Obama unlikely to repeal 100% box scanning law
Justin Stares, Brussels - Friday 9 January 2009

THERE is little chance of a repeal of US 100% box scanning legislation under president Barack Obama, the World Customs Organisation heard today.

The newly elected Democrat president is not expected to work as hard to oppose the unpopular law as the administration of Republican president George Bush, diplomats heard in Brussels.

The anti-terrorism measure, due to come into effect in 2012, would require all US-bound containers to be scanned prior to ship departure. It has triggered protests from trading partners, in particular the European Union, who say the US is exporting its security concerns at the expense of shippers across the globe.

Mr Obama’s precise position on the law is still unknown since he is not reported to have made reference to it during his election campaign. But WCO executives, who have been lobbying US lawmakers, say the incoming president is unlikely to fight an initiative backed by a Democrat-controlled Congress.

“As for a repeal, we will not see that,” WCO director Michael Schmit told customs ambassadors from around the world at Friday’s New Year’s gathering. The best that could be hoped for was a delay in implementation “beyond 2012”, he said.

“[President] Bush fought against the law,” Mr Schmitz said. But while the US administration had been effectively lobbied, Congress had on the other hand “heard very little”, he said.

This message was reinforced by the newly elected WCO secretary general Kunio Mikurija. “Congress is key,” he said. “Security should not be used as a new barrier [to trade]. We have to convince the US Congress to review the legislation on 100% scanning.”

The WCO, which is pushing for the blanket scanning plan to be replaced by a risk-based system, said it would wait for US appointments to be confirmed, such as that of Secretary for Homeland Security, before resuming its lobbying campaign. Congressional committees, particularly the trade committee, are being targeted as potential allies. The ways and means committee, which has already asked for a postponement to the scanning law, is also expected to lend support.

Within the US there is opposition to trade security legislation on cost grounds. A separate anti-terror measure aimed at the supply chain, known as the “10+2” law, comes into effect later this month and is expected to cost $20bn to implement, the Brussels gathering heard. Shippers will from January 26 have to inform US Customs and Border Protection of new consignment details, such as the container stuffing location and the identity of the stuffer. Financial penalties will apply for non-compliance.

Experts say 100% scanning would be even more costly. Pilot projects at a variety of ports have shown it is technically feasible but would cost up to $100 per box.

Moreover, many in the supply chain industry believe that if implemented it would do little to improve US security.

At the same time, there are hopes some ports would be exempt. “I think this law is more likely to happen under Obama than before,” said the Israeli ambassador to the WCO. “But ports in Europe will probably be alright.”

The European Sea Ports Organisation said it believed “high volume” scanning, not 100% scanning, would be the most likely outcome.