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Container inspection proposal could paralyze trade system

Staff -- Logistics Management, 4/1/2003

Shippers and carriers are fretting that a resurrected proposal for 100-percent inspection of all U.S.-bound containers from foreign ports, if passed, could create the very kind of disruption it seeks to prevent.

The Port Protection Act of 2003, introduced in the House of Representatives by Rep. Jerrold Nadler (D-N.Y.), calls for U.S. authorities to inspect, verify, and seal all inbound ocean containers at their ports of origin. Nadler and other lawmakers have criticized U.S. Customs' current practice of physically inspecting just 2 to 3 percent of incoming cargo, saying it's not enough to provide adequate protection.

But with more than six million containers entering the country annually, Nadler's proposal is impractical, says Peter Gatti, vice president of international relations with the National Industrial Transportation League. "I don't think that the people pushing for this type of approach ... take into account the initiatives out there that are being undertaken to make the transportation system safe from people who want to see it crippled. And while they may be very well intentioned, their proposals would in essence do just that," he says.

At a recent meeting of the American Association of Port Authorities, Asa Hutchison, undersecretary for border and transportation security in the Department of Homeland Security (DHS), voiced his opposition to the plan. "Whether it's [inspecting] 2 percent or 10 percent misses the point," he said. "Our objective is to screen 100 percent of at-risk cargo." Hutchison also said that cargo security is steadily improving. To date, 2,000 companies have signed up for the Customs-Trade Partnership Against Terrorism (C-TPAT), and DHS is working to improve information and intelligence sharing among its various agencies, he said.

Nadler introduced a similar proposal last year that died in committee. While he doesn't think the bill will go anywhere, Gatti is keeping an eye on it. "This is just one of a number of proposals we're watching," he says. In the meantime, he adds, his group will continue to work with federal agencies to bring about changes that will make the transportation system as secure as possible while keeping international commerce moving.

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