International Freight Restrictions
Oliver B.Patton
Washington Editor
The era of anti-terror security will soon produce a new restriction on cargo movement. Under rules proposed by U.S. Customs and Border Protection, trucking companies that import and export freight will have to give electronic advance notice of their shipments.
CBP, an agency of the Department of Homeland Security, is proposing that carriers file cargo information with the agency one hour before the shipment's arrival - or a half hour before if the shipment is moving under the Free and Secure Trade program. The one-hour requirement also applies to exported freight. The rail, air and ocean shipping industries will have to give pre-notice as well, although the agency is proposing different schedules for them.
In the wake of the Sept. 11, 2001, terrorist attacks, freight transportation has been seen to be a point of vulnerability for the U.S. At the same time, it is well understood that a security system that hinders the flow of commerce does more harm than good. The way Customs sees it, pre-notification is a technique that will help balance both demands.
"Advance cargo information is essential to not only preventing instruments of terrorism from being shipped into this country, but also to speed the flow of legitimate cargo across our borders," said Homeland Security Secretary Tom Ridge.
This proposal is the second version of the pre-notification idea. Earlier this year Customs aired the notion of requiring four-hour electronic notice for imported cargo, and 24-hour notice for exports. That idea stirred a unanimous response from industry: Don't do it. Such a rule would shut down the national just-in-time delivery system, said Martin Rojas, director of cross-border operations for American Trucking Assns.
Customs heeded the warning, and created a panel of advisers to work up a better set of regulations. This proposal is the result of that effort.
Under the proposal, air and courier services will have to file cargo information four hours before imported freight arrives in the U.S., railroads will have two hours and cargo vessels will have 24 hours. For exported cargo, air and courier services will have two hours, railroads will have four hours and ships will have 24 hours.
The proposal was prepared in cooperation with the Canada Customs and Revenue Agency, which is proposing a similar rule.
The agency said it intends to plug the cargo information into a targeting system that is linked to law enforcement databases to identify shipments that pose a risk.
The proposal is too new for trucking companies to have a considered reaction, but it already is clear that the electronic filing requirement is going to create some problems, said Margaret Irwin, manager of Customs, Immigration and Crossborder Operations at ATA.
Irwin explained that Customs envisions trucking companies using the Pre-Arrival Processing System (PAPS), which employs bar codes that the customs agent can wand in order to identify the shipment and the cargo. Trouble is, she said, not all Canadian border crossings are equipped to handle PAPS, and none of the Mexican crossings are, although the government plans to put the system in place at all crossings.
Moreover, Irwin said, the economic analysis that Customs is using to justify the rule does not address the real costs of meeting the requirement. She described it as, "economic analysis light."
Still, Customs has been responsive to trucking's concerns, she said. "I think they have really made an effort." However, the agency is more familiar with the electronic environment for railroads, airlines and ocean carriers than for trucks, she said. "Trucking is the ugly step-sister."
Early reaction from Canadian carriers was reserved, but positive. The Canadian Trucking Alliance said the proposed rules are "livable," compared to the earlier version.
The proposal can be viewed at the Customs web site, http://www.customs.gov. Click on the heading, "Trade Act of 2002 - Advance Electronic Information." Comments are due Aug. 23. The final rule is supposed to take effect early next year.
Washington Report continued...
