[House Report 117-338]
[From the U.S. Government Publishing Office]
117th Congress } { Report
HOUSE OF REPRESENTATIVES
2d Session } { 117-338
======================================================================
CUSTOMS TRADE PARTNERSHIP AGAINST TERRORISM PILOT PROGRAM ACT OF 2022
_______
May 24, 2022.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Thompson of Mississippi, from the Committee on Homeland Security,
submitted the following
R E P O R T
[To accompany H.R. 6826]
[Including cost estimate of the Congressional Budget Office]
The Committee on Homeland Security, to whom was referred
the bill (H.R. 6826) to require a pilot program on the
participation of third-party logistics providers in the Customs
Trade Partnership Against Terrorism, and for other purposes,
having considered the same, reports favorably thereon without
amendment and recommends that the bill do pass.
CONTENTS
Page
Purpose and Summary.............................................. 1
Background and Need for Legislation.............................. 2
Hearings......................................................... 2
Committee Consideration.......................................... 2
Committee Votes.................................................. 2
Committee Oversight Findings..................................... 3
C.B.O. Estimate, New Budget Authority, Entitlement Authority, and
Tax Expenditures............................................... 3
Federal Mandates Statement....................................... 4
Duplicative Federal Programs..................................... 4
Statement of General Performance Goals and Objectives............ 4
Congressional Earmarks, Limited Tax Benefits, and Limited Tariff
Benefits....................................................... 5
Advisory Committee Statement..................................... 5
Applicability to Legislative Branch.............................. 5
Section-by-Section Analysis of the Legislation................... 5
PURPOSE AND SUMMARY
H.R. 6826, ``Customs Trade Partnership Against Terrorism
Pilot Program Act of 2022,'' establishes a 5-year pilot program
for 10 non-asset-based third-party logistics providers and 10
asset-based third-party logistics providers to participate in
the Customs Trade Partnership Against Terrorism (CTPAT) pilot
program upon meeting program requirements. The Act directs the
Secretary of Homeland Security to publish a Federal Register
Notice for eligible entities to apply to participate in the
program and to submit a report to Congress assessing the
entities' participation in the pilot program and recommending
whether these types of third-party logistics providers should
join CTPAT on a permanent basis. The legislation requires the
U.S. Government Accountability Office (GAO) to issue a report
analyzing CTPAT's effectiveness in preventing security
incidents in the cargo supply chain, as well as
recommendations, as appropriate, to improve the CTPAT program
and its participant benefits.
BACKGROUND AND NEED FOR LEGISLATION
Since November 2001, CTPAT has been a part of Customs and
Border Protection's (CBP) multilayered approach of interdicting
dangerous cargo at U.S. ports of entry (POE) and strengthening
border security. The program incentivizes private companies to
adopt tighter security measures throughout their global supply-
chain management in exchange for enhanced trade facilitation at
POEs. Today, CTPAT members include more than 11,400 companies
that are: U.S. importers-exporters; U.S.-Canada highway
carriers; U.S.-Mexico highway carriers; consolidators; customs
brokers; port authority operators; and manufacturers. At
present, CBP blocks non-asset-based third-party logistics
providers and certain asset-based third-party logistics
providers from participating in the program because they lack
an international component within their supply chain.
To address this barrier to CTPAT participation, H.R. 6826
directs CBP to undertake a pilot program to allow certain non-
asset-based third-party logistics providers and asset-based
third-party logistics providers to participate in the program.
The pilot program would examine whether the permanent
participation of by such providers would enhance supply-chain
security and expedite trade facilitation at POEs nationwide and
prevent threats to the homeland.
HEARINGS
For the purposes of clause 3(c)(6) of rule XIII of the
Rules of the House of Representatives, the following hearings
were used to develop H.R. 6826:
The Committee did not hold a legislative hearing on H.R.
6826 in the 117th Congress.
COMMITTEE CONSIDERATION
The Committee met on March 2, 2022, a quorum being present,
to consider H.R. 6826 and ordered the measure to be favorably
reported to the House, without amendment, by voice vote.
COMMITTEE VOTES
Clause 3(b) of rule XIII requires the Committee to list the
recorded votes on the motion to report legislation and
amendments thereto.
No recorded votes were requested during consideration of
H.R. 6826.
COMMITTEE OVERSIGHT FINDINGS
In compliance with clause 3(c)(1) of rule XIII, the
Committee advises that the findings and recommendations of the
Committee, based on oversight activities under clause 2(b)(1)
of rule X, are incorporated in the descriptive portions of this
report.
CONGRESSIONAL BUDGET OFFICE ESTIMATE, NEW BUDGET AUTHORITY, ENTITLEMENT
AUTHORITY, AND TAX EXPENDITURES
With respect to the requirements of clause 3(c)(2) of rule
XIII and section 308(a) of the Congressional Budget Act of
1974, and with respect to the requirements of clause 3(c)(3) of
rule XIII and section 402 of the Congressional Budget Act of
1974, the Committee adopts as its own the estimate of any new
budget authority, spending authority, credit authority, or an
increase or decrease in revenues or tax expenditures contained
in the cost estimate prepared by the Director of the
Congressional Budget Office.
U.S. Congress,
Congressional Budget Office,
Washington, DC, March 23, 2022.
Hon. Bennie G. Thompson,
Chairman, Committee on Homeland Security,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 6826, the CTPAT
Pilot Program Act of 2022.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Madeleine
Fox.
Sincerely,
Phillip L. Swagel,
Director.
Enclosure.
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
H.R. 6826 would require the Department of Homeland Security
(DHS) to carry out a five-year pilot program to include certain
third-party logistics providers in the customs trade
partnership against terrorism (CTPAT) program. CTPAT is a
voluntary program that encourages entities involved in
international trade to cooperate with Customs and Border
Protection (CBP) to strengthen international supply chains,
improve border security, and facilitate the movement of secure
cargo through the supply chain. Interested entities would need
to apply to DHS.
The bill would require CBP to publish participation
requirements for the pilot program in the Federal Register
within one year of the bill's enactment and submit a report to
the Congress on its findings about the pilot program six months
after it ends. H.R. 6826 also would require the Government
Accountability Office (GAO) to report to the Congress on the
effectiveness of the CTPAT program within 18 months.
Using information from the agency, CBO estimates that any
new activities required under H.R. 6826 would not require
substantial action by DHS and would cost less than $500,000
over the 2022-2026 period. Furthermore, based on the cost of
similar activities, CBO estimates the cost to GAO of producing
the report would be less than $500,000 over the 2022-2026
period. Taken together, CBO estimates implementing the bill
would cost $1 million over the 2022-2026 period. All spending
under the bill would be subject to the availability of
appropriated funds.
On December 22, 2021, CBO transmitted a cost estimate for
S. 2322, the CTPAT Pilot Program Act of 2021, as ordered
reported by the Senate Committee on Homeland Security and
Governmental Affairs on November 3, 2021. The two pieces of the
legislation are similar, and CBO's estimates of their budgetary
effects are the same.
The CBO staff contact for this estimate is Madeleine Fox.
The estimate was reviewed by Leo Lex, Deputy Director of Budget
Analysis.
FEDERAL MANDATES STATEMENT
The Committee adopts as its own the estimate of Federal
mandates prepared by the Director of the Congressional Budget
Office pursuant to section 423 of the Unfunded Mandates Reform
Act.
DUPLICATIVE FEDERAL PROGRAMS
Pursuant to clause 3(c) of rule XIII, the Committee finds
that H.R. 6826 does not contain any provision that establishes
or reauthorizes a program known to be duplicative of another
Federal program.
STATEMENT OF GENERAL PERFORMANCE GOALS AND OBJECTIVES
Pursuant to clause 3(c)(4) of rule XIII, the objective of
H.R. 6826 is to establish a 5-year pilot program allowing 10
non-asset-based third-party logistics providers and 10 asset-
based third-party logistics providers to participate in CTPAT
upon meeting the Secretary of Homeland Security's requirements
published in their Federal Register notice. The pilot program's
goal is to help determine whether the participation of these
entities would enhance port security, combat terrorism, prevent
United States supply-chain security breaches, or otherwise
satisfy the goals of CTPAT.
CONGRESSIONAL EARMARKS, LIMITED TAX BENEFITS, AND LIMITED TARIFF
BENEFITS
In compliance with rule XXI, this bill, as reported,
contains no congressional earmarks, limited tax benefits, or
limited tariff benefits as defined in clause 9(d), 9(e), or
9(f) of rule XXI.
ADVISORY COMMITTEE STATEMENT
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act were created by this
legislation.
APPLICABILITY TO LEGISLATIVE BRANCH
The Committee finds that H.R. 6826 does not relate to the
terms and conditions of employment or access to public services
or accommodations within the meaning of section 102(b)(3) of
the Congressional Accountability Act.
SECTION-BY-SECTION ANALYSIS OF THE LEGISLATION
Section 1. Short title.
This section states that the Act may be cited as the
``Customs Trade Partnership Against Terrorism Pilot Program Act
of 2022'' or the ``CTPAT Pilot Program Act of 2022''.
Sec. 2. Pilot program on participation of third-party
logistics providers in CTPAT.
This section establishes a pilot program to assess whether
the participation of non-asset-based third-party logistic
providers and asset-based third-party logistics providers in
the CTPAT program would enhance port security, combat
terrorism, prevent domestic supply-chain security breaches, and
advance the goals of the program.
The Secretary of Homeland Security is required to publish
in the Federal Register a notice for entities eligible to apply
to the pilot program and describing the pilot's application
process and requirements. No more than 10 non-asset-based
third-party logistics providers and 10 asset-based third-party
logistics providers can participate in the pilot program on a
voluntary basis for a period of not less than 1 and not more
than 5 years.
Non-asset-based third-party logistics providers are
entities that arrange international transportation of freight
and are licensed or bonded by the Federal Maritime Commission,
the Transportation Security Administration, U.S. Customs and
Border Protection, or the Department of Transportation. Asset-
based third-party logistics providers are entities that
facilitate cross-border activity and are licensed or bonded by
the Federal Maritime Commission, the Transportation Security
Administration, U.S. Customs and Border Protection, or the
Department of Transportation. The asset-based third-party
logistics providers must also manage and execute logistics
services using its own assets on behalf of customers.
The Secretary must also submit a report to Congress 180
days after the termination of the pilot program and detail the
findings of the pilot and recommendations regarding
participation in CTPAT.
Sec. 3. Report on effectiveness of CTPAT.
This section directs GAO to submit a report to Congress no
later than 18 months after the enactment of this Act. The
report shall include an analysis of security incidents in the
United States cargo supply chain during the 5-year period
preceding the submission of the report and describe whether
incidents involved CTPAT participants. The report shall also
include an analysis of causes for the suspension or removal of
CTPAT members, the number of active CTPAT members involved in
security incidents, and CTPAT benefits for its participants.
Lastly, the report shall include recommendations, as
appropriate, to improve the CTPAT program and enhance CTPAT
benefits.
Sec. 4. Definitions.
This section defines ``appropriate congressional
committees'' and ``CTPAT.''
[all]