[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3551 Introduced in House (IH)]
<DOC>
115th CONGRESS
1st Session
H. R. 3551
To amend the Security and Accountability for Every Port Act of 2006 to
reauthorize the Customs-Trade Partnership Against Terrorism Program,
and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 28, 2017
Ms. McSally (for herself, Mr. Reichert, Mr. McCaul, Mr. King of New
York, Mr. Hurd, and Mr. Garrett) introduced the following bill; which
was referred to the Committee on Homeland Security
_______________________________________________________________________
A BILL
To amend the Security and Accountability for Every Port Act of 2006 to
reauthorize the Customs-Trade Partnership Against Terrorism Program,
and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. CUSTOMS-TRADE PARTNERSHIP AGAINST TERRORISM.
(a) In General.--Subtitle B of title II of the Security and
Accountability for Every Port Act of 2006 (6 U.S.C. 961 et seq.) is
amended to read as follows:
``Subtitle B--Customs-Trade Partnership Against Terrorism
``SEC. 211. ESTABLISHMENT OF THE CUSTOMS-TRADE PARTNERSHIP AGAINST
TERRORISM PROGRAM.
``(a) In General.--There is established within U.S. Customs and
Border Protection a voluntary government-private sector partnership
program to be known as the Customs-Trade Partnership Against Terrorism
(C-TPAT).
``(b) Purpose.--The purposes of the C-TPAT program are to--
``(1) strengthen and improve the overall security of the
international supply chain and United States border security;
``(2) facilitate the movement of secure cargo through the
international supply chain;
``(3) ensure compliance with applicable law; and
``(4) serve as the Authorized Economic Operator program for
the United States.
``(c) Director.--There shall be at the head of the C-TPAT program a
Director, who shall report to the Executive Assistant Commissioner of
the Office of Field Operations (in this subtitle referred to as the
`Executive Assistant Commissioner') of U.S. Customs and Border
Protection.
``(d) Duties.--The Director of the C-TPAT program shall--
``(1) oversee the activities of the C-TPAT program,
including certification of C-TPAT participants;
``(2) evaluate and make revisions to security criteria
pursuant to subsections (c) and (d) of section 213;
``(3) ensure that participants receive a tangible and
measurable benefit for participation; and
``(4) carry out other duties and powers prescribed by the
Executive Assistant Commissioner.
``SEC. 212. ELIGIBLE ENTITIES AND NOTICE OF BENEFITS.
``(a) Eligible Entities.--Importers, exporters, customs brokers,
forwarders, air, sea, and land carriers, contract logistics providers,
and other entities in the international supply chain and intermodal
transportation system are eligible to apply for participation in the C-
TPAT program.
``(b) Tiered Participation.--
``(1) In general.--Applicants may be eligible to
participate as Tier 1 or Tier 2 participants.
``(2) Importers.--Importers may be eligible to participate
as Tier 3 participants.
``(3) Extension.--The Executive Assistant Commissioner may,
in his or her discretion, extend Tier 3 participation to other
entity types, if appropriate.
``(c) Notice of Benefits.--
``(1) In general.--The Commissioner of U.S. Customs and
Border Protection shall publish, on the U.S. Customs and Border
Protection website or through other appropriate online
publication, information about benefits to C-TPAT program
participants.
``(2) Changes.--The Commissioner of U.S. Customs and Border
Protection shall publish, on the U.S. Customs and Border
Protection website or through other appropriate online
publication, notice of any changes to benefits to C-TPAT
program participants not later than 30 days before any such
changes take effect.
``SEC. 213. PARTICIPATION ELIGIBILITY.
``(a) In General.--The Executive Assistant Commissioner shall
review all documentation submitted by an applicant pursuant to
subsection (b)(2), conduct a background investigation of such
applicant, and vet such applicant.
``(b) General Requirements.--To be eligible for participation in
the C-TPAT program, an entity shall, at a minimum--
``(1) have a designated company employee authorized to bind
such entity that will serve as the primary cargo security
officer responsible for participation of such entity in the C-
TPAT program;
``(2) at the time of initial application and annually
thereafter, including in advance of any recertification or
revalidation, submit an international supply chain security
profile, which shall identify how such entity meets the minimum
security criteria of the C-TPAT program established by the
Commissioner of U.S. Customs and Border Protection and how such
entity will maintain and enhance internal policies, procedures,
and practices related to international supply chain security;
and
``(3) meet any specific requirements for eligible entities,
as established by the Commissioner.
``(c) Minimum Security Criteria.--The Commissioner of U.S. Customs
and Border Protection shall establish minimum security criteria for
participants in the C-TPAT program, review such minimum security
criteria not less than once each year, and update such minimum security
criteria as necessary. Such minimum security criteria shall seek to
address security vulnerabilities in the international supply chain.
``(d) Additional and Updated Criteria.--The Commissioner of U.S.
Customs and Border Protection may establish additional and updated
security criteria for individual C-TPAT program participants,
categories of C-TPAT program participants, or particular entity types
to meet in order to address a security vulnerability in the
international supply chain.
``(e) Consultation.--When establishing or updating security
criteria in accordance with subsection (c), and when establishing
additional or updated security criteria in accordance subsection (d),
the Commissioner of U.S. Customs and Border Protection shall consult
with C-TPAT program participants and other interested parties, and
shall--
``(1) conduct a cost benefit analysis of such proposed new,
additional, or updated security criteria in consultation with
the Commercial Customs Operations Advisory Committee
established under section 109 of the Trade Facilitation and
Trade Enforcement Act of 2015 (Public Law 114-125; 19 U.S.C.
4316);
``(2) determine operational feasibility and conduct a
phased implementation of such proposed additional or updated
security criteria; and
``(3) provide C-TPAT program participants and other
interested parties a 90-day comment period to review and
comment on such proposed additional or updated security
criteria.
``(f) Waiver.--The Commissioner of U.S. Customs and Border
Protection may waive the requirements of subsection (e) if the
Commissioner determines there is a significant and imminent risk to the
national security of the United States and such a waiver is necessary
to protect such national security.
``SEC. 214. BENEFITS FOR C-TPAT PROGRAM PARTICIPANTS.
``(a) In General.--The Executive Assistant Commissioner shall
extend certain benefits to each C-TPAT program participant. Minimum
benefits for all such participants shall include the following:
``(1) Assignment of a U.S. Customs and Border Protection
Supply Chain Security Specialist to each participant.
``(2) Access to the C-TPAT program's web-based Portal
system and training materials.
``(3) A periodic and unclassified update on threats to the
international supply chain.
``(b) Public Availability.--The Executive Assistant Commissioner
shall make publicly available on the C-TPAT portal an annual assessment
of the tangible benefits being realized by C-TPAT program participants.
``SEC. 215. TIER 1 PARTICIPANTS.
``(a) Certification.--The Executive Assistant Commissioner shall
certify the security measures and international supply chain security
practices of all applicants to and participants in the C-TPAT program
in accordance with section 213(b)(2) and the guidelines referred to in
subsection (c) of this section. Certified participants shall be Tier 1
participants.
``(b) Benefits for Tier 1 Participants.--Upon completion of the
certification under subsection (a), a C-TPAT program participant shall
be certified as a Tier 1 participant. The Executive Assistant
Commissioner shall extend limited benefits to a Tier 1 participant.
``(c) Guidelines.--Not later than 180 days after the date of the
enactment of this subtitle, the Commissioner of U.S. Customs and Border
Protection shall update the guidelines and criteria for certifying a C-
TPAT program participant's security measures and supply chain security
practices under this section. Such guidelines shall include a
background investigation and review of appropriate documentation, as
determined by the Commissioner.
``(d) Timeframe.--To the extent practicable, the Executive
Assistant Commissioner shall complete the Tier 1 certification process
within 90 days of receipt of an application for participation in the C-
TPAT program.
``SEC. 216. TIER 2 PARTICIPANTS.
``(a) Validation.--The Executive Assistant Commissioner shall
validate the security measures and international supply chain security
practices of a Tier 1 C-TPAT program participant in accordance with the
guidelines referred to in subsection (c) to validate such participant
as a Tier 2 participant. Such validation shall include on-site
assessments at appropriate foreign and domestic locations utilized by
such Tier 1 participant in its international supply chain.
``(b) Benefits for Tier 2 Participants.--The Executive Assistant
Commissioner, shall extend benefits to each C-TPAT participant that has
been validated as a Tier 2 participant under this section. Such
benefits may include the following:
``(1) Reduced scores in U.S. Customs and Border
Protection's Automated Targeting System.
``(2) Reduced number of security examinations by U.S.
Customs and Border Protection.
``(3) Priority examinations of cargo.
``(4) Access to the Free and Secure Trade (FAST) Lanes at
United States ports of entry.
``(5) Recognition as a trusted trade partner by foreign
customs administrations that have signed Mutual Recognition
Agreements with U.S. Customs and Border Protection.
``(c) Guidelines.--Not later than 180 days after the date of the
enactment of this subtitle, the Commissioner shall develop a schedule
and update the guidelines and criteria for validating a C-TPAT
participant's security measures and supply chain security practices
under this section.
``(d) Timeframe.--To the extent practicable, the Executive
Assistant Commissioner shall complete the Tier 2 validation process for
a C-TPAT program participant under this section within one year after
certification of such participant as a Tier 1 participant.
``SEC. 217. TIER 3 PARTICIPANTS.
``(a) In General.--The Commissioner shall establish a third tier of
C-TPAT program participation that offers additional benefits to C-TPAT
program participants that are importers or other entity types, in
accordance with section 212(b), that demonstrate a sustained commitment
to maintaining security measures and international supply chain
security practices that exceed the guidelines established for
validation as a Tier 2 participant in the C-TPAT program under section
216.
``(b) Best Practices.--The Executive Assistant Commissioner may
designate a Tier 2 C-TPAT program participant as a Tier 3 participant
based on a review of best practices in such participant's international
supply chain that reflect a continued approach to enhanced
international supply chain security, including--
``(1) compliance with any additional or updated criteria
established by the Commissioner of U.S. Customs and Border
Protection under section 213(d) that exceed the guidelines
established pursuant to section 216 for validating a C-TPAT
program participant as a Tier 2 participant; and
``(2) any other factors that the Executive Assistant
Commissioner determines appropriate.
``(c) Benefits for Tier 3 Participants.--The Executive Assistant
Commissioner, in consultation with the Commercial Customs Operations
Advisory Committee established under section 109 of the Trade
Facilitation and Trade Enforcement Act of 2015 (Public Law 114-125; 19
U.S.C. 4316) and the National Maritime Security Advisory Committee
established under section 70112 of title 46, United States Code, shall
extend benefits to each C-TPAT program participant that has been
validated as a Tier 3 participant under this section, which may include
the following:
``(1) Further reduction in the number of examinations by
U.S. Customs and Border Protection.
``(2) Front of the line inspections and examinations.
``(3) Exemption from Stratified Exams.
``(4) Shorter wait times at United States ports of entry.
``(5) Access to the Free and Secure Trade (FAST) Lanes at
United States ports of entry.
``(6) Recognition as a trusted trade partner by foreign
customs administrations that have signed Mutual Recognition
Agreements with U.S. Customs and Border Protection.
``(7) In the case of importers, eligibility to participate
in the Importer Self-Assessment Program (ISA).
``SEC. 218. CONSEQUENCES FOR LACK OF COMPLIANCE.
``(a) In General.--If at any time the Executive Assistant
Commissioner determines that a C-TPAT program participant's security
measures or international supply chain security practices fail to meet
any of the requirements under this subtitle, the Executive Assistant
Commissioner may deny such participant benefits otherwise made
available pursuant to this subtitle, either in whole or in part. The
Executive Assistant Commissioner shall develop procedures, in
consultation with Commercial Customs Operations Advisory Committee,
established under section 109 of the Trade Facilitation and Trade
Enforcement Act of 2015 (Public Law 114-125; 19 U.S.C. 4316), that
provide appropriate protections to C-TPAT program participants,
including advance notice and an opportunity for such participants to
provide additional information to U.S. Customs and Border Protection
regarding any such alleged failure, before any of such benefits are
revoked. Such procedures may not limit the ability of the Executive
Assistant Commissioner to take actions to protect the national security
of the United States.
``(b) False or Misleading Information; Lack of Compliance With
Law.--If a C-TPAT program participant knowingly provides false or
misleading information to the Commissioner of U.S. Customs and Border
Protection, the Executive Assistant Commissioner, or any other officers
or officials of the United States Government, or if at any time the
Executive Assistant Commissioner determines that a C-TPAT program
participant has committed a serious violation of Federal law or customs
regulations, or if a C-TPAT program participant has committed a
criminal violation relating to the economic activity of such
participant, the Executive Assistant Commissioner may suspend or expel
such participant from the C-TPAT program for an appropriate period of
time. The Executive Assistant Commissioner, after the completion of the
process described in subsection (d), may publish in the Federal
Register a list of C-TPAT program participants that have been so
suspended or expelled from the C-TPAT program pursuant to this
subsection.
``(c) National Security.--If at any time the Executive Assistant
Commissioner determines that a C-TPAT program participant poses a
significant and imminent risk to the national security of the United
States or has committed a serious violation of Federal law or customs
regulations, or if a C-TPAT program participant has committed a
criminal violation relating to the economic activity of such
participant, the Executive Assistant Commissioner may suspend or expel
such participant from the C-TPAT program for an appropriate period of
time. The Executive Assistant Commissioner, after the completion of the
process described in subsection (d), may publish in the Federal
Register a list of C-TPAT program participants that have been so
suspended or expelled from the C-TPAT program pursuant to this
subsection.
``(d) Right of Appeal.--
``(1) In general.--The Commissioner of U.S. Customs and
Border Protection shall establish a process for a C-TPAT
program participant to appeal a decision of the Executive
Assistant Commissioner under subsection (a). Such appeal shall
be filed with the Commissioner not later than 90 days after the
date of such decision, and the Commissioner shall issue a
determination not later than 90 days after such appeal is
filed.
``(2) Appeals of other decisions.--The Commissioner of U.S.
Customs and Border Protection shall establish a process for a
C-TPAT program participant to appeal a decision of the
Executive Assistant Commissioner under subsections (b) and (c).
Such appeal shall be filed with the Commissioner not later than
30 days after the date of such decision, and the Commissioner
shall issue a determination not later than 90 days after such
appeal is filed.
``SEC. 219. VALIDATIONS BY OTHER DHS COMPONENTS.
``(a) In General.--The Commissioner of U.S. Customs and Border
Protection may recognize regulatory inspections conducted by other
components of the Department of Homeland Security of entities as
sufficient to constitute validation for C-TPAT program participation.
Such regulatory inspections shall not limit the ability of U.S. Customs
and Border Protection to conduct a C-TPAT program validation.
``(b) Revalidation.--Nothing in this section may limit the
Commissioner of U.S. Customs and Border Protection's ability to require
a revalidation by U.S. Customs and Border Protection.
``(c) Certification.--Nothing in this section may be construed to
authorize certifications of C-TPAT applicants to be performed by any
party other than U.S. Customs and Border Protection.
``SEC. 220. RECERTIFICATION AND REVALIDATION.
``(a) Recertification.--The Commissioner of U.S. Customs and Border
Protection shall implement a recertification process for all C-TPAT
program participants. Such process shall occur annually, and shall
require--
``(1) a review of the security profile and supporting
documentation to ensure adherence to the minimum security
criteria under section 213; and
``(2) background checks and vetting.
``(b) Revalidation.--The Commissioner of U.S. Customs and Border
Protection shall implement a revalidation process for all Tier 2 and
Tier 3 C-TPAT program participants. Such process shall require--
``(1) a framework based upon objective, risk based criteria
for identifying participants for periodic revalidation at least
once every four years following the initial validation of such
participants;
``(2) on-site assessments at appropriate foreign and
domestic locations utilized by such a participant in its
international supply chain; and
``(3) an annual plan for revalidation that includes--
``(A) performance measures;
``(B) an assessment of the personnel needed to
perform such revalidations; and
``(C) the number of participants that will be
revalidated during the following year.
``(c) Revalidation Under a Mutual Recognition Agreement.--
``(1) In general.--Upon request from the Commissioner of
U.S. Customs and Border Protection, all Tier 2 and Tier 3 C-
TPAT program participants shall provide any revalidation report
conducted by a foreign government under a Mutual Recognition
Agreement.
``(2) Recognition.--The Commissioner of U.S. Customs and
Border Protection may recognize revalidations of entities
conducted by foreign governments under a Mutual Recognition
Agreement as sufficient to constitute a revalidation for C-TPAT
program participation under subsection (b).
``(3) No limitation.--Nothing in this subsection may be
construed to limit the Commissioner of U.S. Customs and Border
Protection's ability to require a revalidation by U.S. Customs
and Border Protection.
``(d) Designated Company Employees.--Only designated company
employees of a C-TPAT program participant under section 213(b)(1) are
authorized to respond to a revalidation report. Third-party entities
are not authorized to respond to a revalidation report.
``SEC. 221. NONCONTAINERIZED CARGO.
``The Commissioner of U.S. Customs and Border Protection shall
consider the potential for participation in the C-TPAT program by
importers of noncontainerized cargoes that otherwise meet the
requirements under this subtitle.
``SEC. 222. PROGRAM MANAGEMENT.
``(a) In General.--The Commissioner of U.S. Customs and Border
Protection shall establish sufficient internal quality controls and
record management, including recordkeeping (including maintenance of a
record management system in accordance with subsection (b)) and
monitoring staff hours, to support the management systems of the C-TPAT
program. In managing the C-TPAT program, the Commissioner shall ensure
that the C-TPAT program includes the following:
``(1) A 5-year plan to identify outcome-based goals and
performance measures of the C-TPAT program.
``(2) An annual plan for each fiscal year designed to match
available resources to the projected workload.
``(3) A standardized work program to be used by agency
personnel to carry out the certifications, validations,
recertifications, and revalidations of C-TPAT program
participants.
``(b) Documentation of Reviews.--The Commissioner of U.S. Customs
and Border Protection shall maintain a record management system to
document determinations on the reviews of each C-TPAT program
participant, including certifications, validations, recertifications,
and revalidations.
``(c) Confidential Information Safeguards.--In consultation with
the Commercial Customs Operations Advisory Committee established under
section 109 of the Trade Facilitation and Trade Enforcement Act of 2015
(Public Law 114-125; 19 U.S.C. 4316), the Commissioner of U.S. Customs
and Border Protection shall develop and implement procedures to ensure
the protection of confidential data collected, stored, or shared with
government agencies or as part of the application, certification,
validation, recertification, and revalidation processes.
``(d) Resource Management Staffing Plan.--The Commissioner of U.S.
Customs and Border Protection shall--
``(1) develop a staffing plan to recruit and train staff
(including a formalized training program) to meet the
objectives identified in the 5-year strategic plan under
subsection (a)(1); and
``(2) provide cross-training in post incident trade
resumption for the C-TPAT Director and other relevant personnel
who administer the C-TPAT program.
``(e) Report to Congress.--In connection with the President's
annual budget submission for the Department of Homeland Security, the
Commissioner of U.S. Customs and Border Protection shall report to the
appropriate congressional committees on the progress made by the
Commissioner to certify, validate, recertify, and revalidate C-TPAT
program participants. Each such report shall be due on the same date
that the President's budget is submitted to Congress.''.
(b) Saving Clause.--
(1) In general.--The amendments made by this Act shall take
effect and apply beginning on the date that is 30 days after
the date of the enactment of this Act with respect to
applicants for participation in the C-TPAT program.
(2) Exception.--Paragraph (1) shall not apply in case of C-
TPAT program participants who are such participants as of the
date specified in such paragraph. Such participants shall be
subject to the amendments made by this Act upon revalidation of
such participants to participate in such program. Until such
time, such participants shall be subject to the requirements of
the C-TPAT program as in existence on the day before the date
of the enactment of this Act.
(c) Clerical Amendments.--The table of contents in section 1(b) of
the Security and Accountability for Every Port Act of 2006 is amended
by striking the items relating to subtitle B of title II and inserting
the following new items:
``Subtitle B--Customs-Trade Partnership Against Terrorism
``Sec. 211. Establishment of the Customs and Trade Partnership Against
Terrorism program.
``Sec. 212. Eligible entities and notice of benefits.
``Sec. 213. Participation eligibility.
``Sec. 214. Benefits for C-TPAT program participants.
``Sec. 215. Tier 1 participants.
``Sec. 216. Tier 2 participants.
``Sec. 217. Tier 3 participants.
``Sec. 218. Consequences for lack of compliance.
``Sec. 219. Validations by other DHS components.
``Sec. 220. Recertification and revalidation.
``Sec. 221. Noncontainerized cargo.
``Sec. 222. Program management.''.
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