The U.S. Department of Homeland Security, acting through U.S. Customs and Border Protection (CBP), has announced a pilot program to assess the inclusion of asset-based and non-asset-based third party logistics providers (3PLs) in the Customs Trade Partnership Against Terrorism (CTPAT). This initiative, set to begin no earlier than December 1, 2025, and lasting up to five years, responds to congressional directives aimed at bolstering supply chain security. The pilot will evaluate whether expanding CTPAT membership to these entities enhances port security, combats terrorism, prevents supply chain breaches, or advances the program's overarching goals. Authorized by the CTPAT Pilot Program Act of 2023, the program limits participation to 10 entities of each 3PL type, selected on a first-come, first-served basis. This development marks a potential shift in how CBP engages private sector partners in securing international trade, building on nearly two decades of CTPAT operations.
Background and Legislative Foundation
The CTPAT program originated from the Security and Accountability For Every Port Act of 2006, which authorized DHS to create a voluntary partnership between the government and private sector to strengthen international supply chain security and U.S. border protection. As outlined in 6 U.S.C. 964-966, CTPAT participants undergo enhanced security screening and, in return, receive benefits such as reduced cargo examinations, priority processing, and expedited releases through systems like the Automated Targeting System.
In 2008, CBP extended eligibility to certain 3PLs, defined as firms providing outsourced logistics services for supply chain management. However, participation was restricted, particularly for non-asset-based 3PLs—those that do not own transportation or warehousing assets but coordinate services through networks of carriers. Asset-based 3PLs, which own or lease such assets, faced similar limitations. The Senate Report No. 118-27 (2023) emphasized that CTPAT's security measures improve trade facilitation by focusing CBP resources on higher-risk cargo.
The CTPAT Pilot Program Act of 2023 (Public Law 118-98) addressed these exclusions, recognizing the role of both 3PL types in supply chain safety and national security. Section 3 of the Act directs DHS to conduct this pilot to test expanded participation, as stated in the Federal Register notice: 'to assess whether allowing both non-asset-based 3PLs and asset-based 3PLs to participate in CTPAT would enhance port security, assist in combatting terrorism, prevent supply chain security breaches, or otherwise meet the goals of CTPAT.'
Key Players and Program Mechanics
CBP, under DHS Secretary Kristi Noem's signature on the notice, leads the pilot. Peter Touhy from CBP's Office of Field Operations serves as the contact for inquiries. Eligible entities include U.S.-based importers, brokers, carriers, and logistics providers, but the pilot specifically targets 3PLs involved in international cargo handling.
Asset-based 3PLs manage logistics using their own or leased assets, such as vehicles or warehouses, while non-asset-based 3PLs arrange services through external partners. Both must meet CTPAT's minimum security criteria, including no subcontracting beyond a second party (prohibiting 'double brokering'), licensing by relevant federal agencies like the Federal Maritime Commission or Transportation Security Administration, and no outstanding debts to CBP. Participants must maintain a staffed office in the U.S., Canada, or Mexico and demonstrate excellence in supply chain security without significant prior incidents.
The application process begins with an email to [email protected] expressing interest, followed by an online submission via the CTPAT portal. Applicants specify their 3PL type in the company history section and complete a security profile addressing minimum security criteria. A Supply Chain Security Specialist reviews submissions, resolves deficiencies, and may conduct on-site validations within one year of certification. Validated participants receive full CTPAT benefits.
Legal Precedents and Political Context
This pilot builds on precedents like the SAFE Port Act, which established CTPAT as a cornerstone of post-9/11 supply chain security. The 2023 Act reflects bipartisan recognition of evolving threats, as evidenced by congressional findings that 3PLs contribute to national security. Perspectives vary: proponents, including trade associations, argue that inclusion will streamline operations and reduce vulnerabilities, as noted in CBP's guidelines. Critics, potentially from security-focused groups, might express concerns over diluted standards if non-asset-based entities, reliant on third-party networks, introduce risks. The pilot's evaluation phase will address these by assessing real-world outcomes against CTPAT goals.
Short-term implications include enhanced security for participating 3PLs through reduced examinations and faster cargo processing. Long-term, successful integration could lead to permanent expansion, influencing global trade norms. However, challenges arise in ensuring non-asset-based 3PLs meet criteria through partner education, as 'N/A' responses are not accepted in security profiles.
Implications and Perspectives
From a policy standpoint, the pilot aligns with broader DHS efforts to adapt CTPAT to modern logistics, where 3PLs handle increasing volumes of international freight. Benefits extend to participants via lower risk scores, but the program's voluntary nature ensures only committed entities join. Different viewpoints emerge: industry stakeholders view it as a facilitation boost, per the 2023 Senate report, while security experts emphasize rigorous validations to prevent breaches.
Potential implications include improved terrorism prevention by closing gaps in non-asset-based networks. Yet, the cap at 20 participants limits initial scope, allowing focused evaluation. Privacy protections under the Privacy Act of 1974 and DHS policies safeguard data, addressing concerns in information collection.
In summary, this pilot represents a targeted experiment in expanding CTPAT to underrepresented logistics sectors. Key takeaways include its legislative backing, structured eligibility, and focus on security enhancements. Moving forward, CBP may extend the program based on evaluations, potentially integrating findings into permanent policy. Ongoing debates will likely center on balancing trade efficiency with robust security, with opportunities for public comments to shape future iterations.
