Port Security : SAFE Port Act Unanimously Approved by U.S. Senate

September 16, 2006 by SwizStick  
Filed under Education, Seafreight, Supply Chain Management

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The SAFE (Security and Accountability For Every) Port Act was approved unanimously by the Senate:

The main objectives of the bill are to raise security standards for all United States-bound cargo, create a GreenLane to track and monitor cargo, create a system to resume trade after an incident, and fund port security grants.GreenLane is made up of a group of shippers that meet the highest standards of security, and shippers that qualify for the GreenLane would receive benefits such as expedited cargo clearance and fewer customs inspections.

It’s not surprising it was unanimously passed, as no Senator, particularly during the election season, would ever want to be seen as soft on port security. It seems that the RILA (Retail Industry Leaders Association) managed to convince the Senate to reject the scanning amendment introduced by Senator Schumer (D-NY).

RILA called on the Senate to reject a scanning amendment (S 4930) introduced by Senator Chuck Schumer (D-NY), calling the amendment “unrealistic, a diversion of resources and potentially damaging to the U.S. and global economies.” RILA also urged Senators to reject a second amendment (S 4938) by Senator Schumer that would place a tax on all containers entering the United States.

“The Schumer amendment mandates the use of technology that is not ready to be deployed throughout the supply chain and has the potential to significantly impede the flow of commerce and damage the U.S. and global economy,” said Kelly. “RILA and its members are strongly opposed to the amendment because it would put containers at greater risk of tampering, and would divert resources away from the current successful risk assessment approach. A container at rest is a container at risk.”

Kelly continued, “Both the GreenLane Maritime Cargo Security Act passed by the Senate Homeland Security and Governmental Affairs Committee and the House of Representatives-approved SAFE Ports Act (passed by an overwhelming bipartisan vote of 421 to 2) address the scanning issue by calling for pilot projects to test the effectiveness and operational ability to conduct 100 percent container scanning.

I am particularly interested in the GreenLane Maritime Cargo Security Act and how it will tie into existing cargo security programs, such as C-TPAT, that already involve voluntary participation and perceived benefits. From first reading, The GreenLane Act seeks to correct the deficiencies found in the GAO report on C-TPAT as well as clearly define the benefits companies receive for securing their supply chains. Many of the improvements have already been implemented voluntarily by US Customs who actively sought to correct the problems outlined in the GAO report. So where this bill gets interesting is in section 10, which outlines the GreenLane benefits:

8 (b) BASIC REQUIREMENTS.—Designated GreenLane
9 participants shall ensure that—
10 (1) entry data is submitted on shipments before
11 loading;
12 (2) cargo is loaded at a port designated under
13 CSI, or other foreign port as determined by the Sec
14 retary, for transit to the United States;
15 (3) cargo is loaded on a vessel with a vessel se
16 curity plan approved or accepted under section
17 70103(c) of title 46, United States Code;
18 (4) cargo is made available for screening and
19 examination before loading using technologies, proc
20 esses or techniques, as determined by the Secretary;
21 (5) the supply chain visibility procedures estab
22 lished by the Secretary are utilized;
23 (6) container security devices meeting the
24 standards and procedures established by the Sec
25 retary are utilized;

37 S 2008 PCS

1 (7) cargo complies with additional security cri
2 teria established by the Secretary beyond the min
3 imum requirements for C–TPAT participation under
4 section 9(c), particularly in the area of access con
5 trols; and
6 (8) cargo complies with any other requirements
7 determined by the Secretary.

———————————————————————————————–

13 (2) BENEFITS.—Not later than 2 years after
14 the date of enactment of this Act, the Secretary, in
15 consultation with the Commercial Operations Advi
16 sory Committee, shall promulgate regulations pro
17 viding benefits for participation in the GreenLane
18 Program, which may include—
19 (A) the expedited release of GreenLane
20 cargo into destination ports within the United
21 States during all threat levels designated by the
22 Secretary or the Commandant of the Coast
23 Guard;
24 (B) reduced or eliminated bonding require
25 ments for GreenLane cargo;

40 S 2008 PCS

1 (C) preference to vessels (as described in
2 section 4(e)(B));
3 (D) further reduced searches;
4 (E) priority processing for searches;
5 (F) further reduced scores in the Auto
6 mated Targeting System; and
7 (G) streamlined billing of any customs du
8 ties or fees.

The current C-TPAT program already allows reduced CBP (Customs and Border Protection) inspections and priority processing for CBP inspections for Tier III C-TPAT members (Tier III is the highest level of membership one can attain in the C-TPAT program). Where the GreenLane Act differs is in actually expediting the release of cargo during all threat levels: this is significant as it would mean that applicable members could possibly experience faster cargo releases, even under periods of high threat levels. The reduction or elimination of bond requirements is also significant. Benefit C, the preference to vessels, refers to section 4, which calls for the preference of vessels carrying GreenLane cargo as opposed to those who don’t. I am not too clear on this benefit or the vessel preference clause, particularly when it comes to container vessels that would be carrying thousands of containers, only a portion of which would consist of GreenLane cargo.

As for the requirements, a couple of items that popped out at me were cargo loading on a vessel with an approved vessel security plan and the usage of approved container security devices. I wonder which carriers will have adopted vessel security plans so that their clients can ensure compliance with GreenLane benefits. I am also looking forward to finding out what kind of container security devices will be approved.

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