Adoption of Container Security Technologies Faces Many Hurdles

(World Trade Interactive)

While the Department of Homeland Security has been working for many years to develop and implement technologies to increase the security of international cargo containers, those efforts have yielded only moderate success to date, according to a recent report from the Government Accountability Office. In addition, there are a number of substantial challenges ahead, including buy-in from the international trade community, foreign countries and international organizations.

Technologies Under Development

The report identifies four container security technology projects currently at various stages of development.

• the Advanced Container Security Device, to detect intrusion on all six sides of a container

• the Container Security Device, to detect the opening or removal of container doors

• the Hybrid Composite Container, a lightweight container with an embedded sensor grid to detect intrusion on all six sides

• the Marine Asset Tag Tracking System, to track containers

The ACSD and Hybrid Composite Container technologies have not yet completed laboratory testing, but the CSD and MATTS are proceeding to testing in an operational environment, which will determine if they can operate in the global supply chain. However, the report points out that the testing DHS plans to conduct is limited to the maritime environment and does not fully address all of the operational scenarios being considered. The report therefore recommends that DHS move to Phase II trade lane testing to better determine if these technologies will be suitable for use in their intended operational environments. Read more here.

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 Recommends Clear Goals for Importer Self Assessment

(Journal of Commerce Online – R.G.Edmonson)

Self-policing program lacks performance measures, says Inspector General

Customs and Border Protection has not clearly defined the purpose of its Importer Self Assessment, the Department of Homeland Security’s Inspector General said on Monday.

The report of the inspector general’s audit showed that Customs had not established performance measures or operating procedures for employees managing the program. Nor had it verified the effectiveness of applicants’ internal controls before admitting them to the program. Read more here.

Montreal Student Sues U.S. for Border Searches

(The Associated Press via CBC News)

Lawyers, photographers in lawsuit to stop searches without cause

Civil rights lawyers cited the case of a Montreal student Tuesday as they sued the U.S. government to try to stop authorities from examining the laptops, cellphones and cameras of international travellers without probable cause.

The lawsuit was filed in U.S. District Court in Brooklyn against the Department of Homeland Security, as well as U.S. customs and immigration authorities.

In May, a graduate student in Islamic studies at McGill University in Montreal was detained for several hours as his electronic devices were searched, the suit says. The encounter badly frightened the student, according to the suit. Read more here.

Related:
• ACLU files suit against suspicionless laptop searches at U.S. borders - Fierce Government
• Privacy watchdogs challenge laptop seizures at US orders‎ - Register
• Group sues Department of Homeland Security to stop laptop searches‎ - InfoWorld
• New lawsuit to challenge laptop searches at US border‎ - Washington Post

Getting Your Data Safely Across the Border

(Techworld)

Since the terrorist attack on the 9/11, the United States has sacrificed some freedoms and liberties in exchange for tighter security in an attempt to prevent future attacks. The ACLU has joined with other groups in filing a legal challenge to one such security measure that infringes on personal liberty--the practice of searching laptops without cause at border crossings. However, there are also other ways you can get your data across the border without having it accessed by the prying eyes of Big Brother.

Benjamin Franklin is given credit for saying “They who can give up essential liberty to obtain a little temporary safety, deserve neither liberty nor safety,” and many of the security measures that have been implemented in the wake of 9/11 violate this basic tenet. But, for some organizations that fall under HIPAA, SOX, GLBA, or other regulations, safeguarding data is not just a principle of personal freedom, but also a compliance mandate.

Check It: If you are traveling by air, you can get your laptop past the TSA (Transportation Security Administration) checkpoint and possibly CBP (Customs and Border Protection) agents by checking it with your luggage. Odds are fair that you wouldn't really use it on the flight anyway. Unless you're flying first class (and how many businesses still allow for expensing first class travel?), there is simply no room to work with a laptop. Whatever minor productivity might result is most likely not worth the effort and frustration. Read more here.

‘Buy American’ Final Rule Issued by DHS

(Specialty Fabrics Review)

The U.S. Department of Homeland Security (DHS) rejected concerns about whether the buy American requirements for textile and apparel products in the American Recovery and Reinvestment Act sufficiently assists textile manufacturing in the U.S. The agency adopted, without change, the interim rule issued in August 2009, ignoring commenters’ call to have the new rules mirror the Berry Amendment that governs textile and apparel purchases by the Department of Defense. Objections to the new rules include concerns about de minimis exceptions to the rule, allowing use of non-domestically made parts, definition of the term ‘national security interests’ and refusing to make exceptions for preferred trading partners, such as Mexico, Canada and Chile.

U.S. Department of Homeland Security’s first ever Private Sector Resources Catalog

(CBP)

I am pleased to announce today the release of the U.S. Department of Homeland Security’s first ever Private Sector Resources catalog.

The DHS Private Sector Resources Catalog allows our private sector partners to access to the resources the Department needs to help keep our country secure. Targeted specifically towards our private sector partners, this document collects the training, publications, guidance, alerts, newsletters, programs, and services available to the private sector across the department. Recognizing the diversity of the available resources as well as the continually evolving work of the department, this catalog will be updated regularly to publicize new resources and to increase private sector awareness.

You may download the catalog by visiting http://www.dhs.gov/xabout/gc_1273165166442.shtm. We encourage you to pass this message along to your colleagues, partners, and member organizations and have included a short sample newsletter item for your website, blogs, list serve and publications.

As you may be aware, DHS the Private Sector Office (PSO) coordinates active engagement between DHS and the private sector. PSO is always available to provide assistance or address your comments, questions, issues and concerns and can be reached at private.sector@dhs.gov, (202) 282-8484.

Sincerely,
Kimberly Marsho
Director, Trade Relations, Office of the Commissioner
U.S. Customs and Border Protection (CBP)
Tel: (202) 344-1440 Fax: (202) 344-4290 Kimberly.Marsho@DHS.GOV

What We're Doing to Secure the Border

(Alan D. Bersin/John Morton — Wall Street Journal)

Last year, illegal crossings in the Southwest were down 23%, to a fraction of their all-time high

Yesterday, after months of heated rhetoric and debate about Arizona's controversial new immigration law, federal Judge Susan Bolton blocked most of SB 1070 from taking effect. The move served as an important affirmation of the federal government's responsibility in enforcing our nation's immigration laws. But regardless of what happened with this case, this administration will continue to enforce the law, just as we have been doing for the past 18 months: with unprecedented resources and a clear commitment to serious, smart and effective enforcement that has yielded important results.

We are career prosecutors who lead the two main border and immigration enforcement agencies in the United States—U.S. Customs and Border Protection (CBP), and U.S. Immigration and Customs Enforcement (ICE). We know the paramount importance of enforcing the law and we understand the federal government's responsibilities. And what we have seen on the border, at workplaces, and in communities across America in the past 18 months represents the most serious approach to enforcement we have witnessed in our careers.

Read the complete editorial here.

US Starting to Work Collaboratively on the Border, Instead of Alone: Experts

(Anca Gurzu — Embassy)

Last week, Public Safety Minister Vic Toews and United States Homeland Security Secretary Janet Napolitano announced a plan to establish a first-ever cross-border approach to critical infrastructure. It would see the two nations sharing information and managing risks in an effort to better prepare and respond to natural disasters. The two countries also announced the possibility of sharing information to combat money-laundering and terrorist financing.

“Our mutual security extends beyond our borders and we must work together to mitigate threats before they reach either Canada or the US while facilitating the legitimate mobility of people and goods between us,” Mr. Toews said in a news release.

“The security of the United States and Canada is uniquely linked by proximity and a long history of close collaboration between our two governments,” followed Mrs. Napolitano.

But the history of close collaboration has not been that long, experts say. In the aftermath of 9/11, Canada has been mostly reacting to unilaterally-proposed security measures by the US, as opposed to truly working together, they say.

It is the language of this latest announcement and the last few months, however, that make experts optimistic about the move towards true collaboration. Read more here.

Failure to Prescreen Air Freight Could Mean Added Costs, Delays

(DC Velocity – Mark B. Solomon)

An August 1 deadline looms for screening all U.S. cargo carried in passenger aircraft. If more shippers don't sign on to the government's prescreening program, chaos could ensue.

It is the supply chain equivalent of putting a square peg in a round hole: An industry built on speed of delivery is being forced to stop in mid-process and examine every piece of cargo before it is loaded into the bellies of passenger planes.

Starting August 1, all shipments to be carried on passenger aircraft – 3 billion pounds each year moving in U.S. domestic or export commerce – must be screened or physically inspected prior to loading. Compliance with that mandate may prove to be the air-cargo industry's biggest challenge of the post-9/11 era.

The Transportation Security Administration (TSA), which oversees the program, said it is prepped for show time. "Both we and the industry are ready" for the August 1 deadline, John Sammon, the Department of Homeland Security's assistant administrator, transportation-sector network management, said at a June 30 congressional hearing. "All segments of the cargo community are prepared, and we expect that [the August 1 transition] will happen with little disruption." But the industry has yet to walk the walk, and the path is littered with mines… Read more here.

DHS Issues Final Rule Covering Buy American Requirements for Textile & Apparel Products

(Textile World – James A. Morrissey)

The Department of Homeland Security (DHS) has issued its final rule covering Buy American requirements for its purchases of textile and apparel products under the American Recovery and Reinvestment Act of 2009. The agency adopted, without change, its interim rule issued last August 17, and in effect rejected a number of objections from textile manufacturers, organized labor and others.

DHS said it received comments from 26 organizations and individuals and members of Congress who suggested a number of changes, as they felt the interim rule did not carry out the full intent of the legislation. Commentators called for changes in the de minimis exceptions to the rule, the definition of national security interests and the listing of some of the trading partners with which the United States has preferential trade agreements; and they also called for the DHS to “mirror” the Berry Amendment, which covers textile and apparel purchases by the Department of Defense.

Read more here. The text of the final rule is available in the Federal Register for June 9, Vol.75, No.110/Rules and Regulations, here.

U.S. Unveils Broad Crackdown on Piracy, Counterfeit Goods

(Jennifer Martinez — LA Times)

The government-wide effort includes adding 50 FBI agents to focus on intellectual property infringement

The Obama administration unveiled a government-wide strategy Tuesday to crack down on piracy and counterfeit goods, adding more than 50 FBI agents this year to tackle intellectual property abuses.

With the ubiquity of the Internet, online piracy and the sale of counterfeit goods on the Web are growing rapidly across a range of industries, including entertainment, software and pharmaceutical markets.

Vice President Joe Biden, who announced the new program, said that the problem costs Americans jobs and that counterfeit goods threaten lives.

“Whether we’re talking about fake drugs that hurt ... or knock-off car tires that fall apart at 65 miles per hour causing injury and death, counterfeits kill,” Biden said at a White House meeting that included Atty. Gen. Eric H. Holder Jr., Homeland Security Secretary Janet Napolitano and Food and Drug Administration Commissioner Margaret Hamburg. Read more here.

Judge Limits DHS Laptop Border Searches

(Declan McCullagh — CNET)

A federal judge has ruled that border agents cannot seize a traveler’s laptop, keep it locked up for months, and examine it for contraband files without a warrant half a year later.

U.S. District Judge Jeffrey White in the Northern District of California rejected the Obama administration’s argument that no warrant was necessary to look through the electronic files of an American citizen who was returning home from a trip to South Korea.

“The court concludes that June search required a warrant,” White ruled on June 2, referring to a search of Andrew Hanson’s computer that took place a year ago. Hanson arrived San Francisco International Airport in January 2009.

The Justice Department invoked a novel argument--which White dubbed “unpersuasive”--claiming that while Hanson was able to enter the country, his laptop remained in a kind of legal limbo where the Bill of Rights did not apply. (The Fourth Amendment generally requires a warrant for searches.)

“Until merchandise has cleared customs, it may not enter the United States,” assistant U.S. attorney Owen Martikan argued. “The laptop never cleared customs and was maintained in government custody until it was searched...” Read more here.

US Business Chief Calls for End of Customs ‘Hassle Factor’

(Travel Weekly)

A senior US business leader has renewed calls for improvements at US customs to cut waiting times for arriving visitors to no more than 30 minutes.

Tom Donohue, president of the US Chamber of Commerce, said it was essential to “reduce the hassle factor” at welcoming points and said more improvements needed to be made.

Speaking at the International Pow Wow trade show in Orlando, Donohue admitted that the trauma of 9/11 had “left us less than hospitable to our foreign visitors” but insisted “we are working to fix it.” Read more here.

ACSA Seeks Five Cent Screening Fee

(Aircargo Asia)

The USA-based Air Cargo Security Alliance (ACSA), comprising 300 indirect air carriers, direct shippers and customs brokers, has petitioned Janet Napolitano, head of the US Department of Homeland Security, to implement a federal cargo screening program paid for by a US$0.05 cent per pound fee on all shipments.

According to Michael Whately of ACSA, the TSA's Certified Cargo Screening Program (CCSP) as it stands will "force most small to mid-size forwarders and indirect air carriers (IAC) to face insurmountable costs and logistical hurdles before they even enter the marketplace. This will result in reduced competition and just-in-time shipping options for businesses will be severely limited. For many, the 100% screening mandate without a federal screening program operating at all American airports makes economic viability impossible."

The trade association now wants the TSA to establish and operate federal cargo screening centres at major U.S. airports and pay for it through a uniform fee.

With the deadline for 100% screening 95 days away, ACSA says "only a fraction of the more than 4,000 registered IAC and shippers have joined the CCSP to date".

Initiative Nets $143 Million in Cisco Goods

(DHS-ICE)

Operation Network Raider, a domestic and international enforcement initiative targeting the illegal distribution of counterfeit network hardware manufactured in China, has resulted in 30 felony convictions and more than 700 seizures of counterfeit Cisco network hardware and labels with an estimated retail value of more than $143 million.

The results of the operation were announced by U.S. Immigration and Customs Enforcement (ICE) Assistant Secretary John Morton, U.S. Customs and Border Protection (CBP) Commissioner Alan Bersin, Assistant Attorney General for the Criminal Division Lanny A. Breuer and Assistant FBI Cyber Division Director Gordon Snow.

In addition to the convictions and seizures, CBP reports a 75 percent decrease in seizures of counterfeit network hardware at U.S. borders from 2008 to 2009. Nine individuals are currently facing trial and another eight defendants are awaiting sentencing. Read more here.

Looming August Deadline For Air Cargo Screening

(Lexology)

US law requires that, beginning this August, 100% of cargo loaded onto passenger planes must be screened. This screening requirement applies to foreign originating flights to the United States, as well as domestic flights within the United States. For domestic departure flights, starting in August, aircraft operators will not be permitted to load cargo that has not been screened. Many have worried that this requirement will result in screening bottlenecks at airports and delayed cargo.

In response to these concerns, the Transportation Security Administration created the Certified Cargo Screening Program (CCSP), which allows US businesses to become certified to screen cargo before it arrives at an airport.

TSA and its umbrella organization, the Department of Homeland Security, are encouraging more businesses to become certified screeners. For example, DHS will ‘fast-track’ certified screening facilities for Safety Act designation, which is a form of insurance against terrorism. TSA also has indicated a willingness to consider industry-wide security standards as the bases upon which businesses may become certified to screen cargo under the CCSP. Recognition of such industry standards can reduce the burdens for businesses seeking certification. 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.

Customs Agency Loses Some of Its Clout

(Toby Gooley — DC Velocity)

As an independent agency, Customs enjoyed power and influence. Once it was folded into DHS, that all changed.

U.S. Customs and Border Protection (CBP) ain’t what it used to be—and that ain’t good, says Peter A. Friedmann, Washington counsel for the Coalition of New England Companies for Trade (CONECT).

Before it was folded into the Department of Homeland Security (DHS) in 2003, CBP was a “proud, independent” agency, Friedmann said in a March speech at CONECT’s annual Northeast Trade & Transportation Conference in Newport, R.I. Even though Customs was under the aegis of the Treasury Department, the commissioner was influential and made policy, he said.

Under DHS, however, that has changed. “The commissioner is an assistant secretary who spends one-third of his time reporting to a boss who has his own policy office,” Friedmann said. In many areas, Customs is not allowed to make decisions on its own, and it’s unclear who has executive oversight of some programs, he added. Read more here.

BSI Makes the ‘GRADE’ with U.S. Customs and Border Protection

(PR Newswire)

The Department of Homeland Security, U.S. Customs and Border Protection (CBP), Customs-Trade Partnership Against Terrorism (C-TPAT) program has selected BSI to provide a single-source, web-based intelligence repository that will be readily accessible by the C-TPAT’s Supply Chain Security Specialists (SCSS). This purpose-built solution, termed Global Risk Analysis & Data Evaluation (GRADE), will assist the SCSS through a systematic approach of quantifying country risk factors necessary to help make informed decisions on where to conduct international C-TPAT validations.

BSI maintains one of the largest, continuously-updated, non-governmental proprietary databases that quantifies the risk of more than 870 terrorist groups and their threat to Western destined commerce. GRADE will provide the Supply Chain Security Specialists up-to-date country risk analysis data, risk of terrorism threats to Western interests, cargo disruption analysis in 200+ countries, country demographics, as well as extensive travel security data. Intelligence within GRADE will assist C-TPAT SCSS determine at risk locations and at risk supply chains in order to provide a risk-based approach to C-TPAT validation site selection. Read more here.