AMERICAN ASSOCIATION OF PORT AUTHORITIES Talking Points on Requiring 100% Container Scanning at Overseas Ports Updated: August 23, 2010

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1 AMERICAN ASSOCIATION OF PORT AUTHORITIES Talking Points on Requiring 100% Container Scanning at Overseas Ports Updated: August 23, 2010 At a Glance Security is one of our top priorities. AAPA and its members are fully committed to protecting America s seaports and to working closely with the Department of Homeland Security (DHS), the Administration and Congress to ensure our nation s ports and the maritime cargo supply chain are secure. Our lives and our livelihoods depend on safe, functioning and accessible ports. AAPA supports the federal government s layered security approach and urges adequate resources be provided for federal agencies to continue to carry out and improve their security programs. AAPA supports a risk-based screening, scanning and searching policy of cargo containers and encourages the federal government to perform as much of this work as possible overseas, before the cargo is loaded onto U.S.-bound ships. o The term screening means a visual or automated review of information about goods, including manifest or entry documentation accompanying a shipment being imported into the U.S., to determine the presence of misdeclared, restricted, or prohibited items and assess the level of threat posed by such cargo. o The term scanning means utilizing nonintrusive imaging equipment, radiation detection equipment, or both, to capture data, including images of a container. o The term searching means an intrusive examination in which a container is opened and its contents are devanned and visually inspected for the presence of misdeclared, restricted, or prohibited items. America s public port authorities are working with Customs and Border Protection (CBP) on the implementation of the agency s goal of 100% radiation scanning of all containers entering the U.S., by land and sea. Radiation scanning technologies are being installed at all U.S. ports of entry, including seaports, in which 98% to 99% are now scanned for radiation. These efforts have resulted in containers receiving much greater scrutiny than before 9/11, AAPA urges CBP to work more closely with ports to ensure that the next generation of scanning equipment is complementary to port operations before installation. CPB also needs to coordinate more with ports on response protocols in the event of the detection of nuclear threat in a container. 1

2 The Department of Energy, through the Megaports Initiative, is currently performing radiation scanning at 27 overseas seaports in the Bahamas, Belgium, Colombia, Dominican Republic, Greece, Honduras, Israel, Jamaica, Malaysia, Mexico, the Netherlands, Oman, Pakistan, Panama, the Philippines, Portugal, Spain, Singapore, South Korea, Sri Lanka, Taiwan, Thailand, and the United Kingdom. Implementation is underway in 16 overseas ports in Bangladesh, China, Djibouti, Dubai-United Arab Emirate, Egypt, Japan, Jordan, Kenya, Lebanon, Malaysia, Mexico, Panama, and Spain. In addition, containers that are identified as high-risk are scanned for density at 58 foreign seaports participating in the Container Security Initiative. 100% scanning of all containers overseas by July 1, 2012, as mandated in H.R. 1, is the next step mandated in our layered security program, and AAPA while opposed to setting an arbitrary deadline for 100% overseas scanning will monitor DHS progress to implement this new requirement. However, the Safe Port Act of 2006 calls on DHS to first undertake a pilot overseas scanning program to more fully evaluate the effectiveness and practicality of the new scanning technology. While H.R. 1 may be an effective approach to moving out America s borders to help keep terrorism from our shores, AAPA strongly believes that information gleaned from the pilots should be used to help craft the new security system and the policies to carry out the system. There are many tools currently available and being used to secure America s import cargo and cargo handling facilities against terrorism while 100% scanning overseas is being tested. Together, they form a layered security approach, with each new program and innovation improving upon the existing security network Background on 100% Scanning Talking Points In August 2007, as part of H.R. 1, Congress voted to implement the recommendations of the 9/11 Commission. The bill also includes language mandating 100% scanning of containers overseas and requires the use of container seals. o The bill directs the Department of Homeland Security (DHS) to require foreign seaports to scan 100% of U.S.-bound containers for radiation and density in five years. o It allows the Secretary of Homeland Security to grant waivers for up to two-year renewable increments if the Secretary can certify that: scanning technology is not available for purchase; 2

3 the scanning technology does not have a sufficient false alarm rate; the equipment cannot be deployed due to the physical characteristics of the port, scanning systems cannot be integrated; the scanning systems will significantly impact trade, and; the systems do not provide automated notification of questionable or highrisk cargo for further inspection. While H.R. 1 is aimed at carrying out the recommendations of the 9/11 Commission Report, it is important to note that the Commission did not call for 100% scanning of containers overseas. Other Aspects Related To Container Scanning There has also been confusion in the media and in public debate with the various terms used to describe cargo security, such as screening, scanning and searching. CBP employs a risk-based policy that requires cargo to be reviewed (screened) more carefully and then be either scanned and/or physically searched under certain circumstances, such as when it is from an unknown shipper or originated in a country known to support terrorism. Layered security can now be seen throughout the supply chain. Programs range from radiation portal scanning of inbound containers and the Importer Security Filing Rule (aka 10+2), to personnel security verifications like the federal Transportation Worker Identification Credential. o As part of a layered approach, CBP requires forwarding all manifest data for all containers in-bound for the United States (except military cargo) at least 24 hours in advance of arrival at any U.S. port. o In January 2009, CPB began requiring an electronic Importer Security Filing (ISF) for every ocean import. The so-called 10+2 rule requires cargo information to be transmitted to the agency at least 24 hours before goods are loaded onto an ocean vessel for shipment to the U.S. Importers can face fines up to $5,000 for each violation. The 10 data elements the importer is required to provide include: Manufacturer (or supplier) name and address Seller (or owner) name and address 3

4 Buyer (or owner) name and address Ship-to name and address Container consolidation location Consolidator name and address Importer of record number/foreign trade zone applicant identification number Consignee number(s) Country of origin Commodity Harmonized Tariff Code o The carrier must now provide two additional data elements: Vessel stow plan Container status messages o The SAFE Port Act of 2006 requires CBP to ensure that 100% of U.S.-bound containers are screened before being loaded onto ships at overseas ports, and that all high-risk containers are scanned (for both radiation and anomalies) and/or the contents are removed and physically inspected. o Much of the scanning and inspection is already done overseas as part of the Container Security Initiative. The U.S. government has agreements with 58 overseas ports, accounting for 85% of the container traffic bound for the U.S. Overseas scanning and inspection will usually be performed by agents of that particular country, in partnership with CBP, because the U.S. does not have jurisdiction. o CBP can also scan and search suspect cargo at U.S. seaports. Most containers undergo a radiation scan once they reach the U.S. for weapons of mass destruction. o If a container fails a radiation or imagery scan, its contents are removed and physically searched. CBP explains that its layered approach of screening, scanning and, when necessary, inspecting the contents of containers, is far more advanced and effective than relying only on cargo inspections. In December 2006, DHS and the Department of Energy announced the first phase of the Secure Freight Initiative, an effort to enhance port security through the federal 4

5 government s ability to scan containers for nuclear and radiological materials overseas and to better assess the risk of inbound containers. The initial phase has already begun with the deployment of existing technology and proven nuclear detection devices at seven foreign ports. In the event of a detection alarm, both Homeland Security personnel and host country officials receive an alert. The Secure Freight International Container Security project currently has three active overseas ports that are testing the viability of 100% scanning. The ports deploying scanning equipment to capture data on all containers bound to the United States are: Port Qasim in Pakistan Port Salalah in Oman Port Shuaiba in Kuwait Four ports that had previously been part of the SFI pilot program have, since 2009, been reverted to CSI ports. They are: Puerto Cortes in Honduras Port of Singapore Southampton in the United Kingdom Port Busan in Korea (Gamman Terminal) A test program of a similar system was also undertaken in the Port of Hong Kong. # # # 5