Details of Bill to Waive 100% Maritime Scan Deadline, Add C-TPAT Benefits

(Senators Collins and Murray introduced a similar bill in 2010 (S. 3659) and co-authored the original Security and Accountability for Every (SAFE) Port Act of 2006. See ITT’s Online Archives or 07/30/10 news, 10073013, for BP summary of S. 3659.)

DHS Could Waive 100% Scanning Requirement if Certain Conditions Met

S. 832 would allow the DHS Secretary to waive the statutory 100% scanning requirement for maritime cargo if the Secretary certifies to Congress that:

• C-TPAT revalidations are occurring at least once every 4 years;
• The Container Security Initiative (CSI) has been implemented and is in operation at all high-risk foreign ports;
• 100% of maritime cargo containers originating outside the U.S. undergo a screening to identify high-risk containers²;
• 100% of the maritime containers that have been identified as high-risk are scanned or searched before entering the U.S².; and
• the required 10+2 data elements have improved the capabilities of the Automated Targeting System (ATS), based on empirical evidence of seizures of illegal narcotics and dangerous materials.

According to Senators Collins and Murray, this provision would address the difficulties in administering the July 2012 mandate of x-raying and scanning for radiation all cargo containers overseas that are destined for the U.S.

Law Requires 100% Scanning by July 1, 2012, but Allows Conditional Extensions

Under The Implementing Recommendations of the 9/11 Commission Act (Public Law 110-53), a container that was loaded on a vessel in a foreign port would be prohibited from entering the U.S. (either directly or via a foreign port) unless the container was scanned by non-intrusive imaging (NII) equipment and radiation detection equipment at a foreign port before it was loaded on a vessel.

The deadline for this requirement is July 1, 2012 or such other date as established by the DHS Secretary, whichever is earlier. The DHS Secretary is given authority to extend the deadline by 2-year increments, if certain specified conditions exist.

The DHS Secretary told Congress in 2009 that the agency would seek a two-year extension, putting the new deadline at July 1, 2014. (See ITT’s Online Archives or 07/26/10 news, 10072616, for BP summary on the DHS Secretary’s testimony.)

C-TPAT Would be Strengthened by Providing Additional Benefits

S. 832 would also require DHS to strengthen the C-TPAT program for Tier 2 and Tier 3 participants by:

Tier 2. Expanding Tier 2 C-TPAT participant³ benefits to include voluntary training on supply chain security.

Tier 3. Expanding the benefits for Tier 3 C-TPAT participants⁴ to include voluntary training on supply chain security.

In addition, a program would be established to promote sharing information with Tier 3 C-TPAT participants and other private entities regarding (i) potential vulnerabilities, attacks, and exploitations of the international supply chain; and (ii) means and methods of preventing, responding to, and mitigating consequences from such vulnerabilities, attacks, and exploitations.

This new program would involve the creation of (i) classified and unclassified means of accessing information that will provide, as appropriate, ongoing situational awareness of the security of the international supply chain; and (ii) guidelines on establishing a mechanism for owners and operators of international supply chain infrastructure to report actual or potential security breaches.

(See ITT’s Online Archives or 04/18/11 news, 11041825, for BP summary of the U.S. Customs and Border Protection Commissioner’s statements at the annual Trade Symposium, that he would like to see increased C-TPAT participation and was interested in trade input on additional benefits for C-TPAT participants.)

Would Allow Unannounced Inspections of C-TPAT Security Measures by CBP

S. 832 would allow the DHS Secretary, acting through the CBP Commissioner, to conduct an unannounced inspection of a C-TPAT participant's security measures and supply chain security practices if the Commissioner determines, based on previously identified deficiencies in security measures and supply chain security practices of the C-TPAT participant, that there is a significant likelihood that such an inspection would assist in confirming the security measures in place and further the validation process.

Would Require Congressional Notice, Equivalence Before Mutual Recognition

S. 832 would require the DHS Secretary to:

• notify Congress of the proposed terms of a mutual recognition arrangement for C-TPAT and another country’s trusted shipper program; and
• determine, in consultation with the CBP Commissioner, that the foreign government's supply chain security program provides an equivalent level of supply chain security as provided by C-TPAT,

not later than 30 days before entering into an arrangement between the U.S. and a foreign government providing for mutual recognition of supply chain security programs, which may result in the awarding of Tier 1, 2, or 3 C-TPAT benefits:

(See ITT”s Online Archives or 03/30/11 news, 11033016, for BP summary on the signing of a letter on expansion of C-TPAT mutual recognition by the U.S. and New Zealand.

See ITT’s Online Archives or 03/12/10 news, 10031210, for BP summary of CBP update on C-TPAT Mutual Recognition.)

FY 2011-2016 Funding Would be Authorized for C-TPAT, CSI, and ATS

S. 832 would authorize FY 2011-2016 funding for C-TPAT, CSI, and ATS. The 2011 authorization levels in S. 832 would be lower than the 2010 levels for both C-TPAT and ATS, but higher for CSI and would increase by approximately 16% over the six year period.

(Authorizing legislation can authorize the enactment of appropriations for an agency or program. However, separate appropriations legislation is needed to actually fund an agency and provide it with budget authority.

ATS, C-TPAT, and CSI were codified and appropriations were authorized through 2010 by the SAFE Port Act of 2006 (Public Law 109-347). Since the expiration of their authorization on December 31, 2010, these three programs have been operating as “unauthorized appropriations.”)

Port Security Grant Program Would be Extended, Less Funding Authorized

According to a Committee press release, S. 832 would also extend the competitive, risk-based, grants to improve port security. The authorization of port security grant program appropriations for the next five years at $300 million per year would be a 25% decrease from the current authorization level.

America’s Waterway Watch Program Would be Enhanced

The S. 832 press release also states that the bill would enhance the America’s Waterway Watch Program to promote voluntary reporting of suspected terrorist activity or suspicious behavior against a vessel, facility, port, or waterway. S. 832 includes protections for citizens from frivolous lawsuits when they report, in good faith, suspicious behavior that may indicate potential terrorist activity.

¹Ranking Member of the Senate Homeland Security and Government Affairs Committee

²These conditions are currently required under 6 USC 982(a) and were established by P.L. 110-53.

³Certified C-TPAT companies that successfully undergo a validation are eligible to receive Tier 2 status and benefits if minimum security criteria are met.

⁴Certified C-TPAT companies that successfully undergo a validation are eligible for Tier 3 status and benefits if minimum security criteria are exceeded and security best practices are adopted.

(See ITT’s Online Archives or 04/15/11 news, 11041530, for BP summary announcing the introduction of S. 832.)

Press release on S. 832 available here

S. 832 available here