‘‘(1) IN GENERAL.—The Secretary may award 
grants under this section for projects that span mul-
tiple years. 
‘‘(2) FUNDING LIMITATION.—Not more than 20 
percent of the total grant funds awarded under this 
section in any fiscal year may be awarded for 
projects that span multiple years. 
‘‘(i) CONSISTENCY WITH PLANS.—The Secretary 
shall ensure that each grant awarded under this section—
‘‘(1) is used to supplement and support, in a 
consistent and coordinated manner, the applicable 
Area Maritime Transportation Security Plan; and 
‘‘(2) is coordinated with any applicable State or 
Urban Area Homeland Security Plan. 
‘‘(j) COORDINATION AND COOPERATION.—The Sec-
retary—
‘‘(1) shall ensure that all projects that receive 
grant funding under this section within any area de-
fined in an Area Maritime Transportation Security 
Plan are coordinated with other projects in such 
area; and 
‘‘(2) may require cooperative agreements among 
users of the seaport and seaport facilities with re-
spect to projects funded under this section.
‘‘(k) REVIEW AND AUDITS.—The Secretary shall re-
quire all grantees under this section to maintain such 
records as the Secretary may require and make such 
records available for review and audit by the Secretary, 
the Comptroller General of the United States, or the In-
spector General of the Department. 
‘‘(l) QUARTERLY REPORTS REQUIRED AS A CONDI-
TION OF HOMELAND SECURITY GRANTS.—
‘‘(1) EXPENDITURE REPORTS REQUIRED.—As a 
condition of receiving a grant under this section, the 
Secretary shall require the grant recipient to submit 
quarterly reports to the Secretary that describe each 
expenditure made by the recipient using grant funds. 
‘‘(2) DEADLINE
FOR
REPORTS.—Each report 
required under paragraph (1) shall be submitted not 
later than 30 days after the last day of a fiscal quar-
ter and shall describe expenditures made during that 
fiscal quarter. 
‘‘(3) PUBLICATION OF EXPENDITURES.—
‘‘(A) IN
GENERAL.—Not later than one 
week after receiving a report under this sub-
section, the Secretary shall publish and make 
publicly available on the Internet website of the 
Department a description of each expenditure 
described in the report.
‘‘(B) WAIVER.—The Secretary may waive 
the requirement of subparagraph (A) if the Sec-
retary determines that it is in the national secu-
rity interests of the United States to do so. 
‘‘(m) AUTHORIZATION OF APPROPRIATIONS.—
‘‘(1) IN GENERAL.—There are authorized to be 
appropriated $400,000,000 for each of fiscal years 
2007 through 2012 to carry out this section. 
‘‘(2) SOURCE OF FUNDS.—Amounts authorized 
to be appropriated under paragraph (1) shall origi-
nate from duties collected by U.S. Customs and Bor-
der Protection.’’. 
(b) CLERICAL AMENDMENT.—The table of contents 
in section 1(b) of the Homeland Security Act of 2002 (116 
Stat. 2135) is amended by inserting after the item relating 
to section 509 the following:
‘‘Sec. 510. Procurement of security countermeasures for strategic national 
stockpile. 
‘‘Sec. 511. Urban and other high risk area communications capabilities. 
‘‘Sec. 512. Port security grant program.’’.
(c) REPEAL.—
(1) IN GENERAL.—Section 70107 of title 46, 
United States Code, is hereby repealed. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of chapter 701 of title 46, 
United States Code, is amended by striking the item 
relating to section 70107.
SEC. 112. PORT SECURITY TRAINING PROGRAM. 
(a) IN GENERAL.—Subtitle A of title VIII of the 
Homeland Security Act of 2002 (6 U.S.C. 361) is amend-
ed by adding at the end the following new section: 
‘‘SEC. 802. PORT SECURITY TRAINING PROGRAM. 
‘‘(a) IN GENERAL.—The Secretary, acting through 
the Assistant Secretary for Grants and Training and in 
coordination with components of the Department with 
maritime security expertise, including the Coast Guard, 
the Transportation Security Administration, and U.S. 
Customs and Border Protection, shall establish a Port Se-
curity Training Program (hereinafter in this section re-
ferred to as the ‘Program’) for the purpose of enhancing 
the capabilities of each of the Nation’s commercial sea-
ports to prevent, prepare for, respond to, mitigate against, 
and recover from threatened or actual acts of terrorism, 
natural disasters, and other emergencies. 
‘‘(b) REQUIREMENTS.—The Program shall provide 
validated training that—
‘‘(1) reaches multiple disciplines, including Fed-
eral, State, and local government officials, commer-
cial seaport personnel and management, and govern-
mental and nongovernmental emergency response 
providers; 
‘‘(2) provides training at the awareness, per-
formance, and management and planning levels;
‘‘(3) utilizes multiple training mediums and 
methods, including—
‘‘(A) direct delivery; 
‘‘(B) train-the-trainer; 
‘‘(C) computer-based training; 
‘‘(D) web-based training; and 
‘‘(E) video teleconferencing; 
‘‘(4) addresses port security topics, including—
‘‘(A) seaport security plans and proce-
dures, including how security plans and proce-
dures are adjusted when threat levels increase; 
‘‘(B) seaport security force operations and 
management; 
‘‘(C) physical security and access control 
at seaports; 
‘‘(D) methods of security for preventing 
and countering cargo theft; 
‘‘(E) container security; 
‘‘(F) recognition and detection of weapons, 
dangerous substances, and devices; 
‘‘(G) operation and maintenance of secu-
rity equipment and systems; 
‘‘(H) security threats and patterns; 
‘‘(I) security incident procedures, including 
procedures for communicating with govern-
mental and nongovernmental emergency re-
sponse providers; and 
‘‘(J) evacuation procedures; 
‘‘(5) is consistent with, and supports implemen-
tation of, the National Incident Management Sys-
tem, the National Response Plan, the National In-
frastructure Protection Plan, the National Prepared-
ness Guidance, the National Preparedness Goal, and 
other such national initiatives; 
‘‘(6) is evaluated against clear and consistent 
performance measures; 
‘‘(7) addresses security requirements under fa-
cility security plans; and 
‘‘(8) educates, trains, and involves populations 
of at-risk neighborhoods around ports, including 
training on an annual basis for neighborhoods to 
learn what to be watchful for in order to be a ‘cit-
izen corps’, if necessary. 
‘‘(c) NATIONAL VOLUNTARY CONSENSUS STAND-
ARDS.—The Secretary shall—
‘‘(1) support the development, promulgation, 
and regular updating as necessary of national vol-
untary consensus standards for port security train-
ing; and
‘‘(2) ensure that the training provided under 
this section is consistent with such standards. 
‘‘(d) TRAINING PARTNERS.—In developing and deliv-
ering training under the Program, the Secretary shall—
‘‘(1) work with government training facilities, 
academic institutions, private organizations, em-
ployee organizations, and other entities that provide 
specialized, state-of-the-art training for govern-
mental and nongovernmental emergency responder 
providers or commercial seaport personnel and man-
agement; and 
‘‘(2) utilize, as appropriate, training courses 
provided by community colleges, public safety acad-
emies, State and private universities, and other fa-
cilities. 
‘‘(e) CONSULTATION.—The Secretary shall ensure 
that, in carrying out the Program, the Office of Grants 
and Training shall consult with—
‘‘(1) a geographic and substantive cross section 
of governmental and nongovernmental emergency re-
sponse providers; and 
‘‘(2) commercial seaport personnel and manage-
ment. 
‘‘(f) 
COMMERCIAL
SEAPORT
PERSONNEL
DE-
FINED.—For purposes of this section, the term ‘commer-
cial seaport personnel’ means any person engaged in an 
activity relating to the loading or unloading of cargo, the 
movement or tracking of cargo, the maintenance and re-
pair of intermodal equipment, the operation of cargo-re-
lated equipment (whether or not integral to the vessel), 
and the handling of mooring lines on the dock when a ves-
sel is made fast or let go, in the United States or the 
coastal waters thereof.’’. 
(b) CLERICAL AMENDMENT.—The table of contents 
in section 1(b) of the Homeland Security Act of 2002 (116 
Stat. 2135) is amended by inserting after the item relating 
to section 801 the following:
‘‘Sec. 802. Port security training program.’’.
(c) VESSEL AND FACILITY SECURITY PLANS.—Sec-
tion 70103(c)(3) of title 46, United States Code, is 
amended—
(1) in subparagraph (E), by striking ‘‘the train-
ing, periodic unannounced drills, and’’; 
(2) by redesignating subparagraphs (F) and 
(G) as subparagraphs (G) and (H), respectively; and 
(3) by inserting after subparagraph (E) the fol-
lowing new subparagraph: 
‘‘(F) provide a strategy and timeline for con-
ducting training and periodic unannounced drills for 
persons on the vessel or at the facility to be carried 
out under the plan to deter, to the maximum extent
practicable, a transportation security incident or a 
substantial threat of such a transportation security 
incident;’’. 
SEC. 113. PORT SECURITY EXERCISE PROGRAM. 
(a) IN GENERAL.—Subtitle A of title VIII of the 
Homeland Security Act of 2002 (6 U.S.C. 361), as 
amended by section 112, is further amended by adding 
at the end the following new section: 
‘‘SEC. 803. PORT SECURITY EXERCISE PROGRAM. 
‘‘(a) IN GENERAL.—The Secretary, acting through 
the Assistant Secretary for Grants and Training, shall es-
tablish a Port Security Exercise Program (hereinafter in 
this section referred to as the ‘Program’) for the purpose 
of testing and evaluating the capabilities of Federal, State, 
local, and foreign governments, commercial seaport per-
sonnel and management, governmental and nongovern-
mental emergency response providers, the private sector, 
or any other organization or entity, as the Secretary deter-
mines to be appropriate, to prevent, prepare for, mitigate 
against, respond to, and recover from acts of terrorism, 
natural disasters, and other emergencies at commercial 
seaports. 
‘‘(b) 
REQUIREMENTS.—The 
Secretary, 
acting 
through the Assistant Secretary for Grants and Training 
and in coordination with components of the Department
with maritime security expertise, including the Coast 
Guard, the Transportation Security Administration, and 
U.S. Customs and Border Protection, shall ensure that the 
Program—
‘‘(1) consolidates all existing port security exer-
cise programs administered by the Department; 
‘‘(2) conducts, on a periodic basis, port security 
exercises at commercial seaports that are—
‘‘(A) scaled and tailored to the needs of 
each port; 
‘‘(B) live in the case of the most at-risk 
ports; 
‘‘(C) as realistic as practicable and based 
on current risk assessments, including credible 
threats, vulnerabilities, and consequences; 
‘‘(D) consistent with the National Incident 
Management System, the National Response 
Plan, the National Infrastructure Protection 
Plan, the National Preparedness Guidance, the 
National Preparedness Goal, and other such na-
tional initiatives; 
‘‘(E) evaluated against clear and consistent 
performance measures; 
‘‘(F) assessed to learn best practices, 
which shall be shared with appropriate Federal,
State, and local officials, seaport personnel and 
management; governmental and nongovern-
mental emergency response providers, and the 
private sector; and 
‘‘(G) followed by remedial action in re-
sponse to lessons learned; and 
‘‘(3) assists State and local governments and 
commercial seaports in designing, implementing, and 
evaluating exercises that—
‘‘(A) conform to the requirements of para-
graph (2); and 
‘‘(B) are consistent with any applicable 
Area Maritime Transportation Security Plan 
and State or Urban Area Homeland Security 
Plan. 
‘‘(c) REMEDIAL ACTION MANAGEMENT SYSTEM.—
The Secretary, acting through the Assistant Secretary for 
Grants and Training, shall establish a Remedial Action 
Management System to—
‘‘(1) identify and analyze each port security ex-
ercise for lessons learned and best practices; 
‘‘(2) disseminate lessons learned and best prac-
tices to participants in the Program;
‘‘(3) monitor the implementation of lessons 
learned and best practices by participants in the 
Program; and 
‘‘(4) conduct remedial action tracking and long-
term trend analysis. 
‘‘(d) GRANT PROGRAM FACTOR.—In evaluating and 
prioritizing applications for Federal financial assistance 
under section 512, the Secretary shall give additional con-
sideration to those applicants that have conducted port se-
curity exercises under this section. 
‘‘(e) CONSULTATION.—The Secretary shall ensure 
that, in carrying out the Program, the Office of Grants 
and Training shall consult with—
‘‘(1) a geographic and substantive cross section 
of governmental and nongovernmental emergency re-
sponse providers; and 
‘‘(2) commercial seaport personnel and manage-
ment. 
‘‘(f) 
COMMERCIAL
SEAPORT
PERSONNEL
DE-
FINED.—For purposes of this section, the term ‘commer-
cial seaport personnel’ means any person engaged in an 
activity relating to the loading or unloading of cargo, the 
movement or tracking of cargo, the maintenance and re-
pair of intermodal equipment, the operation of cargo-re-
lated equipment (whether or not integral to the vessel),
and the handling of mooring lines on the dock when a ves-
sel is made fast or let go, in the United States or the 
coastal waters thereof.’’. 
(b) CLERICAL AMENDMENT.—The table of contents 
in section 1(b) of the Homeland Security Act of 2002 (116 
Stat. 2135), as amended by section 112, is further amend-
ed by inserting after the item relating to section 802 the 
following:
‘‘Sec. 803. Port security exercise program.’’.
Subtitle C—Miscellaneous 
Provisions 
SEC. 121. INCREASE IN PORT OF ENTRY INSPECTION OFFI-
CERS. 
(a) IN GENERAL.—The Secretary of Homeland Secu-
rity shall increase by not less than 200 the number of posi-
tions for full-time active duty port of entry inspection offi-
cers of the Department of Homeland Security for each of 
the fiscal years 2007 through 2012. 
(b) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Secretary to carry 
out subsection (a) the following amounts for the following 
fiscal years: 
(1) $20,000,000 for fiscal year 2007. 
(2) $40,000,000 for fiscal year 2008. 
(3) $60,000,000 for fiscal year 2009. 
(4) $80,000,000 for fiscal year 2010.
(5) $100,000,000 for fiscal year 2011. 
(6) $120,000,000 for fiscal year 2012. 
SEC. 123. BORDER PATROL UNIT FOR UNITED STATES VIR-
GIN ISLANDS. 
Not later than 180 days after the date of the enact-
ment of this Act, the Secretary of Homeland Security shall 
establish at least one Border Patrol unit for the Virgin 
Islands of the United States. 
SEC. 124. REPORT ON OWNERSHIP AND OPERATION OF 
UNITED STATES SEAPORTS. 
Not later than 180 days after the date of the enact-
ment of this Act, the Secretary of Homeland Security shall 
submit to the appropriate congressional committees a re-
port that contains—
(1) the name of each individual or entity that 
leases, operates, manages, or owns real property or 
facilities at each United States seaport; and 
(2) any other information that the Secretary 
determines to be appropriate. 
SEC. 125. REPORT ON SECURITY OPERATIONS AT CERTAIN 
UNITED STATES SEAPORTS. 
(a) STUDY.—The Secretary of Homeland Security 
shall conduct a study on the adequacy of security oper-
ations at the ten United States seaports that load and un-
load the largest amount of containers.
(b) REPORT.—Not later than 270 days after the date 
of the enactment of this Act, the Secretary shall submit 
to the appropriate congressional committees a report on 
the results of the study required by subsection (a). 
SEC. 126. REPORT ON ARRIVAL AND DEPARTURE MANI-
FESTS FOR CERTAIN COMMERCIAL VESSELS 
IN THE UNITED STATES VIRGIN ISLANDS. 
Not later than 90 days after the date of the enact-
ment of this Act, the Secretary of Homeland Security shall 
submit to the appropriate congressional committees a re-
port on the impact of implementing the requirements of 
section 231 of the Immigration and Nationality Act (8 
U.S.C. 1221) (relating to providing United States border 
officers with arrival and departure manifests) with respect 
to commercial vessels that are fewer than 300 gross tons 
and operate exclusively between the territorial waters of 
the United States Virgin Islands and the territorial waters 
of the British Virgin Islands. 
SEC. 127. CENTER OF EXCELLENCE FOR MARITIME DOMAIN 
AWARENESS. 
(a) ESTABLISHMENT.—The Secretary of the Home-
land Security shall establish a university-based Center for 
Excellence for Maritime Domain Awareness following the 
merit-review processes and procedures that have been es-
tablished by the Secretary for selecting university program 
centers of excellence. 
(b) DUTIES.—The Center shall—
(1) prioritize its activities based on the ‘‘Na-
tional Plan to Improve Maritime Domain Aware-
ness’’ published by the Department of Homeland Se-
curity in October 2005; 
(2) recognize the extensive previous and ongo-
ing work and existing competence in the field of 
maritime domain awareness at numerous academic 
and research institutions, such as the Naval Post-
graduate School; 
(3) leverage existing knowledge and continue 
development of a broad base of expertise within aca-
demia and industry in maritime domain awareness; 
and 
(4) provide educational, technical, and analyt-
ical assistance to Federal agencies with responsibil-
ities for maritime domain awareness, including the 
Coast Guard, to focus on the need for interoper-
ability, information sharing, and common informa-
tion technology standards and architecture.
SEC. 128. REPORT ON SECURITY AND TRADE AT UNITED 
STATES LAND PORTS. 
(a) STUDY.—The Secretary of Homeland Security 
shall conduct a study on the challenges to balance the need 
for greater security while maintaining the efficient flow 
of trade at United States land ports. 
(b) REPORT.—Not later than 180 days after the date 
of the enactment of this Act, the Secretary shall submit 
to the appropriate congressional committees a report on 
the results of the study required by subsection (a). 
TITLE II—SECURITY OF THE 
INTERNATIONAL SUPPLY CHAIN 
SEC. 201. SECURITY OF THE INTERNATIONAL SUPPLY 
CHAIN. 
(a) IN GENERAL.—The Homeland Security Act of 
2002 (6 U.S.C. 101 et seq.) is amended by adding at the 
end the following new title: 
‘‘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. 
‘‘(a) STRATEGIC PLAN.—The Secretary, in consulta-
tion with appropriate Federal, State, local, and tribal gov-
ernment agencies and private sector stakeholders respon-
sible for security matters that affect or relate to the move-
ment of containers through the international supply chain, 
shall develop and implement, and update as appropriate, 
a strategic plan to enhance the security of the inter-
national supply chain. 
‘‘(b) REQUIREMENTS.—The strategic plan required 
under subsection (a) shall—
‘‘(1) describe the roles, responsibilities, and au-
thorities of Federal, State, local, and tribal govern-
ment agencies and private sector stakeholders that 
relate to the security of the movement of containers 
through the international supply chain; 
‘‘(2) identify and address gaps and unnecessary 
overlaps in the roles, responsibilities, or authorities 
described in paragraph (1); 
‘‘(3) identify and make recommendations re-
garding legislative, regulatory, and organizational 
changes necessary to improve coordination among 
the entities or to enhance the security of the inter-
national supply chain; 
‘‘(4) provide measurable goals, including objec-
tives, mechanisms, and a schedule, for furthering the 
security of commercial operations from point of ori-
gin to point of destination; 
‘‘(5) build on available resources and consider 
costs and benefits;
‘‘(6) provide incentives for additional voluntary 
measures to enhance cargo security, as determined 
by the Secretary; 
‘‘(7) consider the impact of supply chain secu-
rity requirements on small and medium size compa-
nies; 
‘‘(8) include a process for sharing intelligence 
and information with private sector stakeholders to 
assist in their security efforts; 
‘‘(9) identify a framework for prudent and 
measured response in the event of a transportation 
security incident involving the international supply 
chain; 
‘‘(10) provide a plan for the expeditious re-
sumption of the flow of legitimate trade in accord-
ance with section 70103(a)(2)(J)(ii) of title 46, 
United States Code; 
‘‘(11) consider the linkages between supply 
chain security and security programs within other 
systems of movement, including travel security and 
terrorism finance programs; and 
‘‘(12) expand upon and relate to existing strate-
gies and plans, including the National Strategy for 
Maritime Security and the eight supporting plans of
the Strategy, as required by Homeland Security 
Presidential Directive-13 (September 2005). 
‘‘(c) UTILIZATION OF ADVISORY COMMITTEES.—As 
part of the consultations described in subsection (a), the 
Secretary shall, to the extent practicable, utilize the 
Homeland Security Advisory Committee, the National 
Maritime Security Advisory Committee, and the Commer-
cial Operations Advisory Committee to review, as nec-
essary, the draft strategic plan and any subsequent up-
dates to the strategic plan. 
‘‘(d) INTERNATIONAL
STANDARDS
AND
PRAC-
TICES.—In furtherance of the strategic plan required 
under subsection (a), the Secretary is encouraged to con-
sider proposed or established standards and practices of 
foreign governments and international organizations, in-
cluding the International Maritime Organization, the 
World Customs Organization, the International Labor Or-
ganization, and the International Organization for Stand-
ardization, as appropriate, to establish standards and best 
practices for the security of containers moving through the 
international supply chain. 
‘‘(e) REPORT.—
‘‘(1) INITIAL
REPORT.—The Secretary shall 
submit to the appropriate congressional committees
a report that contains the strategic plan required by 
subsection (a). 
‘‘(2) FINAL
REPORT.—Not later than three 
years after the date on which the strategic plan is 
submitted under paragraph (1), the Secretary shall 
submit to the appropriate congressional committees 
a report that contains an update of the strategic 
plan. 
‘‘(f) DEFINITION.—In this section, the term ‘trans-
portation security incident’ has the meaning given the 
term in section 70101(6) of title 46, United States Code. 
‘‘SEC. 1802. TRANSMISSION OF ADDITIONAL DATA ELE-
MENTS FOR IMPROVED HIGH RISK TAR-
GETING. 
‘‘(a) REQUIREMENT.—The Secretary shall require 
transmission to the Department, through an electronic 
data interchange system, of additional data elements for 
improved high risk targeting, including appropriate secu-
rity elements of entry data, as determined by the Sec-
retary, to be provided as advanced information with re-
spect to cargo destined for importation into the United 
States prior to loading of such cargo on vessels at foreign 
seaports. 
‘‘(b) REGULATIONS.—The Secretary shall promul-
gate regulations to carry out this section. In promulgating
such regulations, the Secretary shall adhere to the param-
eters applicable to the development of regulations under 
section 343(a) of the Trade Act of 2002 (19 U.S.C. 2071 
note), including provisions relating to consultation, tech-
nology, analysis, use of information, confidentiality, and 
timing requirements. 
‘‘SEC. 1803. PLAN TO IMPROVE THE AUTOMATED TAR-
GETING SYSTEM. 
‘‘(a) PLAN.—The Secretary shall develop and imple-
ment a plan to improve the Automated Targeting System 
for the identification of high-risk containers moving 
through the international supply chain. 
‘‘(b) CONTENTS.—
‘‘(1) TREATMENT
OF
RECOMMENDATIONS.—
The Secretary shall include in the plan required 
under subsection (a) a schedule to address the rec-
ommendations of the Comptroller General of the 
United States, the Inspector General of the Depart-
ment of the Treasury, and the Inspector General of 
the Department of Homeland Security with respect 
to the operation of the Automated Targeting Sys-
tem. 
‘‘(2) INFORMATION
SUBMISSIONS.—In devel-
oping the plan required under subsection (a), the
Secretary shall consider the cost, benefit, and feasi-
bility of—
‘‘(A) requiring additional nonmanifest doc-
umentation for each container; 
‘‘(B) adjusting the time period allowed by 
law for revisions to a container cargo manifest; 
‘‘(C) adjusting the time period allowed by 
law for submission of entry data for vessel or 
cargo; and 
‘‘(D) such other actions the Secretary con-
siders beneficial for improving the information 
relied upon for the Automated Targeting Sys-
tem and any other targeting systems in fur-
thering the security and integrity of the inter-
national supply chain. 
‘‘(3) OUTSIDE
REVIEW.—The Secretary shall 
conduct, through an independent panel, a review of 
the Automated Targeting System. The results of 
this review shall be included in the plan required 
under subsection (a). 
‘‘(4) SMART SYSTEM.—The Secretary shall con-
sider future iterations of the Automated Targeting 
System, which would incorporate smart features, 
such as more complex algorithms and real-time intel-
ligence, instead of relying solely on rule sets that are
periodically updated. The Secretary shall also con-
sider how the Automated Targeting System could be 
improved through linkages with targeting systems in 
existence on the date of the enactment of the Secu-
rity and Accountability For Every Port Act for trav-
el security and terrorism finance programs. 
‘‘(c) NEW
OR EXPANDED INFORMATION SUBMIS-
SIONS.—In considering any new or expanded information 
submission requirements, the Secretary shall consult with 
stakeholders and identify the need for such information, 
provide safeguards that ensure confidentiality with respect 
to such information, and identify appropriate timing of the 
submission of such information, in the plan required under 
subsection (a). 
‘‘(d) SECURE TRANSMISSION OF CERTAIN INFORMA-
TION.—All information required by the Department from 
supply chain partners shall be transmitted in a secure 
fashion, as determined by the Secretary, so as to protect 
the information from unauthorized access. 
‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There 
are authorized to be appropriated $5,000,000 for each of 
the fiscal years 2007 through 2012 to carry out this sec-
tion.
‘‘SEC. 1804. CONTAINER STANDARDS AND VERIFICATION 
PROCEDURES. 
‘‘(a) ESTABLISHMENT.—
‘‘(1) IN GENERAL.—The Secretary shall estab-
lish minimum standards and verification procedures 
for securing containers in transit to the United 
States relating to the sealing of containers. 
‘‘(2) DEADLINE
FOR
ENFORCEMENT.—Not 
later than two years after the date on which the 
standards and procedures are established pursuant 
to paragraph (1), all containers bound for ports of 
entry in the United States shall meet such standards 
and procedures. 
‘‘(b) REVIEW AND ENHANCEMENT.—The Secretary 
shall regularly—
‘‘(1) review the standards and procedures estab-
lished pursuant to subsection (a); and 
‘‘(2) enhance the security standards and proce-
dures, as appropriate, based on tests of technologies 
as they become commercially available to detect con-
tainer intrusion and the highest consequence threats, 
particularly weapons of mass destruction. 
‘‘(c) INTERNATIONAL
CARGO
SECURITY
STAND-
ARDS.—The Secretary, in consultation with the Secretary 
of State, is encouraged to promote and establish inter-
national standards for the security of containers moving
through the international supply chain with foreign gov-
ernments and international organizations, including the 
International Maritime Organization and the World Cus-
toms Organization. 
‘‘(d) INTERNATIONAL TRADE AND OTHER OBLIGA-
TIONS.—In carrying out this section, the Secretary shall 
consult with appropriate Federal departments and agen-
cies and private sector stakeholders and ensure that ac-
tions under this section do not violate international trade 
obligations or other international obligations of the United 
States. 
‘‘SEC. 1805. CONTAINER SECURITY INITIATIVE (CSI). 
‘‘(a) AUTHORIZATION.—The Secretary is authorized 
to establish and implement a program (to be known as 
the ‘Container Security Initiative’ or ‘CSI’) to identify and 
examine maritime containers that pose a risk for terrorism 
at foreign ports before the containers are shipped to the 
United States. 
‘‘(b) ASSESSMENT.—Before the Secretary designates 
any foreign port under CSI, the Secretary, in consultation 
with other Federal officials, as appropriate, shall conduct 
an assessment of the port, including—
‘‘(1) the level of risk for the potential com-
promise of containers by terrorists or terrorist weap-
ons;
‘‘(2) the volume of regular container traffic to 
United States ports; 
‘‘(3) the results of the Coast Guard assessments 
conducted pursuant to section 70108 of title 46, 
United States Code; 
‘‘(4) the commitment of the host nation to co-
operating with the Department in sharing critical 
data and risk management information and to main-
tain programs to ensure employee integrity; and 
‘‘(5) the potential for validation of security 
practices by the Department. 
‘‘(c) NOTIFICATION.—The Secretary shall notify the 
appropriate congressional committees prior to notifying 
the public of the designation of a foreign port under CSI. 
‘‘(d) INSPECTIONS.—
‘‘(1) REQUIREMENTS AND PROCEDURES.—The 
Secretary shall—
‘‘(A) establish technical capability criteria 
and standard operating procedures for the use 
of nonintrusive inspection and nuclear and radi-
ological detection systems in conjunction with 
CSI; 
‘‘(B) require each port designated under 
CSI to operate nonintrusive inspection and nu-
clear and radiological detection systems in ac-
cordance with the technical capability criteria 
and standard operating procedures established 
under subparagraph (A); and 
‘‘(C) continually monitor the technologies, 
processes, and techniques used to inspect cargo 
at ports designated under CSI. 
‘‘(2) CONSISTENCY OF STANDARDS AND PROCE-
DURES.—The Secretary shall ensure that the tech-
nical capability criteria and standard operating pro-
cedures established under paragraph (1)(A) are con-
sistent with such standards and procedures of any 
other department or agency of the Federal govern-
ment with respect to deployment of nuclear and ra-
diological detection systems outside the United 
States. 
‘‘(3) FOREIGN ASSISTANCE.—
‘‘(A) IN GENERAL.—The Secretary, in con-
sultation with the Secretary of State, the Sec-
retary of Energy, and the heads of other Fed-
eral agencies, shall identify foreign assistance 
programs that could facilitate the implementa-
tion of cargo security antiterrorism measures at 
ports designated under CSI and foreign ports 
not designated under CSI that lack effective 
antiterrorism measures.
‘‘(B) ACQUISITION.—The Secretary is au-
thorized to loan or otherwise assist in the de-
ployment of nonintrusive inspection or nuclear 
and radiological detection systems for cargo 
containers at each designated CSI port under 
such terms and conditions as the Secretary de-
termines to be appropriate and to provide train-
ing for foreign personnel involved in CSI. 
‘‘(e) PROHIBITION.—
‘‘(1) IN GENERAL.—The Secretary shall issue a 
‘do not load’ order to each port designated under 
CSI to prevent the onload of any cargo that has 
been identified as higher risk by the Automated Tar-
geting System unless the cargo—
‘‘(A) is scanned with a non intrusive im-
agery device and nuclear or radiological detec-
tion equipment; 
‘‘(B) is devanned and inspected with nu-
clear or radiological detection equipment; or 
‘‘(C) is determined to be of lower risk fol-
lowing additional inquiries by appropriate per-
sonnel of U.S. Customs and Border Protection. 
‘‘(2) RULE
OF
CONSTRUCTION.—Nothing in 
this subsection shall be construed to interfere with
the ability of the Secretary to deny entry of any 
cargo into the United States. 
‘‘(f) REPORT.—The Secretary shall submit to the ap-
propriate congressional committees not later than March 
1 of each year a report on the status of CSI, including—
‘‘(1) a description of the security improvements 
gained through CSI; 
‘‘(2) the rationale for the continuance of each 
port designated under CSI; 
‘‘(3) an assessment of the personnel needs at 
each port designated under CSI; and 
‘‘(4) a description of the potential for remote 
targeting to decrease the number of personnel who 
are deployed at foreign ports under CSI. 
‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—There 
are authorized to be appropriated $196,000,000 for each 
of the fiscal years 2007 through 2012 to carry out this 
section. 
‘‘SEC. 1806. INFORMATION SHARING RELATING TO SUPPLY 
CHAIN SECURITY COOPERATION. 
‘‘(a) PURPOSES.—The purposes of this section are—
‘‘(1) to establish continuing liaison and to pro-
vide for supply chain security cooperation between 
Department and the private sector; and
‘‘(2) to provide for regular and timely inter-
change of information between the private sector 
and the Department concerning developments and 
security risks in the supply chain environment. 
‘‘(b) SECURE SYSTEM.—The Secretary shall develop 
a secure electronic data interchange system to collect from 
and share appropriate risk information related to securing 
the supply chain with the private sector entities deter-
mined appropriate by the Secretary. 
‘‘(c) CONSULTATION.—In developing the system 
under subsection (b), the Secretary shall consult with the 
Commercial Operations Advisory Committee and a broad 
range of public and private sector entities likely to utilize 
the system, including importers, exporters, carriers, cus-
toms brokers, and freight forwarders, among other par-
ties. 
‘‘(d) PROCEDURES.—The Secretary shall establish 
uniform procedures for the receipt, care, and storage of 
supply chain security information that is voluntarily sub-
mitted to the Department through the system developed 
under subsection (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 com-
mercial enforcement purpose. The voluntary information 
submitted to the Department through the system devel-
oped under subsection (b) shall not be construed to con-
stitute compliance with any requirement to submit such 
information to a Federal agency under any other provision 
of law. 
‘‘(f) PARTICIPANTS.—The Secretary shall develop 
protocols for determining appropriate private sector per-
sonnel who shall have access to the system developed 
under subsection (b). Such personnel shall include des-
ignated security officers within companies that are deter-
mined to be low risk through participation in the Customs-
Trade Partnership Against Terrorism program established 
pursuant to subtitle B of this title. 
‘‘(g) CONFIDENTIALITY.—Notwithstanding any other 
provision of law, information that is voluntarily submitted 
by the private sector to the Department through the sys-
tem developed under subsection (b)—
‘‘(1) shall be exempt from disclosure under sec-
tion 552 of title 5, United States Code (commonly 
referred 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 joint committee thereof or sub-
committee 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 per-
formance of the duties of the Comptroller 
General. 
‘‘(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 agen-
cy thereof, knowingly publishes, divulges, discloses, or 
makes known in any manner or to any extent not author-
ized by law, any supply chain security information pro-
tected 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 em-
ployment. 
‘‘(j) AUTHORITY TO ISSUE WARNINGS.—The Sec-
retary may provide advisories, alerts, and warnings to rel-
evant companies, targeted sectors, other governmental en-
tities, 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 
supply chain security information that forms the 
basis for the warning; and 
‘‘(2) information that is proprietary, business 
sensitive, relates specifically to the submitting per-
son 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 international supply chain and United States border 
security. 
‘‘(b) MINIMUM
SECURITY
REQUIREMENTS.—The 
Secretary shall review the minimum security requirements 
of C–TPAT at least once every year and update such re-
quirements as necessary. 
‘‘SEC. 1812. ELIGIBLE ENTITIES. 
‘‘Importers, brokers, forwarders, air, sea, land car-
riers, contract logistics providers, and other entities in the 
international supply chain and intermodal transportation 
system are eligible to apply to voluntarily enter into part-
nerships 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 
‘‘(4) meet all other requirements established by 
the Secretary. 
‘‘SEC. 1814. TIER ONE PARTICIPANTS. 
‘‘(a) BENEFITS.—The Secretary may offer limited 
benefits to C–TPAT participants whose security measures 
and supply chain security practices have been certified in 
accordance with the guidelines established pursuant to 
subsection (b).
‘‘(b) GUIDELINES.—The Secretary shall update 
guidelines for certifying a C–TPAT participant’s security 
measures 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 security 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 require-
ments under this section, the Commissioner of U.S. Cus-
toms and Border Protection may—
‘‘(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 sub-
section (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 
designate criteria for C–TPAT participants under this sec-
tion that may include criteria to ensure—
‘‘(1) cargo is loaded on a vessel with a vessel 
security plan approved under section 70103(c) of 
title 46, United States Code, or on a vessel with a 
valid International Ship Security Certificate as pro-
vided for under part 104 of title 33, Code of Federal 
Regulations;
‘‘(2) container security devices, policies, or 
practices that exceed the standards and procedures 
established by the Secretary are utilized; and 
‘‘(3) cargo complies with any other require-
ments 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 dur-
ing 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 
‘‘(7) streamlined billing of any customs duties 
or fees. 
‘‘(d) DEFINITION.—In this section, the term ‘con-
tainer security device’ means a mechanical or electronic
device designed to, at a minimum, positively identify con-
tainers and detect and record unauthorized intrusion of 
containers. Such devices shall have false alarm rates that 
have been demonstrated to be below one percent. 
‘‘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 enti-
ty during the validation process of the participant under 
this subtitle, the Commissioner of U.S. Customs and Bor-
der 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 
described in subsection (b) may file an appeal with the 
Secretary 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 
expand the use of third party entities to conduct valida-
tions of C–TPAT participants upon completion of the pilot 
program 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 
qualified 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 con-
formance to a third party entity to conduct valida-
tions under this subtitle if the entity—
‘‘(A) demonstrates to the satisfaction of 
the Secretary the ability to perform validations 
in accordance with standard operating proce-
dures and requirements (or updates thereto) 
designated as a qualified anti-terrorism tech-
nology 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 there-
to); and 
‘‘(ii) to maintain liability insurance 
coverage at policy limits and in accordance 
with conditions to be established by the 
Secretary 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 
Secretary pursuant to section 864 of this Act and 
receives a certificate of conformance under para-
graph (1) shall receive all applicable litigation and 
risk management protections under sections 863 and 
864 of this Act.