Senate passes port security bill, cracks down on unclaimed imports

Senate passes port security bill, cracks down on unclaimed imports    The U.S. Senate passed a port security bill Tuesday night that would require ocean carriers to move unclaimed cargo from their docks to a regulated customs warehouse within seven days.
   The provision authorizes Customs and Border Protection to penalize importers $5,000 for each shipment they fail to pick up in time.
   Senators view the measure as a security precaution so that containers that might contain a dirty bomb or other terrorist weapon don’t sit unaccounted for a long period, congressional staffers have said.
   The operator of the general order warehouse has the right to determine the contents of the shipment. But industry officials say the rule doesn’t do anything to identify a potentially dangerous container during the seven-day period before it gets moved.
   An earlier version of the Maritime Transportation Security Act of 2004, forwarded by the Commerce, Transportation and Science Committee, limited dock time for unclaimed cargo to five days, but the Senate added two extra penalty-free days after customs broker and shipper organizations objected. Current practice allows carriers 15 to 20 days to move unclaimed cargo into storage or face a $1,000 fine.
   The committee version of the bill was also vague about who would be penalized for causing a delay, but the full Senate cleared up any confusion by assigning liability for each bill of lading to the consignee, or receiver of the shipment.
   The National Customs Brokers and Forwarders Association of America continues to oppose the bill. In a recent position paper, the trade association said the penalties are too severe because they can be leveled on each shipment in a container. Since containers can contain dozens of separate shipments, total fines per container could reach as high as $150,000. Furthermore, removal of containers into public storage and requiring inspection prior to delivery will further delay shipments, potentially adding to demurrage charges ocean carriers assess for late pick ups.
   In a letter to the Commerce Committee earlier this year, the NCBFAA also pointed out that the provision is unfair because Customs is often slow to release goods and ocean carriers or importers cannot transport a container until Customs releases the entry.
   The bill must still be approved by the House of Representatives. An industry source said it is unlikely that the Transportation and Infrastructure Committee will take up the bill during this session of Congress, but worries a precedent has been set for future legislation.
   The port security bill also calls on the Maritime Administration and the State Department to identify foreign aid programs that could be used to help less developed countries implement port security programs to thwart acts of terror.
   The United States, for example, is trying to get many countries to participate in the Container Security Initiative by allowing the United States to station inspectors in foreign ports and then using non-intrusive inspection equipment to scan suspicious containers. Many countries, however, cannot afford the expensive equipment necessary to conduct such inspections.
   The bill also requires the Department of Homeland Security to submit a report assessing the progress countries in the Caribbean have made to implement port security measures. The report is to identify ports that are not in compliance with the International Ship and Port Facility Security code that went into effect in July.
   In addition, the bill requires the Maritime Administration, in coordination with the Federal Law Enforcement Training Center, to establish a curriculum to educate federal and state officials on commercial maritime and intermodal transportation so that they better understand vulnerabilities and operational practices in the maritime industry. Another part of the bill also requires DHS to make recommendations for coordinating federal efforts to carry out background checks on people working in the transportation sector, set a deadline to implement a screening program and a establish a timeline for implementing a uniform Transportation Worker Identification Card.
   Another provision, endorsed by the Sept. 11 Commission and other security experts, requires federal grants awarded by DHS to help ports implement security plans to be based on an assessment of risk and strategic priorities so that ports that are more vulnerable or critical to the nation’s commerce receive a greater portion of the money.