Homeland Security Begins Work on Container Security Standards

(Logistics Today)

The U.S. Customs and Border Protection (CBP) is partnering with the Department of Homeland Security’s Science and Technology Directorate (DHS S&T) to develop performance standards – requirements that must be met by products to ensure they will function as intended – for container security technologies. CBP, which is responsible for container security, is constantly on the lookout for cargo containers that are being used to transport unlawful cargo, including weapons of mass destruction, illicit arms, stowaways, and illegal narcotics into the United States.

After successful completion of testing, S&T plans to deliver performance standards to DHS’s Office of Policy Development and CBP. DHS has conducted research and development for four container security technology projects, but has not yet developed performance standards for them. Read more here.

DHS Lists Upcoming Regulatory Actions Affecting Importers, Brokers, Carriers

(World Trade Interactive)

The Department of Homeland Security recently issued its semiannual regulatory agenda, which includes the following actions affecting international trade.

• U.S. Customs and Border Protection has pushed back to July a proposed rule that would amend its regulations concerning cargo information (manifest) discrepancy reporting requirements for all modes of commercial transportation (air, sea, rail and truck).

This rule would:

(a) set forth corresponding guidelines for the assessment of penalties or claims for liquidated damages for manifesting violations;

(b) require that any discrepancy from previously filed cargo information be reported to CBP by the responsible party immediately upon discovery and that such reports, with limited exceptions, be submitted in an electronic format;

(c) eliminate Customs Form 5931 and require that cargo declaration information be kept for a period of five years after conveyance arrival; and

(d) provide guidelines for the assessment of penalties for failing to reporting discrepancies.

• In June CBP plans to issue a proposed rule amending its regulations pertaining to the obligations of customs brokers to keep clients’ information confidential.

• A CBP final rule removing the regulatory provisions pertaining to the Land Border Carrier Initiative Program is slated for June.

• By November CBP intends to finalize interim regulations issued in 2008 concerning the importer security filing, or 10+2, rule.

• CBP anticipates publishing by August a final rule establishing another international registered traveler program called Global Entry, which would provide an expedited inspection process for pre-approved, pre-screened travelers. A pilot of Global Entry has been operating since June 6, 2008.

• A CBP final rule amending the requirements an individual must satisfy to take the written examination for an individual customs broker’s license has been delayed until June.

• The Transportation Security Administration is still planning to issue by October a supplemental proposed rule concerning its security programs for large aircraft, other aircraft operators and airport operators. TSA is considering alternatives to provisions in its 2008 proposed rule concerning (a) the weight threshold for aircraft subject to TSA regulation, (b) compliance oversight, (c) watch list matching of passengers, (d) prohibited items, (e) scope of the background check requirements and the procedures used to implement the requirement, and (f) other issues.

• TSA expects to finalize by November interim final regulations issued in September 2009 concerning the Certified Cargo Screening Program. The CCSP will certify shippers, manufacturers and other entities to screen air cargo intended for transport on a passenger aircraft and will be the primary means through which TSA will meet the statutory requirement that 100% of air cargo transported on passenger aircraft, operated by an air carrier or foreign air carrier in air transportation or intrastate air transportation, must be screened by August 2010.

EU Condemns US 100% Sea Cargo Scanning Law as Too Costly

(Port News/HKTDC)

A report from the European Commission (EC) has criticised the 100 per cent scanning demands for US-bound sea containers by July 1, 2012 as too far too costly.

EC commissioner Algridas Semata said the US legislation would “require sizable investments, increased transport costs and entail massive welfare losses for no proven security benefit”.

Fundamental changes of port procedures and regulations for an estimated growth in shipping costs of 10 per cent on US-bound sea freight, including EUR430 million (US$581 million) costs for scanning and radiation detection equipment and space needed for its use, and additional staffing costs for 2,200 extra personnel.

In a report from London’s International Freighting Weekly, the commission calculated combined losses of EUR10 billion for the US and European Union with global losses in the range of EUR17 billion, and an annual loss of EUR150 billion should the scanning model go worldwide.

“In the absence of a convincing demonstration that 100 per cent scanning at export would produce significant global supply chain security benefits, incurring such costs is not justified,” added the report.

Said Mr Semata: “A multi-layered approach to risk management covering all world trade” with the EU’s aim to roll-out “electronic systems and practical tools of collection of information” during 2010 would be adequate maritime security.

Report Says CBP Improving Cargo Targeting and Examination

(World Trade Interactive)

The Department of Homeland Security’s Office of Inspector General has issued the latest in a series of reports evaluating U.S. Customs and Border Protection’s Automated Targeting System. This report examines selected aspects of the ATS, determines their effectiveness in assisting CBP in detecting potential acts of terrorism, and identifies actions needed to improve the targeting of high-risk containers for inspection.

ATS is an enforcement tool that uses sophisticated automated techniques and algorithms to perform risk-based analysis of anomalies and strategic intelligence to indicate which shipments are high-risk and require additional scrutiny and mandatory security inspections. CBP officers at ports of entry also use their local knowledge and judgment to select unusual or irregular shipments for inspection. A shipment selected by ATS or local CBP officers is held for a non-intrusive inspection; i.e., an X-ray image that CBP officers use to identify anomalies such as areas that appear unusual or inconsistent with the container contents listed on the shipping documents. If CBP officers are unable to resolve the anomaly with an NII they may refer a shipment for physical examination, which may consist of a visual inspection of the container’s interior, a limited inspection of selected contents or the complete unloading of the cargo. Read more here.