II 

Calendar No. 350 

117TH CONGRESS 

2D SESSION S. 2322 

[Report No. 117–99] 

To require a pilot program on the participation of non-asset-based thirdparty logistics providers in the Customs-Trade Partnership Against Terrorism. 

IN THE SENATE OF THE UNITED STATES 

JULY 13, 2021 

Mr. CORNYN (for himself, Mr. MENENDEZ, Mr. CARPER, Mr. SCOTT of South 

Carolina, Ms. HASSAN, and Mr. LANKFORD) introduced the following bill; 

which was read twice and referred to the Committee on Homeland Security and Governmental Affairs 

APRIL 27, 2022 

Reported by Mr. PETERS, with an amendment 

[Strike out all after the enacting clause and insert the part printed in italic] 

A BILL 

To require a pilot program on the participation of nonasset-based third-party logistics providers in the Customs-Trade Partnership Against Terrorism. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 


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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Customs-Trade Part3 nership Against Terrorism Pilot Program Act of 2021’’ 

4 or the ‘‘CTPAT Pilot Program Act of 2021’’. 

5 SEC. 2. PILOT PROGRAM ON PARTICIPATION OF NON6 ASSET-BASED THIRD-PARTY LOGISTICS PRO7 VIDERS IN CUSTOMS-TRADE PARTNERSHIP 

8 AGAINST TERRORISM. 

9 (a) IN GENERAL.—Not later than one year after the 

10 date of the enactment of this Act, the Secretary of Home11 land Security shall issue a final rule to carry out a pilot 

12 program to assess whether allowing entities described in 

13 subsection (b) to participate in the Customs-Trade Part14 nership Against Terrorism under subtitle B of title I of 

15 the SAFE Port Act (6 U.S.C. 961 et seq.) would enhance 

16 port security, combat terrorism, prevent supply chain se17 curity breaches, or otherwise meet the goals of the Cus18 toms-Trade Partnership Against Terrorism. 

19 (b) ENTITIES DESCRIBED.—An entity described in 

20 this subsection is a non-asset-based third-party logistics 

21 provider that— 

22 (1) arranges international transportation of 

23 freight and is licensed by the Department of Trans24 portation; and 


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1 (2) meets such other requirements as the Sec2 retary establishes in the rule required by subsection 

3 (a). 

4 (c) REQUIREMENTS.—In carrying out the pilot pro5 gram required by subsection (a), the Secretary shall— 

6 (1) ensure that not more than 10 entities de7 scribed in subsection (b) participate in the pilot pro8 gram; 

9 (2) provide for the participation of those enti10 ties on a voluntary basis; 

11 (3) continue the program for a period of not 

12 less than one year after the date on which the Sec13 retary issues the final rule required by subsection 

14 (a); and 

15 (4) terminate the pilot program not more than 

16 5 years after that date. 

17 (d) REPORT REQUIRED.—Not later than 180 days 

18 after the termination of the pilot program under sub19 section (c)(4), the Secretary shall submit to Congress a 

20 report on the findings of, and any recommendations aris21 ing from, the pilot program concerning the participation 

22 in the Customs-Trade Partnership Against Terrorism of 

23 entities described in subsection (b). 


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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Customs Trade Partner3 ship Against Terrorism Pilot Program Act of 2021’’ or the 

4 ‘‘CTPAT Pilot Program Act of 2021’’. 

5 SEC. 2. DEFINITIONS. 

6 In this Act: 

7 (1) APPROPRIATE CONGRESSIONAL COMMIT8 TEES.—The term ‘‘appropriate congressional commit9 tees’’ means— 

10 (A) the Committee on Homeland Security 

11 and Governmental Affairs and the Committee on 

12 Finance of the Senate; and 

13 (B) the Committee on Homeland Security 

14 and the Committee on Ways and Means of the 

15 House of Representatives. 

16 (2) CTPAT.—The term ‘‘CTPAT’’ means the 

17 Customs Trade Partnership Against Terrorism estab18 lished under subtitle B of title II of the Security and 

19 Accountability for Every Port Act (6 U.S.C. 961 et 

20 seq.). 

21 SEC. 3. PILOT PROGRAM ON PARTICIPATION OF THIRD22 PARTY LOGISTICS PROVIDERS IN CTPAT. 

23 (a) ESTABLISHMENT.— 

24 (1) IN GENERAL.—The Secretary of Homeland 

25 Security shall carry out a pilot program to assess 

26 whether allowing entities described in subsection (b) 


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1 to participate in CTPAT would enhance port secu2 rity, combat terrorism, prevent supply chain security 

3 breaches, or otherwise meet the goals of CTPAT. 

4 (2) FEDERAL REGISTER NOTICE.—Not later than 

5 one year after the date of the enactment of this Act, 

6 the Secretary shall publish in the Federal Register a 

7 notice specifying the requirements for the pilot pro8 gram required by paragraph (1). 

9 (b) ENTITIES DESCRIBED.—An entity described in 

10 this subsection is— 

11 (1) a non-asset-based third-party logistics pro12 vider that— 

13 (A) arranges international transportation 

14 of freight and is licensed by the Department of 

15 Transportation; and 

16 (B) meets such other requirements as the 

17 Secretary specifies in the Federal Register notice 

18 required by subsection (a)(2); or 

19 (2) an asset-based third-party logistics provider 

20 that— 

21 (A) facilitates cross border activity and is 

22 licensed or bonded by the Federal Maritime 

23 Commission, the Transportation Security Ad24 ministration, U.S. Customs and Border Protec25 tion, or the Department of Transportation; 


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1 (B) manages and executes logistics services 

2 using its own warehousing assets and resources 

3 on behalf of its customers; and 

4 (C) meets such other requirements as the 

5 Secretary specifies in the Federal Register notice 

6 required by subsection (a)(2). 

7 (c) REQUIREMENTS.—In carrying out the pilot pro8 gram required by subsection (a)(1), the Secretary shall— 

9 (1) ensure that— 

10 (A) not more than 10 entities described in 

11 paragraph (1) of subsection (b) participate in 

12 the pilot program; and 

13 (B) not more than 10 entities described in 

14 paragraph (2) of that subsection participate in 

15 the program; 

16 (2) provide for the participation of those entities 

17 on a voluntary basis; 

18 (3) continue the program for a period of not less 

19 than one year after the date on which the Secretary 

20 publishes the Federal Register notice required by sub21 section (a)(2); and 

22 (4) terminate the pilot program not more than 

23 5 years after that date. 

24 (d) REPORT REQUIRED.—Not later than 180 days 

25 after the termination of the pilot program under subsection 


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1 (c)(4), the Secretary shall submit to the appropriate con2 gressional committees a report on the findings of, and any 

3 recommendations arising from, the pilot program con4 cerning the participation in CTPAT of entities described 

5 in subsection (b), including an assessment of participation 

6 by those entities. 

7 SEC. 4. REPORT ON EFFECTIVENESS OF CTPAT. 

8 (a) IN GENERAL.—Not later than one year after the 

9 date of the enactment of this Act, the Comptroller General 

10 of the United States shall submit to the appropriate con11 gressional committees a report assessing the effectiveness of 

12 CTPAT. 

13 (b) ELEMENTS.—The report required by subsection (a) 

14 shall include the following: 

15 (1) An analysis of— 

16 (A) security incidents in the cargo supply 

17 chain during the 5-year period preceding sub18 mission of the report that involved criminal ac19 tivity, including drug trafficking, human smug20 gling, commercial fraud, or terrorist activity; 

21 and 

22 (B) whether those incidents involved par23 ticipants in CTPAT or entities not participating 

24 in CTPAT. 


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1 (2) An analysis of causes for the suspension or 

2 removal of entities from participating in CTPAT as 

3 a result of security incidents during that 5-year pe4 riod. 

5 (3) An analysis of the number of active CTPAT 

6 participants involved in one or more security inci7 dents while maintaining their status as participants. 

8 (4) Recommendations to the Commissioner of 

9 U.S. Customs and Border Protection for improve10 ments to CTPAT to improve prevention of security 

11 incidents in the cargo supply chain involving partici12 pants in CTPAT. 


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Calendar No. 350 

117TH CONGRESS 

2D SESSION S. 2322 

[Report No. 117–99] 

A BILL 

To require a pilot program on the participation of 

rorism. the Customs-Trade Partnership Against Ternon-asset-based third-party logistics providers in 

APRIL 27, 2022 

Reported with an amendment 


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