II
118THCONGRESS
1
STSESSION S. 794
To require a pilot program on the participation of non-asset-based third-
party logistics providers in the Customs-Trade Partnership Against Terrorism.
IN THE SENATE OF THE UNITED STATES
MARCH14, 2023
Mr. C
ORNYN(for himself and Mr. CARPER) introduced the following bill;
which was read twice and referred to the Committee on Homeland Secu-
rity and Governmental Affairs
A BILL
To require a pilot program on the participation of non-
asset-based third-party logistics providers in the Cus-
toms-Trade Partnership Against Terrorism.
Be it enacted by the Senate and House of Representa-1
tives of the United States of America in Congress assembled, 2
SECTION 1. SHORT TITLE. 3
This Act may be cited as the ‘‘Customs Trade Part-4
nership Against Terrorism Pilot Program Act of 2023’’ 5
or the ‘‘CTPAT Pilot Program Act of 2023’’. 6
SEC. 2. DEFINITIONS. 7
In this Act: 8
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(1) APPROPRIATE CONGRESSIONAL COMMIT -1
TEES.—The term ‘‘appropriate congressional com-2
mittees’’ means— 3
(A) the Committee on Homeland Security 4
and Governmental Affairs and the Committee 5
on Finance of the Senate; and 6
(B) the Committee on Homeland Security 7
and the Committee on Ways and Means of the 8
House of Representatives. 9
(2) CTPAT.—The term ‘‘CTPAT’’ means the 10
Customs Trade Partnership Against Terrorism es-11
tablished under subtitle B of title II of the Security 12
and Accountability for Every Port Act (6 U.S.C. 13
961 et seq.). 14
SEC. 3. PILOT PROGRAM ON PARTICIPATION OF THIRD- 15
PARTY LOGISTICS PROVIDERS IN CTPAT. 16
(a) E
STABLISHMENT.— 17
(1) I
N GENERAL.—The Secretary of Homeland 18
Security shall carry out a pilot program to assess 19
whether allowing entities described in subsection (b) 20
to participate in CTPAT would enhance port secu-21
rity, combat terrorism, prevent supply chain security 22
breaches, or otherwise meet the goals of CTPAT. 23
(2) F
EDERAL REGISTER NOTICE .—Not later 24
than one year after the date of the enactment of this 25
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Act, the Secretary shall publish in the Federal Reg-1
ister a notice specifying the requirements for the 2
pilot program required by paragraph (1). 3
(b) E
NTITIESDESCRIBED.—An entity described in 4
this subsection is— 5
(1) a non-asset-based third-party logistics pro-6
vider that— 7
(A) arranges international transportation 8
of freight and is licensed by the Department of 9
Transportation; and 10
(B) meets such other requirements as the 11
Secretary specifies in the Federal Register no-12
tice required by subsection (a)(2); or 13
(2) an asset-based third-party logistics provider 14
that— 15
(A) facilitates cross border activity and is 16
licensed or bonded by the Federal Maritime 17
Commission, the Transportation Security Ad-18
ministration, U.S. Customs and Border Protec-19
tion, or the Department of Transportation; 20
(B) manages and executes logistics services 21
using its own warehousing assets and resources 22
on behalf of its customers; and 23
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(C) meets such other requirements as the 1
Secretary specifies in the Federal Register no-2
tice required by subsection (a)(2). 3
(c) R
EQUIREMENTS.—In carrying out the pilot pro-4
gram required by subsection (a)(1), the Secretary shall— 5
(1) ensure that— 6
(A) not more than 10 entities described in 7
paragraph (1) of subsection (b) participate in 8
the pilot program; and 9
(B) not more than 10 entities described in 10
paragraph (2) of that subsection participate in 11
the program; 12
(2) provide for the participation of those enti-13
ties on a voluntary basis; 14
(3) continue the program for a period of not 15
less than one year after the date on which the Sec-16
retary publishes the Federal Register notice required 17
by subsection (a)(2); and 18
(4) terminate the pilot program not more than 19
5 years after that date. 20
(d) R
EPORTREQUIRED.—Not later than 180 days 21
after the termination of the pilot program under sub-22
section (c)(4), the Secretary shall submit to the appro-23
priate congressional committees a report on the findings 24
of, and any recommendations arising from, the pilot pro-25
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gram concerning the participation in CTPAT of entities 1
described in subsection (b), including an assessment of 2
participation by those entities. 3
SEC. 4. REPORT ON EFFECTIVENESS OF CTPAT. 4
(a) I
NGENERAL.—Not later than one year after the 5
date of the enactment of this Act, the Comptroller General 6
of the United States shall submit to the appropriate con-7
gressional committees a report assessing the effectiveness 8
of CTPAT. 9
(b) E
LEMENTS.—The report required by subsection 10
(a) shall include the following: 11
(1) An analysis of— 12
(A) security incidents in the cargo supply 13
chain during the 5-year period preceding sub-14
mission of the report that involved criminal ac-15
tivity, including drug trafficking, human smug-16
gling, commercial fraud, or terrorist activity; 17
and 18
(B) whether those incidents involved par-19
ticipants in CTPAT or entities not participating 20
in CTPAT. 21
(2) An analysis of causes for the suspension or 22
removal of entities from participating in CTPAT as 23
a result of security incidents during that 5-year pe-24
riod. 25
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(3) An analysis of the number of active CTPAT 1
participants involved in one or more security inci-2
dents while maintaining their status as participants. 3
(4) Recommendations to the Commissioner of 4
U.S. Customs and Border Protection for improve-5
ments to CTPAT to improve prevention of security 6
incidents in the cargo supply chain involving partici-7
pants in CTPAT. 8
Æ
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