DHS to Require Import Container Seals

NEW YORK -- The Department of Homeland Security plans to require the use of non-electronic seals on all marine containers entering the United States.

DHS undersecretary for border and transportation security, Asa Hutchison, made the disclosure at the U.S. Maritime Security Expo.

Container seals have been adopted as part of the voluntary Customs-Trade Partnership Against Terrorism (C-TPAT).

The Maritime Transportation Security Act subcommittee of the Customs Operations Advisory Committee (COAC) recommended that a seal regulation be implemented within 12 months.

DHS officials said that the technology for electronic container seals -- in which information about the contents or location of the box is contained in electronic form -- has not matured to the point where it can be deployed on a large-scale basis without the risk of a high percentage of errors.

Requiring a seal on every import container "is the right thing to do". "We are going to pursue that recommendation from the COAC committee” said Hutchison.

The cost would be borne by the importer while the responsibility for verifying the seals would lie with the container line. About 6 million marine containers come into the U.S. each year.

DHS will formulate standards for the seals, which will also need to conform to existing ISO standards for high-security container seals.

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C-TPAT Membership May Potentially Reduce Inspections by Customs

The U.S. Customs & Border Patrol (CBP) indicated that certified C-TPAT members are 3-5 times less likely to be examined for trade or compliance measurement reasons, and 5-8 times less likely to be examined for enforcement-related reasons. Customs acknowledged, however, that these numbers will vary depending upon the importer and the type of product being imported.

The original goal of the DHS was to enlist the top 1,000 importers in C-TPAT. However, this goal has been greatly surpassed, as over 3,800 importers, 1,236 carriers, and more than 1,200 brokers and freight forwarders have applied for C-TPAT membership. Once a company has signed a "Memorandum of Understanding" ("MOU") to participate in C-TPAT, it can advertise itself as being a "C-TPAT participant". After the company has been certified by Customs, it becomes a "C-TPAT member".

There has been some talk by CBP that it intends to limit C-TPAT membership to only 7,200 importers. If this holds, true, then only a few thousand more companies will be allowed to sign up for the program.

Following certification, CBP "validators" visit the premises of the applicant, review the underlying information that supports the applicant's the responses, and may make security related recommendations.

As of this date, 288 C-TPAT validations have been completed, and over 700 validations are in process. It is CBP's goal to complete 400 C-TPAT validations by the end of FY 2004 (October 2004).

As part of being certified for C-TPAT, members may participate in the C-TPAT Status Verification Interface ("SVI"). The SVI Internet-based user interface allows access to verify the C-TPAT status or obtain information from another consenting, certified Status Verification Interface Participant (SVIP).

The C-TPAT SVI function is accessed via the C-TPAT section of the CBP web site or by going directly to https://apps.cbp.gov/svi. Access to the C-TPAT SVI is obtained using a user ID and password.

There is an SVI "Frequently Asked Questions" (FAQ) posted on the CBP website https://apps.cbp.gov/svi.

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US Targets Ships Arriving from Countries with Uncertain Port Security ST&R

The US Coast Guard (USCG) has announced that it will intensify scrutiny of ships registered in countries with substandard maritime security, as well as vessels coming from ports in countries in which implementation of the new international security regime is uncertain. USCG has said that it will increasingly board vessels flying the flags of countries that have not implemented basic antiterrorist security measures, including Albania, Benin, Democratic Republic of Congo, Equatorial Guinea, Guinea, Guinea-Bissau, Kiribati, Lebanon, Liberia, Madagascar, Mozambique, Nigeria, Serbia and Montenegro, Sierra Leone, Solomon Islands, and Suriname.

These countries have failed to communicate to the International Maritime Organization (IMO) or the USCG all information regarding port facility security information as required by Regulation 13 of Chapter XI-2 of the International Convention for the Safety of Life at Sea, 1974 (SOLAS) or the Maritime Transportation Security Act of 2002 (MTSA). Failure to submit the required information indicates noncompliance with the port facility requirements of the International Ship and Port Facility Security (ISPS) Code and leads the US government to believe that inadequate anti-terrorism measures are in place at port facilities in these countries. Vessels that have visited one of these countries during their last five port calls will be subject to increased Port State Control actions upon arrival at a US port.

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Electronic Certification System (eCERT)

Foreign countries participating in the Electronic Certification System, eCERT, can now transmit export license/certificate data electronically. After transmissions are accepted by U.S. Customs and Border Protection (CBP), results are returned to the country of origin electronically. It should be noted that users of eCERT data that need information specific to the Message Implementation Guidelines (MIG) may go directly to the Technical Guidelines section of this site.

Background

For many types of commodities, an endorsement by a foreign government or its representative is required to signify that the shipments are authorized for export to the United States. This endorsement, often in the form of an export certificate, certificate of eligibility, or license, serves to describe the type and quantity of merchandise, certifies the country of origin and authorizes the shipment to be charged against any applicable quota. The merchandise covered could be textiles/apparel related to a Tariff Preference Level (TPL) or agricultural commodities such beef or dairy products.

The Electronic Certification System (eCERT) is a system developed by CBP that uses electronic data transmissions of information normally associated with a required export document such as a license or certificate to facilitate the administration of quotas and ensure that the proper restraint levels are charged without being exceeded.

Foreign countries participating in eCERT transmit information via a global network service provider. This allows connectivity to the CBP Automated Commercial System (ACS). When making entry, specific data elements transmitted to CBP by the importer/broker must match eCERT data from the foreign country before any applicable quota is reported. The ability to have government-to-government transmission decreases the potential for circumvention of quotas resulting from counterfeit documents.

Although the release of the shipment is not precluded by the absence of certificate information, no claims for a preferential duty rate will be considered unless the information transmitted by the filer matches the information transmitted by the foreign government. Once this information is processed through ACS, information regarding certificate/license usage is made available to the participating country upon request.

Benefits

• SECURITY. eCERT data moves electronically between government systems. Safeguards are in place to protect the integrity and confidentiality of the information.
• REDUCED CERTIFICATE/LICENSE FRAUD. There is an immediate reduction in the chance that counterfeit paper documents will be used because the information provided by the importer/broker must match the information transmitted by the foreign government. Paper documents are more susceptible to tampering.
• IMPROVED COMPLIANCE. There is a decrease in data discrepancies since the importer’s/broker’s entry data must match the foreign government’s export information.
• IMPROVED MONITORING. Statistical reporting and tracking of certificates/licenses is improved. eCERT allows the participating governments to monitor certificate/license utilization by electronically requesting a Document Activity Report (DAR).
• TIMELESS PROCESSING. eCERT participants are authorized to transmit an electronic request to register a certificate/license at any time, seven days a week, 24 hours a day.

Eligibility

Any country requiring a certificate (i.e., an export license/certificate, certificate of eligibility, etc.) for importation into the United States of specific commodities as a requirement to qualify for in-quota or tariff preference rates of duty is eligible to participate in eCERT.