Security Criteria for Third Party Logistics Providers (3PL)

(CBP via CSCB)

New C-TPAT Security Criteria for Third Party Logistics Providers is in effect as of January 1, 2009. 3PLs need to meet specific criteria to participate in C-TPAT.

Third Party Logistics Provider Eligibility Requirements

In order to be eligible for participation in the C-TPAT program, the 3PL must:

1. Be directly involved in the handling and management of the cargo throughout any point in the international supply chain, from point of stuffing, up to the first U.S. port of arrival. Entities which only provide domestic services and are not engaged in cross border activities are not eligible.

2. Manage and execute these particular logistics functions using its own transportation, consolidation and/or warehousing assets and resources, on behalf of the client company.

3. 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).

4. Be licensed and/or bonded by the Federal Maritime Commission, Transportation Security Administration, U.S. Customs and Border Protection, or the Department of Transportation.

5. Maintain a staffed office within the United States.

Note: Non asset-based 3PL’s who perform duties such as quoting, booking, routing, and auditing (these type of 3PL may posses only desks, computers, and freight industry expertise) but do not own warehousing facilities, vehicles, aircraft, or any other transportation assets, are excluded from C-TPAT enrollment as they are unable to enhance supply chain security throughout the international supply chain.

Minimum Security Criteria for Third Party Logistics Providers

For minimum security criteria for 3PL providers, visit the CBP website here. The implementation plan for 3PL providers can be viewed here.