---
kind: "range"
citation: "6 U.S.C. §§ 961–971"
title: "6"
from: "961"
to: "971"
count: 11
release: "119-102"
url: "https://uscodex.org/usc/6/961..971"
---

# §961. Establishment

- (a) **Establishment—** The [Secretary](/usc/6/901.md?p=15), acting through the [Commissioner](/usc/6/901.md?p=4), is authorized to establish a voluntary government-private sector program (to be known as the “Customs–Trade Partnership Against [Terrorism](/usc/6/1111.md?p=5)” or “C–TPAT”) to strengthen and improve the overall security of the [international supply chain](/usc/6/901.md?p=10) and United States border security, and to facilitate the movement of secure cargo through the [international supply chain](/usc/6/901.md?p=10), by providing benefits to participants meeting or exceeding the program requirements. Participants in C–TPAT shall include Tier 1 participants, Tier 2 participants, and Tier 3 participants.
- (b) **Minimum security requirements—** The [Secretary](/usc/6/901.md?p=15), acting through the [Commissioner](/usc/6/901.md?p=4), shall review the minimum security requirements of C–TPAT at least once every year and update such requirements as necessary.

# §962. Eligible entities


Importers, customs brokers, forwarders, air, sea, land carriers, contract logistics providers, and other entities in the [international supply chain](/usc/6/901.md?p=10) and intermodal transportation system are eligible to apply to voluntarily enter into partnerships with the [Department](/usc/6/901.md?p=7) under C–TPAT.


# §963. Minimum requirements


An applicant seeking to participate in C–TPAT shall—

- (1) demonstrate a history of moving cargo in the [international supply chain](/usc/6/901.md?p=10);
- (2) conduct an assessment of its supply chain based upon security criteria established by the [Secretary](/usc/6/901.md?p=15), acting through the [Commissioner](/usc/6/901.md?p=4), including—
  - (A) business partner requirements;
  - (B) [container](/usc/6/901.md?p=5) 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](/usc/6/901.md?p=4); and
- (4) meet all other requirements established by the [Commissioner](/usc/6/901.md?p=4), in consultation with the [Commercial Operations Advisory Committee](/usc/6/901.md?p=2).

# §964. Tier 1 participants in C–TPAT

- (a) **Benefits—** The [Secretary](/usc/6/901.md?p=15), acting through the [Commissioner](/usc/6/901.md?p=4), shall offer limited benefits to a Tier 1 participant who has been certified in accordance with the guidelines referred to in [subsection (b)](#b). Such benefits may include a reduction in the score assigned pursuant to the Automated Targeting System of not greater than 20 percent of the high-risk threshold established by the [Secretary](/usc/6/901.md?p=15).
- (b) **Guidelines—** Not later than 180 days after October 13, 2006, the [Secretary](/usc/6/901.md?p=15), acting through the [Commissioner](/usc/6/901.md?p=4), shall update the guidelines for certifying a C–TPAT participant’s security measures and supply chain security practices under this section. Such guidelines shall include a background investigation and extensive documentation review.
- (c) **Timeframe—** To the extent practicable, the [Secretary](/usc/6/901.md?p=15), acting through the [Commissioner](/usc/6/901.md?p=4), shall complete the Tier 1 certification process within 90 days of receipt of an application for participation in C–TPAT.

# §965. Tier 2 participants in C–TPAT

- (a) **Validation—** The [Secretary](/usc/6/901.md?p=15), acting through the [Commissioner](/usc/6/901.md?p=4), shall validate the security measures and supply chain security practices of a Tier 1 participant in accordance with the guidelines referred to in [subsection (c)](#c). Such validation shall include on-site assessments at appropriate foreign locations utilized by the Tier 1 participant in its supply chain and shall, to the extent practicable, be completed not later than 1 year after certification as a Tier 1 participant.
- (b) **Benefits—** The [Secretary](/usc/6/901.md?p=15), acting through the [Commissioner](/usc/6/901.md?p=4), 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](/usc/6/901.md?p=8) of cargo; and
  - (3) priority [searches](/usc/6/901.md?p=14) of cargo.
- (c) **Guidelines—** Not later than 180 days after October 13, 2006, the [Secretary](/usc/6/901.md?p=15), acting through the [Commissioner](/usc/6/901.md?p=4), shall develop a schedule and update the guidelines for validating a participant’s security measures and supply chain security practices under this section.

# §966. Tier 3 participants in C–TPAT

- (a) **In general—** The [Secretary](/usc/6/901.md?p=15), acting through the [Commissioner](/usc/6/901.md?p=4), shall establish a third tier of C–TPAT participation that offers additional benefits to participants who demonstrate a sustained commitment to maintaining security measures and supply chain security practices that exceed the guidelines established for validation as a Tier 2 participant in C–TPAT under [section 965 of this title](/usc/6/965.md).
- (b) **Criteria—** The [Secretary](/usc/6/901.md?p=15), acting through the [Commissioner](/usc/6/901.md?p=4), 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](/usc/6/901.md?p=15) that exceed the guidelines established pursuant to [section 965 of this title](/usc/6/965.md) 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](/usc/6/901.md?p=15);
  - (3) utilization of [container security devices](/usc/6/901.md?p=6), technologies, policies, or practices that meet standards and criteria established by the [Secretary](/usc/6/901.md?p=15); and
  - (4) compliance with any other cargo requirements established by the [Secretary](/usc/6/901.md?p=15).
- (c) **Benefits—** The [Secretary](/usc/6/901.md?p=15), acting through the [Commissioner](/usc/6/901.md?p=4), in consultation with the [Commercial Operations Advisory Committee](/usc/6/901.md?p=2) 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](/usc/6/901.md?p=15);
  - (2) further reduction in [examinations](/usc/6/901.md?p=8) of cargo;
  - (3) priority for [examinations](/usc/6/901.md?p=8) of cargo; and
  - (4) further reduction in the risk score assigned pursuant to the Automated Targeting System; and
  - (5) inclusion in joint [incident](/usc/6/383.md?p=i-2) management exercises, as appropriate.
- (d) **Deadline—** Not later than 2 years after October 13, 2006, the [Secretary](/usc/6/901.md?p=15), acting through the [Commissioner](/usc/6/901.md?p=4), shall designate appropriate criteria pursuant to [subsection (b)](#b) and provide benefits to validated Tier 3 participants pursuant to [subsection (c)](#c).

# §967. Consequences for lack of compliance

- (a) **In general—** If at any time a C–TPAT participant’s security measures and supply chain security practices fail to meet any of the requirements under this part, the [Commissioner](/usc/6/901.md?p=4) may deny the participant benefits otherwise available under this part, in whole or in part. The [Commissioner](/usc/6/901.md?p=4) shall develop procedures that provide appropriate protections to C–TPAT participants before benefits are revoked. Such procedures may not limit the ability of the [Commissioner](/usc/6/901.md?p=4) to take actions to protect the national security of the United States.
- (b) **False or misleading information—** If a C–TPAT participant knowingly provides false or misleading information to the [Commissioner](/usc/6/901.md?p=4) during the validation process provided for under this part, the [Commissioner](/usc/6/901.md?p=4) shall suspend or expel the participant from C–TPAT for an appropriate period of time. The [Commissioner](/usc/6/901.md?p=4), after the completion of the process under [subsection (c)](#c), may publish in the Federal Register a list of participants who have been suspended or expelled from C–TPAT pursuant to this subsection, and may make such list available to C–TPAT participants.
- (c) **Right of appeal—**
  - (1) **In general—** A C–TPAT participant may appeal a decision of the [Commissioner](/usc/6/901.md?p=4) pursuant to [subsection (a)](#a). Such appeal shall be filed with the [Secretary](/usc/6/901.md?p=15) not later than 90 days after the date of the decision, and the [Secretary](/usc/6/901.md?p=15) shall issue a determination not later than 180 days after the appeal is filed.
  - (2) **Appeals of other decisions—** A C–TPAT participant may appeal a decision of the [Commissioner](/usc/6/901.md?p=4) pursuant to [subsection (b)](#b). Such appeal shall be filed with the [Secretary](/usc/6/901.md?p=15) not later than 30 days after the date of the decision, and the [Secretary](/usc/6/901.md?p=15) shall issue a determination not later than 180 days after the appeal is filed.

# §968. Third party validations

- (a) **Plan—** The [Secretary](/usc/6/901.md?p=15), acting through the [Commissioner](/usc/6/901.md?p=4), shall develop a plan to implement a 1-year voluntary pilot program to test and assess the feasibility, costs, and benefits of using third party entities to conduct validations of C–TPAT participants.
- (b) **Consultations—** Not later than 120 days after October 13, 2006, after consulting with private sector stakeholders, including the [Commercial Operations Advisory Committee](/usc/6/901.md?p=2), the [Secretary](/usc/6/901.md?p=15) shall submit a report to the [appropriate congressional committees](/usc/6/901.md?p=1) on the plan described in [subsection (a)](#a).
- (c) **Pilot program—**
  - (1) **In general—** Not later than 1 year after the consultations described in [subsection (b)](#b), the [Secretary](/usc/6/901.md?p=15) shall carry out the 1-year pilot program to conduct validations of C–TPAT participants using third party entities described in [subsection (a)](#a).
  - (2) **Authority of the Secretary—** The decision to validate a C–TPAT participant is solely within the discretion of the [Secretary](/usc/6/901.md?p=15), or the [Secretary](/usc/6/901.md?p=15)’s designee.
- (d) **Certification of third party entities—** The [Secretary](/usc/6/901.md?p=15) shall certify a third party entity to conduct validations under [subsection (c)](#c) if the entity—
  - (1) demonstrates to the satisfaction of the [Secretary](/usc/6/901.md?p=15) that the entity has the ability to perform validations in accordance with standard operating procedures and requirements designated by the [Secretary](/usc/6/901.md?p=15); 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](/usc/6/901.md?p=15); 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—** A third party entity seeking a certificate under [subsection (d)](#d) shall submit to the [Secretary](/usc/6/901.md?p=15) necessary information for establishing the limits of liability insurance required to be maintained by the entity under this Act.
- (f) **Additional requirements—** The [Secretary](/usc/6/901.md?p=15) 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—** The [Secretary](/usc/6/901.md?p=15) shall regularly [monitor](/usc/6/1501.md?p=13) and inspect the operations of a third party entity conducting validations under [subsection (c)](#c) to ensure that the entity is meeting the minimum standard operating procedures and requirements for the validation of C–TPAT participants established by the [Secretary](/usc/6/901.md?p=15) and all other applicable requirements for validation services.
  - (2) **Revocation—** If the [Secretary](/usc/6/901.md?p=15) determines that a third party entity is not meeting the minimum standard operating procedures and requirements designated by the [Secretary](/usc/6/901.md?p=15) under [subsection (d)(1)](#d-1), the [Secretary](/usc/6/901.md?p=15) shall—
    - (A) revoke the entity’s certificate of conformance issued under [subsection (d)(1)](#d-1); and
    - (B) review any validations conducted by the entity.
- (h) **Limitation on authority—** The [Secretary](/usc/6/901.md?p=15) may only grant a C–TPAT validation by a third party entity pursuant to [subsection (c)](#c) if the C–TPAT participant voluntarily submits to validation by such third party entity.
- (i) **Report—** Not later than 30 days after the completion of the pilot program conducted pursuant to [subsection (c)](#c), the [Secretary](/usc/6/901.md?p=15) shall submit a report to the [appropriate congressional committees](/usc/6/901.md?p=1) 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](/usc/6/901.md?p=15) based upon the results of the pilot program.

# §969. Revalidation


The [Secretary](/usc/6/901.md?p=15), acting through the [Commissioner](/usc/6/901.md?p=4), 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.

# §970. Noncontainerized cargo


The [Secretary](/usc/6/901.md?p=15), acting through the [Commissioner](/usc/6/901.md?p=4), shall consider the potential for participation in C–TPAT by importers of noncontainerized cargoes that otherwise meet the requirements under this part.


# §971. C–TPAT program management

- (a) **In general—** The [Secretary](/usc/6/901.md?p=15), acting through the [Commissioner](/usc/6/901.md?p=4), shall establish sufficient internal quality controls and record management to support the management systems of C–TPAT. In managing the program, the [Secretary](/usc/6/901.md?p=15) shall ensure that the program includes:
  - (1) **Strategic plan—** A 5-year plan to identify outcome-based goals and performance measures of the program.
  - (2) **Annual plan—** An annual plan for each fiscal year designed to match available [resources](/usc/6/741.md?p=12) to the projected workload.
  - (3) **Standardized work program—** A standardized work program to be used by [agency](/usc/6/701.md?p=2) personnel to carry out the certifications, validations, and revalidations of participants. The [Secretary](/usc/6/901.md?p=15) shall keep records and [monitor](/usc/6/1501.md?p=13) staff hours associated with the completion of each such review.
- (b) **Documentation of reviews—** The [Secretary](/usc/6/901.md?p=15), acting through the [Commissioner](/usc/6/901.md?p=4), shall maintain a record management system to document determinations on the reviews of each C–TPAT participant, including certifications, validations, and revalidations.
- (c) **Confidential information safeguards—** In consultation with the [Commercial Operations Advisory Committee](/usc/6/901.md?p=2), the [Secretary](/usc/6/901.md?p=15), acting through the [Commissioner](/usc/6/901.md?p=4), shall develop and implement procedures to ensure the protection of confidential data collected, stored, or shared with government [agencies](/usc/6/701.md?p=2) or as part of the application, certification, validation, and revalidation processes.
- (d) **Resource management staffing plan—** The [Secretary](/usc/6/901.md?p=15), acting through the [Commissioner](/usc/6/901.md?p=4), 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—** In connection with the President’s annual budget submission for the [Department](/usc/6/901.md?p=7), the [Secretary](/usc/6/901.md?p=15) shall report to the [appropriate congressional committees](/usc/6/901.md?p=1) on the progress made by the [Commissioner](/usc/6/901.md?p=4) to certify, validate, and revalidate C–TPAT participants. Such report shall be due on the same date that the President’s budget is submitted to the Congress.