Senate Committee Holds Hearing on Maritime Security

This is Part I of a two-part series of summaries on this hearing and will focus on the opening remarks and concerns of Committee Chairman Senator John McCain and the written remarks submitted by U.S. Customs and Border Protection (CBP) Commissioner Robert Bonner. See future issue of ITT for Part II, which will focus on the joint statement submitted by the Coast Guard, CBP, and the Transportation Security Administration (TSA).

Senator McCain Expresses Concern Over DHS' Maritime Security Efforts

In his opening remarks, Senator McCain praised the Department of Homeland Security (DHS) for making significant strides and establishing the foundation for a layered approach to transportation security in the year and a half since the Homeland Security Act of 2002 and the Maritime Transportation Security Act (MTSA) were signed into law. However, Senator McCain noted that DHS' task is far from complete and expressed the following concerns (partial list):

No comprehensive maritime security plan. According to Senator McCain, no comprehensive maritime security plan exists and the lack of resources and the demands of the DHS reorganization have inhibited its focus on its security mission. Senator McCain notes that the Coast Guard, CBP, and TSA have spent millions of dollars on numerous, and in some cases overlapping or duplicative, pilot projects, tests, initiatives, and programs aimed at improving maritime security with questionable results.

Many in maritime industry question value of C-TPAT's voluntary approach. According to Senator McCain, although 5,700 companies have signed up for the Customs-Trade Partnership Against Terrorism (C-TPAT), many of those in the maritime industry associated with the program to increase supply chain security have started to openly question the value of this voluntary approach.

Lack of coordination and absence of standards has led to industry confusion. Senator McCain states that the lack of coordination and absence of established standards and goals have lead to confusion for the maritime industry as to what must be done to improve security and whom to go to with security questions. According to Senator McCain, this type of confusion will lead to less cooperation from industry and ultimately to lax security. Senator McCain notes that it has only been in the past several weeks that the Coast Guard and CBP have reached an agreement to share manifest and vessel information reported to the two agencies by those involved in maritime transportation

CBP Commissioner Bonner Discusses C-TPAT, Smart Box, and Inspections

In his written remarks for the hearing, CBP Commissioner Bonner discussed a variety of maritime security-related issues, including (partial list):

C-TPAT members represent 40% of trade. According to Commissioner Bonner, there are over 5,900 C-TPAT members, including many major U.S. importers representing 40% of trade, all the major sea carriers, and a large number of brokers and forwarders.

CBP is sending teams globally to conduct C-TPAT validations. In order to ensure that these C-TPAT partners fulfill their commitments to CBP, Commissioner Bonner states that CBP is sending teams of CBP Supply Chain Specialists all over the globe to visit C-TPAT partners, their vendors, their vendors' plants to validate that their supply chain security protocols are reliable, accurate, and effective. According to Commissioner Bonner, those C-TPAT members that receive a favorable validation report will get expedited processing and clearances through U.S. ports on arrival and those that do not, will not receive such benefits.

(CBP has previously stated that a validation report will ideally affirm or increase the level of benefits provided to the C-TPAT participant; however, depending on the findings, some or all of the participant's C-TPAT benefits may be deferred until corrective action is taken to address identified vulnerabilities.)

CBP is working to apply Smart Box technology. Commissioner Bonner also stated that through C-TPAT, it continues to ask more of its partners and continues to raise the bar, noting that in January 2004, five C-TPAT partners agreed to enhance their supply chain security by using "smart" containers with an electronic Container Security Device that lets CBP inspectors know if it has been tampered with. According to Commissioner Bonner, CBP also continues to work with the private sector, TSA, and DHS Border and Transportation Security (BTS) on applying Smart Box technology beyond C-TPAT.

CBP inspects 5.5% of all sea containers and 100% of all containers with a potential terrorist risk are screened. Commissioner Bonner states that CBP is now inspecting 5.5% of sea containers, which is two times what it was doing two years ago. However, Commissioner Bonner notes that the right question to ask is not how many containers are being inspected, but whether the right containers are being inspected by CBP. According to Commissioner Bonner, 100% of the containers identified as having potential terrorist risk by its targeting efforts are screened through xray and for radiation either abroad or upon arrival in the U.S.

Senator McCain's opening remarks available at

http://commerce.senate.gov/hearings/testimony.cfm?id=1126&wit_id=2360.

CBP Commissioner Bonner's written statement available at http://www.cbp.gov/xp/cgov/newsroom/highlights/032404seaport_security.xml.