CBP Officials Discuss the Secure Freight Initiative (GTX, 100% Scanning, and 102)

Highlights of this discussion are provided below. See future issues of ITT for additional details from this COAC meeting.

Global Trade Exchange Request for Quotation Expected Soon

CBP officials provided COAC with an update on the GTX proposal, which CBP states is still in the notional stage.

According to CBP officials, GTX would be a private sector owned and operated data clearinghouse where data provided by the trade would be collected, assembled, and transmitted to CBP and other customs services.

CBP officials stated that the data collected would be information that has not historically been collected for entry and clearance purposes (e.g., purchase order data, etc.) and would be used primarily for analysis and targeting.

CBP officials characterized the issue of how customers who voluntarily decide to use GTX would pay for it as a difficult one, noting that one suggestion was to make it a fee-based system.

CBP officials added that the GTX is in the request for quotation (RFQ) process which they describe as follows:

a. an RFQ will go out to vendors with a specific set of criteria that CBP has established for GTX (e.g., what CBP thinks the system should be);

b. interested vendors will provide CBP with a proposal of what they can develop to meet CBP's criteria;

c. CBP will select a proposal from a vendor; and

d. the vendor will then solicit voluntary participation in GTX from the trade community.

(DHS Secretary Chertoff has recently described the RFQ process as a small-scale solicitation for proposals to test and validate the GTX concept. See ITT's Online Archives or 11/20/07 news, 07112005, for BP summary.)

According to CBP officials, the RFQ is expected to be out fairly soon and CBP will be able to provide more details at that time.

100% Scanning to Soon be Expanded in Limited Capacity to 4 High Volume Ports

CBP officials noted that 100% scanning of all U.S.-bound maritime containers is currently operational in three ports - Qasim, Pakistan; Southampton, United Kingdom; and Puerto Cortez, Honduras. As a result, CBP noted that is it meeting the requirements of the Security and Accountability for Every (SAFE) Port Act.

While CBP is still working through some issues at these three initial ports, it is now focused on gathering a list of lessons learned from its experiences. CBP officials discussed a number of challenges they faced when implementing 100% scanning at the initial three ports, including climate issues in Qasim and Puerto Cortez which affected both the images transmitted and the scanning equipment itself. CBP officials noted that although the volumes at these three initial ports were not very high, they gave CBP an opportunity to test the feasibility of 100% scanning before moving it to higher volume ports.

According to CBP officials, 100% scanning will be up and operational in four additional ports in a limited capacity in late 2007 and early 2008 - Hong Kong (Modern Terminal), Singapore (Brani Terminal), Busan, Korea (Gamman Terminal), and Salalah, Oman.

CBP officials noted that in Hong Kong, Singapore, and Busan, although 100% scanning will be operational at one terminal only, they are very high volume ports.

(See ITT's Online Archives or 10/16/07 news, 07101610, for BP summary on 100% scanning becoming fully operational in Qasim, Southampton, and Puerto Cortez, with expansion to four additional ports.)

CBP Must Report to Congress on 100% Scanning in February and April 2008

CBP officials noted that they are required to soon submit to Congress two reports on 100% scanning - a February 2008 report to the Appropriations Committees and an April 2008 "key" report to the House Homeland Security Committee.

102 Proposed Rule Expected by End of 2007

CBP officials also provided an update on the status of the 102 Security Filing (SF) proposed rule for maritime cargo, noting that it is currently under Office of Management and Budget (OMB) review.

According to CBP officials, CBP has responded to a number of OMB questions and that the proposed rule is expected to be issued by the end of 2007.

(CBP has previously stated that once the proposed rule is issued, there is expected to be a 60-day comment period. Although CBP has stated that the proposed rule would be 'pretty much in final form,' other CBP sources have stated that CBP would consider modifications during the comment period, as CBP expects to hear from a broader audience than those consulted during the proposed rule's development. See ITT's Online Archives or 10/16/07 news, 07101605, for BP summary on expectations for the 102 proposed rule.)

(See ITT's Online Archives or 11/20/07 news, 07112005, for BP summary of DHS Secretary Chertoff's discussion of SFI at CBP's 2007 Trade Symposium.

See ITT's Online Archives or 11/27/07 news, 07112705, for BP summary of the C-TPAT issues discussed at the November 16, 2007 COAC meeting.)