Senate Committee Favorably Reports Bill to Enhance U.S. Seaport Security

On September 14, 2001, the Senate Commerce, Science, and Transportation Committee favorably reported without amendment the Port and Maritime Security Act of 2001 (S. 1214), which would amend the Merchant Marine Act of 1936 to establish a program to improve the security of U.S. seaports, etc.

Congressional sources stated by phone that committee Chairman Ernest Hollings hopes the Senate will begin consideration of S. 1214 during the week of October 8, 2001.

NCBFAA Concerns over Bill's In-Bond Provisions Expected to Be Addressed in Manager's Amendment

Sources stated that once the Senate begins consideration of S. 1214, Chairman Hollings intends to offer a "manager's amendment" in the nature of a substitute that is expected to make a number of changes to S. 1214, including to provisions regarding the reporting of information related to in-bond entries (see below for details).

(In a July 23, 2001 letter to Chairman Hollings, the National Customs Brokers and Forwarders Association of America (NCBFAA) stated that the detailed information that S. 1214 would require with respect to in-bond entries is not currently required because Customs does not need it, and that the added cost and delay that would result from such a requirement could threaten the entire in-bond movement system and adversely affect "just-in-time" supply chain management.)

According to S. 1214 and the committee's report (S. Rpt. 107-64), S. 1214, as favorably reported, would (partial list):

• Customs Rules on Entry (Including In-Bond Entry) Reporting - require Customs to improve reporting of imports at U.S. seaports by promulgating regulations to require (a) all entries of goods, including in-bond entries, to provide Customs with the same information required for entries of goods released into U.S. commerce before the goods are released for shipment from the seaport of first arrival and (b) all ocean manifests to be transmitted to Customs in electronic form in sufficient time for Customs to effectively use the information in them. (S. 1214 would also require Customs to distribute this information on a real-time basis to relevant law-enforcement agencies with a need to monitor cargo.)
• Sources stated that the manager's amendment would amend this in-bond provision in order to require Customs, in promulgating regulations on the collection of entry data, to consult with the shipping community, law enforcement officials, etc. to determine what information regarding in-bond entries is both essential for law enforcement purposes and commercially practical to report.
• Establishment of a Port Security Task Force - require the Transportation Secretary to establish a Port Security Task Force to help coordinate programs to enhance U.S. seaport security, etc. This task force would likely include, among others, Customs officials and representatives of port authorities, freight forwarders, and ocean shippers.
• Seaport Security Vulnerability Assessments at 50 Most Strategic Ports - require the Coast Guard to complete or accept security vulnerability assessments for the 50 U.S. seaports it determines to be the most strategic or economically strategic in the U.S., and then require the establishment and regular review of a maritime transportation security program for each such seaport.
• Funding for Customs Equipment, Etc. - extend for fiscal years (FYs) 2003-2006 the current levels of the tonnage duties in 46 USC App. 121 and make annually available to Customs $56-59 million of these revenues in FYs 2003-2006 for the purchase of non-intrusive screening and detection equipment for use at U.S. seaports.