Highlights of House-Passed SAFE Port Act (Part II - Advance Data, CSI, Container Security, Etc.)

(Although the House has passed H.R. 4954, it is not in effect. Generally, in order for a bill to be implemented, identical versions of that bill must be passed by both the House and Senate and then the bill must be approved (enacted) by the President.)

This is Part II of a multi-part series of summaries on H.R. 4954 and provides highlights of the bill's provisions on advance transmission of additional data elements, the Container Security Initiative (CSI), etc. See future issues for additional summaries on H.R. 4954.

Additional Advance Data Elements Prior to Loading at Foreign Seaport

According to H.R. 4954, the Secretary shall require transmission to the Department of Homeland Security (DHS), through an electronic data interchange (EDI) system, of additional data elements for improved high risk targeting, including appropriate security elements of entry data, as determined by the Secretary, to be provided as advanced information with respect to cargo destined for importation into the U.S. prior to loading of such cargo on vessels at foreign seaports. The Secretary would be required to promulgate regulations to carry out this provision.

Plan to Improve Targeting of High Risk Containers

H.R. 4954 would require the Secretary to develop and implement a plan to improve the Automated Targeting System (ATS) for the identification of high-risk containers moving through the international supply chain. H.R. 4954 states that the Secretary shall consider:

the cost and feasibility of (a) requiring additional nonmanifest documentation for each container; (b) adjusting the time period allowed by law for revisions to a container cargo manifest; (c) adjusting the time period allowed by law for submission of entry data for vessel or cargo; and (d) such other actions as may be considered beneficial.

future iterations of the ATS which would incorporate smart features, instead of relying solely on a rule sets that are periodically updated.

CBP states that in considering new or expanded information submission requirements, the Secretary shall consult with stakeholders and identify the need for such information, provide safeguards that ensure confidentiality with respect to such information, and identify appropriate timing of the submission of such information, in the plan described above.

Minimum Standards for Sealing Containers, Etc.

H.R. 4954 would require the Secretary to establish minimum standards and verification procedures for securing containers in transit to the U.S. relating to the sealing of containers. Not later than two years after such minimum standards and verification procedures are established, H.R. 4954 would require all containers bound for ports of entry in the U.S. to meet such standards and procedures. H.R. 4954 would also require the Secretary to regularly review the standards and procedures and enhance them as appropriate.

H.R. 4954 also encourages the Secretary to promote and establish international standards for the security of containers moving through the international supply chain with foreign governments and international organizations.

CSI, Additional Requirements for Higher Risk Cargo

H.R. 4954 authorizes the Secretary to establish and implement a program (to be known as the Container Security Initiative) to identify and examine maritime containers that pose a risk for terrorism at foreign ports before the containers are shipped to the U.S.

H.R. 4954 states that before the Secretary designates any foreign port under CSI, the Secretary, in consultation with others, shall conduct an assessment of the port, including specified items for consideration. The bill would also require the Secretary to notify appropriate congressional committees prior to notifying the public of the designation of a foreign port under CSI.

H.R. 4954 contains provisions outlining CSI inspection requirements and procedures and foreign assistance.

H.R. 4954 states that the Secretary shall issue a "do not load" order to each port designated under CSI to prevent the onload of any cargo that has been identified as higher risk by the ATS unless the cargo:

is scanned with a non intrusive imagery device and nuclear or radiological detection equipment;

is devanned and inspected with nuclear or radiological detection equipment; or

is determined to be of lower risk following additional inquiries by appropriate U.S. Customs and Border Protection (CBP) personnel.

Yearly status report on CSI. H.R. 4954 would require the Secretary to submit to appropriate congressional committees not later than March 1 of each year a report on the status of CSI.

Authorization of appropriations for CSI. H.R. 4954 would authorize the appropriation of $196 million for each of the FYs 2007 through 2012 to carry out the above listed CSI provisions.

Strategic Plan to Enhance International Supply Chain Security

H.R. 4954 would require the Secretary of Homeland Security (Secretary), in consultation with certain other parties, to develop and implement, and update as appropriate, a strategic plan to enhance the security of the international supply chain. H.R. 4954 discusses issues related to the strategic plan, such as requirements, utilization of advisory committees, international standards and practices, etc.

EDI System to Share Supply Chain Risk Information with Private Sector

H.R. 4954 requires the Secretary to develop a secure EDI system to collect from and share appropriate risk information related to securing the supply chain with appropriate private sector entities. In developing the system, the Secretary would be required to consult with the Commercial Operations Advisory Committee (COAC) and others.

According to H.R. 4954, the voluntary information collected through the above described system shall be used exclusively for ensuring security and shall not be used for determining entry or for any other commercial enforcement purpose. The voluntary information submitted to DHS through the system shall not be construed to constitute compliance with any requirement to submit such information to a Federal agency under any other provision of law.

H.R. 4954 states that the Secretary may provide advisories, alerts, and warnings to relevant companies, targeted sectors, other governmental entities, or the general public regarding potential risk to the supply chain as appropriate. In issuing the warning, the Secretary would be required to take appropriate actions to protect from disclosure the source of the information that forms the basis of the warning and proprietary, business sensitive, etc. information.

In addition, H.R. 4954 states that an officer or employee of the U.S. or of any department or agency thereof, that knowingly publishes, divulges, discloses, or makes known in any manner or to any extent not authorized by law, any supply chain security information protected from disclosure, shall be fined under 18 USC, imprisoned not more than 1 year, or both, and shall be removed from office or employment.

(See ITT's Online Archives or 05/08/06 news, 06050805, for BP summary on the passage of H.R. 4954 and the amendments which were adopted prior to passage.

See ITT's Online Archives or 05/10/06 news, 06051010, for Part I of this multi-part series of summaries.)

H.R. 4954 available at http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=109_cong_bills&docid=f:h4954eh.txt.pdf.