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CTPAT Reauthorization Bill Would Revise Eligibility, Benefits, Requirements

Thursday, October 12, 2017
Sandler, Travis & Rosenberg Trade Report

The House Homeland Security Committee has favorably reported to the full House of Representatives a bill (H.R. 3551) that would reauthorize the Customs Trade Partnership Against Terrorism program. This bill would also make a number of changes to CTPAT to reflect current industry practices and threats to the global supply chain and to improve the benefits for program participants.

ST&R will be conducting a webinar Oct. 19 on CTPAT and other trade partnership programs. Click here for more information or to register.

Key provisions in H.R. 3551 include the following.

- establishes CTPAT as the authorized economic operator program for the U.S. to give U.S. Customs and Border Protection the ability to grow its trusted trader program with both security and compliance elements

- grants eligibility to participate in CTPAT to importers, exporters, customs brokers, freight forwarders, air carriers, ocean carriers, land carriers, and contract logistics providers

- directs CBP to consider extending eligibility to importers of non-containerized (breakbulk) cargo and non-asset-based third-party logistics providers

- requires each CTPAT participant to have a designated employee (not a third-party consultant or contractor) to hold the participant directly accountable for the management of their participation

- requires CBP to review (in consultation with industry) the CTPAT minimum security criteria at least every two years and update them as necessary

- allows CBP to establish (in consultation with industry) additional and updated security criteria for individual participants, categories of participants, or particular entity types to address security vulnerabilities

- grants certain benefits to all participants regardless of status, provides for additional benefits for participants who meet or exceed minimum criteria, and requires CBP to assess benefits annually

- encourages CBP to delay publishing the names of those suspended or expelled from CTPAT, which may have economic and reputational ramifications, until any appeals have been completed

- requires CBP to conduct recertifications annually and revalidations every four years

- requires CBP to develop a five-year plan to identify outcome-based goals and performance measures for CTPAT

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