PUBLIC LAW 109–347—OCT. 13, 2006
120 STAT. 1913
(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.—The Secretary shall regularly monitor and inspect the operations of a third party entity conducting validations under subsection (c) to ensure that the entity is meeting the minimum standard operating procedures and requirements for the validation of C–TPAT participants established by the Secretary and all other applicable requirements for validation services. (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.—The Secretary may only grant a C–TPAT validation by a third party entity pursuant to subsection (c) if the C–TPAT participant voluntarily submits to validation by such third party entity. (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. SEC. 219. REVALIDATION.
6 USC 969.
The Secretary, acting through the Commissioner, shall develop and implement— (1) a revalidation process for Tier 2 and Tier 3 participants; (2) a framework based upon objective criteria for identifying participants for periodic revalidation not less frequently than once during each 4-year period following the initial validation; and (3) an annual plan for revalidation that includes— (A) performance measures; (B) an assessment of the personnel needed to perform the revalidations; and
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