US 'simpleton's approach' to customs security

The former head of US customs has called his government's plans to implement scanning of all air and sea cargo destined for the US a "simpleton's approach” to supply chain security, says Jon Hoyle on Stuff.co.nz.

Robert Bonner, a member of the Unisys Security Advisory Panel and former commissioner of US Customs and Border Protection at the time of the 9/11 terror attacks, said the law – which the US committed to in August – would create significant logistical problems if implemented, given that up to 600 ports export to the US.

Set to come into effect within five years, it would require all foreign shipping containers destined for the US to be scanned for components of nuclear weapons – using imaging and radiation detection equipment – at their ports of origin. Scanning of all air cargo would be phased in over three years.

"It's a terrible idea. It hasn't been implemented ... and I hope reason will prevail," said Bonner, adding that it had not been recommended by the 9/11 Commission, as claimed by some proponents of the bill.
He said the current process of identifying potentially "risky" containers and scanning them in foreign ports was proving to be satisfactory, with between 5 and 10 per cent of US-bound containers coming under scrutiny.

For Australian exporters, this is yet another complication to consider.

The US ranks third, behind Japan and China, among Australia's top two-way trading partners and destinations for exports, accounting for 11 per cent of Australia's total import and export account, says Joe Parkes in Dynamic Business magazine.

And despite Australia having scored some excellent export wins in America – including in defence equipment, beef, wines, power boats, space navigation instruments, motor vehicle engines, sailboats, books and health care equipment – some smaller exporters admit they find the idea of pursuing the US market: "a bit daunting attractive and beckoning but, hey, a bit too tough to tackle," says Parkes.

Already, America's Bioterrorism Act means foreign food and beverage exporters now must designate a US agent whose main purpose is as a communication link with the Food and Drug Administration. Furthermore, the FDA now requires advance notice to the Bureau of Customs and Border Protection (CBP) of incoming food shipments at least five days before arrival, says Parkes.

Pam and Martin Brook run a small family-run business, Brookfarm in Byron Bay, selling macadamia products to the increasingly health-conscious US market. Business has been affected by the changes, but Pam says that once you've registered with the FDA and worked out the system, it's fairly smooth sailing.

"Like other food manufacturers, we use an importer to take care of the issues,” Pam Brook tells Parkes. "Business in the US is tough at the moment because of the Aussie dollar strength and we have had to trim costs because of our strong dollar.

Meanwhile, in New Zealand, Stewart Milne, executive director of the Board of Airline Representatives is very concerned about any new changes, says Hoyle. He believes the concept would be unworkable, causing delays that could breach exporters contractual obligations.

"Air cargo has a different imperative, and that is a lot of it is fresh -- seafood, flowers -- so it's going to cause major problems."

But Bob Walters, Export New Zealand chief, says exporters just have to take it on the chin. "This sort of stuff is imposed on us and, frankly, we don't have an option. America is on a war footing, almost, and deciding what rules it will apply when and how and to whom, and the best thing we can do is to comply and make the compliance part of our processes as efficiently as we can."

Cargo plan a 'simpleton's approach', Jon Hoyle, Stuff.co.nz

Exporting to America, Joe Parkes, Dynamic Business Magazine