International trade law, C-TPAT/CTPAT, customs law, export law, FDA, cargo damage, cargo claims, government relations, import law, NAFTA, OTI/forwarder/nvocc, tax litigation, trade law, transportation law - Rodriguez O'Donnell Ross Gonzalez & Williams, P.C.
cargo damage, cargo claims, C-TPAT/CTPAT, customs law,

 

cargo damage, cargo claims, C-TPAT/CTPAT, customs law,

Customs Update - Just What is Going On?
Published in the Journal of Commerce Sept. 15, 2003

Over the Labor Day weekend, Harley-Davidson held its 100th Anniversary celebration in Milwaukee. It was an event attended by approximately 300,000 people and went off on time and without a hitch, at least to those of us who attended.

Why mention this in a column dedicated to commentary about international trade? Because, everything that was right about Harley-Davidson's event is what is wrong with what Homeland Security is doing.

First, there was a clear vision. Harley-Davidson knew that it wanted to create an atmosphere where its most devoted customers would have a good time and boy, did we! Riders came from all over the world and the people of Milwaukee could not have been more welcoming. Can Homeland Security say the same? No. It is working closely with first responders such as police, fire and hospitals, as well it should, but the trade has been essentially ignored, despite the statements of Secretary Tom Ridge and Under Secretary Asa Hutchinson that national security equals economic security.

Leaving Customs' actions aside, can any of us honestly say that DHS has put forth statements which are anything more than feel-good generalities?

The streets of Milwaukee take many twists and turns. If you got lost, folks pulled over to give you directions, often without being asked. Can Homeland Security say the same? No, it can't provide a road map for any of us. In fact, with each action by the agency, things seem to get more convoluted.

For example, recently a directive was issued which put the Transportation Security Administration in charge of cargo security, as required by law. But DHS didn't even make clear whether TSA sets policy and Customs and Border Protection carries it out, or, even more basic, will the two parts of the agency work together to set policy? In fairness to the folks at DHS and TSA, they were asked to get up and running quickly, but the agency has yet to establish that it understands the movement of goods and people.

The DHS has not even come close to explaining how it intends to operate. Understandably, it takes time to consolidate 22 agencies into one smooth-running organization, but national security is too important to only focus on structure. Any question about how vulnerable the trading system is was answered by the man who recently air-freighted himself home to Dallas from New York undetected! Then there is the nonsense about ABC News' shipment of spent uranium which was targeted and cleared by Customs. There was nothing illegal about ABC's shipment, but when the press fuRodriguez O’Donnell hit, instead of standing behind the actions of the Customs folks involved, it is threatening ABC with criminal sanction. Come on! If the public is going to have faith in what DHS is doing, we need to dispel grandstanding, whether by the press or Congress.

As international traders, we are in a unique position to make sure the system works, but all our talent is for naught if DHS isn't prepared to work with us. It's wonderful that there is a private sector liaison in the Secretary's office. It's a good sign that the Commercial Operations Advisory Committee will continue to operate, at least in part, under the jurisdiction of DHS. But that is hardly enough.

Customs has learned the lesson well. Government needs to reach out to the trade even on the most fundamental of issues so that when it moves forward in the decision making process, it finds the most expeditious way to proceed. Leaving aside concerns about our livelihoods for a moment, can there possibly be any excuse for DHS/TSA at this late stage to still not have established security standards by which airports are advised how to staff at the different alert levels? What a waste of tax dollars! At major airports throughout the country, the difference in cost can be as much as $1 million per month between staffing and precautions at one alert level to the next. As the Federal Aviation Administration (FAA) was wrapped into TSA and the FAA clearly has expertise regarding aviation issues, the lack of clear alert level standards is unforgivable and portends poorly for things to come.

The decisions being made now by DHS and Congress are critical to how we all do business in the future. Make sure your voice is heard through such simple steps as filing comments as agency proposals are published in the Federal Register; by pushing your trade associations to be more vigorous in their comments and, finally, calling your elected representatives to task. It is appalling that Members of Congress have all but abandoned their oversight responsibilities as DHS has gotten organized and they won't take up that mantle unless we push them to do so. President Bush's $87 billion request to support the efforts in Iraq is bound to quickly overwhelm all other debate, but in the end, how goods and people flow into and out of this country is a more direct and tangible economic issue inexorably tied to the future growth of the U.S. and all of us.

What have you done to help that effort lately?

cargo damage, cargo claims, C-TPAT/CTPAT, customs law,