World Shipping Council President Discusses Container Security, Etc.

U.S. Government is Reviewing How to Obtain Additional Data to Improve Cargo Screening

In his remarks on container security risk assessment and targeting, Koch stated that while CBP's Automated Targeting System (ATS) uses various sources of data, the only data that the commercial sector is required to provide CBP for each shipment for the before-vessel-loading security screening is the ocean carrier's bill of lading/manifest data filed under the 24 Hour Rule.

Koch states that no data is required to be filed into ATS by the U.S. importer or the foreign exporter that can be used in the pre-vessel loading security screening process, even though these parties possess shipment data that CBP officials believe would have security risk assessment relevance that is not available in the carrier's manifest filings, and notwithstanding the fact that U.S. law requires the cargo security screening and evaluation system to be conducted "prior to loading in a foreign port."

Koch notes that today, cargo entry data is required to be filed with CBP by the importer, but is not required to be filed until after the cargo shipment is in the U.S., often at its inland destination - too late to be used for security screening purposes.

According to Koch, the government recognizes that it must improve the cargo shipment data it currently uses for its risk assessment. An ocean carrier's bill of lading by itself is not sufficient for cargo security screening. Koch notes that CBP and the Department of Homeland Security (DHS) officials continue to review this issue, but have not yet announced a decision on what to do. In the nearer term, Koch states that CBP has accelerated its efforts to review what additional data it would like to obtain to improve its cargo screening system. While it is not certain at present what decisions will be made in this regard, Koch states that two issues being reviewed are:

Earlier filing of importer cargo entry data - advancing the time for filing of U.S. importers' cargo entry data to before vessel loading to coincide with the 24 Hour Rule's carrier manifest filing;

Additional data elements -obtaining new, additional data elements needed for better screening that would be in addition to the carrier's manifests and the importers' cargo entry data.

CBP Container Seal Verification Rule Could Take Effect Sometime in 2006

Koch notes that while the most important and challenging container security issue is to ensure that containers are loaded with cargo securely in the first place, it is also important to have a system that can help determine whether a container may have been tampered with while in-transit. The U.S. government is in the process of developing a proposed container seal verification rule as the most practical way to address this issue in the near future. The draft regulation is in the final review process and DHS officials state that it is likely to be proposed by the end of the year. Public comments would then be solicited and it would be reasonable to expect that such a requirement could become effective sometime in 2006.

RFID, Smart Containers, and Other Technology Issues

Koch also addressed various technology-related issues in his remarks - including the application of radio frequency identification (RFID) technology to containers. According to Koch, the WSC has detected little current interest from shippers (with the exception of the U.S. military) in an externally affixed RFID cargo shipment tag and that the principal ocean carrier RFID interest has become focused on e-seals.

Koch notes that there continues to be some discussion within the U.S. government of "smart" containers and that although the idea of transforming containers into "smart," impregnable fortresses clearly has an appeal; reality requires the addressing of various issues.

WSC President Koch's remarks (dated 09/15/05) available at http://www.worldshipping.org/speech_sing_ship_assoc.pdf.