HR 4954 PCS 
TITLE II—SECURITY OF THE 
INTERNATIONAL SUPPLY CHAIN 
SEC. 201. SECURITY OF THE INTERNATIONAL SUPPLY 
CHAIN. 
(a) IN GENERAL.—The Homeland Security Act of 
2002 (6 U.S.C. 101 et seq.) is amended by adding at the 
end the following new title: 
‘‘TITLE XVIII—SECURITY OF THE 
INTERNATIONAL SUPPLY CHAIN 
‘‘Subtitle A—General Provisions 
‘‘SEC. 1801. STRATEGIC PLAN TO ENHANCE THE SECURITY 
OF THE INTERNATIONAL SUPPLY CHAIN. 
‘‘(a) STRATEGIC PLAN.—The Secretary, in consulta-
tion with appropriate Federal, State, local, and tribal gov-
ernment agencies and private sector stakeholders respon-
sible for security matters that affect or relate to the move-
ment of containers through the international supply chain, 
shall develop and implement, and update as appropriate, 
a strategic plan to enhance the security of the inter-
national supply chain. 
‘‘(b) REQUIREMENTS.—The strategic plan required 
under subsection (a) shall— 
‘‘(1) describe the roles, responsibilities, and au-
thorities of Federal, State, local, and tribal govern-
ment agencies and private sector stakeholders that 
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relate to the security of the movement of containers 
through the international supply chain; 
‘‘(2) identify and address gaps and unnecessary 
overlaps in the roles, responsibilities, or authorities 
described in paragraph (1); 
‘‘(3) identify and make recommendations re-
garding legislative, regulatory, and organizational 
changes necessary to improve coordination among 
the entities or to enhance the security of the inter-
national supply chain; 
‘‘(4) provide measurable goals, including objec-
tives, mechanisms, and a schedule, for furthering the 
security of commercial operations from point of ori-
gin to point of destination; 
‘‘(5) build on available resources and consider 
costs and benefits; 
‘‘(6) provide incentives for additional voluntary 
measures to enhance cargo security, as determined 
by the Secretary; 
‘‘(7) consider the impact of supply chain secu-
rity requirements on small and medium size compa-
nies; 
‘‘(8) include a process for sharing intelligence 
and information with private sector stakeholders to 
assist in their security efforts; 
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‘‘(9) identify a framework for prudent and 
measured response in the event of a transportation 
security incident involving the international supply 
chain; 
‘‘(10) provide a plan for the expeditious re-
sumption of the flow of legitimate trade in accord-
ance with section 70103(a)(2)(J)(ii) of title 46, 
United States Code; 
‘‘(11) consider the linkages between supply 
chain security and security programs within other 
systems of movement, including travel security and 
terrorism finance programs; and 
‘‘(12) expand upon and relate to existing strate-
gies and plans, including the National Strategy for 
Maritime Security and the eight supporting plans of 
the Strategy, as required by Homeland Security 
Presidential Directive-13 (September 2005). 
‘‘(c) UTILIZATION OF ADVISORY COMMITTEES.—As 
part of the consultations described in subsection (a), the 
Secretary shall, to the extent practicable, utilize the 
Homeland Security Advisory Committee, the National 
Maritime Security Advisory Committee, and the Commer-
cial Operations Advisory Committee to review, as nec-
essary, the draft strategic plan and any subsequent up-
dates to the strategic plan. 
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‘‘(d) INTERNATIONAL
STANDARDS
AND
PRAC-
TICES.—In furtherance of the strategic plan required 
under subsection (a), the Secretary is encouraged to con-
sider proposed or established standards and practices of 
foreign governments and international organizations, in-
cluding the International Maritime Organization, the 
World Customs Organization, the International Labor Or-
ganization, and the International Organization for Stand-
ardization, as appropriate, to establish standards and best 
practices for the security of containers moving through the 
international supply chain. 
‘‘(e) REPORT.— 
‘‘(1) INITIAL
REPORT.—The Secretary shall 
submit to the appropriate congressional committees 
a report that contains the strategic plan required by 
subsection (a). 
‘‘(2) FINAL
REPORT.—Not later than three 
years after the date on which the strategic plan is 
submitted under paragraph (1), the Secretary shall 
submit to the appropriate congressional committees 
a report that contains an update of the strategic 
plan. 
‘‘(f) DEFINITION.—In this section, the term ‘trans-
portation security incident’ has the meaning given the 
term in section 70101(6) of title 46, United States Code. 
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‘‘SEC. 1802. TRANSMISSION OF ADDITIONAL DATA ELE-
MENTS FOR IMPROVED HIGH RISK TAR-
GETING. 
‘‘(a) REQUIREMENT.—The Secretary shall require 
transmission to the Department, through an electronic 
data interchange system, of additional data elements for 
improved high risk targeting, including appropriate secu-
rity elements of entry data, as determined by the Sec-
retary, to be provided as advanced information with re-
spect to cargo destined for importation into the United 
States prior to loading of such cargo on vessels at foreign 
seaports. 
‘‘(b) REGULATIONS.—The Secretary shall promul-
gate regulations to carry out this section. In promulgating 
such regulations, the Secretary shall adhere to the param-
eters applicable to the development of regulations under 
section 343(a) of the Trade Act of 2002 (19 U.S.C. 2071 
note), including provisions relating to consultation, tech-
nology, analysis, use of information, confidentiality, and 
timing requirements. 
‘‘SEC. 1803. PLAN TO IMPROVE THE AUTOMATED TAR-
GETING SYSTEM. 
‘‘(a) PLAN.—The Secretary shall develop and imple-
ment a plan to improve the Automated Targeting System 
for the identification of high-risk containers moving 
through the international supply chain. 
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‘‘(b) CONTENTS.— 
‘‘(1) TREATMENT
OF
RECOMMENDATIONS.— 
The Secretary shall include in the plan required 
under subsection (a) a schedule to address the rec-
ommendations of the Comptroller General of the 
United States, the Inspector General of the Depart-
ment of the Treasury, and the Inspector General of 
the Department of Homeland Security with respect 
to the operation of the Automated Targeting Sys-
tem. 
‘‘(2) INFORMATION
SUBMISSIONS.—In devel-
oping the plan required under subsection (a), the 
Secretary shall consider the cost, benefit, and feasi-
bility of— 
‘‘(A) requiring additional nonmanifest doc-
umentation for each container; 
‘‘(B) adjusting the time period allowed by 
law for revisions to a container cargo manifest; 
‘‘(C) adjusting the time period allowed by 
law for submission of entry data for vessel or 
cargo; and 
‘‘(D) such other actions the Secretary con-
siders beneficial for improving the information 
relied upon for the Automated Targeting Sys-
tem and any other targeting systems in fur-
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thering the security and integrity of the inter-
national supply chain. 
‘‘(3) OUTSIDE
REVIEW.—The Secretary shall 
conduct, through an independent panel, a review of 
the Automated Targeting System. The results of 
this review shall be included in the plan required 
under subsection (a). 
‘‘(4) SMART SYSTEM.—The Secretary shall con-
sider future iterations of the Automated Targeting 
System, which would incorporate smart features, 
such as more complex algorithms and real-time intel-
ligence, instead of relying solely on rule sets that are 
periodically updated. The Secretary shall also con-
sider how the Automated Targeting System could be 
improved through linkages with targeting systems in 
existence on the date of the enactment of the Secu-
rity and Accountability For Every Port Act for trav-
el security and terrorism finance programs. 
‘‘(c) NEW
OR EXPANDED INFORMATION SUBMIS-
SIONS.—In considering any new or expanded information 
submission requirements, the Secretary shall consult with 
stakeholders and identify the need for such information, 
provide safeguards that ensure confidentiality with respect 
to such information, and identify appropriate timing of the 
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submission of such information, in the plan required under 
subsection (a). 
‘‘(d) SECURE TRANSMISSION OF CERTAIN INFORMA-
TION.—All information required by the Department from 
supply chain partners shall be transmitted in a secure 
fashion, as determined by the Secretary, so as to protect 
the information from unauthorized access. 
‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There 
are authorized to be appropriated $5,000,000 for each of 
the fiscal years 2007 through 2012 to carry out this sec-
tion. 
‘‘SEC. 1804. CONTAINER STANDARDS AND VERIFICATION 
PROCEDURES. 
‘‘(a) ESTABLISHMENT.— 
‘‘(1) IN GENERAL.—The Secretary shall estab-
lish minimum standards and verification procedures 
for securing containers in transit to the United 
States relating to the sealing of containers. 
‘‘(2) DEADLINE
FOR
ENFORCEMENT.—Not 
later than two years after the date on which the 
standards and procedures are established pursuant 
to paragraph (1), all containers bound for ports of 
entry in the United States shall meet such standards 
and procedures. 
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‘‘(b) REVIEW AND ENHANCEMENT.—The Secretary 
shall regularly— 
‘‘(1) review the standards and procedures estab-
lished pursuant to subsection (a); and 
‘‘(2) enhance the security standards and proce-
dures, as appropriate, based on tests of technologies 
as they become commercially available to detect con-
tainer intrusion and the highest consequence threats, 
particularly weapons of mass destruction. 
‘‘(c) INTERNATIONAL
CARGO
SECURITY
STAND-
ARDS.—The Secretary, in consultation with the Secretary 
of State, is encouraged to promote and establish inter-
national standards for the security of containers moving 
through the international supply chain with foreign gov-
ernments and international organizations, including the 
International Maritime Organization and the World Cus-
toms Organization. 
‘‘(d) INTERNATIONAL TRADE AND OTHER OBLIGA-
TIONS.—In carrying out this section, the Secretary shall 
consult with appropriate Federal departments and agen-
cies and private sector stakeholders and ensure that ac-
tions under this section do not violate international trade 
obligations or other international obligations of the United 
States. 
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‘‘SEC. 1805. CONTAINER SECURITY INITIATIVE (CSI). 
‘‘(a) AUTHORIZATION.—The Secretary is authorized 
to establish and implement a program (to be known as 
the ‘Container Security Initiative’ or ‘CSI’) to identify and 
examine maritime containers that pose a risk for terrorism 
at foreign ports before the containers are shipped to the 
United States. 
‘‘(b) ASSESSMENT.—Before the Secretary designates 
any foreign port under CSI, the Secretary, in consultation 
with other Federal officials, as appropriate, shall conduct 
an assessment of the port, including— 
‘‘(1) the level of risk for the potential com-
promise of containers by terrorists or terrorist weap-
ons; 
‘‘(2) the volume of regular container traffic to 
United States ports; 
‘‘(3) the results of the Coast Guard assessments 
conducted pursuant to section 70108 of title 46, 
United States Code; 
‘‘(4) the commitment of the host nation to co-
operating with the Department in sharing critical 
data and risk management information and to main-
tain programs to ensure employee integrity; and 
‘‘(5) the potential for validation of security 
practices by the Department. 
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‘‘(c) NOTIFICATION.—The Secretary shall notify the 
appropriate congressional committees prior to notifying 
the public of the designation of a foreign port under CSI. 
‘‘(d) INSPECTIONS.— 
‘‘(1) REQUIREMENTS AND PROCEDURES.—The 
Secretary shall— 
‘‘(A) establish technical capability criteria 
and standard operating procedures for the use 
of nonintrusive inspection and nuclear and radi-
ological detection systems in conjunction with 
CSI; 
‘‘(B) require each port designated under 
CSI to operate nonintrusive inspection and nu-
clear and radiological detection systems in ac-
cordance with the technical capability criteria 
and standard operating procedures established 
under subparagraph (A); and 
‘‘(C) continually monitor the technologies, 
processes, and techniques used to inspect cargo 
at ports designated under CSI. 
‘‘(2) CONSISTENCY OF STANDARDS AND PROCE-
DURES.—The Secretary shall ensure that the tech-
nical capability criteria and standard operating pro-
cedures established under paragraph (1)(A) are con-
sistent with such standards and procedures of any 
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