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6 U.S.C. § 968 Third Party Validations
Library | United States Statutes |
Edition | 2023 Edition |
Currency | Current through P.L. 118-19 (published on www.congress.gov on 10/06/2023) |
(a) Plan
The Secretary, acting through the Commissioner, shall develop a plan to implement a 1-year voluntary pilot program to test and assess the feasibility, costs, and benefits of using third party entities to conduct validations of C-TPAT participants.
(b) Consultations
Not later than 120 days after October 13, 2006, after consulting with private sector stakeholders, including the Commercial Operations Advisory Committee, the Secretary shall submit a report to the appropriate congressional committees on the plan described in subsection (a).
(c) Pilot program
(1) In general
Not later than 1 year after the consultations described in subsection (b), the Secretary shall carry out the 1-year pilot program to conduct validations of C-TPAT participants using third party entities described in subsection (a).
(2) Authority of the Secretary
The decision to validate a C-TPAT participant is solely within the discretion of the Secretary, or the Secretary's designee.
(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
A third party entity seeking a certificate under subsection (d) shall submit to the Secretary necessary information for establishing the limits of liability insurance required to be maintained by the entity under this Act.
(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
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