With both Congress and DHS backpedaling on the rule, importers faced little risk of having it implemented this year. For one thing, “the technology just is not there,” said Jonathan Gold, vice president of supply chain and customs policy with the National Retail Federation. (DHS reportedly expects to conclude a review of the applicable technology by the end of this year.)

What’s more, the original legislation mandating the rule failed to identify who would pay for setting up and maintaining the entire system.

Over the years, U.S. Customs and Border Protection has sought to extend its control over imports further up the supply chain. In 2002, it issued a rule requiring that importers electronically file manifest information 24 hours prior to a vessel departing the foreign port of origin. In 2008, it bumped up the requirement to include 10 additional data elements related to the importer’s security filings, and two from the carrier.

The 24-hour rule and its successor were largely accepted by the trading community without complaint, but they did not involve the approval of a foreign government, or on-site inspection personnel, that come with the container-scanning requirement. “It’s a different scenario, having to scan a container before it’s put on the vessel,” said Gold.

CBP already has the Container Security Initiative, put into place after 9/11, which pre-screens containers at point of origin and identifies high-risk shipments at 58 ports around the world. Only then does it lead to physical scanning or inspection. “That wouldn’t work for 100-percent screening,” said Gold.

He said a viable means for ensuring container security and safety has to involve the international community. “We can’t just do this as a U.S.-only solution. It has to work for the rest of the world, and our trading partners have pointed this out.”

In any case, he said, a workable plan will not involve 100-percent scanning. DHS should focus instead on isolating those containers that constitute the biggest potential threat, whether because of their country of origin, items within, or parties involved in the shipment. The ultimate solution lies in a “layered defense,” he said.

Enough of the postponements, importers say. “We fully support your waiver,” said the industry groups in their letter to Secretary Johnson. “However, instead of going through this exercise every two years, we urge you and the Administration to recommend to the Congress that the statutory 100% container scanning requirement be repealed.”

Despite strong objections from industry, the rule remains on the books for now. Only Congress has the power to repeal it. Gold called on the Obama Administration to push lawmakers in that direction. Yet he doubts the President has the will or political capital to make it happen. “With Congress today,” he said, “everything’s in gridlock.”

(Source: Forbes)