Notice2025-20648
Asset-Based and Non-Asset-Based Third Party Logistics Customs Trade Partnership Against Terrorism (CTPAT) Program Pilot
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Published
November 21, 2025
Issuing agencies
Homeland Security DepartmentU.S. Customs and Border Protection
Abstract
This notice announces that the Department of Homeland Security, acting through the Commissioner of the U.S. Customs and Border Protection (CBP), plans to conduct a pilot for Asset-Based and Non-Asset-Based Third Party Logistics Providers to participate in the Customs Trade Partnership Against Terrorism (CTPAT) Program to determine whether allowing such entities to participate in CTPAT would enhance port security, combat terrorism, prevent supply chain security breaches, or otherwise meet the goals of CTPAT as provided for by Congress. This notice describes the purpose of the pilot, eligible participants, duration of the pilot, and pilot procedures.
Full Text
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<title>Federal Register, Volume 90 Issue 223 (Friday, November 21, 2025)</title>
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[Federal Register Volume 90, Number 223 (Friday, November 21, 2025)]
[Notices]
[Pages 52690-52692]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-20648]
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DEPARTMENT OF HOMELAND SECURITY
U.S. Customs and Border Protection
Asset-Based and Non-Asset-Based Third Party Logistics Customs
Trade Partnership Against Terrorism (CTPAT) Program Pilot
AGENCY: U.S. Customs and Border Protection, Department of Homeland
Security.
ACTION: General notice.
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SUMMARY: This notice announces that the Department of Homeland
Security, acting through the Commissioner of the U.S. Customs and
Border Protection (CBP), plans to conduct a pilot for Asset-Based and
Non-Asset-Based Third Party Logistics Providers to participate in the
Customs Trade Partnership Against Terrorism (CTPAT) Program to
determine whether allowing such entities to participate in CTPAT would
enhance port security, combat terrorism, prevent supply chain security
breaches, or otherwise meet the goals of CTPAT as provided for by
Congress. This notice describes the purpose of the pilot, eligible
participants, duration of the pilot, and pilot procedures.
DATES: The pilot will begin no earlier than December 1, 2025, and will
run for no more than five years. Any extension of this pilot will be
announced by a notice published in the Federal Register.
ADDRESSES: Applicants who wish to participate in the CTPAT Pilot
Program must send an email to <a href="/cdn-cgi/l/email-protection#1d525b5230545359484e494f444d5c4f4953584f4e55544d5d5e5f4d3359554e335a524b"><span class="__cf_email__" data-cfemail="df909990f296919b8a8c8b8d868f9e8d8b919a8d8c97968f9f9c9d8ff19b978cf1989089">[email protected]</span></a>, and
indicate if they wish to participate as a non-asset-based third party
logistics provider (3PL) or an asset-based 3PL. In the subject line of
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the email, please use ``CTPAT 3PL Pilot Program Interest.'' Written
comments concerning program, policy, and technical issues may also be
submitted via email to <a href="/cdn-cgi/l/email-protection#337c757c1e7a7d77666067616a637261677d7661607b7a63737071631d777b601d747c65"><span class="__cf_email__" data-cfemail="5e1118117317101a0b0d0a0c070e1f0c0a101b0c0d16170e1e1d1c0e701a160d70191108">[email protected]</span></a>. In the
subject line of the email, please use ``Comment on CTPAT Pilot
Program''.
FOR FURTHER INFORMATION CONTACT: Peter Touhy, CTPAT-Miami, Office of
Field Operations, U.S. Customs and Border Protection, via email at
<a href="/cdn-cgi/l/email-protection#b4e4d1c0d1c69af79ae0dbc1dccdf4d7d6c49ad0dcc79ad3dbc2"><span class="__cf_email__" data-cfemail="a9f9ccddccdb87ea87fdc6dcc1d0e9cacbd987cdc1da87cec6df">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION:
Background
In 2006, the Security and Accountability For Every (SAFE) Port Act
authorized the Secretary of the Department of Homeland Security, acting
through the Commissioner of the U.S. Customs and Border Protection
(CBP), to establish a voluntary government-private sector program to be
known as the ``Customs Trade Partnership Against Terrorism'' or
``CTPAT.'' The goal of CTPAT is to strengthen and improve the overall
security of the international supply chain and United States border
security, and to facilitate the movement of secure cargo through the
international supply chain. Specifically, CTPAT establishes a customs
clearance process for eligible entities \1\ that voluntarily meet or
exceed enhanced security screening requirements.\2\ Entities certified
as CTPAT participants may be eligible for benefits such as reduced risk
scores assigned in the Automated Targeting System (ATS), reduced
examinations of cargo, priority searches of cargo, and expedited
release of cargo. See 6 U.S.C. 964-966. By ensuring that participants
meet minimum security standards, CTPAT helps CBP improve trade
facilitation and enhances the security of incoming cargo and processing
of cargo through ports of entry, which also benefits CTPAT members.
These members submit to enhanced security screening measures improving
security throughout the supply chain. See S. Rep. No. 118-27 at 2
(2023).
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\1\ Eligible entities include importers, customs brokers,
forwarders, air, sea, land carriers, contract logistics providers,
and other entities in the international supply chain and intermodal
transportation system. See 6 U.S.C. 962.
\2\ See 6 U.S.C. 962. See also CTPAT Minimum Security Criteria,
U.S. Customs and Border Protection (Oct. 5, 2022), <a href="https://www.cbp.gov/border-security/ports-entry/cargo-security/ctpat-customs-trade-partnership-against-terrorism/apply/security-criteria">https://www.cbp.gov/border-security/ports-entry/cargo-security/ctpat-customs-trade-partnership-against-terrorism/apply/security-criteria</a>.
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In 2008, CBP expanded CTPAT membership to include third party
logistics providers (3PLs) that meet the eligibility requirements and
minimum security criteria set forth by the Program.\3\ 3PLs are firms
that provide outsourced or ``third party'' logistics services to
companies for part, or sometimes all, of their supply chain management
function. There are two types of 3PLs: asset-based and non-asset-based.
Asset-based 3PLs own or lease warehousing facilities, vehicles,
aircraft, or any other transportation assets using their own resources.
Non-asset-based 3PLs do not own assets but instead partner with a
network of other carriers and providers to arrange and manage a
client's supply chain needs. CBP has permitted some non-asset-based
3PLs to participate in the CTPAT Program, including indirect air
carriers, non-vessel operating common carriers (NVOCCs) and customs
brokers. However, their participation was limited.
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\3\ See U.S. Customs and Border Protection, Customs-Trade
Partnership Against Terrorism (C-TPAT) Minimum Security Criteria:
Third Party Logistics Providers (3PL) (Jan. 2009), <a href="http://www.cbp.gov/sites/default/files/documents/3pl_security_criteria_3.pdf">www.cbp.gov/sites/default/files/documents/3pl_security_criteria_3.pdf</a>.
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On October 1, 2024, Congress passed the ``Customs Trade Partnership
Against Terrorism Pilot Program Act of 2023'' or the ``CTPAT Pilot
Program Act of 2023'' (Pub. L. 118-98, 138 Stat. 1575) to address the
exclusion of certain types of 3PLs from participation in CTPAT.
Congress recognized that non-asset-based 3PLs and asset-based 3PLs play
a role in the safety of the international supply chain and national
security. Specifically, the CTPAT Pilot Program Act of 2023 directs DHS
to establish a pilot 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. Sec. 3, Public Law 118-
98, 138 Stat. 1575.
Pilot Program for Participation of 3PLs in CTPAT
Authority
The pilot described in this notice is authorized pursuant to
Section 3 of the CTPAT Pilot Program Act of 2023, which directs the
Secretary of Homeland Security to carry out a pilot where non-asset-
based 3PLs and asset-based 3PLs that meet the criteria outlined in the
statute are allowed to participate in CTPAT.
Purpose of the Pilot
In 2001, the federal government engaged the trade community to
improve supply chain security to protect the United States from acts of
terrorism. One resulting development was the creation of CTPAT. CTPAT
is a partnership between the federal government and the private sector
that seeks to improve security throughout the supply chain, from point
of origin to point of destination. The Program created a customs
clearance process for eligible entities that voluntarily meet or exceed
enhanced security screening requirements. When an entity is certified
as a CTPAT participant, it agrees to work with CBP to protect the
supply chain, identify security gaps, and implement specific security
measures and best practices. Applicants must address a broad range of
security topics and present security profiles that list action plans to
align security procedures throughout the supply chain. As a result,
CTPAT members are considered to be of low risk, and therefore are less
likely to be examined at a U.S. port of entry, helping CBP improve
overall trade facilitation and focus resources on cargo that presents
unknown risk. The purpose of this pilot is to assess whether expanding
current membership of 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.
Eligibility for Participation
Participation in the pilot is voluntary. CTPAT is open to members
of the trade community who can demonstrate excellence in supply chain
security practices and who have had no significant security related
events. Entities interested in participating in the pilot must meet the
eligibility criteria outlined in this notice as well as the Minimum
Security Criteria (MSC) for 3PLs. Each applicant to the CTPAT Program
is considered on an individual basis, and CBP may determine an
applicant to be ineligible for participation in the pilot if issues of
concern exist.
All participating entities must comply with the eligibility
requirements of the CTPAT Program including:
[ssquf] 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.
[ssquf] 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
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subcontract the actual provision of this service).
[ssquf] Be licensed and/or bonded by the Federal Maritime
Commission, Transportation Security Administration, CBP, or the U.S.
Department of Transportation.
[ssquf] Maintain no evidence of financial debt to CBP for which the
responsible party has exhausted all administrative and judicial
remedies for relief, a final judgment or administrative disposition has
been rendered, and the final bill or debt shall not remain unpaid at
the time of the initial application or annual renewal.
[ssquf] Maintain a staffed office in the United States, Canada, or
Mexico.
In addition to meeting the general existing eligibility criteria of
CTPAT, all pilot participants must be a 3PL and meet the eligibility
requirements for their entity type. The pilot will consist of ten
entities of each of the two types of providers described below:
[ssquf] 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.
[ssquf] 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.
Application Process and Acceptance
All interested applicants must send an email to <a href="/cdn-cgi/l/email-protection#88c7cec7a5c1c6ccdddbdcdad1d8c9dadcc6cddadbc0c1d8c8cbcad8a6ccc0dba6cfc7de"><span class="__cf_email__" data-cfemail="09464f462440474d5c5a5d5b5059485b5d474c5b5a414059494a4b59274d415a274e465f">[email protected]</span></a> to indicate their intent to participate
in the pilot, as either a non-asset-based 3PL or asset-based 3PL in the
pilot. In the subject line of the email, please use ``CTPAT 3PL Pilot
Program Interest.'' Pilot participants will be selected on a first
come, first-served basis. Approved applicants will be notified via
email and directed to complete the online application in the CTPAT
portal, as outlined below. Applicants who are not selected for
participation at this time may be eligible to participate at a later
date, and will be notified in the order in which the original interest
emails were received.
Once approved, applicants must complete an online application to
participate in the pilot, via the CTPAT Portal (<a href="https://www.cbp.gov/border-security/ports-entry/cargo-security/c-tpat-customs-trade-partnership-against-terrorism/apply">https://www.cbp.gov/border-security/ports-entry/cargo-security/c-tpat-customs-trade-partnership-against-terrorism/apply</a>), applying as a Third Party
Logistics Provider. There are two components to the application
process: the Company Profile and the Security Profile. The company
profile section of the application will ask for general company
information such as addresses and contact information. Applicants must
indicate in the first line of the ``Brief Company History'' section
that they are ``Applying as a non-asset-based 3PL to the 3PL CTPAT
Pilot'' or ``Applying as an asset-based 3PL to the 3PL CTPAT Pilot,''
depending on the type of operation.
The Security Profile section contains questions of a more detailed
nature that the Supply Chain Security Specialist (SCSS) responsible for
reviewing applications will use to determine the company's ability to
meet CTPAT MSC. All approved applicants are required to complete the
Security Profile addressing the company's security procedures to meet
the MSC of a 3PL.\4\ When completing the Security Profile, not all
sections of the MSC may directly apply to non-asset-based 3PLs. Non-
asset-based 3PLs are encouraged to consider the criteria in relation to
their business partners, and ``N/A'' will not be an accepted response.
All applicants must show how they meet the criteria by educating and
addressing the criteria with their business partners such that the
business partners understand the criteria required.
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\4\ See Third Party Logistics Providers (3PL), U.S. Customs and
Border Protection (Mar. 6, 2024), <a href="https://www.cbp.gov/border-security/ports-entry/cargo-security/ctpat/security-guidelines/third-party-logistics-providers">https://www.cbp.gov/border-security/ports-entry/cargo-security/ctpat/security-guidelines/third-party-logistics-providers</a>.
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Upon completion of both the Company Profile and the Security
Profile in the CTPAT portal, each applicant will be assigned a SCSS to
review the applicant's submitted materials. The SCSS will determine if
the applicant meets the pilot's eligibility requirements and the MSC
for a 3PL. The SCSS will communicate with the applicant if any
deficiencies are discovered and will work with the applicant to resolve
identified issues or will notify the applicant if it is not eligible to
participate in the pilot. If the application is approved, the applicant
will be notified through the CTPAT portal and the company's status will
change from Applicant to Certified, and the company will start
receiving CTPAT benefits.
Certified CTPAT pilot participants will be contacted by their
assigned SCSS within one year of certification to set up a validation
to observe the security practices at the participant's location(s) of
operation. The validation will consist of an on-site visit for the
assigned SCSS to verify the information submitted for the Security
Profile to determine if the applicant meets the MSC for 3PLs and is
eligible to become a validated partner.\5\ Certified partners who
become validated will continue to participate in the pilot and receive
the benefits afforded to 3PLs in the CTPAT Program.
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\5\ See CTPAT Validation Process, U.S. Customs and Border
Protection (Jul. 1, 2020), <a href="https://www.cbp.gov/border-security/ports-entry/cargo-security/c-tpat-customs-trade-partnership-against-terrorism/apply/validation">https://www.cbp.gov/border-security/ports-entry/cargo-security/c-tpat-customs-trade-partnership-against-terrorism/apply/validation</a>.
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Evaluation
After concluding the validations of all pilot participants, CBP
will evaluate the process under the pilot to see what worked, what did
not, and where CBP can improve.
Duration of Pilot
This pilot will begin no earlier than December 1, 2025, and will
run for no more than five years. Any extensions of this pilot will be
announced by a notice published in the Federal Register.
Privacy
CTPAT information for businesses and individuals is protected under
the Privacy Act of 1974 and will not be improperly collected, used, or
disseminated. CBP will ensure that all Privacy Act requirements and
applicable DHS privacy policies are adhered to during this pilot. DHS's
Fair Information Practice Principles (FIPPs) account for the nature and
purpose of the information being collected in relation to DHS's mission
to preserve, protect and secure the United States. The Privacy Impact
Assessment (PIA) addresses issues in any data collection such as the
security, integrity, sharing of data, use limitation, and transparency.
Paperwork Reduction Act
In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C.
3507), an agency may not conduct, and a person is not required to
respond to, a collection of information unless the collection of
information displays a valid control number assigned by the Office of
Management and Budget (OMB). This information collection is covered by
OMB control number 1651-0077. This information collection has been
updated to include information collected by CBP pursuant to this
notice.
Kristi Noem,
Secretary, U.S. Department of Homeland Security.
[FR Doc. 2025-20648 Filed 11-20-25; 8:45 am]
BILLING CODE 9111-14-P
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