IIB 
115TH CONGRESS 
1ST SESSION H. R. 3551 
IN THE SENATE OF THE UNITED STATES 
OCTOBER 24, 2017 
Received; read twice and referred to the Committee on Finance 
AN ACT 
To amend the Security and Accountability for Every Port 
Act of 2006 to reauthorize the Customs-Trade Partner-
ship Against Terrorism Program, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘C-TPAT Reauthoriza-
tion Act of 2017’’. 
SEC. 2. CUSTOMS-TRADE PARTNERSHIP AGAINST TER-
RORISM. 
(a) IN GENERAL.—Subtitle B of title II of the Secu-
rity and Accountability for Every Port Act of 2006 (6 
U.S.C. 961 et seq.) is amended to read as follows: 
‘‘Subtitle B—Customs-Trade 
Partnership Against Terrorism 
‘‘SEC. 211. ESTABLISHMENT OF THE CUSTOMS-TRADE 
PARTNERSHIP AGAINST TERRORISM PRO-
GRAM. 
‘‘(a) IN GENERAL.—There is established within U.S. 
Customs and Border Protection a voluntary government- 
private sector partnership program to be known as the 
Customs-Trade Partnership Against Terrorism (C– 
TPAT). 
‘‘(b) PURPOSE.—The purposes of the C–TPAT pro-
gram are to— 
‘‘(1) strengthen and improve the overall secu-
rity of the international supply chain and United 
States border security; 
‘‘(2) facilitate the movement of secure cargo 
through the international supply chain; 
‘‘(3) ensure compliance with applicable law; and 
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‘‘(4) serve as the Authorized Economic Oper-
ator program for the United States. 
‘‘(c) DIRECTOR.—There shall be at the head of the 
C–TPAT program a Director, who shall report to the Ex-
ecutive Assistant Commissioner of the Office of Field Op-
erations (in this subtitle referred to as the ‘Executive As-
sistant Commissioner’) of U.S. Customs and Border Pro-
tection. 
‘‘(d) DUTIES.—The Director of the C–TPAT pro-
gram shall— 
‘‘(1) oversee the activities of the C–TPAT pro-
gram, including certification of C–TPAT partici-
pants; 
‘‘(2) evaluate and make revisions to security 
criteria pursuant to subsections (c) and (d) of sec-
tion 213; 
‘‘(3) ensure that participants receive a tangible 
and measurable benefit for participation; and 
‘‘(4) carry out other duties and powers pre-
scribed by the Executive Assistant Commissioner. 
‘‘SEC. 212. ELIGIBLE ENTITIES AND NOTICE OF BENEFITS. 
‘‘(a) ELIGIBLE
ENTITIES.—Importers, exporters, 
customs brokers, forwarders, air, sea, and land carriers, 
contract logistics providers, and other entities in the inter-
national supply chain and intermodal transportation sys-
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tem are eligible to apply for participation in the C–TPAT 
program. 
‘‘(b) TIERED PARTICIPATION.— 
‘‘(1) IN GENERAL.—Applicants may be eligible 
to participate as Tier 1 or Tier 2 participants. 
‘‘(2) IMPORTERS.—Importers may be eligible to 
participate as Tier 3 participants. 
‘‘(3) EXTENSION.—The Executive Assistant 
Commissioner may, in his or her discretion, extend 
Tier 3 participation to other entity types, if appro-
priate. 
‘‘(c) NOTICE OF BENEFITS.— 
‘‘(1) IN GENERAL.—The Commissioner of U.S. 
Customs and Border Protection shall publish, on the 
U.S. Customs and Border Protection website and 
through other appropriate online publication, infor-
mation about benefits to C–TPAT program partici-
pants. 
‘‘(2) CHANGES.—The Commissioner of U.S. 
Customs and Border Protection shall publish, on the 
U.S. Customs and Border Protection website and 
through other appropriate online publication, notice 
of any changes to benefits to C–TPAT program par-
ticipants not later than 30 days before any such 
changes take effect. 
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‘‘SEC. 213. PARTICIPATION ELIGIBILITY. 
‘‘(a) IN GENERAL.—The Executive Assistant Com-
missioner shall review all documentation submitted by an 
applicant pursuant to subsection (b)(2), conduct a back-
ground investigation of such applicant, and vet such appli-
cant. 
‘‘(b) GENERAL REQUIREMENTS.—To be eligible for 
participation in the C–TPAT program, an entity shall, at 
a minimum— 
‘‘(1) have a designated company employee au-
thorized to bind such entity that is a direct company 
employee and will serve as the primary point of con-
tact responsible for participation of such entity in 
the C–TPAT program; 
‘‘(2) at the time of initial application and annu-
ally thereafter, including in advance of any recertifi-
cation or revalidation, submit an international sup-
ply chain security profile, which shall identify how 
such entity meets the minimum security criteria of 
the C–TPAT program established by the Commis-
sioner of U.S. Customs and Border Protection and 
how such entity will maintain and enhance internal 
policies, procedures, and practices related to inter-
national supply chain security; and 
‘‘(3) meet any specific requirements for eligible 
entities, as established by the Commissioner. 
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‘‘(c) MINIMUM SECURITY CRITERIA.—The Commis-
sioner of U.S. Customs and Border Protection shall estab-
lish minimum security criteria for participants in the C– 
TPAT program, review such minimum security criteria 
not less than once every 2 years, and update such min-
imum security criteria as necessary. Such minimum secu-
rity criteria shall seek to address security vulnerabilities 
in the international supply chain. 
‘‘(d) ADDITIONAL AND UPDATED CRITERIA.—The 
Commissioner of U.S. Customs and Border Protection 
may establish additional and updated security criteria for 
individual C–TPAT program participants, categories of 
C–TPAT program participants, or particular entity types 
to meet in order to address a security vulnerability in the 
international supply chain. 
‘‘(e) CONSULTATION.—When establishing or updat-
ing security criteria in accordance with subsection (c), and 
when establishing additional or updated security criteria 
in accordance subsection (d), the Commissioner of U.S. 
Customs and Border Protection shall consult with C– 
TPAT program participants and other interested parties, 
and shall— 
‘‘(1) conduct a cost benefit analysis of such pro-
posed new, additional, or updated security criteria in 
consultation with the Commercial Customs Oper-
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ations Advisory Committee established under section 
109 of the Trade Facilitation and Trade Enforce-
ment Act of 2015 (Public Law 114–125; 19 U.S.C. 
4316); 
‘‘(2) determine operational feasibility and, 
where appropriate, conduct a phased implementation 
of such proposed additional or updated security cri-
teria; and 
‘‘(3) provide C–TPAT program participants 
and other interested parties a 90-day comment pe-
riod to review and comment on such proposed addi-
tional or updated security criteria. 
‘‘(f) WAIVER.—The Commissioner of U.S. Customs 
and Border Protection may waive the requirements of sub-
section (e) if the Commissioner determines there is a sig-
nificant and imminent risk to the national security of the 
United States and such a waiver is necessary to protect 
such national security. Not later than 120 days after the 
issuance of any such waiver, the Commissioner shall an-
nounce on the U.S. Customs and Border Protection 
website and through other appropriate online publication 
the Commissioner’s intent to either withdraw such waiver 
or maintain such waiver while commencing efforts to es-
tablish minimum security criteria or establish additional 
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or update existing security criteria in accordance with sub-
section (c) or (d), respectively. 
‘‘SEC. 214. BENEFITS FOR C–TPAT PROGRAM PARTICI-
PANTS. 
‘‘(a) IN GENERAL.—The Executive Assistant Com-
missioner shall extend certain benefits to each C–TPAT 
program participant. Minimum benefits for each such par-
ticipant shall include the following: 
‘‘(1) Assignment of a U.S. Customs and Border 
Protection Supply Chain Security Specialist. 
‘‘(2) Access to the C–TPAT program’s web- 
based Portal system and training materials. 
‘‘(3) A periodic and unclassified update on re-
gional and other relevant threats to the international 
supply chain. 
‘‘(b) PUBLIC AVAILABILITY.—The Executive Assist-
ant Commissioner shall make publicly available on the C– 
TPAT portal an annual assessment of the tangible bene-
fits being realized by C–TPAT program participants. 
‘‘(c) ANNUAL ASSESSMENT.—The Executive Assist-
ant Commissioner shall conduct, on an annual basis, an 
assessment of the benefits conferred to C-TPAT program 
participants. The Executive Assistant Commissioner shall 
determine a process to carry out such assessments, to in-
clude projected milestones and completion dates for ad-
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dressing data reliability issues and, as necessary, cor-
recting data weaknesses, so that U.S. Customs and Border 
Protection can produce accurate and reliable annual as-
sessments that can be compared year-to-year. 
‘‘SEC. 215. TIER 1 PARTICIPANTS. 
‘‘(a) 
CERTIFICATION.—The 
Executive 
Assistant 
Commissioner shall certify the security measures and 
international supply chain security practices of all appli-
cants to and participants in the C–TPAT program in ac-
cordance with section 213(b)(2) and the guidelines re-
ferred to in subsection (c) of this section. Certified partici-
pants shall be Tier 1 participants. 
‘‘(b) BENEFITS FOR TIER 1 PARTICIPANTS.—Upon 
completion of the certification under subsection (a), a C– 
TPAT program participant shall be certified as a Tier 1 
participant. The Executive Assistant Commissioner shall 
extend limited benefits to a Tier 1 participant. 
‘‘(c) GUIDELINES.—Not later than 180 days after the 
date of the enactment of this subtitle, the Commissioner 
of U.S. Customs and Border Protection shall update the 
guidelines and criteria for certifying a C–TPAT program 
participant’s security measures and supply chain security 
practices under this section. Such guidelines shall include 
a background investigation and review of appropriate doc-
umentation, as determined by the Commissioner. 
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‘‘(d) TIMEFRAME.—To the extent practicable, the 
Executive Assistant Commissioner shall complete the Tier 
1 certification process within 90 days of receipt of an ap-
plication for participation in the C–TPAT program. 
‘‘SEC. 216. TIER 2 PARTICIPANTS. 
‘‘(a) VALIDATION.—The Executive Assistant Com-
missioner shall validate the security measures and inter-
national supply chain security practices of a Tier 1 C– 
TPAT program participant in accordance with the guide-
lines referred to in subsection (c) to validate such partici-
pant as a Tier 2 participant. Such validation shall include 
on-site assessments at appropriate foreign and domestic 
locations utilized by such Tier 1 participant in its inter-
national supply chain. 
‘‘(b) BENEFITS FOR TIER 2 PARTICIPANTS.—The 
Executive Assistant Commissioner, shall extend benefits 
to each C–TPAT participant that has been validated as 
a Tier 2 participant under this section. Such benefits may 
include the following: 
‘‘(1) Reduced scores in U.S. Customs and Bor-
der Protection’s Automated Targeting System. 
‘‘(2) Reduced number of security examinations 
by U.S. Customs and Border Protection. 
‘‘(3) Priority examinations of cargo. 
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‘‘(4) Access to the Free and Secure Trade 
(FAST) Lanes at United States ports of entry. 
‘‘(5) Recognition as a trusted trade partner by 
foreign customs administrations that have signed 
Mutual Recognition Arrangements with U.S. Cus-
toms and Border Protection. 
‘‘(6) In the case of importers, eligibility to par-
ticipate in the Importer Self-Assessment Program 
(ISA) or successor compliance program. 
‘‘(c) GUIDELINES.—Not later than 180 days after the 
date of the enactment of this subtitle, the Commissioner 
shall develop a schedule and update the guidelines and cri-
teria for validating a C–TPAT participant’s security 
measures and supply chain security practices under this 
section. 
‘‘(d) TIMEFRAME.—To the extent practicable, the 
Executive Assistant Commissioner shall complete the Tier 
2 validation process for a C–TPAT program participant 
under this section within 1 year after certification of such 
participant as a Tier 1 participant. 
‘‘SEC. 217. TIER 3 PARTICIPANTS. 
‘‘(a) IN GENERAL.—The Commissioner shall estab-
lish a third tier of C–TPAT program participation that 
offers additional benefits to C–TPAT program partici-
pants that are importers or other entity types, in accord-
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ance with section 212(b), that demonstrate a sustained 
commitment to maintaining security measures and inter-
national supply chain security practices that exceed the 
guidelines established for validation as a Tier 2 partici-
pant in the C–TPAT program under section 216. 
‘‘(b) BEST PRACTICES.—The Executive Assistant 
Commissioner may designate a Tier 2 C–TPAT program 
participant as a Tier 3 participant based on a review of 
best practices in such participant’s international supply 
chain that reflect a continued approach to enhanced inter-
national supply chain security, including— 
‘‘(1) compliance with any additional or updated 
criteria established by the Commissioner of U.S. 
Customs and Border Protection under section 
213(d) that exceed the guidelines established pursu-
ant to section 216 for validating a C–TPAT pro-
gram participant as a Tier 2 participant; and 
‘‘(2) any other factors that the Executive As-
sistant Commissioner determines appropriate. 
‘‘(c) BENEFITS FOR TIER 3 PARTICIPANTS.—The 
Executive Assistant Commissioner, in consultation with 
the Commercial Customs Operations Advisory Committee 
established under section 109 of the Trade Facilitation 
and Trade Enforcement Act of 2015 (Public Law 114– 
125; 19 U.S.C. 4316) and the National Maritime Security 
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Advisory Committee established under section 70112 of 
title 46, United States Code, shall extend benefits to each 
C–TPAT program participant that has been validated as 
a Tier 3 participant under this section, which may include 
the following: 
‘‘(1) Further reduction in the number of exami-
nations by U.S. Customs and Border Protection. 
‘‘(2) Front of the line inspections and examina-
tions. 
‘‘(3) Exemption from Stratified Exams. 
‘‘(4) Shorter wait times at United States ports 
of entry. 
‘‘(5) Access to the Free and Secure Trade 
(FAST) Lanes at United States ports of entry. 
‘‘(6) Recognition as a trusted trade partner by 
foreign customs administrations that have signed 
Mutual Recognition Arrangements with U.S. Cus-
toms and Border Protection. 
‘‘(7) In the case of importers, eligibility to par-
ticipate in the Importer Self-Assessment Program 
(ISA) or successor compliance program. 
‘‘SEC. 218. CONSEQUENCES FOR LACK OF COMPLIANCE. 
‘‘(a) IN GENERAL.—If at any time the Executive As-
sistant Commissioner determines that a C–TPAT pro-
gram participant’s security measures or international sup-
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ply chain security practices fail to meet applicable require-
ments under this subtitle, the Executive Assistant Com-
missioner may deny such participant benefits otherwise 
made available pursuant to this subtitle, either in whole 
or in part. The Executive Assistant Commissioner shall 
develop procedures, in consultation with Commercial Cus-
toms Operations Advisory Committee, established under 
section 109 of the Trade Facilitation and Trade Enforce-
ment Act of 2015 (Public Law 114–125; 19 U.S.C. 4316), 
that provide appropriate protections to C–TPAT program 
participants, including advance notice and an opportunity 
for such participants to provide additional information to 
U.S. Customs and Border Protection regarding any such 
alleged failure, before any of such benefits are withheld. 
Such procedures may not limit the ability of the Executive 
Assistant Commissioner to take actions to protect the na-
tional security of the United States. 
‘‘(b) FALSE OR MISLEADING INFORMATION; LACK OF 
COMPLIANCE WITH LAW.—If a C–TPAT program partici-
pant knowingly provides false or misleading information 
to the Commissioner of U.S. Customs and Border Protec-
tion, the Executive Assistant Commissioner, or any other 
officers or officials of the United States Government, or 
if at any time the Executive Assistant Commissioner de-
termines that a C–TPAT program participant has com-
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mitted a serious violation of Federal law or customs regu-
lations, or if a C–TPAT program participant has com-
mitted a criminal violation relating to the economic activ-
ity of such participant, the Executive Assistant Commis-
sioner may suspend or expel such participant from the C– 
TPAT program for an appropriate period of time. The Ex-
ecutive Assistant Commissioner, after the completion of 
the process described in subsection (d), may publish in the 
Federal Register a list of C–TPAT program participants 
that have been so suspended or expelled from the C–TPAT 
program pursuant to this subsection. 
‘‘(c) NATIONAL SECURITY.—If at any time the Exec-
utive Assistant Commissioner determines that a C–TPAT 
program participant poses a significant and imminent risk 
to the national security of the United States or has com-
mitted a serious violation of Federal law or customs regu-
lations, or if a C–TPAT program participant has com-
mitted a criminal violation relating to the economic activ-
ity of such participant, the Executive Assistant Commis-
sioner may suspend or expel such participant from the C– 
TPAT program for an appropriate period of time. The Ex-
ecutive Assistant Commissioner, after the completion of 
the process described in subsection (d), may publish in the 
Federal Register a list of C–TPAT program participants 
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that have been so suspended or expelled from the C–TPAT 
program pursuant to this subsection. 
‘‘(d) RIGHT OF APPEAL.— 
‘‘(1) IN GENERAL.—The Commissioner of U.S. 
Customs and Border Protection shall establish a 
process for a C–TPAT program participant to ap-
peal a decision of the Executive Assistant Commis-
sioner under subsection (a). Such appeal shall be 
filed with the Commissioner not later than 90 days 
after the date of such decision, and the Commis-
sioner shall issue a determination not later than 90 
days after such appeal is filed. 
‘‘(2) APPEALS
OF
OTHER
DECISIONS.—The 
Commissioner of U.S. Customs and Border Protec-
tion shall establish a process for a C–TPAT pro-
gram participant to appeal a decision of the Execu-
tive Assistant Commissioner under subsections (b) 
and (c). Such appeal shall be filed with the Commis-
sioner not later than 30 days after the date of such 
decision, and the Commissioner shall issue a deter-
mination not later than 90 days after such appeal is 
filed. 
‘‘SEC. 219. VALIDATIONS BY OTHER DHS COMPONENTS. 
‘‘(a) IN GENERAL.—The Commissioner of U.S. Cus-
toms and Border Protection may recognize regulatory in-
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spections conducted by other components of the Depart-
ment of Homeland Security of entities as sufficient to con-
stitute validation for C–TPAT program participation in 
cases in which any such component’s inspection regime is 
harmonized with validation criteria for the C-TPAT pro-
gram. Such regulatory inspections shall not limit the abil-
ity of U.S. Customs and Border Protection to conduct a 
C–TPAT program validation. 
‘‘(b) REVALIDATION.—Nothing in this section may 
limit the Commissioner of U.S. Customs and Border Pro-
tection’s ability to require a revalidation by U.S. Customs 
and Border Protection. 
‘‘(c) CERTIFICATION.—Nothing in this section may 
be construed to authorize certifications of C–TPAT appli-
cants to be performed by any party other than U.S. Cus-
toms and Border Protection. 
‘‘SEC. 220. RECERTIFICATION AND REVALIDATION. 
‘‘(a) RECERTIFICATION.—The Commissioner of U.S. 
Customs and Border Protection shall implement a recer-
tification process for all C–TPAT program participants. 
Such process shall occur annually, and shall require— 
‘‘(1) a review of the security profile and sup-
porting documentation to ensure adherence to the 
minimum security criteria under section 213; and 
‘‘(2) background checks and vetting. 
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‘‘(b) REVALIDATION.—The Commissioner of U.S. 
Customs and Border Protection shall implement a re-
validation process for all Tier 2 and Tier 3 C–TPAT pro-
gram participants. Such process shall require— 
‘‘(1) a framework based upon objective, risk 
based criteria for identifying participants for peri-
odic revalidation at least once every 4 years fol-
lowing the initial validation of such participants; 
‘‘(2) on-site assessments at appropriate foreign 
and domestic locations utilized by such a participant 
in its international supply chain; and 
‘‘(3) an annual plan for revalidation that in-
cludes— 
‘‘(A) performance measures; 
‘‘(B) an assessment of the personnel need-
ed to perform such revalidations; and 
‘‘(C) the number of participants that will 
be revalidated during the following year. 
‘‘(c) REVALIDATION UNDER A MUTUAL RECOGNI-
TION ARRANGEMENT.— 
‘‘(1) IN
GENERAL.—Upon request from the 
Commissioner of U.S. Customs and Border Protec-
tion, all Tier 2 and Tier 3 C–TPAT program par-
ticipants shall provide any revalidation report con-
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ducted by a foreign government under a Mutual 
Recognition Arrangement. 
‘‘(2) RECOGNITION.—The Commissioner of 
U.S. Customs and Border Protection may recognize 
revalidations of entities conducted by foreign govern-
ments under a Mutual Recognition Arrangement as 
sufficient to constitute a revalidation for C–TPAT 
program participation under subsection (b). 
‘‘(3) NO
LIMITATION.—Nothing in this sub-
section may be construed to limit the Commissioner 
of U.S. Customs and Border Protection’s ability to 
require a revalidation by U.S. Customs and Border 
Protection. 
‘‘(d) DESIGNATED
COMPANY
EMPLOYEES.—Only 
designated company employees of a C–TPAT program 
participant under section 213(b)(1) are authorized to re-
spond to a revalidation report. Third-party entities are not 
authorized to respond to a revalidation report. 
‘‘SEC. 221. NONCONTAINERIZED CARGO AND THIRD PARTY 
LOGISTICS PROVIDERS. 
‘‘The Commissioner of U.S. Customs and Border 
Protection shall consider the potential for participation in 
the C–TPAT program by importers of noncontainerized 
cargoes and non-asset-based third party logistics providers 
that otherwise meet the requirements under this subtitle. 
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‘‘SEC. 222. PROGRAM MANAGEMENT. 
‘‘(a) IN GENERAL.—The Commissioner of U.S. Cus-
toms and Border Protection shall establish sufficient in-
ternal quality controls and record management, including 
recordkeeping (including maintenance of a record manage-
ment system in accordance with subsection (b)) and moni-
toring staff hours, to support the management systems of 
the C–TPAT program. In managing the C–TPAT pro-
gram, the Commissioner shall ensure that the C–TPAT 
program includes the following: 
‘‘(1) A 5-year plan to identify outcome-based 
goals and performance measures of the C–TPAT 
program. 
‘‘(2) An annual plan for each fiscal year de-
signed to match available resources to the projected 
workload. 
‘‘(3) A standardized work program to be used 
by agency personnel to carry out the certifications, 
validations, recertifications, and revalidations of C– 
TPAT program participants. 
‘‘(4) In accordance with subsection (e), a stand-
ardized process for the Executive Assistant Commis-
sioner to receive reports of suspicious activity, in-
cluding reports regarding potentially compromised 
cargo or other border or national security concerns. 
‘‘(b) DOCUMENTATION OF REVIEWS.— 
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‘‘(1) IN GENERAL.—The Commissioner of U.S. 
Customs and Border Protection shall maintain a 
record management system to document determina-
tions on the reviews of each C–TPAT program par-
ticipant, including certifications, validations, recer-
tifications, and revalidations. 
‘‘(2) STANDARDIZED PROCEDURES.—To ensure 
accuracy and consistency within the record manage-
ment system required under this subsection, the 
Commissioner shall develop, disseminate, and re-
quire utilization of standardized procedures for 
agency personnel carrying out certifications, valida-
tions, recertifications, and revalidations to report 
and track information regarding the status of each 
C-TPAT program participant. 
‘‘(c) CONFIDENTIAL INFORMATION SAFEGUARDS.— 
In consultation with the Commercial Customs Operations 
Advisory Committee established under section 109 of the 
Trade Facilitation and Trade Enforcement Act of 2015 
(Public Law 114–125; 19 U.S.C. 4316), the Commis-
sioner of U.S. Customs and Border Protection shall de-
velop and implement procedures to ensure the protection 
of confidential data collected, stored, or shared with gov-
ernment agencies or as part of the application, certifi-
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cation, validation, recertification, and revalidation proc-
esses. 
‘‘(d) RESOURCE MANAGEMENT STAFFING PLAN.— 
The Commissioner of U.S. Customs and Border Protec-
tion shall— 
‘‘(1) develop a staffing plan to recruit and train 
staff (including a formalized training program) to 
meet the objectives identified in the 5-year strategic 
plan under subsection (a)(1); and 
‘‘(2) provide cross-training in post incident 
trade resumption for the C–TPAT Director and 
other relevant personnel who administer the C– 
TPAT program. 
‘‘(e) ENGAGEMENT.—In carrying out the standard-
ized process required under subsection (a)(4), the Com-
missioner shall engage with and provide guidance to C- 
TPAT program participants and other appropriate stake-
holders on submitting reports described in such sub-
section. 
‘‘(f) REPORT TO CONGRESS.—In connection with the 
President’s annual budget submission for the Department 
of Homeland Security, the Commissioner of U.S. Customs 
and Border Protection shall report to the appropriate con-
gressional committees on the progress made by the Com-
missioner to certify, validate, recertify, and revalidate C– 
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