Wednesday, October 21, 2009

Update: Official US Chamber of Commerce stance on 100% container scanning

Yesterday's blog post on DevelopedEconomy.com, regarding 100% container scanning, contained a brief report from a keynote at a local economic development summit.

Today, after sending a request to the US Chamber of Commerce representative that spoke (via Gary Mabrey, a Johnson City, TN, Chamber executive who served on the USCoC's board for several years), I've received a bit more detail on the USCoC's stance on this topic.

From Ann M. Beauchesne, VP, National Security & Emergency Preparedness Department for the USCoC:

The technical and infrastructure constraints are two of the greatest shortcomings of the mandate. In many meeting with Customs and Border Protection (CBP) they actually show photos of scanned containers and have the audience guess the contents. Never once has the audience guessed correctly, and we have seen dozens of examples. CBP remains committed to a risk based approach to security to maximize impacted and costs. Congress created the mandate but they did not give CBP or the trade community the funding to see it implemented. Consequently we find the international community completely in line with leaders at CBP and the business community.

To give you a better understanding of our position on 100 percent scanning here are some recent statements we have made to both the administration and Capitol Hill:

The Chamber opposes any laws, policies, or regulations that require 100 percent scanning of maritime containerized cargo prior to lading at overseas ports. A policy of blanket inspection misdirects limited resources away from programs with the greatest security benefits and places an unnecessary burden on the global supply chain. Since the passage of the 9/11 Act in 2007, it has become evident, as the Department of Homeland Security (DHS) has reported, that the 100 percent mandate is impracticable. Beyond the direct costs of implementation, the hidden costs contribute to greater supply chain delays and increased trade barriers. In light of the operational shortcomings of this mandate, keeping the law in place sends a confusing message to the international community and threatens U.S. credibility in the development of a viable trade security program.

Many of these concerns with 100 percent scanning requirements have been shared with Congress by the current and past leadership at DHS, the Governmental Accountability Office, and the international community. These concerns include:

• significant technical and affordability challenges with current technology;
• insufficient infrastructure at foreign ports;
• threat of reciprocity by international community;
• strong opposition from U.S. trading partners;
• customs limited resources focused on an ineffective program;
• security is actually diminished, not enhanced; and
• significant impact on global trade and economic recovery.

The Chamber believes that the United States should reach out to its trading partners to develop a comprehensive, multilateral supply chain security program that promotes trade and security on both sides of the transaction. The United States can accomplish these goals by furthering discussions on the World Customs Organizations SAFE Framework and moving forward on mutual Recognition. Businesses harmonize processes around the globe and governments should as well.

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