U.S. Will Not Proceed with Singapore SFI 100% Scanning Pilot

Earlier in 2008, Singapore agreed to work with CBP on this 100% scanning pilot to assess the feasibility of the approach in a major hub port. The SFI pilot in Singapore was scheduled to begin in the second half of 2008.

U.S. to Focus on High-Risk Trade Corridors to Initiate 100% Scanning

However, CBP states that following careful consideration of the SFI pilot results and feedback from the SFI pilot ports, CBP, has decided to focus on high-risk trade corridors² in order to maximize the security benefit realized given the limited resources available to all governmental and private sector operators in the international supply chain as the most effective strategy to initiate 100% scanning.

U.S./Singapore to Explore Alternatives Using Risk Management/Total Supply Chain Approach

Having discussed this change in strategy and its application to port operations in Singapore, CBP and the Government of Singapore have agreed not to proceed with the SFI 100% scanning pilot in Singapore.

CBP and the Government of Singapore will instead work together to explore alternative approaches toward enhancing container and trade security through risk management and a total supply chain security approach. In particular, CBP and the Government of Singapore will actively work together to develop the Asia-Pacific Economic Cooperation (APEC) Trade Recovery Program, an effort aimed at helping APEC economies to resume the flow of trade in times of heightened security.

U.S./Singapore Also Working Toward Mutual Recognition of C-TPAT Programs

In addition, U.S. CBP and Singapore Customs are actively working towards mutual recognition for each others' authorized economic operator (AEO) programs (e.g., the U.S.' Customs-Trade Partnership Against Terrorism (C-TPAT).)

(CBP officials recent stated that the U.S. and Singapore are making progress toward mutual recognition and are currently in the first stage - the side-by-side comparison of their respective supply chain security programs. (See ITT's Online Archives or 08/21/08 news, 08082120, for BP summary.)

¹The first three SFI pilot ports (Puerto Cortes, Honduras; Port Qasim, Pakistan; and Southampton, United Kingdom) became fully operational on October 12, 2007. CBP and the Department of Energy have been expanding the deployment of scanning equipment to certain terminals in Hong Kong, Salalah (Oman), Port Busan (South Korea), and prior to this announcement, Singapore.

Under the SFI pilot scanning project, integrated scanning systems, consisting of Radiation Portal Monitors and non-intrusive inspection imaging systems are used to scan containers as they move through foreign ports. Data from these systems is integrated utilizing optical character recognition technology and provided to CBP officers who determine if the container should be referred to the host nation for secondary examination prior to lading.

²In early August 2008, the Chairman of the House Homeland Security Committee sent a letter to the Secretary of the Department of Homeland Security (DHS) stating that DHS is trying to undermine congressional intent to fully scan 100% of all U.S.-bound maritime cargo. In the letter, the Chairman noted that DHS' decision to only focus on high-risk trade corridors has significantly damaged the U.S.' relationship with several key countries and the private sector. The Chairman stated that at least two countries have pulled out of the SFI pilot and at least one port operator has withdrawn as well; a lack of clarity as to whether DHS intends to implement the 100% scanning requirement was cited as a factor in the decision to abandon the SFI pilot. (See ITT's Online Archives or 08/20/08 news, 08082000, for BP summary.)

CBP statement (dated 08/21/08) available at http://www.cbp.gov/xp/cgov/newsroom/news_releases/08212008.xml.