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DHS Secretary Speaks on 102, GTX and Other Security Initiatives

Department of Homeland Security Secretary Chertoff gave a keynote speech on November 15, 2007 at U.S. Customs and Border Protection's 2007 Trade Symposium in Washington, D.C., where he spoke on the security partnership between the government and private sector, and the importance of layering and risk management.

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Among other things, the Secretary said that he expected the Security Filing (102) proposed rule for maritime cargo to be out by the end of the year, and that DHS would soon be seeking a private sector partner to run a small scale test of the Global Trade Exchange (GTX) data warehouse concept.

Highlights of his remarks include the following points:

Layered strategy for cargo security. There are three layers to DHS' risk management system for cargo.The first layer is information. DHS screens about 100 percent of the shipments that come into the U.S. and decides where to focus its attention.

A second layer consists of automated scanning equipment, particularly for radiation or weapons of mass destruction. By the end of this year, DHS will have almost 100 percent of maritime cargo going through radiation scanning devices at U.S. ports, and DHS is working with foreign countries to do as much of the scanning as possible overseas.

The third layer is the actual inspection itself, including some random inspections and targeted inspections, using, for the purposes of targeting, information that DHS collects about people who are shipping, destinations, transactions, patterns of behavior, ships, crews, and other data.

Secure Freight Initiative. The Secure Freight Initiative (SFI), a layered risk-based strategy for supply chain security, is comprised of three components: International Container Scanning, Advanced Trade Data (102), and Global Trade Exchange (GTX), which is currently in a conceptual stage.

International container scanning. DHS does 100 percent scanning at three overseas ports in Pakistan, Honduras and the United Kingdom, and will conduct scanning on a limited capacity basis in four more locations in the next few months, including Hong Kong. DHS is scheduled to report to Congress in April 2008 on the challenges and the opportunities of this approach.

Advance trade data (SF,102). DHS' Security Filing proposed rule (102) will ask for additional information on maritime cargo's supply chain back to the point of stuffing, and should be out before the year's end for public comment.

This measure will mandate that key additional data, much of which is now included in entry submissions, be reported earlier to the government.

Global trade exchange. The global trade exchange, or GTX, envisions a private-sector-managed data warehouse that would amalgamate a wide range of non-traditional information on cargo movements.

In the coming weeks, DHS is going to issue a small-scale solicitation for proposals to test and validate the GTX concept. Participation at this point will be voluntary.

DHS welcomes private sector efforts to help DHS develop a step-by-step approach to see whether this will be a promising approach.

(The small-scale solicitation will be a reasonable testing amount of information and participants, to see if the system works on a small scale before it is built out.)

100 percent scanning of all inbound containers overseas by 2012. DHS has raised concerns about the 9/11 Act's requirement for 100% scanning of all inbound containers overseas by 2012, as not every port has an architecture that accommodates radiation scanning at a 100 percent level. In addition, not every government is going to choose to allow 100% scanning. Over the next few years, Congress may have to revisit this mandate.

(See ITT's Online Archives or 11/08/07 news, 07110830, for BP summary of recent notice on 2007 CBP Trade Symposium. See ITT's Online Archives or 10/16/07 news, 07101605 for BP summary of CBP Commissioner stating that 102 for maritime cargo is expected to begin in early 2008.

See ITT's Online Archives or 08/13/07 news, 07081310 for BP summary of JIG letter expressing concern about GTX. See ITT's Online Archives or 08/21/07 news, 07082110 for BP summary of COAC meeting where DHS Secretary discussed GTX and 102.)

DHS Secretary's remarks (dated 11/15/07) available at http://www.dhs.gov/xnews/speeches/sp_1195225858995.shtm