Chertoff provides update on 10+2, GTX
The U.S. Department of Homeland Security will issue in the coming weeks a solicitation for a small-scale pilot project to design and test a global information warehouse that can be used by governments to analyze the security of international shipments, Secretary Michael Chertoff said Thursday.
Chertoff spoke at the annual Customs Trade Symposium in Washington, where former Deputy Secretary Michael Jackson unveiled the concept two years ago. He previously said in mid-August that DHS was close to proposing the test program, but the department has had other things on its plate, including preparation of a major rulemaking on collecting more cargo data, Jackson’s departure, the California wildfires and a heavy hearing schedule on Capitol Hill.
The so-called Global Trade Exchange, as currently envisioned, would be a fee-based private sector operated system that would provide governments access to commercial transaction data from companies that voluntarily agree to share information in hopes of reducing the amount of shipments that are delayed for inspection.
The concept is also being marketed as a way for companies to gain supply chain visibility by pooling all the shipment status and identification information in one place.
Customs and Border Protection within DHS has developed the request for quotation and plans to put it out for bid in December, according to two DHS sources. The winning contractor would seek out a small group of companies to share data during the pilot phase.
Chertoff likened the data repository to the way Amazon.com uses information from online transactions. “That concept of collecting a little information and analyzing it to provide better customer service translates here into providing better security at lower cost to the shipper and at less inconvenience. And that’s the vision we have for the third element of our Secure Freight Initiative: collection of somewhat more information, better analysis, and therefore easier and more precise targeting and less disruption for innocent trade.”
Many international traders, who already are deeply suspicious about sharing their data with a private third-party data aggregator, and members of Congress are upset that the trade community has not been consulted and given an opportunity to help design the system from the ground up.
Chertoff also said the long-awaited “10+2” notice of proposed rulemaking should be published by year’s end after some officials recently raised hope that it could be released this month. The proposed rule would require U.S. importers or cargo owners to file 10 additional data elements with CBP 24 hours prior to vessel loading overseas and ocean carriers would submit data about the container’s status. Officials believe the extra information about the manufacturing source of a product will close gaps in their understanding about the shipment and help sort which containers need to go through an automated inspection.
DHS has signed off on the proposed rule, which is now at the Office of Management and Budget for review. CBP officials have sounded optimistic about a quick turnaround, followed by a 60-day comment period and then publishing of the final rule in the first quarter of next year. But those with experience dealing with OMB say the agency will be lucky to get a rule out next year. OMB under the best circumstances usually takes at least 90 days to review new regulations and study their economic impact, it is understaffed as many people have left the agency. Once DHS receives comments it will take time to review and incorporate any changes for the final rule and OMB has to sign off on the rule again. By that time it will be almost time for the presidential election and the end of the Bush administration, when launching a controversial new rule that could have significant cost ramifications for industry may not be at the top of the agenda.
Chertoff said he doesn’t expect an extra year of testing will be necessary in order to certify Advanced Spectroscopic Portal monitors for procurement, as a House committee recently reported, but that the decision was made because he does “not want to simply accept lab testing under idealized conditions as the way to determine that something is suitable for deployment.”
The new radiation detection machines are supposed to be better at distinguishing dangerous types of radiation from benign sources and reducing false alarm rates experienced with the current technology used at ports of entry.
Chertoff said he wanted to make sure that the tests “really replicate the challenges of the real world. It shouldn’t be that when the system is installed, you have to have your fingers crossed that it’s going to work ' So before I certify something for production, I’m going to want to make sure that the operators are satisfied, as well as the scientists, that the technology works in real life and not merely in the laboratory.
“I’d rather get it right than get it fast.”
(For more information on the Global Trade Exchange, see the September American Shipper, page 16 www.americanshipper.com/paid/SEP07/Global.asp) ' Eric Kulisch
