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C-TPAT

 

House Committee Approves C-TPAT Pilot Program
June 11, 2012 

 

After a long hard fight, TIA is pleased to announce that on June 6, 2012, the House Homeland Security Committee approved H.R. 4251, the “SMART Port Security Act”. One aspect of the bill requires the Secretary of Homeland Security to develop and implement a pilot program for non-asset based third-party logistics providers to participate in the Customs Trade Partnership Against Terrorism (C-TPAT) program.

By way of background, C-TPAT is a voluntary government-business initiative that builds cooperative relationships that strengthen and improve overall international supply chain and U.S. border security. C-TPAT is widely recognized as one of the most effective means of providing the highest level of cargo security through close cooperation with international supply chain businesses Through this initiative, U.S. Customs and Border Protection (CBP) is asking businesses to ensure the integrity of their security practices and communicate and verify the security guidelines of their business partners within the supply chain.

After approval of the Bill, TIA member Kacy Robinson, Operation Manager for J.H. Rose Logistics stated: “J.H. Rose Logistics is very pleased with the House Committee approval of H.R. 4251 and we are very excited to be a member of the pilot program. J.H. Rose feels that the inclusion of non-asset based third-party logistics providers in the C-TPAT program is vital to the security and success of our customers supply chains.”   

This is the second step to eliminate the discrimination of the brokerage industry from participation in the C-TPAT program, which will ultimately strengthen our nation’s global supply chain and national security. The Committee leadership is looking to bring the bill to the House floor by the end of the month. If passed by the House, the Bill will then need to be considered by the Senate and finally if approved signed into law by the President.   

The bill’s framework contains certain requirements for the Secretary of Homeland Security to include when developing the pilot program. These requirements include:

  • The program will be voluntary for non-asset based third-party logistics providers that arrange international transportation of freight.
  • The Secretary of Homeland Security shall ensure that no fewer than five non-asset based third-party logistics providers take part in the pilot program.
  • The pilot program shall be conducted for a minimum of one year.

The Secretary of Homeland Security will have 180 days after enactment of the bill to develop the pilot program.

If you have any questions or comments, please contact Nancy O’Liddy at (703) 299-5711 or oliddy@tianet.org or Chris Burroughs at (703) 299-5705 or burroughs@tianet.org. 



House Subcommittee Approves C-TPAT Pilot Program

 

On March 27, 2012, the House Homeland Border and Maritime Subcommittee approved H.R. 4251, the “SMART Port Security Act”. One aspect of the bill requires the Secretary of Homeland Security to develop and implement a pilot program for non-asset based third-party logistics providers to participate in the Customs Trade Partnership Against Terrorism (C-TPAT) program.  

The bill’s framework contains certain requirements for the Secretary of Homeland Security to include when developing the pilot program. These requirements include:

  • The program will be voluntary for non-asset based third-party logistics providers that arrange international transportation of freight.
  • The Secretary of Homeland Security shall ensure that no fewer than five non-asset based third-party logistics providers take part in the pilot program.
  • The pilot program shall be conducted for a minimum of one year.

The Secretary of Homeland Security will have 180 days after enactment of the bill to develop the pilot program.

TIA has been working on inclusion in the C-TPAT program for non-asset based third-party logistics providers, since the inception of the program in 2001. This is a huge first step to eliminate the discrimination of the brokerage industry and ensuring our nation’s security. 

 

 

**TIA Draft C-TPAT Security Criteria for Non-asset based Property Brokers 

 

Launched in direct response to the terrorist attacks of September 11, 2001, the C-TPAT program seeks to safeguard the world’s vibrant trade industry from terrorists, maintaining the economic health of the United States and its neighbors.  The partnership develops and adopts measures that add security but do not have a chilling effect on trade, often a difficult balancing act.
 
By extending the United States’ zone of security to the point of origin, the customs- trade partnership allows for better risk assessment and targeting, freeing Customs and Border Protection (CBP) to allocate inspectional resources to more questionable shipments.
 
CBP announced that third party logistics providers (3PLs) that meet certain criteria, may enroll in the C-TPAT Program beginning in January 2009.  Unfortunately, the draft criteria proposed by CBP indicates that few additional providers of logistics services, if any, will be able to meet the 3PL eligibility criteria.
 
CBP has indicated that non-asset based 3PLs that perform duties such as quoting, booking, routing and auditing but do not own warehousing facilities, vehicles, aircraft or any other transportation assets do not qualify for eligibility.
 
Property brokers represent a key component of the international movement of freight and the security of their operations is critical to ensuring overall supply chain security. These companies are responsible for thousands of international shipments each year totaling billions of dollars in freight, including daily cross-border movements at the U.S.- Mexico
and the U.S.- Canada borders.
 
TIA previously focused our efforts on CBP and the Commercial Operations Advisory Committee (COAC), a private sector advisory group who meets quarterly and advises Customs and the U.S. Department of Treasury on supply chain and trade policy.   
 
Having exhausted our opportunities with CBP and COAC, we now concentrate our efforts with the U.S. Congress’ Committees of jurisdiction and are bringing our case directly to Members of Congress.  We have been joined in this effort by the U.S. Chamber of Commerce’s Global Supply Chain Task Force.

Please click here to read the C-TPAT testimony from December 2, 2009.