New House Bill Would Allow Non-Asset Based 3PLs to Join C-TPAT

On June 28, 2010, Representative Owens (D) introduced¹ H.R. 5619, which would amend the SAFE Port Act to provide for the eligibility of certain non-asset based third party logistics providers (3PLs) to participate in the Customs-Trade Partnership Against Terrorism program.

(Certain other 3PLs are currently eligible to participate in C-TPAT. U.S. Customs and Border Protection defines this type of 3PL, for C-TPAT purposes, as a firm that provides outsourced or "third party" logistics services to companies for part, or sometimes all of their supply chain management function. 3PLs typically specialize in integrated warehousing and transportation services that can be scaled and customized to customer's needs based on market conditions and the demands and delivery service requirements for their products and materials.(Typical outsourced logistics functions include inbound freight, customs and freight consolidation, and warehousing.))

Bill Would Benefit Non-Asset 3PLs, Including Motor Carrier Brokers

The bill would amend Section 212 of the SAFE Port Act (Public Law 109-347; 6 USC 962) by amending the text to list non-asset 3PLs, including DOT-licensed motor carrier brokers, as eligible for C-TPAT, as follows (proposed amendment denoted by ++ ):

Importers, customs brokers, forwarders, air, sea, land carriers, contract logistics providers, ++ non-asset based third party logistics providers that arrange international transportation of freight, including motor carrier brokers of property licensed by the Department of Transportation,++ and other entities in the international supply chain and intermodal transportation system are eligible to apply to voluntarily enter into partnerships with the Department under C-TPAT.

Regulations to Implement Change Would be Required within 60 Days of Enactment

The bill states that the amendment would apply to applicants seeking to participate in the Customs-Trade Partnership Against Terrorism program on or after the date on which the regulations to implement the change takes effect. Such regulations would be required no later than 60 days after the date of the enactment of the bill.

¹H.R. 5619 was referred to the Committee on Homeland Security.

(See ITT's Online Archives or 06/29/10 news, 10062930, for BP summary of CBP's internal conference, where a trade attendee expressed frustration with the inability of non-asset based 3PLs to join. See ITT's Online Archives or 10/02/09 news, 08100205 for BP summary of CBP extending the C-TPAT program to certain 3PLs.)