---
kind: "section"
citation: "6 U.S.C. § 968"
title: "6"
title_heading: "Domestic Security"
number: "968"
heading: "Third party validations"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/6/968"
units:
  - "Chapter 3 — Security and Accountability for Every Port"
  - "Subchapter II — Security of the International Supply Chain"
  - "Part B — Customs–Trade Partnership Against Terrorism"
---

# §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](/usc/6/671.md?p=6-A) pilot program to test and assess the feasibility, costs, and benefits of using third party [entities](/usc/6/301c.md?p=2) 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](/usc/6/301c.md?p=2) 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](/usc/6/301c.md?p=2) to conduct validations under [subsection (c)](#c) if the [entity](/usc/6/301c.md?p=2)—
  - (1) demonstrates to the satisfaction of the [Secretary](/usc/6/901.md?p=15) that the [entity](/usc/6/301c.md?p=2) 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](/usc/6/444.md?p=4-A) 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](/usc/6/301c.md?p=2) will conduct validations.
- (e) **Information for establishing limits of liability insurance—** A third party [entity](/usc/6/301c.md?p=2) 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](/usc/6/444.md?p=4-A) required to be maintained by the [entity](/usc/6/301c.md?p=2) under this Act.
- (f) **Additional requirements—** The [Secretary](/usc/6/901.md?p=15) shall ensure that—
  - (1) any third party [entity](/usc/6/301c.md?p=2) 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](/usc/6/301c.md?p=2) 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 and inspect the operations of a third party [entity](/usc/6/301c.md?p=2) conducting validations under [subsection (c)](#c) to ensure that the [entity](/usc/6/301c.md?p=2) 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](/usc/6/301c.md?p=2) 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](/usc/6/301c.md?p=2)’s certificate of conformance issued under [subsection (d)(1)](#d-1); and
    - (B) review any validations conducted by the [entity](/usc/6/301c.md?p=2).
- (h) **Limitation on authority—** The [Secretary](/usc/6/901.md?p=15) may only grant a C–TPAT validation by a third party [entity](/usc/6/301c.md?p=2) pursuant to [subsection (c)](#c) if the C–TPAT participant voluntarily submits to validation by such third party [entity](/usc/6/301c.md?p=2).
- (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.

## Source credit

(Pub. L. 109–347, title II, § 218, Oct. 13, 2006, 120 Stat. 1912.)

## Notes

### Editorial Notes

### References in Text

This Act, referred to in subsec. (e), is Pub. L. 109–347, Oct. 13, 2006, 120 Stat. 1884, known as the Security and Accountability For Every Port Act of 2006 or the SAFE Port Act. For complete classification of this Act to the Code, see Tables.