Secure Freight Initiative

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SFI Goals•

Enhanced Security– The Secure Freight Initiative will identify radiological or nuclear threats earlier in thesupply chain and provide host governments with greater visibility into potentially
dangerous shipments.

•Trade Facilitation– SFI reduces the need for redundant exams while maintaining port efficiency and will bea critical component of trade resumption protocols in currently under development at theU.S. Department of Homeland Security.

•Improved Risk Management– Additional data elements, including those elements provided by the scanning systems,
and the data elements gathered under SFI-Security Filing, or 10+2, will provide CBPwith improved risk assessment capabilities.

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Container Scanning Project
SFI Phase 1:– During the initial deployment, three ports will scan “100-percent”
of U.S. bound maritime cargo, which meets the minimum
requirements of the Security and Accountability For Every PortAct of 2006, the SAFE Port Act.
– A “limited capacity” implementation will be rolled out at four
additional ports, which will provide a model for scanning in large
volume and transshipment ports for U.S. bound cargo.
– An assessment will be conducted on the scanning capabilities
and the impact on port operations from these seven ports andlessons learned will be used to make recommendations forfuture deployments.

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Lesson Learned - Challenges
Successfully deploying scanning equipment presents certain challenges:••

TECHNICAL– Sustaining equipment operations in extreme weather conditions andcertain port environments in third world countries;– Addressing health and safety concerns of host governments andrespective trucking and labor unions;– Protecting data privacy concerns.
LOGISTICAL– Re-configuring port layouts to accommodate the equipment without
affecting port efficiency;– Determining who will bear the costs of buying, operating and maintaining
the scanning equipment;– Persuading the foreign customs service and terminal operator to meet
additional staffing requirements;– Developing local response protocols for adjudicating alarms.
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Lesson Learned - Benefits• Trade Facilitation– More efficient movement of containers throughout the supply chain andupon arrival in the United States.

• Trade Resumption– Should a event occur invoking trade resumption protocols, priority given
to containers that have been scanned through SFI systems.

• Data Sharing– Building a system to use not only for U.S.-bound containers, but also forcontainers destined for any trading partner.

• Enhanced Data Collection– The radiation signature and image provide two critical data points in the
supply chain.

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Sec. 232(c) - SAFE Port Act-Report to Congress• Not later then 6 months after becoming fully operationalin the three pilot ports, a report is due to Congressdescribing:– Costs of deployment;– Lessons learned;– An analysis of available technology compared to enhanced
capabilities;– An assessment of our ability to integrate scanning and imaging
into the logistics, operations and risk management process;– Any impacts on the flow of commerce.

• The report due date is April 2008

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The 9/11 Commission
Recommendations ActSection 1701 –Container Scanning And Seals“100% Scanning”

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Sec. 1701 – 100% Scanning• The President signed the Act on August 3, 2007• The Act amends Sec. 232(b) of the SAFE Port Act• Text of the Act:– General Rule: A container that was loaded on a vessel in aforeign port shall not enter the United States (either directlyor via a foreign port) unless the container was scanned by
non-intrusive imaging equipment and radiation detection
equipment at a foreign port before it was loaded on a vessel.
• Timeline – By July 1, 2012, all containers entering theU.S. must be scanned by NII and radiation detection
equipment at a foreign port.

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100% Scanning Extension Conditions
The deadline can be extended in 2 year increments if any twoof the following conditions exist:(A) Systems to scan containers are not available for purchase andinstallation.
(B) Systems to scan containers do not have a sufficiently low false alarm
rate for use in the supply chain.
(C) Systems to scan containers cannot be purchased, deployed oroperated at ports overseas, including, if applicable, because a port does
not have the physical characteristics to install such a system.
(D) Systems to scan containers cannot be integrated, as necessary, withexisting systems.
(E) Use of systems that are available to scan containers will significantly
impact trade capacity and the flow of cargo.
(F) Systems to scan containers do not adequately provide an automatednotification of questionable or high-risk cargo as a trigger for further
inspection by appropriately trained personnel.
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