitle B of title II of the Security and Accountability for Every Port Act (6 U.S.C. 961 et seq.).
SEC. 3. PILOT PROGRAM ON PARTICIPATION OF THIRD-PARTY LOGISTICS PROVIDERS IN CTPAT. (a) Establishment.-- (1) In general.--The Secretary of Homeland Security shall carry out a pilot program to assess whether allowing entities described in subsection (b) to participate in CTPAT would enhance port security, combat terrorism, prevent supply chain security breaches, or otherwise meet the goals of CTPAT. (2) <<NOTE: Deadline.>> Federal register notice.--Not later than one year after the date of the enactment of this Act, the Secretary shall publish in the Federal Register a notice specifying the requirements for the pilot program required by paragraph (1). (b) Entities Described.--An entity described in this subsection is-- (1) a non-asset-based third-party logistics provider that-- (A) arranges international transportation of freight and is licensed by the Department of Transportation; and (B) meets such other requirements as the Secretary specifies in the Federal Register notice required by subsection (a)(2); or [[Page 138 STAT. 1576]] (2) an asset-based third-party logistics provider that-- (A) facilitates cross border activity and is licensed or bonded by the Federal Maritime Commission, the Transportation Security Administration, U.S. Customs and Border Protection, or the Department of Transportation; (B) manages and executes logistics services using its own warehousing assets and resources on behalf of its customers; and (C) meets such other requirements as the Secretary specifies in the Federal Register notice required by subsection (a)(2). (c) <<NOTE: Time periods.>> Requirements.--In carrying out the pilot program required by subsection (a)(1), the Secretary shall-- (1) ensure that-- (A) not more than 10 entities described in paragraph (1) of subsection (b) participate in the pilot program; and (B) not more than 10 entities described in paragraph (2) of that subsection participate in the program; (2) provide for the participation of those entities on a voluntary basis; (3) continue the program for a period of not less than one year after the date on which the Secretary publishes the Federal Register notice required by subsection (a)(2); and (4) <<NOTE: Termination date.>> terminate the pilot program not more than 5 years after that date. (d) <<NOTE: Assessment.>> Report Required.--Not later than 180 days after the termination of the pilot program under subsection (c)(4), the Secretary shall submit to the appropriate congressional committees a report on the findings of, and any recommendations arising from, the pilot program concerning the participation in CTPAT of entities described in subsection (b), including an assessment of participation by those entities.
SEC. 4. REPORT ON EFFECTIVENESS OF CTPAT. (a) In General.--Not later than one year after the date of the enactment of this Act, the Comptroller General of the United States shall submit to the appropriate congressional committees a report assessing the effectiveness of CTPAT. (b) <<NOTE: Analyses.>> Elements.--The report required by subsection (a) shall include the following: (1) An analysis of-- (A) security incidents in the cargo supply chain during the 5-year period preceding submission of the report that involved criminal activity, including drug trafficking, human smuggling, commercial fraud, or terrorist activity; and (B) whether those incidents involved participants in CTPAT or entities not participating in CTPAT. (2) An analysis of causes for the suspension or removal of entities from participating in CTPAT as a result of security incidents during that 5-year period. (3) An analysis of the number of active CTPAT participants involved in one or more security incidents while maintaining their status as participants. (4) <<NOTE: Recommenda- tions.>> Recommendations to the Commissioner of U.S. Customs and Border Protection for improvements to CTPAT to improve [[Page 138 STAT. 1577]] prevention of security incidents in the cargo supply chain involving participants in CTPAT.
SEC. 5. NO ADDITIONAL FUNDS AUTHORIZED. No additional funds are authorized to be appropriated for the purpose of carrying out this Act. Approved October 1, 2024. LEGISLATIVE HISTORY--S. 794:
--------------------------------------------------------------------------- SENATE REPORTS: No. 118-27 (Comm. on Homeland Security and Governmental Affairs).
CONGRESSIONAL RECORD: Vol. 169 (2023): July 18, considered and passed Senate. Vol. 170 (2024): Sept. 23, considered and passed House. <all>