GAO Reports on CBP's Efforts Related to International Customs Security Standards (Mutual Recognition, 100% Scanning, Etc.)
The Government Accountability Office has issued its report to congressional requestors entitled "Supply Chain Security: CBP Works with International Entities to Promote Global Customs Security Standards and Initiatives, but Challenges Remain," which details U.S. Customs and Border Protection's efforts related to international customs security standards.
Sign up for a free preview to unlock the rest of this article
Communications Daily is required reading for senior executives at top telecom corporations, law firms, lobbying organizations, associations and government agencies (including the FCC). Join them today!
GAO's report addresses the following: (1) issues CBP and foreign customs administrations anticipate in implementing 100% scanning of U.S.-bound container cargo, (2) actions CBP has taken with international partners to achieve mutual recognition of customs security practices, and (3) actions CBP has taken to develop and implement international supply chain security standards.
CBP May Face Issues in Worldwide Adoption of Int'l Security Standards Due to 100% Scanning Mandate
CBP actively engages in the development and implementation of international customs security standards; however it may face issues in worldwide adoption of these standards because of the statutory requirement to scan 100% of U.S.-bound container cargo1.
Partners concerned 100% scanning runs counter to int'l security standards. While the pilot program (the Secure Freight Initiative (SFI)) is still underway and its full impacts are still unknown, international partners have expressed to the Department of Homeland Security (DHS) and Congress that 100% scanning runs counter to - and could adversely impact the implementation of - international customs security standards such as the Framework of Standards to Secure and Facilitate Global Trade (SAFE Framework).
(In collaboration with 11 other members of the World Customs Organization (WCO), CBP developed the SAFE Framework2, which is based in part on the core concepts of the Container Security Initiative (CSI) and the Customs-Trade Partnership Against Terrorism (C-TPAT) program.
The SAFE Framework provides guidance to WCO member customs administrations on (1) customs-to-customs practices that assist in securing the international supply chain against terrorism and other forms of transnational crimes and (2) the development of customs-to-business partnership programs such as the C-TPAT program.)
Additional resources needed or 100% scanning can't be met. Officials from CBP and the European Commission stated that unless additional resources are made available, 100% scanning could not be met. And as the GAO testified in June 2008, it is unclear who will pay for additional resources - including increased staff, equipment, and infrastructure - needed to implement the statutory requirement to scan 100% of U.S.-bound container cargo at foreign seaports.
100% scanning may provide lower level of security. Given these resource issues, officials from CBP and European customs administrations stated that scanning all cargo bound for the U.S. may actually provide a lower level of security. The officials explained that 100% scanning could result in diluting the current focus on high-risk containers.
Developing countries. Further, a European customs administration reported that 100% scanning could have a negative impact on the flow of commerce and also would affect trade with developing countries disproportionately.
CBP Works with Partners to Achieve Customs-to-Business Mutual Recognition
CBP has worked with the international customs community to achieve a system of mutual recognition by, among other things, adopting and implementing the SAFE Framework that calls for a system of mutual recognition, and by developing an action plan for the achievement of mutual recognition of customs-to-business partnership programs.
The WCO's SAFE Framework calls for the establishment of two types of mutual recognition: mutual recognition of customs controls and mutual recognition of customs-to-business partnership programs. Generally, while accepting the WCO definition of mutual recognition, CBP focuses its efforts by offering guidance on and a process for achieving mutual recognition of customs-to-business partnership programs, referred to as Authorized Economic Operator (AEO) programs.
CBP's progress in reaching MRAs with other countries. To work toward a system of mutual recognition of customs-to-business partnership programs, CBP engages in activities with other countries. For example, in June 2007, CBP signed a mutual recognition arrangement with New Zealand - the first such arrangement in the world - and later signed mutual recognition agreements (MRAs) with Jordan and Canada in June 2008. Further, CBP and the European Commission have agreed to establish mutual recognition of customs-to-business partnership programs by early 2009.
1The Implementing Recommendations of the 9/11 Commission Act of 2007 (Public Law 110-53), mandates that all maritime cargo containers must be scanned before being loaded on vessels destined for the U.S. by July 1, 2012. The 9/11 Act directs DHS to use lessons learned from the SFI pilot to educate and inform DHS on the necessary steps to fulfill the 100% scanning mandate. Under the SFI scanning pilot, 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.
2The SAFE Framework was adopted by the 173 WCO member customs administrations in June 2005; and as of July 2008 154 had signed letters of intent to implement the standards.
(See ITT's Online Archives or 08/21/08 news, 08082120, for BP summary of CBP officials discussing mutual recognition at the August 7, 2008 COAC meeting.
See ITT's Online Archives 08/28/08 news, 08082805, for BP summary of CBP officials providing an update on SFI at the COAC meeting. See ITT's Online Archives or 08/20/08 news, 08082000, for BP summary of the House Homeland Security Committee Chair's letter to DHS alleging that DHS is trying to undermine congressional intent to fully scan 100% of all U.S.-bound maritime cargo.
See ITT's Online Archives or 06/16/08 news, 08061615, for BP summary of GAO's testimony on challenges related to the SFI pilot and 100% scanning.)
GAO report (GAO-08-538, dated August 2008) available at http://www.gao.gov/new.items/d08538.pdf