U.S. Customs and Border Protection has announced plans to conduct a pilot to determine whether to expand the current membership of third-party logistics providers in the Customs Trade Partnership Against Terrorism. The pilot will consist of ten asset-based 3PLs and ten non-asset-based 3PLs, will begin no earlier than Dec. 1, and will run for no more than five years.
CTPAT establishes a customs clearance process for eligible entities that voluntarily meet or exceed enhanced security screening requirements. Entities certified as CTPAT participants may be eligible for benefits such as reduced risk scores assigned in the Automated Targeting System, reduced examinations of cargo, priority searches of cargo, and expedited release of cargo.
3PLs provide outsourced logistics services to companies for part, or sometimes all, of their supply chain management function. The pilot will be open to (1) asset-based 3PLs that facilitate cross-border activity and manage and execute logistical functions for clients, using their own personnel, with owned or leased transportation, consolidation, or warehousing assets and resources, and (2) non-asset-based 3PLs that arrange international transportation of freight using other carriers with owned or leased transportation, consolidation, or warehousing assets and resources or contracting any or all of these services on behalf of the client company.
CBP notes that it has permitted some non-asset-based 3PLs to participate in CTPAT in the past, including indirect air carriers, non-vessel operating common carriers, and customs brokers, but that their participation was limited.
To participate in this pilot 3PLs must comply with the CTPAT eligibility requirements, including the following.
- be directly or indirectly involved in the handling and management of international cargo
- do not allow subcontracting of service beyond a second party other than to other CTPAT members
- be licensed and/or bonded by the Federal Maritime Commission, Transportation Security Administration, CBP, or Department of Transportation
- maintain no evidence of financial debt to CBP for which the responsible party has exhausted all administrative and judicial remedies for relief, a final judgment or administrative disposition has been rendered, and the final bill or debt does not remain unpaid at the time of the initial application or annual renewal
- maintain a staffed office in the U.S., Canada, or Mexico
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