N.Y.-N.J.’s Coscia calls for mandatory security standards
Port Authority of the New York and New Jersey Chairman Anthony Coscia on Thursday called for mandatory cargo container security standards.
In prepared testimony before the Senate Commerce, Science and Transportation Committee, Coscia said that minimum standards — such as certification that the container is free of false compartments, secure packing and sealing of the container, monitoring for breaches in transit and ensuring information transmissions associated with the cargo movement are not compromised — should be broadened beyond the voluntary Customs-Trade Partnership Against Terrorism to cover all importers and shipments.
Companies in C-TPAT receive fewer inspections and faster clearance in exchange for following approved security plans that incorporate these and other security criteria.
Last year’s SAFE Port Act required the Department of Homeland Security to develop minimum standards and procedures for securing cargo containers.
Coscia urged the department to make the standards apply beyond C-TPAT, including the requirement that all containers include a tamper-indicating container security device.
“Voluntary cargo security measures such as those established under C-TPAT are helpful but are not sufficient by themselves in order to protect our homeland. Rather, all containers destined to the United States should be subject to a new and higher security standard. Then and only then, should importers that choose to go above and beyond the minimum standards reap tiered benefits such as those currently available through C-TPAT participation,” Coscia said.
Many international traders like C-TPAT precisely because it allows them the flexibility to develop security processes that fit their business practices and many smaller businesses worry they do not have the resources to follow the same procedures for verifying supplier compliance as big companies do. U.S. Customs and Border Protection insists that container security devices on the market or in testing do not meet its requirements for reliability and accuracy. Agency officials have said that when an acceptable container security device is found it will likely be included as a criteria that companies seeking to reach the highest status (Tier 3) in C-TPAT can follow to reap more trade facilitation benefits.
Coscia said ancillary benefits for companies that go beyond the minimum requirements, could include fewer Customs exams, lower insurance premiums and bonding requirements, and the ability to track cargo for better business planning.
“Those that don’t meet the minimum standards would receive a ‘red lane,’ ‘ he said.
Coscia also called on Congress to levy a uniform user fee to help cover the cost of mandatory port security measures. Port security grants provide limited help, but many port authorities have resorted to implementing their security fees in a haphazard way that “could put U.S. seaports at a serious disadvantage in relation to ports in Canada and Mexico,” he said.
Each port is trying to balance security and competitiveness in making decisions about fees that could lead to cargo diversion, he said.
Coscia said the security fees should come from reallocating revenue from other user fees already collected from the maritime industry. Any shortfalls should be covered by a uniform, nationwide port security user fee and the revenues disbursed based on a risk-based formula.
N.Y.-N.J.’s Coscia calls for mandatory security standards
