Senate signs off on C-TPAT pilot program legislation

Late last week, the United States Senate signed off on S.2322, the “C-TPAT Pilot Program Act of 2021,” in a bipartisan manner and will head to the United States House of Representatives.

The bill’s lead sponsor is Sen. John Cornyn (R-TX), and its co-sponsors are Sen. Robert Menendez (D-NJ), Sen. Thomas Carper (D-DE), Sen. Tim Scott (R-SC), Sen. Margaret Wood Hassan (D-NH), and Sen. James Lankford (R-OK).

According to a summary of the bill from The Library of Congress, “it requires the Department of Homeland Security (DHS) to carry out a pilot program that assesses whether allowing certain entities to participate in the Customs-Trade Partnership Against Terrorism (C-TPAT) would enhance port security, combat terrorism, prevent supply chain security breaches, or otherwise meet the goals of the partnership. Such entities are non-asset-based third-party logistics providers that arrange international freight transportation and are licensed by the Department of Transportation.”

When Sen. Cornyn initially filed this legislation in July 2021, he said that ensuring America’s trade policies bolster the nation’s strong economy is crucial for long-term growth.

“By providing additional options for which vendor trusted trading partners can use to transport their cargo, we can ensure resiliency in our global supply-chains,” he said. “In order for America to remain competitive in global markets, we must ensure our ports remain open and commerce flows freely while protecting against illegal goods, national security threats, and unfair trade practices.”

As previously reported by LM, C-TPAT is widely viewed as a layer in U.S. Customs and Border Protection’s (CBP) multi-layered cargo enforcement strategy. Through this program, CBP works with the trade community to strengthen international supply chains and improve border security.

What’s more, CTPAT is a voluntary, public-private sector partnership program that recognizes that CBP can provide the highest level of cargo security only through close cooperation with the principal stakeholders of the international supply chain such as importers, carriers, consolidators, licensed Customs brokers and manufacturers. Since its inception in November 2001, CTPAT has grown to more than 11,400 certified partners spanning the gamut of the trade community.

These partners include U.S. importers/exporters; U.S./Canada trucking companies; U.S./Mexico trucking companies, rail and sea carriers; licensed U.S. Customs brokers; U.S. marine port authority/terminal operators; U.S. freight consolidators; ocean transportation intermediaries and non-operating common carriers; Mexican and Canadian manufacturers; and Mexican long-haul carriers.

CTPAT members accounted more than 50% (by value) of cargo imported into the U.S. Not using CTPAT is considered a risk best avoided, experts say.

CTPAT members are also eligible for a reduced number of CBP examinations, front of the line inspections, shorter wait times at the border, assignment of a government-trained supply chain security specialist to the company, access to the Free and Secure Trade (FAST) Lanes at the land borders, and the possibility of enjoying additional benefits by being recognized as a trusted trade partner by foreign Customs administrations in Canada and Mexico.

The Transportation Intermediaries Association (TIA) applauded the Senate’s actions on what it called “a piece of legislation that is crucial to our membership base,” adding that “[t]his policy is common sense, long overdue, and should be quickly put on President Biden’s desk for signature.”

TIA President and CEO, Anne Reinke said that TIA is glad to see the Senate take up and pass S.2322, noting that 15 years is too long for its members to wait to become C-TPAT eligible.

And she added that non-asset-based 3PL’s have been dealing with a competitive disadvantage for more than 10 years because of an intentional decision by the Federal government. TIA also observed that the legislation, now before the House of Representatives, creates a pilot program for 10 previously neglected DOT licensed property brokers and 10 warehousing entities to be C-TPAT certified to show worth in the larger program.