including importers, exporters, carriers, customs brokers, 
and freight forwarders, among other parties. 
‘‘(d) PROCEDURES.—The Secretary shall establish uni-
form procedures for the receipt, care, and storage of supply 
chain security information that is voluntarily submitted to 
the Department through the system developed under sub-
section (b). 
‘‘(e) LIMITATIONS.—The voluntary information col-
lected through the system developed under subsection (b) 
shall be used exclusively for ensuring security and shall not 
be used for determining entry or for any other commercial 
enforcement purpose. The voluntary information submitted 
to the Department through the system developed under sub-
section (b) shall not be construed to constitute compliance 
with any requirement to submit such information to a Fed-
eral agency under any other provision of law. 
‘‘(f) PARTICIPANTS.—The Secretary shall develop pro-
tocols for determining appropriate private sector personnel 
who shall have access to the system developed under sub-
section (b). Such personnel shall include designated security 
officers within companies that are determined to be low risk 
through participation in the Customs-Trade Partnership 
Against Terrorism program established pursuant to subtitle 
B of this title. 
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‘‘(g) CONFIDENTIALITY.—Notwithstanding any other 
provision of law, information that is voluntarily submitted 
by the private sector to the Department through the system 
developed under subsection (b)— 
‘‘(1) shall be exempt from disclosure under sec-
tion 552 of title 5, United States Code (commonly re-
ferred to as the Freedom of Information Act); 
‘‘(2) shall not, without the written consent of the 
person or entity submitting such information, be used 
directly by the Department or a third party, in any 
civil action arising under Federal or State law if 
such information is submitted in good faith; and 
‘‘(3) shall not, without the written consent of the 
person or entity submitting such information, be used 
or disclosed by any officer or employee of the United 
States for purposes other than the purposes of this 
section, except— 
‘‘(A) in furtherance of an investigation or 
other prosecution of a criminal act; or 
‘‘(B) when disclosure of the information 
would be— 
‘‘(i) to either House of Congress, or to 
the extent of matter within its jurisdiction, 
any committee or subcommittee thereof, any 
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joint committee thereof or subcommittee of 
any such joint committee; or 
‘‘(ii) to the Comptroller General, or 
any authorized representative of the Comp-
troller General, in the course of the perform-
ance of the duties of the Comptroller Gen-
eral. 
‘‘(h) INDEPENDENTLY
OBTAINED
INFORMATION.— 
Nothing in this section shall be construed to limit or other-
wise affect the ability of a Federal, State, or local, govern-
ment entity, under applicable law, to obtain supply chain 
security information, including any information lawfully 
and properly disclosed generally or broadly to the public 
and to use such information in any manner permitted by 
law. 
‘‘(i) PENALTIES.—Whoever, being an officer or em-
ployee of the United States or of any department or agency 
thereof, knowingly publishes, divulges, discloses, or makes 
known in any manner or to any extent not authorized by 
law, any supply chain security information protected in 
this section from disclosure, shall be fined under title 18, 
United States Code, imprisoned not more than 1 year, or 
both, and shall be removed from office or employment. 
‘‘(j) AUTHORITY TO ISSUE WARNINGS.—The Secretary 
may provide advisories, alerts, and warnings to relevant 
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companies, targeted sectors, other governmental entities, or 
the general public regarding potential risks to the supply 
chain as appropriate. In issuing a warning, the Secretary 
shall take appropriate actions to protect from disclosure— 
‘‘(1) the source of any voluntarily submitted sup-
ply chain security information that forms the basis 
for the warning; and 
‘‘(2) information that is proprietary, business 
sensitive, relates specifically to the submitting person 
or entity, or is otherwise not appropriately in the 
public domain. 
‘‘Subtitle B—Customs-Trade Part-
nership Against Terrorism (C- 
TPAT) 
‘‘SEC. 1811. ESTABLISHMENT. 
‘‘(a) ESTABLISHMENT.—The Secretary is authorized to 
establish a voluntary program (to be known as the ‘Cus-
toms-Trade Partnership Against Terrorism’ or ‘C–TPAT’) 
to strengthen and improve the overall security of the inter-
national supply chain and United States border security. 
‘‘(b) MINIMUM SECURITY REQUIREMENTS.—The Sec-
retary shall review the minimum security requirements of 
C–TPAT at least once every year and update such require-
ments as necessary. 
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‘‘SEC. 1812. ELIGIBLE ENTITIES. 
‘‘Importers, brokers, forwarders, air, sea, land carriers, 
and other entities in the international supply chain and 
intermodal transportation system are eligible to apply to 
voluntarily enter into partnerships with the Department 
under C-TPAT. 
‘‘SEC. 1813. MINIMUM REQUIREMENTS. 
‘‘An applicant seeking to participate in C–TPAT 
shall— 
‘‘(1) demonstrate a history of moving commerce 
in the international supply chain; 
‘‘(2) conduct an assessment of its supply chains 
based upon security criteria established by the Sec-
retary, including— 
‘‘(A) business partner requirements; 
‘‘(B) container security; 
‘‘(C) physical security and access controls; 
‘‘(D) personnel security; 
‘‘(E) procedural security; 
‘‘(F) security training and threat aware-
ness; and 
‘‘(G) information technology security; 
‘‘(3) implement and maintain security measures 
and supply chain security practices meeting security 
criteria; and 
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‘‘(4) meet all other requirements established by 
the Secretary. 
‘‘SEC. 1814. TIER ONE PARTICIPANTS. 
‘‘(a) BENEFITS.—The Secretary may offer limited ben-
efits to C–TPAT participants whose security measures and 
supply chain security practices have been certified in ac-
cordance with the guidelines established pursuant to sub-
section (b). 
‘‘(b) GUIDELINES.—The Secretary shall update guide-
lines for certifying a C-TPAT participant’s security meas-
ures and supply chain security practices under this section. 
‘‘SEC. 1815. TIER TWO PARTICIPANTS. 
‘‘(a) IN GENERAL.—Not later than one year after a 
C-TPAT participant has been certified under section 1814, 
the Secretary shall validate, directly or through third party 
entities certified in accordance with section 1817, the secu-
rity measures and supply chain security practices of that 
participant. Such validation shall include assessments at 
appropriate foreign locations utilized by the participant as 
part of the supply chain. 
‘‘(b) CONSEQUENCES FOR FAILED VALIDATION.—If a 
C–TPAT participant’s security measures and supply chain 
security practices fail to meet the validation requirements 
under this section, the Commissioner of U.S. Customs and 
Border Protection may— 
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‘‘(1) deny the participant benefits under C– 
TPAT on a temporary or permanent basis; or 
‘‘(2) suspend or expel the participant from C– 
TPAT. 
‘‘(c) RIGHT OF APPEAL.—A C–TPAT participant de-
scribed in subsection (b) may file an appeal with the Sec-
retary of the Commissioner’s decision under subsection 
(b)(1) to deny benefits under C–TPAT or under subsection 
(b)(2) to suspend or expel the participant from C–TPAT. 
‘‘(d) BENEFITS.—The Secretary shall extend benefits 
to each C-TPAT participant that has been validated under 
this section, which may include— 
‘‘(1) reduced examinations; and 
‘‘(2) priority processing for searches. 
‘‘SEC. 1816. TIER THREE PARTICIPANTS. 
‘‘(a) IN GENERAL.—The Secretary shall establish a 
third tier of C-TPAT that offers additional benefits to C- 
TPAT participants that demonstrate a sustained commit-
ment beyond the minimum criteria for participation in C- 
TPAT. 
‘‘(b) ADDITIONAL CRITERIA.—The Secretary shall des-
ignate criteria for C-TPAT participants under this section 
that may include criteria to ensure— 
‘‘(1) cargo is loaded on a vessel with a vessel se-
curity plan approved under section 70103(c) of title 
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46, United States Code, or on a vessel with a valid 
International Ship Security Certificate as provided 
for under part 104 of title 33, Code of Federal Regu-
lations; 
‘‘(2) container security devices and related poli-
cies and practices that exceed the standards and pro-
cedures established by the Secretary are utilized; and 
‘‘(3) cargo complies with any other requirements 
determined by the Secretary. 
‘‘(c) BENEFITS.—The Secretary, in consultation with 
the Commercial Operations Advisory Committee and the 
National Maritime Security Advisory Committee, may pro-
vide benefits to C-TPAT participants under this section, 
which may include— 
‘‘(1) the expedited release of tier three cargo into 
destination ports within the United States during all 
threat levels designated by the Secretary; 
‘‘(2) reduced or streamlined bonding require-
ments that are consistent with obligations under other 
applicable provisions of law; 
‘‘(3) preference to vessels; 
‘‘(4) further reduced examinations; 
‘‘(5) priority processing for examinations; 
‘‘(6) further reduced scores in the Automated 
Targeting System; and 
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‘‘(7) streamlined billing of any customs duties or 
fees. 
‘‘(d) DEFINITION.—In this section, the term ‘container 
security device’ means a mechanical or electronic device de-
signed to, at a minimum, detect unauthorized intrusion of 
containers. 
‘‘SEC. 1817. CONSEQUENCES FOR LACK OF COMPLIANCE. 
‘‘(a) IN GENERAL.—If a C–TPAT participant’s secu-
rity measures and supply chain security practices fail to 
meet any of the requirements under this subtitle, the Sec-
retary may deny the participant benefits in whole or in 
part under this subtitle. 
‘‘(b) FALSE OR MISLEADING INFORMATION.—If a C- 
TPAT participant intentionally provides false or mis-
leading information to the Secretary or a third party entity 
during the validation process of the participant under this 
subtitle, the Commissioner of U.S. Customs and Border 
Protection shall suspend or expel the participant from C- 
TPAT for a period of not less than five years. 
‘‘(c) RIGHT OF APPEAL.—A C–TPAT participant de-
scribed in subsection (a) may file an appeal with the Sec-
retary of the Secretary’s decision under subsection (a) to 
deny benefits under this subtitle. A C-TPAT participant de-
scribed in subsection (b) may file an appeal with the Sec-
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retary of the Commissioner’s decision under subsection (b) 
to suspend or expel the participant from C-TPAT. 
‘‘SEC. 1818. VALIDATIONS BY THIRD PARTY ENTITIES. 
‘‘(a) IN GENERAL.—In conducting the pilot program 
under subsection (f), and if the Secretary determines to ex-
pand the use of third party entities to conduct validations 
of C-TPAT participants upon completion of the pilot pro-
gram under subsection (f), the Secretary shall— 
‘‘(1) develop, document, and update, as nec-
essary, minimum standard operating procedures and 
requirements applicable to such entities for the con-
duct of such validations; and 
‘‘(2) meet all requirements under subtitle G of 
the title VIII of this Act to review and designate such 
minimum standard operating procedures as a quali-
fied anti-terrorism technology for purposes of such 
subtitle. 
‘‘(b) CERTIFICATION OF THIRD PARTY ENTITIES.— 
‘‘(1) ISSUANCE OF CERTIFICATE OF CONFORM-
ANCE.—In accordance with section 863(d)(3) of this 
Act, the Secretary shall issue a certificate of conform-
ance to a third party entity to conduct validations 
under this subtitle if the entity— 
‘‘(A) demonstrates to the satisfaction of the 
Secretary the ability to perform validations in 
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accordance with standard operating procedures 
and requirements (or updates thereto) designated 
as a qualified anti-terrorism technology by the 
Secretary under subsection (a); and 
‘‘(B) agrees— 
‘‘(I) to perform validations in accord-
ance with such standard operating proce-
dures and requirements (or updates thereto); 
and 
‘‘(ii) to maintain liability insurance 
coverage at policy limits and in accordance 
with conditions to be established by the Sec-
retary pursuant to section 864 of this Act; 
and 
‘‘(C) signs an agreement to protect all pro-
prietary information of C-TPAT participants 
with respect to which the entity will conduct 
validations. 
‘‘(2) LITIGATION AND RISK MANAGEMENT PRO-
TECTIONS.—A third party entity that maintains li-
ability insurance coverage at policy limits and in ac-
cordance with conditions to be established by the Sec-
retary pursuant to section 864 of this Act and re-
ceives a certificate of conformance under paragraph 
(1) shall receive all applicable litigation and risk 
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management protections under sections 863 and 864 
of this Act. 
‘‘(3) RECIPROCAL WAIVER OF CLAIMS.—A recip-
rocal waiver of claims shall be deemed to have been 
entered into between a third party entity that receives 
a certificate of conformance under paragraph (1) and 
its contractors, subcontractors, suppliers, vendors, cus-
tomers, and contractors and subcontractors of cus-
tomers involved in the use or operation of the valida-
tion services of the third party entity. 
‘‘(c) INFORMATION FOR ESTABLISHING LIMITS OF LI-
ABILITY INSURANCE.—A third party entity seeking a cer-
tificate of conformance under subsection (b)(1) shall provide 
to the Secretary necessary information for establishing the 
limits of liability insurance required to be maintained by 
the entity under section 864(a) of this Act. 
‘‘(d) ADDITIONAL
REQUIREMENTS.—The Secretary 
shall ensure that— 
‘‘(1) any third party entity under this section— 
‘‘(A) has no beneficial interest in or any di-
rect or indirect control over the C-TPAT partici-
pant that is contracting for the validation serv-
ices; and 
‘‘(B) has no other conflict of interest with 
respect to the C-TPAT participant; and 
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‘‘(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. 
‘‘(e) MONITORING.— 
‘‘(1) IN GENERAL.—The Secretary shall regularly 
monitor and inspect the operations of a third party 
entity conducting validations under this subtitle to 
ensure that the entity is meeting the minimum stand-
ard operating procedures and requirements for the 
validation of C-TPAT participants established under 
subsection (a) and all other applicable requirements 
for validation services under this subtitle. 
‘‘(2) REVOCATION.—If the Secretary finds that a 
third party entity is not meeting the minimum 
standard operating procedures and requirements, the 
Secretary shall— 
‘‘(A) revoke the entity’s certificate of con-
formance issued under subsection (b)(1); and 
‘‘(B) review any validations conducted by 
the entity. 
‘‘(f) PILOT PROGRAM.— 
‘‘(1) IN
GENERAL.—The Secretary shall carry 
out a pilot program to test the feasibility, costs, and 
benefits of utilizing third party entities to conduct 
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validations of C-TPAT participants. In conducting 
the pilot program, the Secretary shall comply with all 
applicable requirements of this section with respect to 
eligibility of third party entities to conduct valida-
tions of C-TPAT participants. 
‘‘(2) REPORT.—Not later than 30 days after the 
completion of the pilot program conducted pursuant 
to paragraph (1), the Secretary shall submit to the 
appropriate congressional committees a report that 
contains— 
‘‘(A) the results of the pilot program; and 
‘‘(B) the determination of the Secretary 
whether or not to expand the use of third party 
entities to conduct validations of C-TPAT par-
ticipants. 
‘‘SEC. 1819. REVALIDATION. 
‘‘The Secretary shall establish a process for revali-
dating C-TPAT participants under this subtitle. Such re-
validation shall occur not less frequently than once during 
every 3-year period following the initial validation. 
‘‘SEC. 1820. NON-CONTAINERIZED CARGO. 
‘‘The Secretary may consider the potential for partici-
pation in C-TPAT by importers of non-containerized car-
goes that otherwise meet the requirements under this sub-
title. 
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‘‘SEC. 1821. AUTHORIZATION OF APPROPRIATIONS. 
‘‘There are authorized to be appropriated $75,000,000 
for each of the fiscal years 2007 through 2012 to carry out 
this subtitle. 
‘‘Subtitle C—Miscellaneous 
Provisions 
‘‘SEC. 1831. RESEARCH, DEVELOPMENT, TEST, AND EVALUA-
TION EFFORTS IN FURTHERANCE OF MARI-
TIME AND CARGO SECURITY. 
‘‘(a) IN GENERAL.—The Secretary shall— 
‘‘(1) direct research, development, test, and eval-
uation efforts in furtherance of maritime and cargo 
security; 
‘‘(2) encourage the ingenuity of the private sector 
in developing and testing technologies and process in-
novations in furtherance of these objectives; and 
‘‘(3) evaluate such technologies. 
‘‘(b) COORDINATION.—The Secretary, in coordination 
with the Undersecretary for Science and Technology, the 
Director of the Domestic Nuclear Detection Office of the De-
partment, and the heads of other appropriate offices or enti-
ties of the Department, shall ensure that— 
‘‘(1) research, development, test, and evaluation 
efforts funded by the Department in furtherance of 
maritime and cargo security are coordinated to avoid 
duplication of efforts; and 
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‘‘(2) the results of such efforts are shared 
throughout the Department and other Federal, State, 
and local agencies, as appropriate. 
‘‘SEC. 1832. GRANTS UNDER OPERATION SAFE COMMERCE. 
‘‘(a) IN
GENERAL.—The Secretary shall provide 
grants, as part of Operation Safe Commerce, to— 
‘‘(1) integrate nonintrusive imaging inspection 
and nuclear and radiological detection systems with 
automatic identification methods for containers, ves-
sels, and vehicles; 
‘‘(2) test physical access control protocols and 
technologies to include continuous tracking devices 
that provide real-time monitoring and reporting; 
‘‘(3) create a data sharing network capable of 
transmitting data required by entities participating 
in the international supply chain from every inter-
modal transfer point to the National Targeting Cen-
ter of the Department; and 
‘‘(4) otherwise further maritime and cargo secu-
rity, as determined by the Secretary. 
‘‘(b) SUPPLY CHAIN SECURITY FOR SPECIAL CON-
TAINER AND NONCONTAINERIZED CARGO.—In providing 
grants under subsection (a), the Secretary shall establish 
demonstration projects that further the security of the inter-
national supply chain, including refrigerated containers, 
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and noncontainerized cargo, including roll-on/roll-off, 
break-bulk, liquid, and dry bulk cargo, through real-time, 
continuous tracking technology for special or high-risk con-
tainer cargo that poses unusual potential for human or en-
vironmental harm. 
‘‘(c) COMPETITIVE SELECTION PROCESS.—The Sec-
retary shall select recipients of grants under subsection (a) 
through a competitive process on the basis of the following 
criteria: 
‘‘(1) The extent to which the applicant can dem-
onstrate that personnel, laboratory, and organiza-
tional resources will be available to the applicant to 
carry out the activities authorized under this section. 
‘‘(2) The applicant’s capability to provide lead-
ership in making national and regional contributions 
to the solution of maritime and cargo security issues. 
‘‘(3) The extent to which the applicant’s pro-
grams, projects, and activities under the grant will 
address highest risk priorities as determined by the 
Secretary. 
‘‘(4) The extent to which the applicant has a 
strategic plan for carrying out the programs, projects, 
and activities under the grant. 
‘‘(5) Any other criteria the Secretary determines 
to be appropriate. 
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‘‘(d) ADMINISTRATIVE PROVISIONS.— 
‘‘(1) PROHIBITION
ON
DUPLICATION
OF
EF-
FORT.—Before providing any grant under subsection 
(a), the Secretary shall coordinate with other Federal 
departments and agencies to ensure the grant will not 
duplicate work already being carried out with Federal 
funding. 
‘‘(2) ACCOUNTING, 
REPORTING, 
AND
REVIEW 
PROCEDURES.—The Secretary shall establish account-
ing, reporting, and review procedures to ensure 
that— 
‘‘(A) amounts made available under a grant 
provided under subsection (a)— 
‘‘(i) are used for the purpose for which 
such amounts were made available; and 
‘‘(ii) are properly accounted for; and 
‘‘(B) amounts not used for such purpose 
and amounts not expended are recovered. 
‘‘(3) RECORDKEEPING.—The recipient of a grant 
under subsection (a) shall keep all records related to 
expenditures and obligations of amounts provided 
under the grant and make such records available 
upon request to the Secretary for audit and examina-
tion. 
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‘‘(4) REVIEW.—The Secretary shall annually re-
view the programs, projects, and activities carried out 
using amounts made available under grants provided 
under subsection (a) to ensure that obligations and 
expenditures of such amounts are consistent with the 
purposes for which such amounts are made available. 
‘‘(e) ANNUAL REPORT.—Not later than March 1 of 
each year, the Secretary shall submit to the appropriate 
congressional committees a report detailing the results of 
Operation Safe Commerce. 
‘‘(f) DEFINITION.—In this section, the term ‘Operation 
Safe Commerce’ means the research, development, test, and 
evaluation grant program that brings together private sec-
tor shareholders, port officials, and Federal, State, and local 
representatives to analyze existing security procedures for 
cargo and develop new security protocols that have the po-
tential to increase the security of cargo shipments by moni-
toring the movement and integrity of cargo through the 
international supply chain. 
‘‘(g) AUTHORIZATION OF APPROPRIATIONS.— 
‘‘(1) IN
GENERAL.—Subject to paragraph (2), 
there are authorized to be appropriated $25,000,000 
for each of fiscal years 2007 through 2012 to carry 
out this section. 
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‘‘(2) EFFECTIVE DATE.—Paragraph (1) shall be 
effective beginning on the date on which the Secretary 
submits to the appropriate congressional committees a 
report on the implementation and results of grants 
provided under Operation Safe Commerce before the 
date of the enactment of the Security and Account-
ability For Every Port Act. 
‘‘SEC. 1833. DEFINITIONS. 
‘‘In this title, the following definitions apply: 
‘‘(1) AUTOMATED
TARGETING
SYSTEM.—The 
term ‘Automated Targeting System’ means the rules- 
based system incorporating intelligence material and 
import transaction history, established by U.S. Cus-
toms and Border Protection to target high risk ship-
ments of cargo. 
‘‘(2) EXAMINATION.—The term ‘examination’ 
means a physical inspection or the imaging and radi-
ation screening of a conveyance using non-intrusive 
inspection (NII) technology, for the presence of con-
traband. 
‘‘(3) INSPECTION.—The term ‘inspection’ means 
the comprehensive process used by U.S. Customs and 
Border Protection for assessing goods entering the 
United States to appraise them for duty purposes, to 
detect the presence of restricted or prohibited items, 
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and to ensure compliance with all applicable laws. 
This process may include screening, conducting an 
examination, or conducting a search. 
‘‘(4) INTERNATIONAL SUPPLY CHAIN.—The term 
‘international supply chain’ means the end-to-end 
process for shipping goods from a point of origin 
overseas to and from the United States. 
‘‘(5) NUCLEAR
AND
RADIOLOGICAL
DETECTION 
SYSTEM.—The term ‘nuclear and radiological detec-
tion system’ means any technology that is capable of 
detecting or identifying nuclear and radiological ma-
terial or explosive devices. 
‘‘(6) SCREENING.—The term ‘screening’ means a 
visual or automated review of information about 
goods, including manifest or entry documentation ac-
companying a shipment being imported into the 
United States, to determine or assess the threat of 
such cargo. 
‘‘(7) SEARCH.—The term ‘search’ means an in-
trusive examination in which a container is opened 
and its contents are de-vanned and visually inspected 
for the presence of misdeclared, restricted, or prohib-
ited items.’’. 
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(b) CLERICAL AMENDMENT.—The table of contents in 
section 1(b) of the Homeland Security Act of 2002 (116 
Stat. 2135) is amended by adding at the end the following: 
‘‘TITLE XVIII—SECURITY OF THE INTERNATIONAL SUPPLY CHAIN 
‘‘Subtitle A—General Provisions 
‘‘Sec. 1801. Strategic plan to enhance the security of the international supply 
chain. 
‘‘Sec. 1802. Transmission of additional data elements for improved high risk tar-
geting. 
‘‘Sec. 1803. Plan to improve the Automated Targeting System. 
‘‘Sec. 1804. Container standards and verification procedures. 
‘‘Sec. 1805. Container Security Initiative (CSI). 
‘‘Sec. 1806. Information sharing relating to supply chain security cooperation. 
‘‘Subtitle B—Customs-Trade Partnership Against Terrorism (C-TPAT) 
‘‘Sec. 1811. Establishment. 
‘‘Sec. 1812. Eligible entities. 
‘‘Sec. 1813. Minimum requirements. 
‘‘Sec. 1814. Tier one participants. 
‘‘Sec. 1815. Tier two participants. 
‘‘Sec. 1816. Tier three participants. 
‘‘Sec. 1817. Consequences for lack of compliance. 
‘‘Sec. 1818. Validations by third party entities. 
‘‘Sec. 1819. Revalidation. 
‘‘Sec. 1820. Non-containerized cargo. 
‘‘Sec. 1821. Authorization of appropriations. 
‘‘Subtitle C—Miscellaneous Provisions 
‘‘Sec. 1831. Research, development, test, and evaluation efforts in furtherance of 
maritime and cargo security. 
‘‘Sec. 1832. Grants under Operation Safe Commerce. 
‘‘Sec. 1833. Definitions.’’. 
(c) EFFECTIVE DATES.—The Secretary of Homeland 
Security shall— 
(1) submit to the appropriate congressional com-
mittees the report required by section 1801(e)(1) of 
the Homeland Security Act of 2002, as added by sub-
section (a), not later than 180 days after the date of 
enactment of this Act; 
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(2) promulgate regulations under section 1802(b) 
of the Homeland Security Act of 2002, as added by 
subsection (a), not later than one year after the date 
of the enactment of this Act; 
(3) develop and implement the plan to improve 
the Automated Targeting System under section 
1803(a) of the Homeland Security Act of 2002, as 
added by subsection (a), not later than 180 days after 
the date of the enactment of this Act, 
(4) develop the standards and verification proce-
dures described in section 1804(a)(1) of the Homeland 
Security Act of 2002, as added by subsection (a), not 
later than 180 days after the date of the enactment 
of this Act; 
(5) begin exercising authority to issue a ‘‘do not 
load’’ order to each port designated under CSI pursu-
ant to section 1805(e) of the Homeland Security Act 
of 2002, as added by subsection (a), not later than 
180 days after the date of the enactment of this Act; 
(6) develop the secure electronic data interchange 
system under section 1806(b) of the Homeland Secu-
rity Act of 2002, as added by subsection (a), not later 
than one year after the date of the enactment of this 
Act; 
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(7) update guidelines for certifying a C-TPAT 
participant’s security measures and supply chain se-
curity practices under section 1814(b) of the Home-
land Security Act of 2002, as added by subsection (a), 
not later than 180 days after the date of the enact-
ment of this Act; 
(8) develop a schedule and update guidelines for 
validating a C-TPAT participant’s security measures 
and supply chain security practices under section 
1815 of the Homeland Security Act of 2002, as added 
by subsection (a), not later than 180 days after the 
date of enactment of this Act; 
(9) provide appropriate benefits described in 
subsection (d) of section 1816 of the Homeland Secu-
rity Act of 2002, as added by subsection (a), to C- 
TPAT participants under section 1816 of such Act be-
ginning not later than two years after the date of the 
enactment of this Act; and 
(10) carry out the pilot program described in 
section 1818(f) of the Homeland Security Act of 2002, 
as added by subsection (a), beginning not later than 
one year after the date of the enactment of this Act 
for a duration of not less than a one-year period. 
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SEC. 202. NEXT GENERATION SUPPLY CHAIN SECURITY 
TECHNOLOGIES. 
(a) EVALUATION
OF EMERGING TECHNOLOGIES.— 
While maintaining the current layered, risk-based approach 
to screening, scanning, and inspecting cargo at foreign 
ports bound for the United States in accordance with exist-
ing statutory provisions, the Secretary of Homeland Secu-
rity shall evaluate the development of nuclear and radio-
logical detection systems and other inspection technologies 
for use at foreign seaports to increase the volume of con-
tainers scanned prior to loading on vessels bound for the 
United States. 
(b) EMERGING TECHNOLOGY.—Not later than one year 
after the date of the enactment of this Act, the Secretary 
shall, having evaluated emerging technologies under sub-
section (a), determine if more capable, commercially avail-
able technology exists, and whether such technology— 
(1) has a sufficiently low false alarm rate for use 
in the supply chain; 
(2) is capable of being deployed and operated at 
ports overseas; 
(3) is capable of integrating, where necessary, 
with existing systems; 
(4) does not significantly impact trade capacity 
and flow of cargo at foreign or United States ports; 
and 
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(5) provides an automated notification of ques-
tionable or high-risk cargo as a trigger for further in-
spection by appropriately trained personnel. 
(c) CONTINGENT IMPLEMENTATION.—If the Secretary 
determines the available technology meets the criteria out-
lined in subsection (b), the Secretary, in cooperation with 
the Secretary of State, shall within 180 days of such deter-
mination, seek to secure the cooperation of foreign govern-
ments to initiate and maximize the use of such technology 
at foreign ports to scan all cargo possible. 
(d) INTERNATIONAL COOPERATION.—If the Secretary 
determines that a proposed technology meets the require-
ments of subsection (b), but cannot be implemented as a 
result of a foreign government’s refusal to cooperate in the 
phased deployment, the Secretary may refuse to accept con-
tainerized cargo from that port. 
(e) REPORT.—The Secretary shall submit to the appro-
priate congressional committees on an annual basis a re-
port on the evaluation performed under subsections (a) and 
(b), the status of any implementation initiated in accord-
ance with subsection (c), and a detailed assessment of the 
level of cooperation of foreign governments, as well as any 
actions taken by the Secretary under subsection (d). 
(f) DEFINITION.—In this section, the term ‘‘nuclear 
and radiological detection system’’ means any technology 
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that is capable of detecting or identifying nuclear and radi-
ological material or explosive devices. 
SEC. 203. UNIFORM DATA SYSTEM FOR IMPORT AND EX-
PORT INFORMATION. 
(a) ESTABLISHMENT.—The President shall establish 
and implement a single, uniform data system for the elec-
tronic collection, dissemination, and sharing of import and 
export information to increase the efficiency of data submis-
sion and the security of such data related to border security, 
trade, and public health and safety of international cargoes. 
(b) PRIVATE SECTOR CONSULTATION.—The President 
shall consult with private sector stakeholders in developing 
uniform data submission requirements, procedures, and 
schedules under the system established pursuant to sub-
section (a). 
(c) REPORT.—Not later than 120 days after the date 
of the enactment of this Act, the President shall transmit 
to the appropriate congressional committees a report on the 
schedule for full implementation of the system established 
pursuant to subsection (a). 
(d) RULE OF CONSTRUCTION.—Nothing in this section 
shall be construed to prevent any Federal department or 
agency from collecting import and export information 
under any other provision of law. 
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SEC. 204. FOREIGN PORT ASSESSMENTS. 
Section 70108 of title 46, United States Code, is 
amended by adding at the end the following: 
‘‘(d) PERIODIC REASSESSMENT.—The Secretary, act-
ing through the Commandant of the Coast Guard, shall re-
assess the effectiveness of antiterrorism measures main-
tained at ports as described under subsection (a) and of 
procedures described in subsection (b) not less than every 
3 years.’’. 
SEC. 205. PILOT PROGRAM TO IMPROVE THE SECURITY OF 
EMPTY CONTAINERS. 
(a) IN GENERAL.—The Secretary of Homeland Secu-
rity shall conduct a one-year pilot program to evaluate and 
improve the security of empty containers at United States 
seaports to ensure the safe and secure delivery of cargo and 
to prevent potential acts of terrorism involving such con-
tainers. The pilot program shall include the use of visual 
searches of empty containers at United States seaports. 
(b) REPORT.—Not later than 90 days after the comple-
tion of the pilot program under paragraph (1), the Sec-
retary shall prepare and submit to the appropriate congres-
sional committees a report that contains— 
(1) the results of pilot program; and 
(2) the determination of the Secretary whether or 
not to expand the pilot program. 
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SEC. 206. STUDY AND REPORT ON ADVANCED IMAGERY 
PILOT PROGRAMS. 
(a) STUDY.— 
(1) IN GENERAL.—The Secretary of Homeland 
Security, in consultation with the Commissioner of 
U.S. Customs and Border Protection, shall conduct a 
study of the merits of current container inspection 
pilot programs which include nuclear or radiological 
detection, non-intrusive imagery, and density scan-
ning capabilities. 
(2) REQUIREMENTS.—The study required under 
paragraph (1) shall include, at a minimum— 
(A) an evaluation of the cost, personnel, and 
infrastructure required to operate the pilot pro-
grams, as well as the cost, personnel, and infra-
structure required to move the pilot programs 
into full-scale deployment to screen all cargo im-
ported from foreign ports; 
(B) an evaluation of the cost, personnel, 
and infrastructure required by U.S. Customs 
and Border Protection to validate the data gen-
erated from the pilot programs; 
(C) a summary of best practices and techno-
logical advances of the pilot programs that could 
be integrated into the Container Security Initia-
tive and other container security programs; and 
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(D) an assessment of the impact of tech-
nology or processes utilized in the pilot programs 
on improving cargo operations and security. 
(b) REPORT.—Not later than 60 days after the date 
of the enactment of this Act, the Secretary shall submit to 
the appropriate congressional committees a report that con-
tains— 
(1) the results of the study required under sub-
section (a); and 
(2) recommendations to improve container secu-
rity programs within the Department of Homeland 
Security. 
TITLE 
III—DIRECTORATE 
FOR 
POLICY, 
PLANNING, 
AND 
INTERNATIONAL AFFAIRS 
SEC. 301. ESTABLISHMENT OF DIRECTORATE. 
(a) ESTABLISHMENT.—The Homeland Security Act of 
2002 (6 U.S.C. 101 et seq.) is amended— 
(1) by redesignating title VI as title XIX, and 
moving such title so as to appear after title XVIII, as 
added by section 201; 
(2) by striking the heading for such title and in-
serting the following: 
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‘‘TITLE XIX—MISCELLANEOUS 
PROVISIONS’’. 
(3) by redesignating section 601 as section 1901; 
and 
(4) by inserting after title V the following new 
title: 
‘‘TITLE VI—POLICY, PLANNING, 
AND INTERNATIONAL AFFAIRS 
‘‘SEC. 601. DIRECTORATE FOR POLICY, PLANNING, AND 
INTERNATIONAL AFFAIRS. 
‘‘(a) ESTABLISHMENT.—There shall be in the Depart-
ment a Directorate for Policy, Planning, and International 
Affairs. 
‘‘(b) UNDER SECRETARY FOR POLICY.— 
‘‘(1) IN GENERAL.—The head of the Directorate 
shall be the Under Secretary for Policy, who shall be 
appointed by the President. 
‘‘(2) QUALIFICATIONS.—No individual shall be 
appointed Under Secretary for Policy under para-
graph (1) unless the individual has, by education and 
experience, demonstrated knowledge, ability, and skill 
in the fields of policy and strategic planning. 
‘‘(c) RESPONSIBILITIES OF UNDER SECRETARY.— 
‘‘(1) POLICY RESPONSIBILITIES.—Subject to the 
direction and control of the Secretary, the policy re-
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sponsibilities of the Under Secretary for Policy shall 
be as follows: 
‘‘(A) To serve as the principal policy advi-
sor to the Secretary. 
‘‘(B) To provide overall direction and su-
pervision of policy development for the programs, 
offices, and activities of the Department. 
‘‘(C) To establish and implement a formal 
policymaking process for the Department. 
‘‘(D) To analyze, evaluate, and review the 
completed, ongoing, and proposed programs of 
the Department to ensure they are compatible 
with the statutory and regulatory responsibilities 
of the Department and with the Secretary’s pri-
orities, strategic plans, and policies. 
‘‘(E) To ensure that the budget of the De-
partment (including the development of future 
year budgets and interaction with the Office of 
Management and Budget and with Congress) is 
compatible with the statutory and regulatory re-
sponsibilities of the Department and with the 
Secretary’s priorities, strategic plans, and poli-
cies. 
‘‘(F) To represent the Department in any 
development of policy that requires the Depart-
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ment to consult with another Federal agency, the 
Office of the President, a foreign government, or 
any other governmental or private sector entity. 
‘‘(G) To supervise and oversee policy devel-
opment undertaken by the component agencies 
and offices of the Department. 
‘‘(2) STRATEGIC PLANNING RESPONSIBILITIES.— 
Subject to the direction and control of the Secretary, 
the strategic planning responsibilities of the Under 
Secretary for Policy shall be as follows: 
‘‘(A) To conduct long-range, strategic plan-
ning for the Department. 
‘‘(B) To prepare national and Department 
strategies, as appropriate. 
‘‘(C) To conduct net assessments of issues 
facing the Department. 
‘‘(3) INTERNATIONAL
RESPONSIBILITIES.—Sub-
ject to the direction and control of the Secretary, the 
international responsibilities of the Under Secretary 
for Policy shall be as follows: 
‘‘(A) To promote the exchange of informa-
tion and the sharing of best practices and tech-
nology relating to homeland security with na-
tions friendly to the United States, including— 
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‘‘(i) the exchange of information on re-
search and development on homeland secu-
rity technologies; 
‘‘(ii) joint training exercises of first re-
sponders in coordination with the Assistant 
Secretary for Grants and Training; and 
‘‘(iii) exchanging expertise and infor-
mation on terrorism prevention, response, 
and crisis management. 
‘‘(B) To identify any homeland security-re-
lated area in which the United States and other 
nations and appropriate international organiza-
tions could collaborate to improve capabilities 
and to encourage the exchange of information or 
sharing of best practices and technology relating 
to that area. 
‘‘(C) To plan and participate in inter-
national conferences, exchange programs (includ-
ing the exchange of scientists, engineers, and 
other experts), and other training activities with 
friendly nations 
‘‘(D) To manage international activities 
within the Department in coordination with 
other Federal officials with responsibility for 
counterterrorism matters. 
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‘‘(E) To oversee the activities of Department 
personnel operating in other countries or trav-
eling to other countries, 
‘‘(F) To represent the Department in inter-
national negotiations, working groups, and 
standards-setting bodies. 
‘‘(4) PRIVATE SECTOR.— 
‘‘(A) To create and foster strategic commu-
nications with the private sector to enhance the 
primary mission of the Department to protect 
the United States. 
‘‘(B) To advise the Secretary on the impact 
on the private sector of the policies, regulations, 
processes, and actions of the Department. 
‘‘(C) To create and manage private sector 
advisory councils composed of representatives of 
industries and associations designated by the 
Secretary— 
‘‘(i) to advise the Secretary on private 
sector products, applications, and solutions 
as they relate to homeland security chal-
lenges; and 
‘‘(ii) to advise the Secretary on home-
land security policies, regulations, processes, 
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