Trade Groups Call for Re-evaluation of 100% Cargo Inspection Mandate

A wide range of trade associations called on the Obama administration to request a re-examination of the law that requires 100 percent scanning on U.S.-bound maritime cargo containers, in a June 20 letter (here) to Department of Homeland Security (DHS) Secretary Jeh Johnson. DHS recently notified Congress that it again needs a two-year delay in the deadline to implement the requirement (see 1605310028). The industry signatories, made up of the National Customs Brokers & Forwarders Association of America, the National Retail Federation, the American Apparel and Footwear Association and 67 other organizations, also expressed support for extending the implementation deadline.

Rather than "going through this waiver exercise every two years" DHS should "recommend to the Congress a comprehensive re-evaluation of the 100% scanning requirement to find a path forward that allows the Department, industry and our trading partners to focus on real solutions to address any security gaps that remain in the global supply chain," the groups said. "With limited resources, we need to implement the most effective strategy that actually provides enhanced supply chain security."

While supportive of DHS's request for information on new technologies to help with supply chain security, the trade groups are wary of the effort. "We are concerned that DHS is seeking 'quick wins' without identifying what the 'immediate payoffs' should be or clarifying that such recommendations should not impose a greater burden on the larger trade community," the groups said. "As DHS, along with the stakeholder community, looks to address these security issues in the future, it is of utmost importance to consider long term workable solutions as our collective goal." DHS didn't immediately comment.

Johnson's assessment in 2014 that “'DHS’s ability to fully comply with this unfunded mandate of 100% scanning, even in long term, is highly improbable, hugely expensive, and in our judgment, not the best use of taxpayer resources' continues to be accurate," the groups said. DHS delayed implementation of the law in 2014 and in 2012 (see 12061926). CBP uses other methods for monitoring high-risk containers, such as the Customs-Trade Partnership Against Terrorism and the Importer Security Filing, DHS said at the time. Trade groups made a similar request after the last implementation extension (see 14060233).

The law lacks guidance on implementation, and lawmakers have yet to determine the resource and structural details of implementation, the industry letter said. "The statutory provision calling for 100 percent overseas container scanning has always been, and remains, impractical to achieve on a global level,” the letter said. Implementation of the scanning requirement “would have a significantly negative impact on global commerce and cause significant conflict with our foreign trading partners, many of which have stated their opposition to the U.S. mandate.” The groups also sought additional information on the definition of "scanned," operational and logistical issues, and consideration of foreign governments' consent to implement such a mandate within their territories.