In tomorrow’s Federal Register, U.S. Customs and Border Protection (“CBP”) is set to announce a pilot program that would allow up to 10 asset-based and 10 non-asset-based 3PLs to participate in the Customs-Trade Partnership Against Terrorism.  The pilot program is set to run for 5 years, during which time, CBP will assess the ability of 3PLs to positively impact security of cargo coming into the United States.  Historically, participation has not necessarily been available to all 3PLs, with CBP focusing on certain classes of 3PLs or requiring that the 3PL have overseas operations.

CBP will allow up to ten participants in each of the categories identified below:

1. Asset-based 3PLs that facilitate cross-border activity and manage and execute logistical functions for clients, using their own personnel, with owned or leased transportation, consolidation, or warehousing assets and resources.
2. Non-asset-based 3PLs that arrange international transportation of freight and manage and execute these particular logistics functions using other carriers with owned or leased transportation, consolidation or warehousing assets and resources, or contracting any or all of these services, on behalf of the client company.

Eligibility criteria are somewhat vague, and include, but are not limited to that the 3PL:

1. Be directly or indirectly involved in the handling and management of international cargo. Entities which only provide domestic services and do not handle or manage international cargo are not eligible.
2. Does not allow subcontracting of service beyond a second party other than to other CTPAT members (does not allow the practice of “double brokering,” that is, the 3PL may contract with a service provider, but may not allow that contractor to further subcontract the actual provision of this service).

The notice will explain the process for submitting a request to participate.