WCO and Private Sector Group Issue Joint Resolution Opposing U.S. 100% Scanning Requirement
The World Customs Organization's1 Policy Commission and the Private Sector Consultative Group (PSCG)2 have issued a joint resolution: (1) opposing the U.S. requirement for 100% scanning of maritime cargo containers at foreign ports prior to loading by 2012,3 (2) urging Congress to reconsider the requirement, and (3) recommending that Congress support the WCO Framework of Standards to Secure and Facilitate Global Trade (SAFE Framework).
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100% Scanning Will be Detrimental to World Trade, Create Large Non-tariff Barrier
The WCO and its PSCG state that 100% scanning of containers at export would be detrimental to world trade, as well as economic and social development at a national and global level. They add that it would introduce a significant non-tariff trade barrier and bring about disproportionate infrastructure, operational and inventory costs to both trade and economies.
The groups state that 100% scanning would deviate from trade facilitation and logistical efficiency and result in unreasonable delays, increased storage demands and port congestion. They state it would also present severe international trading difficulties to everybody, including small and medium sized enterprises in the U.S. and other countries.
Congress Should Reconsider Requirement and Support WCO SAFE Framework
The WCO and its PSCG resolve to petition the U.S. Congress to take all appropriate steps to review the requirement and to reconsider its implementation.
The groups further recommend that Congress support the WCO SAFE Framework, pointing out that its core elements involve advance electronic cargo information; use of a consistent risk management approach to address security threats; selective intelligent outbound inspection of high-risk containers and cargo using non-intrusive detection equipment, such as scanners and detectors, based on international customs cooperation and risk analysis; and provision of benefits to businesses that comply with supply chain security standards.
(The WCO has previously stated that as of September 27, 2007, 149 countries have expressed their intention to implement the WCO SAFE Framework, including the U.S.)
U.S. is Party to WCO Convention which calls for trade facilitation. The groups add that the U.S. is a Contracting Party to the WCO Convention on the Simplification and Harmonization of Customs Procedures, known as the Revised Kyoto Convention, which has provisions on trade facilitation and risk management as well as the recommendations related to the mutual recognition of control standards and a multi-layered risk-based approach in line with the WCO SAFE Framework.
1The WCO's official name is Customs Co-operation Council.
2In February 2006, the WCO invited 30 chief executives from the private sector to participate in a Private Sector Consultative Group to advise on progress with respect to the implementation of the WCO SAFE Framework.
3The 100% scanning provision is a requirement of the "Implementing Recommendations of the 9/11 Commission Act of 2007" (Public Law 110-53) whose deadline can be extended for a port or ports if certain conditions exist. (See ITT's Online Archives or 08/08/07 news, 07080810, for Part II of a BP summary of P.L. 110-53, detailing the 100% scanning requirement and the conditions that must exist for possible extensions of the deadline.)
(See ITT's Online Archives or 11/28/07 news, 07112810, for BP summary of U.S. Customs and Border Protection officials' recent statement 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 part of the Secure Freight Initiative and is soon to be expanded in a limited capacity to 4 high volume ports.
See ITT's Online Archives or 10/23/07 news, 07102335, for BP summary announcing the WCO's December 11-12, 2007 World Customs Forum on the SAFE Framework.
See ITT's Online Archives or 10/16/07, 07101620, for BP summary of the WCO's updating its SAFE Framework provisions related to Authorized Economic Operators (AEOs), which CBP has previously compared to the U.S. Customs-Trade Partnership Against Terrorism (C-TPAT) program.
See ITT's Online Archives or 10/09/07 news, 07100999 1, for BP summary of Europe's maritime industries joining the European Commission in opposing the 100% scanning legislation.)
Joint Resolution (12/06/07) available at http://www.wcoomd.org/files/1.%20Public%20files/PDFandDocuments/Resolutions/Joint%20Resolution%20-%20FinalE.pdf