The Scarbrough Group Newsletter

»Issue 1, Volume 1                          www.scarbrough-intl.com                         » January 23, 2007  

In this issue:

Main Page
Cover Story
Scarbrough Services
Business News
Customs News
Chinese New Year
Congratulations

Quote of the Month

 

Industry News

Logistics news
 

BUSINESS NEWS

New Security Bill Faces Opposition from Business Community

The first act of the new Democratic majority in the House of Representatives was to enact the Implementing the 9/11 Commission Recommendations Act of 2007. While the most reported-on areas of this bill include re-prioritizing the disbursement of Homeland Security funds and the streamlining of procedure in the event of a terrorist attack, there is a provision in the bill that directly affects Scarbrough International.

The bill requires that 100% of cargo loaded onto passenger planes be inspected, and that all containers bound for the United States be scanned and sealed with a system approved by the US government.

The bill was lauded by Lee Hamilton, co-chair of the 9/11 Commission, who said that "If this bill ... is enacted, funded and implemented, then the American people will be safer." Mr. Hamilton also endorsed the bill on behalf of the entire committee: “We are -- all of us on the 9/11 commission -- deeply pleased that the speaker and the leadership of the House have decided to put this bill forward with the No. 1 designation," Hamilton said.

The response from representatives of the business community to this bill was less enthusiastic. R. Bruce Jostens, VP for Governmental Affairs at the US Chamber of Commerce, the largest business advocacy group in the world, wrote a letter to congress condemning the act as unnecessary and overly burdensome on business: “If enacted, this legislation would significantly disrupt the flow of trade and impose costly mandates on American business without providing additional security”. He also expressed concern over the bill’s affect on foreign relations, saying that “More than 11 million containers arrive at our nation’s seaports each year. Requiring 100% overseas scanning of each one would divert resources from other critical security functions. Such unilateral requirements could severely damage relations with our nation’s trading partners, resulting in reciprocal burdens being placed on American exporters.”

Mr. Jostens was also disturbed to see a heavy burden placed on businesses that need fast access to shipping: “Additionally, the Chamber strongly opposes provisions requiring 100% cargo inspection on passenger planes within three years. Such a mandate could significantly disrupt businesses that rely upon passenger planes for the delivery of cargo for just-in-time manufacturing, emergency medicine, and highly perishable goods.”

While there is no way to tell exactly how much this bill will affect the day to day operations of companies who move international freight every day (there are still no solid plans in place to provide the over $50 billion needed to implement it) there is little to suggest that this bill will make their lives any easier. However, if this bill works as it is supposed to, the possibility that someone could slip radioactive or bomb-making material over the ocean or through the air and into the United States becomes much more remote. Hopefully, this added safety and peace of mind will outweigh the massive costs of implementing this bill.

-- Blake Hollander, Intern (William Jewell College)

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