[Congressional Record (Bound Edition), Volume 163 (2017), Part 11]
[House]
[Pages 16294-16298]
[From the U.S. Government Publishing Office, www.gpo.gov]




                   C-TPAT REAUTHORIZATION ACT OF 2017

  Ms. McSALLY. Mr. Speaker, I move to suspend the rules and pass the 
bill (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, as amended.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                               H.R. 3551

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``C-TPAT Reauthorization Act 
     of 2017''.

     SEC. 2. 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 and through other appropriate 
     online publication, information about benefits to C-TPAT 
     program participants.

[[Page 16295]]

       ``(2) Changes.--The Commissioner of U.S. Customs and Border 
     Protection shall publish, on the U.S. Customs and Border 
     Protection website and 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 is a direct company employee and will serve 
     as the primary point of contact 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 
     every two years, 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, where 
     appropriate, 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. Not later than 120 days after the issuance of any 
     such waiver, the Commissioner shall announce on the U.S. 
     Customs and Border Protection website and through other 
     appropriate online publication the Commissioner's intent to 
     either withdraw such waiver or maintain such waiver while 
     commencing efforts to establish minimum security criteria or 
     establish additional or update existing security criteria in 
     accordance with subsection (c) or (d), respectively.

     ``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 each such participant shall 
     include the following:
       ``(1) Assignment of a U.S. Customs and Border Protection 
     Supply Chain Security Specialist.
       ``(2) Access to the C-TPAT program's web-based Portal 
     system and training materials.
       ``(3) A periodic and unclassified update on regional and 
     other relevant 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.
       ``(c) Annual Assessment.--The Executive Assistant 
     Commissioner shall conduct, on an annual basis, an assessment 
     of the benefits conferred to C-TPAT program participants. The 
     Executive Assistant Commissioner shall determine a process to 
     carry out such assessments, to include projected milestones 
     and completion dates for addressing data reliability issues 
     and, as necessary, correcting data weaknesses, so that U.S. 
     Customs and Border Protection can produce accurate and 
     reliable annual assessments that can be compared year-to-
     year.

     ``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 
     Arrangements with U.S. Customs and Border Protection.
       ``(6) In the case of importers, eligibility to participate 
     in the Importer Self-Assessment Program (ISA) or successor 
     compliance program.
       ``(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

[[Page 16296]]

     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 
     Arrangements with U.S. Customs and Border Protection.
       ``(7) In the case of importers, eligibility to participate 
     in the Importer Self-Assessment Program (ISA) or successor 
     compliance program.

     ``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 applicable 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 withheld. 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 in cases in which any such 
     component's inspection regime is harmonized with validation 
     criteria for the C-TPAT program. 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 
     Arrangement.--
       ``(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 Arrangement.
       ``(2) Recognition.--The Commissioner of U.S. Customs and 
     Border Protection may recognize revalidations of entities 
     conducted by foreign governments under a Mutual Recognition 
     Arrangement 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 AND THIRD PARTY LOGISTICS 
                   PROVIDERS.

       ``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 and non-
     asset-based third party logistics providers 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.
       ``(4) In accordance with subsection (e), a standardized 
     process for the Executive Assistant Commissioner to receive 
     reports of suspicious activity, including reports regarding 
     potentially compromised cargo or other border or national 
     security concerns.
       ``(b) Documentation of Reviews.--
       ``(1) In general.--The Commissioner of U.S. Customs and 
     Border Protection shall

[[Page 16297]]

     maintain a record management system to document 
     determinations on the reviews of each C-TPAT program 
     participant, including certifications, validations, 
     recertifications, and revalidations.
       ``(2) Standardized procedures.--To ensure accuracy and 
     consistency within the record management system required 
     under this subsection, the Commissioner shall develop, 
     disseminate, and require utilization of standardized 
     procedures for agency personnel carrying out certifications, 
     validations, recertifications, and revalidations to report 
     and track information regarding the status of each C-TPAT 
     program participant.
       ``(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) Engagement.--In carrying out the standardized process 
     required under subsection (a)(4), the Commissioner shall 
     engage with and provide guidance to C-TPAT program 
     participants and other appropriate stakeholders on submitting 
     reports described in such subsection.
       ``(f) 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 and third party logistics providers.
``Sec. 222. Program management.''.

  The SPEAKER pro tempore. Pursuant to the rule, the gentlewoman from 
Arizona (Ms. McSally) and the gentlewoman from California (Ms. 
Barragan) each will control 20 minutes.
  The Chair recognizes the gentlewoman from Arizona.


                             General Leave

  Ms. McSALLY. Mr. Speaker, I ask unanimous consent that all Members 
may have 5 legislative days within which to revise and extend their 
remarks and to include extraneous material on the bill under 
consideration.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentlewoman from Arizona?
  There was no objection.
  Ms. McSALLY. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I rise today in support of H.R. 3551, the Customs-Trade 
Partnership Against Terrorism Reauthorization Act of 2017. The Customs-
Trade Partnership Against Terrorism, or C-TPAT, is the U.S. Customs and 
Border Protection's flagship global supply chain security program. C-
TPAT is recognized throughout the world as the premier cargo pre-
vetting program.
  My legislation reauthorizes the program for the first time in 11 
years to ensure that the program is ready to meet the dynamic threats 
currently facing the global supply chain, and that C-TPAT participants 
receive tangible benefits for their partnership with CBP.
  When a company joins C-TPAT, they agree to work with CBP to protect 
the supply chain, identify security gaps, and implement specific 
security measures and best practices.
  In order to receive benefits such as shorter wait times and fewer 
inspections at ports of entry, applicants must enhance security 
throughout their supply chain by undergoing vetting and a site visit by 
CPB.
  While the SAFE Port Act of 2006, which established the program, set a 
strong foundation for the current success of C-TPAT, this bill not only 
codifies the structure of the current program, but also makes sure C-
TPAT remains a true partnership between CBP and private industry.
  Under this bill, CBP will be required to formally liaise with 
industry stakeholders when implementing new or updated security 
criteria, and provide tangible benefits to all participants at various 
stages of the CBP vetting process.
  My legislation also reduces redundant inspections on pre-vetted cargo 
and provides CBP with a mechanism to suspend or expel participants from 
the program if they fail to abide by security requirements or pose a 
threat to national security.
  Furthermore, it establishes a process for CBP with congressional 
oversight requirements to continuously vet participants, review their 
security measures, and conduct site visits of their facilities to 
ensure compliance with and continued dedication to security measures.
  Reducing wait times and inspections for participants who enhance the 
global supply chain greatly enhances cross-border trade and economic 
growth while reducing the workload of already overworked officers at 
CBP. C-TPAT achieves this in a way that also strengthens our national 
security through rigorous initial and recurrent background checks and 
site visits.
  I am proud to sponsor the reauthorization of this highly successful 
program in order to expand its reach and increase its benefits to 
private industry.
  Mr. Speaker, I urge Members to join me in supporting this bill, and I 
reserve the balance of my time.

                                         House of Representatives,


                                  Committee on Ways and Means,

                                 Washington, DC, October 23, 2017.
     Hon. Michael McCaul,
     Chairman, Committee on Homeland Security,
     Washington, DC.
       Dear Chairman McCaul: I am writing with respect to H.R. 
     3551, the ``C-TPAT Reauthorization of 2017.'' This bill 
     contains provisions within the Rule X jurisdiction of the 
     Committee on Ways and Means.
       The Committee on Ways and Means will not seek a sequential 
     referral on H.R. 3551 so that it may proceed expeditiously to 
     the House floor for consideration. This is done with the 
     understanding that the jurisdictional interests of the 
     Committee on Ways and Means over this and similar legislation 
     are in no way diminished or altered. In addition, the 
     Committee reserves the right to seek conferees on H.R. 3551 
     and requests your support when such a request is made.
       I would appreciate your response confirming this 
     understanding with respect to H.R. 3551 and ask that a copy 
     of our exchange of letters on this matter be included in the 
     Congressional Record during consideration of the bill on the 
     House floor.
           Sincerely,
                                                      Kevin Brady,
     Chairman.
                                  ____

                                         House of Representatives,


                               Committee on Homeland Security,

                                 Washington, DC, October 23, 2017.
     Hon. Kevin Brady,
     Chairman, Committee on Ways and Means,
     Washington, DC.
       Dear Chairman Brady: Thank you for your letter regarding 
     H.R. 3551, the ``C-TPAT

[[Page 16298]]

     Reauthorization Act of 2017.'' I appreciate your support in 
     bringing this very important legislation before the House of 
     Representatives, and appreciate the willingness of the 
     Committee on Ways and Means to forego seeking a sequential 
     referral.
       The Committee on Homeland Security concurs with the mutual 
     understanding that by foregoing a sequential referral on this 
     bill at this time, the Committee on Ways and Means does not 
     waive any jurisdiction over the subject matter contained in 
     this bill or similar legislation in the future. In addition, 
     should a conference on this bill be necessary, I would 
     support your request to have the Committee on Ways and Means 
     represented on the conference committee for provisions within 
     your jurisdiction.
       I will insert copies of this exchange in the Congressional 
     Record during consideration of this bill on the House floor. 
     I thank you for your cooperation in this matter.
           Sincerely,

                                            Michael T. McCaul,

                                                         Chairman,
                                   Committee on Homeland Security.

  Ms. BARRAGAN. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I rise in support of H.R. 3551, the C-TPAT 
Reauthorization Act of 2017.
  H.R. 3551 reauthorizes, for the first time in 11 years, the Customs-
Trade Partnership Against Terrorism Program, also known as C-TPAT.
  C-TPAT is a voluntary public-private sector partnership program where 
CBP works with the trade community to provide high-level cargo security 
through close cooperation with the principal stakeholders of the 
international supply chain, such as importers, carriers, consolidators, 
licensed customs brokers, and manufacturers.
  Today, more than 11,400 certified partners spanning the gamut of the 
trade community have been accepted into the program. CBP pre-vets and 
certifies C-TPAT partners they consider to be low risk in exchange for 
benefits, such as fewer examinations and access to expedited or 
dedicated lanes.
  This bill incorporates Democratic amendments, including one of my own 
that establishes a standard system for C-TPAT partners to report 
suspicious activity instead of the patchwork system that exists now.
  Another important amendment offered by my colleague, Mr. Correa, was 
adopted in committee to ensure that when CBP changes up the rules and 
security criteria for C-TPAT, stakeholders are given adequate notice to 
comply.
  Furthermore, I would like to thank the majority for working with us 
to recognize that suspension and expulsion from the C-TPAT program has 
serious economic and repudiation ramifications for companies. The 
majority agreed to include Democratic language supported by the Border 
Trade Alliance and other stakeholders that urges CBP not to publish 
suspended C-TPAT participants, as is the current practice, until 
appeals and complete due process is carried out. We found some cases 
where companies were reinstated in the appeals process, but since they 
were tagged as a suspended company by CBP in the Federal Register, 
their business suffered. This language would prevent that from 
reoccurring.
  Mr. Speaker, at a time when U.S. ports, like the Port of Los Angeles 
in my district, are experiencing CBP staffing shortages, the C-TPAT 
program helps the supply chain be more efficient and safe. I support 
the program's reauthorization.
  Mr. Speaker, H.R. 3551 is an important piece of legislation that has 
strong support on both sides of the aisle and a broad range of 
stakeholders.
  C-TPAT offers importers and other partners a win-win situation where 
they voluntarily allow CBP to prescreen them in exchange for benefits, 
such as shorter wait times and dedicated services. The more we know 
about our supply chain, the safer we will be.
  C-TPAT is a big way we stay informed. As such, I encourage my 
colleagues to support H.R. 3551, and I yield back the balance of my 
time.
  Ms. McSALLY. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I once again urge my colleagues to support this 
legislation. I appreciate the bipartisan support, and I yield back the 
balance of my time.
  Mr. JOHNSON of Georgia. Mr. Speaker, I rise in support of H.R. 3551, 
the C-TPAT Reauthorization Act of 2017. This legislation reauthorizes 
the Customs-Trade Partnership Against Terrorism Program (C-TPAT).
  The C-TPAT program works to improve United States border security and 
the security of our international supply partners by providing a 
voluntary public-private sector partnership focused on bolstering trade 
while keeping Americans safe. Since its creation in 2001, this program 
has allowed trade partners and American businesses to opt into 
increased security measures and make corrective actions in order to 
streamline their entry into our country. The program simplifies the 
process of suppliers bringing products into our country and allows our 
country to broaden security trade measures without discouraging trade 
with those who do not opt in.
  In the United States, more than 41 million jobs depend on 
international trade, and my home state of Georgia boasts the largest 
single-terminal container facility of its kind in North America, based 
in Savannah. This industry supports over 360,000 jobs statewide and is 
vitally important in our local and national economy.
  The C-TPAT program is good for trade and promotes the safety of our 
citizens, and I urge my fellow members to support H.R. 3551 to 
reauthorize funding for this program.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentlewoman from Arizona (Ms. McSally) that the House suspend the rules 
and pass the bill, H.R. 3551, as amended.
  The question was taken.
  The SPEAKER pro tempore. In the opinion of the Chair, two-thirds 
being in the affirmative, the ayes have it.
  Ms. McSALLY. Mr. Speaker, on that I demand the yeas and nays.
  The yeas and nays were ordered.
  The SPEAKER pro tempore. Pursuant to clause 8 of rule XX, further 
proceedings on this motion will be postponed.

                          ____________________