CTPAT Pilot Program Act of 2021

To require a pilot program on the participation of non-asset-based third-party logistics providers in the Customs-Trade Partnership Against Terrorism. 1. Short title This Act may be cited as the Customs-Trade Partnership Against Terrorism Pilot Program Act of 2021 CTPAT Pilot Program Act of 2021 2. Pilot program on participation of non-asset-based third-party logistics providers in Customs-Trade Partnership Against Terrorism (a) In general Not later than one year after the date of the enactment of this Act, the Secretary of Homeland Security shall issue a final rule to carry out a pilot program to assess whether allowing entities described in subsection (b) to participate in the Customs-Trade Partnership Against Terrorism under subtitle B of title I of the SAFE Port Act ( 6 U.S.C. 961 et seq. (b) Entities described An entity described in this subsection is a non-asset-based third-party logistics provider that— (1) arranges international transportation of freight and is licensed by the Department of Transportation; and (2) meets such other requirements as the Secretary establishes in the rule required by subsection (a). (c) Requirements In carrying out the pilot program required by subsection (a), the Secretary shall— (1) ensure that not more than 10 entities described in subsection (b) participate in the pilot program; (2) provide for the participation of those entities on a voluntary basis; (3) continue the program for a period of not less than one year after the date on which the Secretary issues the final rule required by subsection (a); and (4) terminate the pilot program not more than 5 years after that date. (d) Report required Not later than 180 days after the termination of the pilot program under subsection (c)(4), the Secretary shall submit to Congress a report on the findings of, and any recommendations arising from, the pilot program concerning the participation in the Customs-Trade Partnership Against Terrorism of entities described in subsection (b). 1. Short title This Act may be cited as the Customs Trade Partnership Against Terrorism Pilot Program Act of 2021 CTPAT Pilot Program Act of 2021 2. Definitions In this Act: (1) Appropriate congressional committees The term appropriate congressional committees (A) the Committee on Homeland Security and Governmental Affairs and the Committee on Finance of the Senate; and (B) the Committee on Homeland Security and the Committee on Ways and Means of the House of Representatives. (2) CTPAT The term CTPAT 6 U.S.C. 961 et seq. 3. Pilot program on participation of third-party logistics providers in CTPAT (a) Establishment (1) In general The Secretary of Homeland Security shall carry out a pilot program to assess whether allowing entities described in subsection (b) to participate in CTPAT would enhance port security, combat terrorism, prevent supply chain security breaches, or otherwise meet the goals of CTPAT. (2) Federal Register notice Not later than one year after the date of the enactment of this Act, the Secretary shall publish in the Federal Register a notice specifying the requirements for the pilot program required by paragraph (1). (b) Entities described An entity described in this subsection is— (1) a non-asset-based third-party logistics provider that— (A) arranges international transportation of freight and is licensed by the Department of Transportation; and (B) meets such other requirements as the Secretary specifies in the Federal Register notice required by subsection (a)(2); or (2) an asset-based third-party logistics provider that— (A) facilitates cross border activity and is licensed or bonded by the Federal Maritime Commission, the Transportation Security Administration, U.S. Customs and Border Protection, or the Department of Transportation; (B) manages and executes logistics services using its own warehousing assets and resources on behalf of its customers; and (C) meets such other requirements as the Secretary specifies in the Federal Register notice required by subsection (a)(2). (c) Requirements In carrying out the pilot program required by subsection (a)(1), the Secretary shall— (1) ensure that— (A) not more than 10 entities described in paragraph (1) of subsection (b) participate in the pilot program; and (B) not more than 10 entities described in paragraph (2) of that subsection participate in the program; (2) provide for the participation of those entities on a voluntary basis; (3) continue the program for a period of not less than one year after the date on which the Secretary publishes the Federal Register notice required by subsection (a)(2); and (4) terminate the pilot program not more than 5 years after that date. (d) Report required Not later than 180 days after the termination of the pilot program under subsection (c)(4), the Secretary shall submit to the appropriate congressional committees a report on the findings of, and any recommendations arising from, the pilot program concerning the participation in CTPAT of entities described in subsection (b), including an assessment of participation by those entities. 4. Report on effectiveness of CTPAT (a) In general Not later than one year after the date of the enactment of this Act, the Comptroller General of the United States shall submit to the appropriate congressional committees a report assessing the effectiveness of CTPAT. (b) Elements The report required by subsection (a) shall include the following: (1) An analysis of— (A) security incidents in the cargo supply chain during the 5-year period preceding submission of the report that involved criminal activity, including drug trafficking, human smuggling, commercial fraud, or terrorist activity; and (B) whether those incidents involved participants in CTPAT or entities not participating in CTPAT. (2) An analysis of causes for the suspension or removal of entities from participating in CTPAT as a result of security incidents during that 5-year period. (3) An analysis of the number of active CTPAT participants involved in one or more security incidents while maintaining their status as participants. (4) Recommendations to the Commissioner of U.S. Customs and Border Protection for improvements to CTPAT to improve prevention of security incidents in the cargo supply chain involving participants in CTPAT. April 27, 2022 Reported with an amendment

Summary: Customs Trade Partnership Against Terrorism Pilot Program Act of 2021 or the CTPAT Pilot Program Act of 2021 This bill requires the Department of Homeland Security to carry out a pilot program that assesses whether allowing certain entities to participate in the Customs Trade Partnership Against Terrorism (CTPAT) would enhance port security, combat terrorism, prevent supply chain security breaches, or otherwise meet the goals of CTPAT. Such entities are (1) non-asset-based third-party logistics providers that arrange international freight transportation and are licensed by the Department of Transportation; or (2) asset-based third-party logistics providers that facilitate cross-border activity, are licensed or bonded by specified federal agencies, and execute logistics services using their own warehousing assets and resources. The bill requires the Government Accountability Office to report on the effectiveness of CTPAT.