6 USC 968 - Third party validations

U.S Code last checked for updates: Apr 30, 2024

§ 968.

Third party validations

(a)

Plan

(b)

Consultations

(c)

Pilot program

(1)

In general

(2)

Authority of the Secretary

(d)

Certification of third party entities

The Secretary shall certify a third party entity to conduct validations under subsection (c) if the entity—

(1)

demonstrates to the satisfaction of the Secretary that the entity has the ability to perform validations in accordance with standard operating procedures and requirements designated by the Secretary; and

(2)

agrees—

(A)

to perform validations in accordance with such standard operating procedures and requirements (and updates to such procedures and requirements); and

(B)

to maintain liability insurance coverage at policy limits and in accordance with conditions to be established by the Secretary; and

(3)

signs an agreement to protect all proprietary information of C–TPAT participants with respect to which the entity will conduct validations.

(e)

Information for establishing limits of liability insurance

(f)

Additional requirements

The Secretary shall ensure that—

(1)

any third party entity certified under this section does not have—

(A)

any beneficial interest in or any direct or indirect control over the C–TPAT participant for which the validation services are performed; or

(B)

any other conflict of interest with respect to the C–TPAT participant; and

(2)

the C–TPAT participant has entered into a contract with the third party entity under which the C–TPAT participant agrees to pay all costs associated with the validation.

(g)

Monitoring

(1)

In general

(2)

Revocation

If the Secretary determines that a third party entity is not meeting the minimum standard operating procedures and requirements designated by the Secretary under subsection (d)(1), the Secretary shall—

(A)

revoke the entity’s certificate of conformance issued under subsection (d)(1); and

(B)

review any validations conducted by the entity.

(h)

Limitation on authority

(i)

Report

Not later than 30 days after the completion of the pilot program conducted pursuant to subsection (c), the Secretary shall submit a report to the appropriate congressional committees that contains—

(1)

the results of the pilot program, including the extent to which the pilot program ensured sufficient protection for proprietary commercial information;

(2)

the cost and efficiency associated with validations under the pilot program;

(3)

the impact of the pilot program on the rate of validations conducted under C–TPAT;

(4)

any impact on national security of the pilot program; and

(5)

any recommendations by the Secretary based upon the results of the pilot program.

(Pub. L. 109–347, title II, § 218, Oct. 13, 2006, 120 Stat. 1912.)

cite as: 6 USC 968