Share
  • Download PDF 

C-TPAT Pilot Program Act Update

On October 4, 2024, Congress enacted the Customs Trade Partnership Against Terrorism Pilot Program Act of 2023 (the “Act”). Pursuant to the Act, Congress has authorized a pilot program for two new classes of entities to participate in the Customs Trade Partnership Against Terrorism (“C-TPAT”).

The pilot program will be available to:

  • (1) non-asset third-party logistics providers arranging international transportation of freight and licensed by the Department of Transportation (“DOT”); and
  • (2) asset-based third-party logistics providers facilitating cross-border activity, licensed by the Federal Maritime Commission, Transportation Security Administration, U.S. Customs and Border Protection (“CBP”), or DOT, and using its own warehousing assets and resources to manage logistics services.

No more than ten entities from each class will be chosen to participate in the pilot program, which is to last for not longer than five years.

The goal of the pilot program is to determine if allowing these entities to participate in C-TPAT would enhance security. At the end of the pilot program, CBP will issue a report to Congress assessing participation of the chosen entities and making recommendations. At this time, CBP has yet to make any statements related to the pilot program, but the Act requires that CBP publish notice in the Federal Register setting forth requirements for the pilot program by October 4, 2025.

Though the Act does not allow brokers to categorically participate in C-TPAT, it may provide the first steps for broker participation in C-TPAT—something the industry has been requesting for some time.

Scopelitis is available to answer further questions regarding the pilot program. Contact Scopelitis Attorneys Nathaniel Saylor and  Kelsey Napier with questions.

Related Topics

News from Scopelitis is intended as a report to our clients and friends on developments affecting the transportation industry. The published material does not constitute an exhaustive legal study and should not be regarded or relied upon as individual legal advice or opinion.

C-TPAT Pilot Program Act Update

On October 4, 2024, Congress enacted the Customs Trade Partnership Against Terrorism Pilot Program Act of 2023 (the “Act”). Pursuant to the Act, Congress has authorized a pilot program for two new classes of entities to participate in the Customs Trade Partnership Against Terrorism (“C-TPAT”).

The pilot program will be available to:

  • (1) non-asset third-party logistics providers arranging international transportation of freight and licensed by the Department of Transportation (“DOT”); and
  • (2) asset-based third-party logistics providers facilitating cross-border activity, licensed by the Federal Maritime Commission, Transportation Security Administration, U.S. Customs and Border Protection (“CBP”), or DOT, and using its own warehousing assets and resources to manage logistics services.

No more than ten entities from each class will be chosen to participate in the pilot program, which is to last for not longer than five years.

The goal of the pilot program is to determine if allowing these entities to participate in C-TPAT would enhance security. At the end of the pilot program, CBP will issue a report to Congress assessing participation of the chosen entities and making recommendations. At this time, CBP has yet to make any statements related to the pilot program, but the Act requires that CBP publish notice in the Federal Register setting forth requirements for the pilot program by October 4, 2025.

Though the Act does not allow brokers to categorically participate in C-TPAT, it may provide the first steps for broker participation in C-TPAT—something the industry has been requesting for some time.

Scopelitis is available to answer further questions regarding the pilot program. Contact Scopelitis Attorneys Nathaniel Saylor and  Kelsey Napier with questions.

News from Scopelitis is intended as a report to our clients and friends on developments affecting the transportation industry. The published material does not constitute an exhaustive legal study and should not be regarded or relied upon as individual legal advice or opinion.