The proposed rule was born out of the SAFE Port Act of 2006, which called on CBP to establish new requirements for cargo destined for the United States. As a result, the agency proposed 12 new categories of data on shipments to the United States to be provided 24 hours before loading in foreign ports.
Businesses have argued that it would be difficult and time-consuming to provide that information before the shipper actually closes the container once it is full. Instead of the several days importers now have to provide data to customs while a shipment is on its way to the United States, the new rule would prohibit a shipment from leaving its foreign port until DHS has the required data for each container.
Business groups argue this would not help security because the nitty-gritty nature of the reporting could expose cargo to risk and tampering while it is being delayed in foreign ports or unguarded off-site as data is gathered.
Opponents emphasize the costs would come during a turbulent economy, and that small businesses would be hit hard.
The rule “will place small businesses at a significant competitive disadvantage,” Karen Kenney, president of the Coalition of New England Companies for Trade, wrote to Nussle in September. “Not only do small businesses lack the resources needed to comply with [the] proposal … small businesses will also face significant increases in operating costs.”
Small importers would have to stock and store extra inventories, pay increased bond charges and insure goods for up to an additional five days if the sailing-away deadline is missed, Kenney said.
“We are especially concerned that these delays are significant enough to cause many businesses to leave the marketplace,” Bryan Zumwalt, the counsel for the National Marine Manufacturers Association, told The Hill. The association represents nearly 1,700 boat builders, engine manufacturers, and marine accessory manufacturers — many of which are small, family-owned companies.
“We are concerned that extra expenses needed to implement [the rule] could hit small boat-related businesses hard, especially those that are already struggling in these tough economic times,” Zumwalt said.
DHS, in a published notice related to the proposed rule, said that it “likely affects a substantial number of small entities,” but claimed that because of data limitations, “we cannot determine if these effects will be significant on a per-entry basis.”
Businesses have stressed that they are not against strengthening national security. Many companies are members of the Customs Trade Partnership Against Terrorism (CTPAT) and have worked with the World Customs Organization to establish an international framework to get advance shipping data to ports.
Companies charge that the proposed rule does not take into account members of CTPAT and other cleared and trusted shippers, making the requirements apply to everybody unilaterally.
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