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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. 
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‘‘(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. 
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‘‘(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 
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‘‘(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. 
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‘‘(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-
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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; 
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‘‘(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-
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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 
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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 
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‘‘(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. 
‘‘(3) RECIPROCAL WAIVER OF CLAIMS.—A re-
ciprocal waiver of claims shall be deemed to have 
been entered into between a third party entity that 
receives a certificate of conformance under para-
graph (1) and its contractors, subcontractors, sup-
pliers, vendors, customers, and contractors and sub-
contractors of customers involved in the use or oper-
ation of the validation services of the third party en-
tity. 
‘‘(c) INFORMATION FOR ESTABLISHING LIMITS OF 
LIABILITY INSURANCE.—A third party entity seeking a 
certificate of conformance under subsection (b)(1) shall 
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provide to the Secretary necessary information for estab-
lishing the limits of liability insurance required to be main-
tained 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 
direct or indirect control over the C–TPAT par-
ticipant that is contracting for the validation 
services; and 
‘‘(B) has no other conflict of interest with 
respect to the C–TPAT participant; and 
‘‘(2) the C–TPAT participant has entered into 
a contract with the third party entity under which 
the C–TPAT participant agrees to pay all costs as-
sociated with the validation. 
‘‘(e) MONITORING.— 
‘‘(1) IN GENERAL.—The Secretary shall regu-
larly monitor and inspect the operations of a third 
party entity conducting validations under this sub-
title to ensure that the entity is meeting the min-
imum standard operating procedures and require-
ments for the validation of C–TPAT participants es-
tablished under subsection (a) and all other applica-
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ble 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 
validations of C–TPAT participants. In conducting 
the pilot program, the Secretary shall comply with 
all applicable requirements of this section with re-
spect to eligibility of third party entities to conduct 
validations of C–TPAT participants. 
‘‘(2) REPORT.—Not later than 30 days after 
the completion of the pilot program conducted pur-
suant to paragraph (1), the Secretary shall submit 
to the appropriate congressional committees a report 
that contains— 
‘‘(A) the results of the pilot program; and 
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