COAC Public Meeting, September 18, 2024

Established by the SAFE Ports Act of 2006 (Public Law 109-347), the Customs-Trade Partnership Against Terrorism (C-TPAT) program aims to enhance international supply chain and U.S. border security. As C-TPAT has not been explicitly codified in Title 19 of the Code of Federal Regulations, its eligibility and participation criteria are currently open to interpretation. Presently, Customs and Border Protection (CBP) has extended participation to various non-asset-based third-party logistics providers (3PLs), including:

Customs Brokers licensed by CBP,
Non-vessel operating common carriers (NVOCCs) licensed by the Federal Maritime Commission (FMC), and
Indirect Air Carriers licensed by the Transportation Security Administration (TSA).

However, 3PLs licensed by the Federal Motor Carrier Safety Administration (FMCSA) within the Department of Transportation (DOT) continue to be excluded from the program.

Expanding the C-TPAT program to encompass DOT licensed non-asset based 3PL’s will require stakeholder engagement to ensure that defining a new participant category, updating security criteria, and creating guidelines align with industry practices. TIA requests that the COAC Trade Partnership and Engagement Working Group (TPEWG) recommend this expansion. As the TPEWG plays a crucial role in fostering collaboration between CBP and the trade community to enhance trade operations, including non-asset-based 3PLs in the C-TPAT program will advance TPWEG’s mission to improve legitimate trade facilitation and enhance supply chain security.

Although DOT licensed non-asset-based 3PLs do not own physical assets like warehouses or motor carriers, they continue to play a crucial role in security practices across the supply chain. It is also worth noting that neither do all three entities listed above, who are already eligible for C-TPAT enrollment. The benefits of including them in the C-TPAT program include:

Greater alignment with global standards, enhancing CBP’s multi-layered security strategy and promoting consistency in international logistics.
Increased competitiveness in the supply chain, driving cost savings, responsiveness, customer satisfaction, and innovation, benefiting the overall trade and security landscape.
Enhanced collaboration and communication throughout the supply chain, improving coordination with government and the private sector in identifying and addressing security vulnerabilities, thereby building and more secure and resilient supply chain.

CONCLUSION:

The primary objective of the C-TPAT program is to enhance supply chain security through partnerships between the government and industry. Expanding the program to include qualifying third-party logistics providers will significantly strengthen national security, combat terrorism, and prevent supply chain breaches, thereby achieving C-TPAT’s goals.

With the rise of near-shoring and cross-border trade, increased vigilance at the border is essential. Including all trade partners involved in cross-border freight transport will foster a competitive marketplace, enhance trade facilitation, and improve trade process efficiency while addressing emerging challenges such as technological advancements, evolving security threats, and shifting trade patterns.

TIA is committed to supporting the COAC TPEWG and CBP in implementing the expansion of C-TPAT eligibility to 3PLs. We believe that including non-asset-based 3PLs will significantly improve the program’s effectiveness in enhancing security and efficiency. TIA remains available for any further comments or clarifications required by the committee or agency.

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COAC Public Meeting, September 18, 2024

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