International shippers, carriers and import trade organizations are up in arms over legislation that would impose new documentation burdens on shippers and carriers. Sen. Ernest "Fritz" Hollings (D-S.C.) has sponsored the Cargo Security Act of 2002, which among other things, would require importers to provide a six-digit Harmonized Tariff Schedule classification to ocean carriers for inclusion on vessel manifests. That would make the information available to the U.S. Customs Service prior to arrival at the U.S. port of entry. The requirement would also apply to in-bond shipments, which are cleared at inland points rather than at the port of entry.

More than 60 importers, customs brokers, carriers and trade associations sent letters to Congress last month registering their opposition to the provision, which reportedly is being pushed by customs officials.

Harmonized Tariff Schedule numbers are used to classify merchandise to determine the payment of duties. The numbers consist of a series of digits that represent varying levels of detail about product characteristics. That information is used during customs clearance, which usually is finalized soon after the shipment enters the country.

Proponents believe that more information is needed before cargo enters the country to prevent future terrorist attacks. But opponents say that this new requirement will not improve cargo security. "Given the variety of controls currently in place, the addition of this specific data element would provide no meaningful benefit to national security as related to imported cargo," says Carol J. Sheldon, vice president of imports, North America at Danzas AEI Intercontinental.

Trade groups also note that to comply with the proposal, they would have to provide the exact classification of the goods to the carrier before the vessel is loaded overseas, but many importers do not have that information at that point. On top of that, opponents contend, if carriers, which do not now handle these data, are required to include them on cargo manifests, carriers would be forced to assume the traditional duties of customs brokers.

"We see no commercial or security reason to provide cargo manifest data to the six-digit number," says Erik Autor, a vice president and international trade counsel for the National Retail Federation, which is fighting inclusion of that provision in the bill. "... All Customs needs to know [at the time of entry] is what generally is in the container—trousers, shirts, sweaters—and who has control of the container."

Importers are also concerned that providing more shipment information could invite more cargo theft at ports. "They want the carrier to transmit the manifest to Customs prior to arrival of the ship," says Autor. "The carrier generally does not have that kind of information and the shipper, of course, is concerned about providing too detailed a description of the cargo to the carrier because it then becomes public knowledge."

At press time, the legislation was in conference committee for reconciliation of the House and Senate versions. After that, the legislation will go back to both chambers for a final vote.