1. U.S. Code
  2. title 6
  3. chapter 3
  4. subchapter II
  5. part B
  6. § 968

Collapse to view only § 968. Third party validations

§ 961. Establishment
(a) Establishment
(b) Minimum security requirements
(Pub. L. 109–347, title II, § 211, Oct. 13, 2006, 120 Stat. 1909.)

CITE AS: 6 USC 961

§ 962. Eligible entities

Importers, customs brokers, forwarders, air, sea, land carriers, contract logistics providers, and other entities in the international supply chain and intermodal transportation system are eligible to apply to voluntarily enter into partnerships with the Department under C–TPAT.

(

CITE AS: 6 USC 962

§ 963. Minimum requirementsAn applicant seeking to participate in C–TPAT shall—
(1) demonstrate a history of moving cargo in the international supply chain;
(2) conduct an assessment of its supply chain based upon security criteria established by the Secretary, acting through the Commissioner, including—
(A) business partner requirements;
(B) container security;
(C) physical security and access controls;
(D) personnel security;
(E) procedural security;
(F) security training and threat awareness; and
(G) information technology security;
(3) implement and maintain security measures and supply chain security practices meeting security criteria established by the Commissioner; and
(4) meet all other requirements established by the Commissioner, in consultation with the Commercial Operations Advisory Committee.
(Pub. L. 109–347, title II, § 213, Oct. 13, 2006, 120 Stat. 1909.)

CITE AS: 6 USC 963

§ 964. Tier 1 participants in C–TPAT
(a) Benefits
(b) Guidelines
(c) Timeframe
(Pub. L. 109–347, title II, § 214, Oct. 13, 2006, 120 Stat. 1910.)

CITE AS: 6 USC 964

§ 965. Tier 2 participants in C–TPAT
(a) Validation
(b) Benefits
The Secretary, acting through the Commissioner, shall extend benefits to each C–TPAT participant that has been validated as a Tier 2 participant under this section, which may include—
(1) reduced scores in the Automated Targeting System;
(2) reduced examinations of cargo; and
(3) priority searches of cargo.
(c) Guidelines
(Pub. L. 109–347, title II, § 215, Oct. 13, 2006, 120 Stat. 1910.)

CITE AS: 6 USC 965

§ 966. Tier 3 participants in C–TPAT
(a) In general
(b) Criteria
The Secretary, acting through the Commissioner, shall designate criteria for validating a C–TPAT participant as a Tier 3 participant under this section. Such criteria may include—
(1) compliance with any additional guidelines established by the Secretary that exceed the guidelines established pursuant to section 965 of this title for validating a C–TPAT participant as a Tier 2 participant, particularly with respect to controls over access to cargo throughout the supply chain;
(2) submission of additional information regarding cargo prior to loading, as determined by the Secretary;
(3) utilization of container security devices, technologies, policies, or practices that meet standards and criteria established by the Secretary; and
(4) compliance with any other cargo requirements established by the Secretary.
(c) Benefits
The Secretary, acting through the Commissioner, in consultation with the Commercial Operations Advisory Committee and the National Maritime Security Advisory Committee, shall extend benefits to each C–TPAT participant that has been validated as a Tier 3 participant under this section, which may include—
(1) the expedited release of a Tier 3 participant’s cargo in destination ports within the United States during all threat levels designated by the Secretary;
(2) further reduction in examinations of cargo;
(3) priority for examinations of cargo; and
(4) further reduction in the risk score assigned pursuant to the Automated Targeting System; and
(5) inclusion in joint incident management exercises, as appropriate.
(d) Deadline
(Pub. L. 109–347, title II, § 216, Oct. 13, 2006, 120 Stat. 1910.)

CITE AS: 6 USC 966

§ 967. Consequences for lack of compliance
(a) In general
(b) False or misleading information
(c) Right of appeal
(1) In general
(2) Appeals of other decisions
(Pub. L. 109–347, title II, § 217, Oct. 13, 2006, 120 Stat. 1911.)

CITE AS: 6 USC 967

§ 968. Third party validations
(a) Plan
(b) Consultations
(c) Pilot program
(1) In general
(2) Authority of the Secretary
(d) Certification of third party entitiesThe Secretary shall certify a third party entity to conduct validations under subsection (c) if the entity—
(1) demonstrates to the satisfaction of the Secretary that the entity has the ability to perform validations in accordance with standard operating procedures and requirements designated by the Secretary; and
(2) agrees—
(A) to perform validations in accordance with such standard operating procedures and requirements (and updates to such procedures and requirements); and
(B) to maintain liability insurance coverage at policy limits and in accordance with conditions to be established by the Secretary; and
(3) signs an agreement to protect all proprietary information of C–TPAT participants with respect to which the entity will conduct validations.
(e) Information for establishing limits of liability insurance
(f) Additional requirementsThe Secretary shall ensure that—
(1) any third party entity certified under this section does not have—
(A) any beneficial interest in or any direct or indirect control over the C–TPAT participant for which the validation services are performed; or
(B) any other conflict of interest with respect to the C–TPAT participant; and
(2) the C–TPAT participant has entered into a contract with the third party entity under which the C–TPAT participant agrees to pay all costs associated with the validation.
(g) Monitoring
(1) In general
(2) RevocationIf the Secretary determines that a third party entity is not meeting the minimum standard operating procedures and requirements designated by the Secretary under subsection (d)(1), the Secretary shall—
(A) revoke the entity’s certificate of conformance issued under subsection (d)(1); and
(B) review any validations conducted by the entity.
(h) Limitation on authority
(i) ReportNot later than 30 days after the completion of the pilot program conducted pursuant to subsection (c), the Secretary shall submit a report to the appropriate congressional committees that contains—
(1) the results of the pilot program, including the extent to which the pilot program ensured sufficient protection for proprietary commercial information;
(2) the cost and efficiency associated with validations under the pilot program;
(3) the impact of the pilot program on the rate of validations conducted under C–TPAT;
(4) any impact on national security of the pilot program; and
(5) any recommendations by the Secretary based upon the results of the pilot program.
(Pub. L. 109–347, title II, § 218, Oct. 13, 2006, 120 Stat. 1912.)

CITE AS: 6 USC 968

§ 969. RevalidationThe Secretary, acting through the Commissioner, shall develop and implement—
(1) a revalidation process for Tier 2 and Tier 3 participants;
(2) a framework based upon objective criteria for identifying participants for periodic revalidation not less frequently than once during each 4-year period following the initial validation; and
(3) an annual plan for revalidation that includes—
(A) performance measures;
(B) an assessment of the personnel needed to perform the revalidations; and
(C) the number of participants that will be revalidated during the following year.
(Pub. L. 109–347, title II, § 219, Oct. 13, 2006, 120 Stat. 1913.)

CITE AS: 6 USC 969

§ 970. Noncontainerized cargo

The Secretary, acting through the Commissioner, shall consider the potential for participation in C–TPAT by importers of noncontainerized cargoes that otherwise meet the requirements under this part.

(Pub. L. 109–347, title II, § 220, Oct. 13, 2006, 120 Stat. 1914.)

CITE AS: 6 USC 970

§ 971. C–TPAT program management
(a) In general
The Secretary, acting through the Commissioner, shall establish sufficient internal quality controls and record management to support the management systems of C–TPAT. In managing the program, the Secretary shall ensure that the program includes:
(1) Strategic plan
(2) Annual plan
(3) Standardized work program
(b) Documentation of reviews
(c) Confidential information safeguards
(d) Resource management staffing plan
The Secretary, acting through the Commissioner, shall—
(1) develop a staffing plan to recruit and train staff (including a formalized training program) to meet the objectives identified in the strategic plan of the C–TPAT program; and
(2) provide cross-training in postincident trade resumption for personnel who administer the C–TPAT program.
(e) Report to Congress
(Pub. L. 109–347, title II, § 221, Oct. 13, 2006, 120 Stat. 1914.)

CITE AS: 6 USC 971

§ 972. Additional personnel

For fiscal years 2008 and 2009, the Commissioner shall increase by not less than 50 the number of full-time personnel engaged in the validation and revalidation of C–TPAT participants (over the number of such personnel on the last day of the previous fiscal year), and shall provide appropriate training and support to such additional personnel.

(Pub. L. 109–347, title II, § 222, Oct. 13, 2006, 120 Stat. 1914.)

CITE AS: 6 USC 972

§ 973. Authorization of appropriations
(a) C–TPAT
There are authorized to be appropriated to the United States Customs and Border Protection to carry out the provisions of sections 961 through 971 of this title to remain available until expended—
(1) $65,000,000 for fiscal year 2008;
(2) $72,000,000 for fiscal year 2009; and
(3) $75,600,000 for fiscal year 2010.
(b) Additional personnel
In addition to any amounts otherwise appropriated to the United States Customs and Border Protection, there are authorized to be appropriated for the purpose of meeting the staffing requirement provided for in section 972 of this title, to remain available until expended—
(1) $8,500,000 for fiscal year 2008;
(2) $17,600,000 for fiscal year 2009;
(3) $19,000,000 for fiscal year 2010;
(4) $20,000,000 for fiscal year 2011; and
(5) $21,000,000 for fiscal year 2012.
(Pub. L. 109–347, title II, § 223, Oct. 13, 2006, 120 Stat. 1915.)

CITE AS: 6 USC 973