Import safety panel recommends risk-based enforcement scheme

Import safety panel recommends risk-based enforcement scheme A cabinet-level panel appointed by President Bush this summer to study how to improve and enforce safety standards on imported goods said the United States needs to shift from inspecting goods at the point of entry to a model focused on prevention and verification of safety compliance throughout the production and logistics cycle.
   The recommendation was part of a preliminary report issued Monday by the Interagency Working Group on Import Safety that highlighted strategic ways to address safety in the wake of dozens of incidents this year of tainted or adulterated food, toys, health products, tires and other products from China. The committee is scheduled to issue a specific action plan by mid-November to achieve the goals listed in the report.
   The United States imports about $2 trillion worth of products from more than 150 countries and that trade is expected to triple by 2015. The complexity of monitoring cross-border shipments is highlighted by the fact that more than 825,000 importers brought shipments into the country in 2006 through 300 ports of entry, and that large chunks of trade comes from countries with less developed regulatory systems. Critics say the Consumer Product Safety Commission, the Food and Drug Administration and other agencies have not been given adequate resources to police the rapid rise in imports this decade.
   The group said the government must rely on a risk-based monitoring system rather than trying to inspect every shipment or using a random check approach. The recommendation carries the ring of the Department of Homeland Security’s risk-based model for inspecting suspicious ocean containers and gathering shipment data at the point of origin for security purposes.
   “We recommend working with the importing community to develop approaches that consider risks over the life cycle of an imported product, and that focus actions and resources to minimize the likelihood of unsafe products reaching U.S. consumers.
   “This will require shifting from reliance on 'snapshots' at the border to interdict unsafe products, to a cost-effective, prevention-focused 'video' model that identifies and targets those critical points in the import life cycle where the risk of unsafe products is greatest and verifies the safety of products at those important phases. Such a risk-based, prevention-focused model will help ensure that safety is built into products before they reach our borders,” the panel said in a letter to President Bush.
   The prevention framework is largely based on importers adopting best practices and requiring suppliers adhere to them, with third-party certification and testing to ensure compliance — an approach that appears to borrow heavily from the Customs-Trade Partnership Against Terrorism. The U.S. government would also work with foreign governments to oversee the safety practices of manufacturers.
   More detailed pre-entry documentation would allow for earlier detection of potential hazards. Subsequent intervention should be swift and coordinated among all levels of government, the working group said. Better information sharing and collaboration among government agencies and companies involved are also needed in cases where an unsafe product slips into domestic commerce.
   The working group, which is headed by Health and Human Services Secretary Michael Leavitt, pointed to the similarities between import safety and security efforts, the need for some agencies to receive additional authority, the need for better shipment data, the difficulty for agencies to share information across common systems, and commercial trade fraud designed to avoid regulatory scrutiny.
   The report noted that advance cargo information transmitted to Customs and Border Protection does not provide adequate detail to make safety determinations. Limited product information based on the Harmonized Tariff Schedule identification number and description of the goods can lead CBP’s computer system to incorrectly refer items to agencies without appropriate jurisdiction.
   New information technology tools should be pursued to link products to manufacturers, importers, distributors and retailers, and verify supplier and producer compliance with safety standards, the group said. Prompt sharing of this information with foreign governments would have them take steps to protect the public health and environment within their countries too.
   Poor agency coordination is exemplified by the fact that Customs officers have to use multiple passwords to access FDA and other systems and the lack of connectivity between the Agriculture Department’s import inspection data system and CBP’s automated clearance system that makes it possible for imported products to avoid inspection.
   The group proposed a six-point framework to improve import safety:
   ' Federal agencies should share a common vision for promoting and enforcing import safety, and make changes in policies and procedures to provide more uniform efforts.
   ' Increase accountability, enforcement and deterrence through targeted investigations and prosecutions, including smuggling of counterfeit goods.
   ' Use a risk-based management system.
   ' Build interoperable systems so that agencies can share information they collect about products from international sources. The group endorsed the rapid development of the International Trade Data System to create a single exchange point for government agencies and the private sector.
   ' Foster a culture of collaboration among and between federal agencies, foreign governments and the private sector to prevent unsafe goods from entering the country and to take swift action if such goods do enter the marketplace. Specific steps include development of communication and enforcement standards, and international cooperation. Harmonizing international safety standards without watering down U.S. standards can also improve safety.
   ' Promote technological innovation and new science, such as field tests for toxins, to improve analytical capabilities and target enforcement on high-risk commodities.
   The working group reached its conclusions after meeting with private sector representatives, reviewing current import safety procedures and the authority of federal agencies, and working with the import community to identify best practices.