,i #aafth ,,congress #ast ,session ,h4 ,r4 #cgai ,,in ,,the ,,house ,,of ,,representatives ,july #aa1 #bjai ,mr4 ,higgins of ,louisiana 7for himself1 ,mr4 ,mc,caul1 ,mr4 ,rogers of ,alabama1 ,mr4 ,cuellar1 and ,mr4 ,buchanan7 introduced the following bill2 which was referred to the ,committee on ,homeland ,security ,a ,,bill ,to amend the ,security and ,accountability for ,every ,port ,act of #bjjf to reauthorize the ,customs ,trade ,partnership ,against ,terrorism ,program1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,,ctpat ,reauthorization ,act of #bjai4 #b4 ,customs ,trade ,partnership ,against ,terrorism 7a7 ,in general ,subtitle ,b of title ,,ii of the ,security and ,accountability for ,every ,port ,act of #bjjf 7#f ,u4,s4,c4 #ifa et seq47 is amended to read as follows3 ,b ,customs ,trade ,partnership ,against ,terrorism #baa4 ,establishment of the ,customs ,trade ,partnership ,against ,terrorism program 7a7 ,in general ,there is established within ,u4,s4 ,customs and ,border ,protection a voluntary government-private sector partnership program to be known as the ,customs ,trade ,partnership ,against ,terrorism 7,,ctpat74 7b7 ,purpose ,the purposes of the ,,ctpat program are to-- 7#a7 strengthen and improve the overall security of the international supply chain and ,united ,states border security2 7#b7 facilitate the movement of secure cargo through the international supply chain2 7#c7 ensure compliance with applicable law2 and 7#d7 serve as the ,authorized ,economic ,operator program for the ,united ,states4 7c7 ,director ,there shall be at the head of the ,,ctpat program a ,director1 who shall report to the ,executive ,assistant ,commissioner of the ,office of ,field ,operations 7in this subtitle referred to as the ,executive ,assistant ,commissioner7 of ,u4,s4 ,customs and ,border ,protection4 7d7 ,duties ,the ,director of the ,,ctpat program shall-- 7#a7 oversee the activities of the ,,ctpat program1 including certification of ,,ctpat participants2 7#b7 evaluate and make revisions to security criteria pursuant to subsections 7c7 and 7d7 of section #bac2 7#c7 ensure that participants receive a tangible and measurable benefit for participation2 and 7#d7 carry out other duties and powers prescribed by the ,executive ,assistant ,commissioner4 #bab4 ,eligible entities and notice of benefits 7a7 ,eligible entities 7#a7 ,in general ,importers1 exporters1 customs brokers1 forwarders1 air1 sea1 and land carriers1 contract logistics providers1 and other entities in the international supply chain and intermodal transportation system are eligible to apply for participation in the ,,ctpat program4 7#b7 ,expansion ,the ,commissioner may expand the list of entities eligible to apply for ,,ctpat participation only in accordance with the purpose of the ,,ctpat program4 7b7 ,tiered participation 7#a7 ,in general ,applicants specified in subsection 7a7 may be eligible to participate as ,tier #a or ,tier #b participants4 7#b7 ,importers ,importers may be eligible to participate as ,tier #c participants4 7#c7 ,extension ,the ,commissioner may extend ,tier #c participation to other entity types1 if appropriate1 and to specific ,tier #b ,,ctpat program participants in accordance with section #bag7;b74 7c7 ,notice of benefits 7#a7 ,in general ,the ,commissioner shall publish1 on the ,u4,s4 ,customs and ,border ,protection website and through other appropriate online publication1 information about benefits available under each tier of the ,,ctpat program4 7#b7 ,changes ,the ,commissioner shall publish1 on the ,u4,s4 ,customs and ,border ,protection website and through other appropriate online publication1 notice of any changes to benefits available under each tier of the ,,ctpat program not later than #cj days before any such changes take effect4 #bac4 ,participation eligibility 7a7 ,in general ,the ,executive ,assistant ,commissioner shall review all documentation submitted by an applicant pursuant to subsection 7b77#b71 conduct a background investigation of such applicant1 and vet such applicant4 7b7 ,general requirements ,to be eligible for participation in the ,,ctpat program1 an entity shall1 at a minimum-- 7#a7 have a designated company employee authorized to bind such entity who is a direct company employee and will serve as the primary point of contact responsible for participation of such entity in the ,,ctpat program2 7#b7 at the time of initial application and annually thereafter1 including in advance of any recertification or revalidation1 submit an international supply chain security profile1 which shall identify how such entity meets the minimum security criteria of the ,,ctpat program established by the ,commissioner and how such entity will maintain and enhance internal policies1 procedures1 and practices related to international supply chain security2 and 7#c7 meet any specific requirements for eligible entities1 as established by the ,commissioner4 7c7 ,minimum security criteria ,the ,commissioner shall establish minimum security criteria for participants in the ,,ctpat program1 review such minimum security criteria not less than once every two years1 and update such minimum security criteria as necessary4 ,such minimum security criteria shall seek to address security vulnerabilities in the international supply chain4 7d7 ,additional and updated criteria ,the ,commissioner may establish additional and updated security criteria for individual ,,ctpat program participants1 categories of ,,ctpat program participants1 or particular entity types to meet in order to address a security vulnerability in the international supply chain4 7e7 ,consultation ,when establishing or updating security criteria in accordance with subsection 7c71 and when establishing new or updated security criteria in accordance subsection 7d71 the ,commissioner shall consult with ,,ctpat program participants and other interested parties1 and shall-- 7#a7 conduct a cost benefit analysis of such proposed new or updated security criteria1 as the case may be1 in consultation with the ,commercial ,customs ,operations ,advisory ,committee established under section #aji of the ,trade ,facilitation and ,trade ,enforcement ,act of #bjae 7,public ,law #aad-abe2 #ai ,u4,s4,c4 #dcaf72 7#b7 determine operational feasibility and1 where appropriate1 provide best practices for meeting such new or updated security criteria to ,,ctpat program participants specific to their entity type2 7#c7 conduct a phased implementation of such proposed new or updated security criteria2 and 7#d7 provide ,,ctpat program participants and other interested parties a #ij-;day comment period to review and comment on such proposed new or updated security criteria4 7f7 ,waiver ,the ,commissioner may waive the requirements of subsection 7e7 if the ,commissioner determines there is a significant and imminent risk to the national security of the ,united ,states and such a waiver is necessary to protect such national security4 ,not later than #abj days after the issuance of any such waiver1 the ,commissioner shall announce on the ,u4,s4 ,customs and ,border ,protection website and through other appropriate online publication the ,commissioner's intent to either withdraw such waiver or maintain such waiver while commencing efforts to establish new or updated security criteria in accordance with subsection 7c7 or 7d71 respectively4 #bad4 ,benefits for ,,ctpat program participants 7a7 ,in general ,the ,executive ,assistant ,commissioner shall extend certain benefits to each ,,ctpat program participant4 ,minimum benefits for each such participant shall include the following3 7#a7 ,assignment of a ,u4,s4 ,customs and ,border ,protection ,supply ,chain ,security ,specialist4 7#b7 ,access to the ,,ctpat program's web-based ,portal system1 training materials1 and a mechanism by which to verify other ,,ctpat program participants' ,,ctpat status4 7#c7 ,timely supply chain threat alerts categorized by ,,ctpat program participant entity type1 and an annual and unclassified update made available in such web-based ,portal system regarding regional and other relevant threats to the international supply chain4 7b7 ,annual assessment 7#a7 ,in general ,the ,executive ,assistant ,commissioner shall conduct1 on an annual basis1 an assessment of the benefits conferred to ,,ctpat program participants by tier and entity type4 ,the ,executive ,assistant ,commissioner shall determine a process to carry out such assessments1 including projected milestones and completion dates for addressing data reliability issues and1 as necessary1 correcting data weaknesses1 in order that ,u4,s4 ,customs and ,border ,protection can produce accurate and reliable annual assessments that can be compared year-to-year4 7#b7 ,elements ,each annual assessment conducted pursuant to paragraph 7#a7 shall at a minimum include the following3 7,a7 ,the average reduced security exam rate by ,,ctpat program participant tier and entity type4 7,b7 ,the average reduction in penalties for ,,ctpat program participants by tier and entity type4 7,c7 ,the average reduction in risk assessment for ,,ctpat program participants by tier and entity type4 7#c7 ,public availability ,the ,executive ,assistant ,commissioner shall make each annual assessment publicly available on the ,,ctpat portal for at least one year4 7c7 ,consultation ,when assessing benefits in accordance with subsection 7b71 the ,executive ,assistant ,commissioner shall consult with the ,commercial ,customs ,operations ,advisory ,committee established under section #aji of the ,trade ,facilitation and ,trade ,enforcement ,act of #bjae 7,public ,law #aad-abe2 #ai ,u4,s4,c4 #dcaf7 and the ,national ,maritime ,security ,advisory ,committee established under section #gjaab of title #df1 ,united ,states ,code4 #bae4 ,tier #a participants 7a7 ,certification ,the ,executive ,assistant ,commissioner shall certify the security measures and international supply chain security practices of all applicants to and participants in the ,,ctpat program in accordance with section #bac7;b77#b7 and the guidelines referred to in subsection 7c7 of this section4 ,certified participants shall be ,tier #a participants4 7b7 ,benefits for tier #a participants ,upon completion of the certification under subsection 7a71 a ,,ctpat program participant shall be certified as a ,tier #a participant4 ,the ,executive ,assistant ,commissioner shall extend limited benefits to a ,tier #a participant4 7c7 ,criteria ,not later than #ahj days after the date of the enactment of this subtitle1 the ,commissioner shall update the criteria for certifying a ,,ctpat program participant's security measures and supply chain security practices under this section4 ,such criteria shall include a background investigation and review of appropriate documentation1 as determined by the ,commissioner4 7d7 ,timeframe ,to the extent practicable1 the ,executive ,assistant ,commissioner shall conclude the ,tier #a certification process within #ij days of receipt of a completed application for participation in the ,,ctpat program4 #baf4 ,tier #b participants 7a7 ,validation ,the ,executive ,assistant ,commissioner shall validate the security measures and international supply chain security practices of a ,tier #a ,,ctpat program participant in accordance with the guidelines referred to in subsection 7c7 to validate such participant as a ,tier #b participant4 ,such validation shall include on-site assessments at appropriate foreign and domestic locations utilized by such ,tier #a participant in its international supply chain4 7b7 ,benefits for tier #b participants ,the ,executive ,assistant ,commissioner1 shall extend benefits to each ,,ctpat participant that has been validated as a ,tier #b participant under this section4 ,such benefits may include the following3 7#a7 ,reduced scores in ,u4,s4 ,customs and ,border ,protection's ,automated ,targeting ,system or successor system4 7#b7 ,reduced number of security examinations by ,u4,s4 ,customs and ,border ,protection4 7#c7 ,penalty mitigation opportunities4 7#d7 ,priority examinations of cargo4 7#e7 ,access to the ,free and ,secure ,trade 7,,fast7 ,lanes at ,united ,states ports of entry4 7#f7 ,confirmation of ,,ctpat status to foreign customs administrations that have signed ,mutual ,recognition ,arrangements with ,u4,s4 ,customs and ,border ,protection4 7#g7 ,in the case of importers1 eligibility to participate in the ,importer ,self-,assessment ,program 7,,isa7 or successor compliance program4 7#h7 ,in the case of sea carriers1 eligibility to participate in the ,advance ,qualified ,unlading ,approval 7,,aqua7 ,lane process4 7c7 ,criteria ,not later than #ahj days after the date of the enactment of this subtitle1 the ,commissioner shall develop a schedule and update the criteria for validating a ,,ctpat participant's security measures and supply chain security practices under this section4 7d7 ,timeframe ,to the extent practicable1 the ,executive ,assistant ,commissioner shall complete the ,tier #b validation process for a ,,ctpat program participant under this section within one year after certification of such participant as a ,tier #a participant4 #bag4 ,tier #c participants 7a7 ,in general ,the ,commissioner shall establish a third tier of ,,ctpat program participation that offers additional benefits to ,,ctpat program participants that are importers or other entity types1 in accordance with section #bab7;b71 that demonstrate a sustained commitment to maintaining security measures and international supply chain security practices that exceed the guidelines established for validation as a ,tier #b participant in the ,,ctpat program under section #baf4 7b7 ,best practices ,the ,commissioner shall provide a best practices framework to ,tier #b participants interested in ,tier #c status and may designate a ,tier #b ,,ctpat program participant as a ,tier #c participant based on a review of best practices in such participant's international supply chain that reflect a continued approach to enhanced international supply chain security1 including-- 7#a7 compliance with any new or updated criteria established by the ,commissioner under section #bac7;d7 that exceed the guidelines established pursuant to section #baf for validating a ,,ctpat program participant as a ,tier #b participant2 and 7#b7 any other factors that the ,commissioner determines appropriate that are provided in such best practices framework4 7c7 ,benefits for tier #c participants ,the ,executive ,assistant ,commissioner shall extend benefits to each ,,ctpat program participant that has been validated as a ,tier #c participant under this section1 which1 in addition to benefits for ,tier #b participation1 may include the following3 7#a7 ,further reduction in the number of examinations by ,u4,s4 ,customs and ,border ,protection4 7#b7 ,front of the line inspections and examinations4 7#c7 ,exemption from ,stratified ,exams4 7#d7 ,shorter wait times at ,united ,states ports of entry4 #bah4 ,consequences for lack of compliance 7a7 ,in general ,if at any time the ,executive ,assistant ,commissioner determines that a ,,ctpat program participant's security measures or international supply chain security practices fail to meet applicable requirements under this subtitle1 the ,executive ,assistant ,commissioner may deny such participant benefits otherwise made available pursuant to this subtitle1 either in whole or in part4 ,the ,executive ,assistant ,commissioner shall develop procedures1 in consultation with ,commercial ,customs ,operations ,advisory ,committee established under section #aji of the ,trade ,facilitation and ,trade ,enforcement ,act of #bjae 7,public ,law #aad-abe2 #ai ,u4,s4,c4 #dcaf71 that provide appropriate protections to ,,ctpat program participants1 including advance notice and an opportunity for such participants to provide additional information to ,u4,s4 ,customs and ,border ,protection regarding any such alleged failure1 before any of such benefits are withheld4 ,such procedures may not limit the ability of the ,executive ,assistant ,commissioner to take actions to protect the national security of the ,united ,states4 7b7 ,false or misleading information2 lack of compliance with law ,if a ,,ctpat program participant knowingly provides false or misleading information to the ,commissioner1 the ,executive ,assistant ,commissioner1 ,director1 or any other officers or officials of the ,united ,states ,government1 or if at any time the ,executive ,assistant ,commissioner determines that a ,,ctpat program participant has committed a serious violation of ,federal law or customs regulations1 or if a ,,ctpat program participant has committed a criminal violation relating to the economic activity of such participant1 the ,executive ,assistant ,commissioner may suspend or remove such participant from the ,,ctpat program for an appropriate period of time4 ,the ,executive ,assistant ,commissioner1 after the completion of the process described in subsection 7d71 may publish in the ,federal ,register a list of ,,ctpat program participants that have been so removed from the ,,ctpat program pursuant to this subsection4 7c7 ,national security ,if at any time the ,executive ,assistant ,commissioner determines that a ,,ctpat program participant poses a significant and imminent risk to the national security of the ,united ,states1 the ,executive ,assistant ,commissioner may suspend or remove such participant from the ,,ctpat program for an appropriate period of time4 ,the ,executive ,assistant ,commissioner1 after the completion of the process described in subsection 7d71 may publish in the ,federal ,register a list of ,,ctpat program participants that have been so removed from the ,,ctpat program pursuant to this subsection4 7d7 ,right of appeal 7#a7 ,in general ,the ,commissioner shall establish a process for a ,,ctpat program participant to appeal a decision of the ,executive ,assistant ,commissioner under subsection 7a74 ,such appeal shall be filed with the ,commissioner not later than #ij days after the date of such decision1 and the ,commissioner shall issue a determination not later than #ij days after such appeal is filed4 7#b7 ,appeals of other decisions ,the ,commissioner shall establish a process for a ,,ctpat program participant to appeal a decision of the ,executive ,assistant ,commissioner under subsections 7b7 and 7c74 ,such appeal shall be filed with the ,commissioner not later than #cj days after the date of such decision1 and the ,commissioner shall issue a determination not later than #ij days after such appeal is filed4 #bai4 ,validations by other dhs components 7a7 ,in general ,the ,commissioner may recognize regulatory inspections of entities conducted by other components of the ,department of ,homeland ,security as sufficient to constitute validation for ,,ctpat program participation in cases in which any such component's inspection regime is harmonized with validation criteria for the ,,ctpat program4 ,such regulatory inspections shall not limit the ability of ,u4,s4 ,customs and ,border ,protection to conduct a ,,ctpat program validation4 7b7 ,revalidation ,nothing in this section may limit the ,commissioner's ability to require a revalidation by ,u4,s4 ,customs and ,border ,protection4 7c7 ,certification ,nothing in this section may be construed to authorize certifications of ,,ctpat applicants to be performed by any party other than ,u4,s4 ,customs and ,border ,protection4 #bbj4 ,recertification and revalidation 7a7 ,recertification ,the ,commissioner shall implement a recertification process for all ,,ctpat program participants4 ,such process shall occur annually1 and shall require-- 7#a7 a review of the security profile and supporting documentation to ensure adherence to the minimum security criteria under section #bac2 and 7#b7 background checks and vetting4 7b7 ,revalidation ,the ,commissioner shall implement a revalidation process for all ,tier #b and ,tier #c ,,ctpat program participants4 ,such process shall require-- 7#a7 a framework based upon objective1 risk-based criteria for identifying participants for periodic revalidation at least once every four years after the initial validation of such participants2 7#b7 on-site assessments at appropriate foreign and domestic locations utilized by such a participant in its international supply chain2 and 7#c7 an annual plan for revalidation that includes-- 7,a7 performance measures2 7,b7 an assessment of the personnel needed to perform such revalidations2 and 7,c7 the number of participants that will be revalidated during the following year4 7c7 ,revalidation under a mutual recognition arrangement 7#a7 ,in general ,upon request from the ,commissioner1 all ,tier #b and ,tier #c ,,ctpat program participants shall provide any revalidation report conducted by a foreign government under a ,mutual ,recognition ,arrangement4 7#b7 ,recognition ,the ,commissioner may recognize revalidations of entities conducted by foreign governments under a ,mutual ,recognition ,arrangement as sufficient to constitute a revalidation for ,,ctpat program participation under subsection 7b74 7#c7 ,no limitation ,nothing in this subsection may be construed to limit the ,commissioner's ability to require a revalidation by ,u4,s4 ,customs and ,border ,protection4 7d7 ,designated company employees ,only designated company employees of a ,,ctpat program participant under section #bac7;b77#a7 are authorized to respond to a revalidation report4 ,third-party entities are not authorized to respond to a revalidation report4 #bba4 ,noncontainerized cargo and third-party logistics providers ,the ,commissioner shall consider the potential for participation in the ,,ctpat program by importers of noncontainerized cargoes and non-asset-based third-party logistics providers that otherwise meet the requirements under this subtitle4 #bbb4 ,program management 7a7 ,in general ,the ,commissioner shall establish sufficient internal quality controls and record management1 including recordkeeping 7including maintenance of a record management system in accordance with subsection 7b77 and monitoring staff hours1 to support the management systems of the ,,ctpat program4 ,in managing the ,,ctpat program1 the ,commissioner shall ensure that the ,,ctpat program includes the following3 7#a7 ,a five-year plan to identify outcome-based goals and performance measures of the ,,ctpat program4 7#b7 ,an annual plan for each fiscal year designed to match available resources to the projected workload4 7#c7 ,a standardized work program to be used by agency personnel to carry out the certifications1 validations1 recertifications1 and revalidations of ,,ctpat program participants4 7#d7 ,in accordance with subsection 7e71 a standardized process for the ,executive ,assistant ,commissioner to receive reports of suspicious activity1 including reports regarding potentially compromised cargo or other national security concerns4 7b7 ,documentation of reviews 7#a7 ,in general ,the ,commissioner shall maintain a record management system to document determinations on the reviews of each ,,ctpat program participant1 including certifications1 validations1 recertifications1 and revalidations4 7#b7 ,standardized procedures ,to ensure accuracy and consistency within the record management system required under this subsection1 the ,commissioner shall develop1 disseminate1 and require utilization of standardized procedures for agency personnel carrying out certifications1 validations1 recertifications1 and revalidations to report and track information regarding the status of each ,,ctpat program participant4 7c7 ,confidential information safeguards ,in consultation with the ,commercial ,customs ,operations ,advisory ,committee established under section #aji of the ,trade ,facilitation and ,trade ,enforcement ,act of #bjae 7,public ,law #aad-abe2 #ai ,u4,s4,c4 #dcaf71 the ,commissioner shall develop and implement procedures to ensure the protection of confidential data collected1 stored1 or shared with government agencies or as part of the application1 certification1 validation1 recertification1 and revalidation processes4 7d7 ,resource management staffing plan ,the ,commissioner shall-- 7#a7 develop a staffing plan to recruit and train staff 7including a formalized training program7 to meet the objectives identified in the five-year strategic plan under subsection 7a77#a72 and 7#b7 provide cross-training in post incident trade resumption for the ,,ctpat ,director and other relevant personnel who administer the ,,ctpat program4 7e7 ,engagement ,in carrying out the standardized process required under subsection 7a77#d71 the ,commissioner shall engage with and provide guidance to ,,ctpat program participants and other appropriate stakeholders on submitting reports described in such subsection4 7f7 ,report to congress ,in connection with the ,president's annual budget submission for the ,department of ,homeland ,security1 the ,commissioner shall report to the appropriate congressional committees on the progress made by the ,commissioner to certify1 validate1 recertify1 and revalidate ,,ctpat program participants4 ,each such report shall be due on the same date that the ,president's budget is submitted to ,congress4 4 7b7 ,saving clause 7#a7 ,in general ,the amendments made by this ,act shall take effect and apply beginning on the date that is #ij days after the date of the enactment of this ,act with respect to applicants for participation in the ,,ctpat program4 7#b7 ,exception ,paragraph 7#a7 shall not apply in case of ,,ctpat program participants who are such participants as of the date specified in such paragraph4 ,such participants shall be subject to the amendments made by this ,act upon revalidation of such participants to participate in such program4 ,until such time1 such participants shall be subject to the requirements of the ,,ctpat program as in existence on the day before the date of the enactment of this ,act4 7c7 ,technical and conforming amendments ,the ,security and ,accountability for ,every ,port ,act of #bjjf is amended-- 7#a7 in paragraph 7#d7 of section #b 7#f ,u4,s4,c4 #ija71 by striking ,commissioner responsible for the ,united ,states ,customs and ,border ,protection and inserting ,commissioner of ,u4,s4 ,customs and ,border ,protection2 and 7#b7 in paragraph 7#b7 of section #bjb7;c7 7#f ,u4,s4,c4 #idb7;c771 by striking ,c-,,tpat and inserting ,,ctpat4 7d7 ,clerical amendments ,the table of contents in section #a7;b7 of the ,security and ,accountability for ,every ,port ,act of #bjjf is amended by striking the items relating to subtitle ,b of title ,,ii and inserting the following new items3 ,subtitle ,b--,customs ,trade ,partnership ,against ,terrorism ,sec4 #baa4 ,establishment of the ,customs ,trade ,partnership ,against ,terrorism program4 ,sec4 #bab4 ,eligible entities and notice of benefits4 ,sec4 #bac4 ,participation eligibility4 ,sec4 #bad4 ,benefits for ,,ctpat program participants4 ,sec4 #bae4 ,tier #a participants4 ,sec4 #baf4 ,tier #b participants4 ,sec4 #bag4 ,tier #c participants4 ,sec4 #bah4 ,consequences for lack of compliance4 ,sec4 #bai4 ,validations by other ,,dhs components4 ,sec4 #bbj4 ,recertification and revalidation4 ,sec4 #bba4 ,noncontainerized cargo and third-party logistics providers4 ,sec4 #bbb4 ,program management4 4