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The European Union (EU) has reiterated its opposition to US plans to mandate 100% scanning of US-bound maritime containers at foreign ports, claiming that the requirements will be too costly and severely disrupt transport and trade, without proven security benefits. Instead, it advocates an alternative approach based on multilayered risk management.
The EU's statement follows three studies undertaken by the European Commission on the impact on EU customs, transport and trade of the US scanning legislation. 'Implementing 100% scanning would require sizable investments, increase transport costs significantly and entail massive welfare losses,' said EU Commissioner Algirdas Semeta. 'More importantly, such burdens to port authorities, companies and ultimately consumers worldwide would be for no proven security benefit.'
The EU estimates EUR430 (USD585) million would be required for investments in scanning and radiation detection, including significant changes in infrastructure to create space for extra facilities at ports and terminals. Additionally, operational port costs would rise by more than EUR200 (USD272) million annually, including expenditure on 2,200 extra staff.
Furthermore, the EU contends that the resultant disruption to transport would add 10% to the cost of US-bound consignments. Ports unable to comply with the scanning requirements would lose access to US markets and bottlenecks would be created at those that could.
The EU calculates potential welfare losses for the EU and US combined of EUR10 (USD14) billion and worldwide losses of EUR17 (USD23) billion. The loss could be as much as EUR150 (USD204) billion if 100% scanning were replicated on a worldwide scale.
As an alternative, the EU argues for an alternative package based on the principle that all exports, as well as imports, undergo comprehensive and effective multi-layered risk management processes, using a range of methods and technologies commensurate to the risks associated with specific consignments.
In December of last year Department of Homeland Security (DHS) Secretary Janet Napolitano postponed the implementation date for 100% scanning by two years to 2014, citing the absence of available technology, logistical challenges and a shortage of DHS manpower to read images.
There is widespread recognition of the impracticalities of the 2007 post-9/11 legislative requirement, on both sides of the Atlantic, yet 100% scanning remains popular with US lawmakers. |