1 October 2007

Shipment data

The following is excerpted from the “Customs Update” column by Susan Kohn Ross in the 28 September 2007 edition of “The Journal of Commerce”.

In yet another effort to make the American public feel safer, the Democratic-led Congress recently enacted legislation which approves 100% scanning of all cargo, ocean and air. While H.R. 1 has been characterized in the general press as requiring 100-percent inspection, in fact, fortunately, it does not.

The bill includes a provision that requires 100-percent “screening” of all cargo carried on passenger aircraft. It also gives the Department of Homeland Security Secretary one year to publish a final rule plus the discretion of when to implement. At the same time, the maximum time frame allowed is that 50 percent of air cargo must be scanned within 18 months and 100 percent within three years.

Clearly, Congress realized that it sounds good on paper, but that the technology is simply not there yet, plus there is the always-sensitive question of how this will be paid for and by whom?

Also required by the bill is 100-percent ocean container “scanning” using non-intrusive technology and radiation monitors. As in the air mode, this scanning must be accomplished prior to loading. These ocean shipment-related requirements must be in place by July 1, 2012…..

The bill also mandates that biometrics be used for outbound immigration purposes no later than June 30, 2009 or at a point in time when 97 percent of air passengers can be scanned, again as designated by the DHS Secretary, another acknowledgment of technology limitations.

…. What is giving traders cause for concern is what is being described as GTX, the Global Trade Exchange, especially since this new data storage and analysis regime is being proposed on top of all the other new programs recently mandated…. Of course, so far no details have been publicly announced by DHS or Customs and Border Protection as to what will constitute a secure seal. Now we are being told, even more is required, and again with very few details to date, but with potentially far more serious consequences.

In comments delivered to Treasury and Homeland Security's Commercial Operations Advisory Committee in mid-August, DHS Secretary Michael Cherthoff covered a myriad of security-related topics. Thankfully, he began by reinforcing the Bush Administration’s commitment to a “layered enforcement security process which is designed to reduce risk but not to eliminate risk.”…

In his remarks, Cherthoff mentioned the Secure Freight Initiative, which involves overseas scanning of containers; the Customs-Trade Partnership Against Terrorism (intended to enhance supply chain security); 10 + 2 (the regulations for which were described as shortly on their way to the Office of Management and Budget for consideration and approval); future recognition of Authorized Economic Operators under a mutual recognition system, and the Container Security Initiative, which involves American Customs officials stationed in other countries working with local authorities to screen or inspect potentially problematic containers.

Cherthoff went on to make the point that what ties all of these programs together is gathering information and data about shipments as early in the process as possible as goods transit the supply chain. In this way, instead of stopping trade through the implementation of 100-percent inspections as proposed by some (which would clearly shut down the economy), the information and data gathered through these various programs would be used to determine which shipments are likely to be problematic and then address how they should be handled. Scanned? Inspected? Barred from loading?

The 10 + 2 requirements and C-TPAT offer means by which the t