A bill to improve intermodal shipping container transportation security.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Intermodal Shipping Container 
Security Act''.

SEC. 2. NATIONAL TRANSPORTATION SECURITY STRATEGY.

    In carrying out section 114(f) of title 49, United States Code, the 
Under Secretary of Homeland Security for Border and Transportation 
Security shall take into account the National Maritime Transportation 
Security Plan prepared under section 70103 of title 46, United States 
Code, by the Secretary of the department in which the Coast Guard is 
operating when the plan is prepared in order to ensure that the 
strategy for dealing with threats to transportation security developed 
under section 114(f)(3) of title 49, United States Code, incorporates 
relevant aspects of the National Maritime Transportation Security Plan 
and addresses all modes of commercial transportation to, from, and 
within the United States.

SEC. 3. COMPREHENSIVE STRATEGIC PLAN FOR INTERMODAL SHIPPING CONTAINER 
              SECURITY.

    (a) Strategic Plan.--
            (1) In general.--Within 180 days after the date of 
        enactment of this Act, the Secretary of Homeland Security shall 
        submit to the Senate Committee on Commerce, Science, and 
        Transportation and the House of Representatives Committee on 
        Transportation and Infrastructure a strategic plan for 
        integrating security for all modes of transportation by which 
        intermodal shipping containers arrive, depart, or move in 
        interstate commerce in the United States that--
                    (A) takes into account the security-related 
                authorities and missions of all Federal, State, and 
                local law enforcement agencies that relate to the 
                movement of intermodal shipping containers via air, 
                rail, maritime, or highway transportation in the United 
                States; and
                    (B) establishes as a goal the creation of a 
                comprehensive, integrated strategy for intermodal 
                shipping container security that encompasses the 
                authorities and missions of all those agencies and sets 
                forth specific objectives, mechanisms, and a schedule 
                for achieving that goal.
            (2) Updates.--The Secretary shall revise the plan from time 
        to time.
    (b) Identification of Problem Areas.--In developing the strategic 
plan required by subsection (a), the Secretary shall consult with all 
Federal, State, and local government agencies responsible for security 
matters that affect or relate to the movement of intermodal shipping 
containers via air, rail, maritime, or highway transportation in the 
United States in order to--
            (1) identify changes, including legislative, regulatory, 
        jurisdictional, and organizational changes, necessary to 
        improve coordination among those agencies;
            (2) reduce overlapping capabilities and responsibilities; 
        and
            (3) streamline efforts to improve the security of such 
        intermodal shipping containers.
    (c) Establishment of Steering Group.--The Secretary shall 
establish, organize, and provide support for an advisory committee, to 
be known as the Senior Steering Group, of senior representatives of the 
agencies described in subsection (c). The Group shall meet from time to 
time, at the call of the Secretary or upon its own motion, for the 
purpose of developing solutions to jurisdictional and other conflicts 
among the represented agencies with respect to the security of 
intermodal shipping containers, improving coordination and information-
sharing among the represented agencies, and addressing such other, 
related matters, as the Secretary may request.
    (d) Annual Report.--The Secretary, after consulting the Senior 
Steering Group, shall submit an annual report to the Senate Committee 
on Commerce, Science, and Transportation and the House of 
Representatives Committee on Transportation and Infrastructure 
describing the activities of the Senior Steering Group and the 
Secretary under this section, describing the progress made during the 
year toward achieving the objectives of the plan, and including any 
recommendations, including legislative recommendations, if appropriate 
for further improvements in dealing with security-issues related to 
intermodal shipping containers and related transportation security 
issues.
    (e) Biennial Expert Critique.--
            (1) Expert panel.--A panel of experts shall be convened 
        once every 2 years by the Senate Committee on Commerce, 
        Science, and Transportation and the House of Representatives 
        Committee on Transportation and Infrastructure to review plans 
        submitted by the Secretary under subsection (a).
            (2) Membership.--The panel shall consist of--
                    (A) 4 individuals selected by the chairman and 
                ranking member of the Senate Committee on Commerce, 
                Science, and Transportation and by the chairman and 
                ranking member of House of Representatives Committee on 
                Transportation and Infrastructure, respectively; and
                    (B) 1 individual selected by the 4 individuals 
                selected under subparagraph (A).
            (3) Qualifications.--Individuals selected under paragraph 
        (2) shall be chosen from among individuals with professional 
        expertise and experience in security-related issues involving 
        shipping or transportation and without regard to political 
        affiliation.
            (4) Compensation and expenses.--An individual serving as a 
        member of the panel shall not receive any compensation or other 
        benefits from the Federal Government for serving on the panel 
        or be considered a Federal employee as a result of such 
        service. Panel members shall be reimbursed by the Committees 
        for expenses, including travel and lodging, they incur while 
        actively engaged in carrying out the functions of the panel.
            (5) Function.--The panel shall review plans submitted by 
        the Secretary under subsection (a), evaluate the strategy set 
        forth in the plan, and make such recommendations to the 
        Secretary for modifying or otherwise improving the strategy as 
        may be appropriate.

SEC. 4. SHIPPING CONTAINER INTEGRITY INITIATIVE.

    (a) In General.--Chapter 701 of title 46, United States Code, is 
amended--
            (1) by redesignating section 70117 as section 70118; and
            (2) by inserting after section 70116 the following:
``Sec. 70117. Enhanced container-related security measures.
    ``(a) Tracking Intermodal Container Shipments in the United 
States.--The Secretary, in cooperation with the Under Secretary of 
Border and Transportation Security, shall develop a system to increase 
the number of intermodal shipping containers physically inspected 
(including noninstrusive inspection by scanning technology), monitored, 
and tracked within the United States.
    ``(b) Smart Box Technology.--Under regulations to be prescribed by 
the Secretary, beginning with calendar year 2007 no less than 50 
percent of all ocean-borne shipping containers entering the United 
States during any calendar year shall incorporate `Smart Box' or 
equivalent technology developed, approved, or certified by the Under 
Secretary of Homeland Security for Border and Transportation Security.
    ``(c) Development of International Standard for Smart Containers.--
The Secretary shall--
            ``(1) develop, and seek international acceptance of, a 
        standard for `smart' maritime shipping containers that 
        incorporate technology for tracking the location and assessing 
        the integrity of those containers as they move through the 
        intermodal transportation system; and
            ``(2) implement an integrated tracking and technology 
        system for such containers.
    ``(d) Report.--Within 1 year after the date of enactment of the 
Intermodal Shipping Container Security Act, the Secretary shall 
transmit to the Senate Committee on Commerce, Science, and 
Transportation and the House of Representatives Committee on 
Transportation and Infrastructure a report that contains--
            ``(1) a cost analysis for implementing this section; and
            ``(2) a strategy for implementing the system described in 
        subsection (c)(3).''.
    (b) Conforming Amendment.--The chapter analysis for chapter 701 of 
title 46, United States Code, is amended by striking the item relating 
to section 70117 and inserting the following:

``70117. Enhanced container-related security measures.
``70118. Civil penalties.''.

SEC. 5. ADDITIONAL RECOMMENDATIONS.

    Within 180 days after the date of enactment of this Act, the 
Secretary of Homeland Security shall submit to the Senate Committee on 
Commerce, Science, and Transportation and the House of Representatives 
Committee on Transportation and Infrastructure a report that contains 
the following:
            (1) Recommendations about what analysis must be performed 
        and the cost to develop and field a cargo container tracking 
        and monitoring system within the United States which tracks all 
        aviation, rail, maritime, and highway cargo containers equipped 
        with smart container technology.
            (2) Recommendations on how the Department of Homeland 
        Security could help support the deployment of such a system.
            (3) Recommendations as to how current efforts by the 
        Department of Homeland Security and other Federal agencies 
        could be incorporated into the physical screening or inspection 
        of aviation, rail, maritime, and highway cargo containers 
        within the United States.
            (4) Recommendations about operating systems and standards 
        for those operating systems, to support the tracking of 
        aviation, rail, maritime, and highway cargo containers within 
        the United States that would include the location of regional, 
        State, and local operations centers.
            (5) A description of what contingency actions, measures, 
        and mechanisms should be incorporated in the deployment of a 
        nationwide aviation, rail, maritime, and highway cargo 
        containers tracking and monitoring system which would allow the 
        United States maximum flexibility in responding quickly and 
        appropriately to increased terrorist threat levels at the 
        local, State, or regional level.
            (6) A description of what contingency actions, measures, 
        and mechanisms must be incorporated in the deployment of such a 
        system which would allow for the quick reconstitution of the 
        system in the event of a catastrophic terrorist attack which 
        affected part of the system.
            (7) Recommendations on how to leverage existing information 
        and operating systems within State or Federal agencies to 
        assist in the fielding of the system.
            (8) Recommendations on co-locating local, State, and 
        Federal agency personnel to streamline personnel requirements, 
        minimize costs, and avoid redundancy.
            (9) An initial assessment of the availability of private 
        sector resources which could be utilized, and incentive systems 
        developed, to support the fielding of the system, and the 
        maintenance and improvement as technology or terrorist threat 
        dictate.
            (10) Recommendations on how this system that is focused on 
        the continental United States would be integrated into any 
        existing or planned system, or process, which is designed to 
        monitor the movement of cargo containers outside the 
        continental United States.

SEC. 6. IMPROVEMENTS TO CONTAINER TARGETING SYSTEMS.

    (a) In General.--Within 90 days after the date of enactment of this 
Act, the Secretary of Homeland Security shall submit a report to the 
Senate Committee on Commerce, Science, and Transportation and the House 
of Representatives Committee on Transportation and Infrastructure that 
provides a preliminary plan for strengthening the Bureau of Customs and 
Border Protection's container targeting system. The plan shall identify 
the cost and feasibility of requiring additional non-manifest 
documentation for each container, including purchase orders, shipper's 
letters of instruction, commercial invoices, letters of credit, or 
certificates of origin.
    (b) Reduction of Manifest Revision Window.--Within 60 days after 
the date of enactment of this Act, the Secretary of Homeland Security 
shall issue regulations under which the time period for revisions to a 
container cargo manifest submitted to the Bureau of Customs and Border 
Protection shall be reduced from 60 days to 45 days after arrival at a 
United States port.
    (c) Supply Chain Information.--Within 180 days after the date of 
enactment of this Act, the Secretary of Homeland Security shall develop 
a system to share threat and vulnerability information with all of the 
industries in the supply chain that will allow ports, carriers, and 
shippers to report on security lapses in the supply chain and have 
access to unclassified maritime threat and security information such as 
piracy incidents.

SEC. 7. INCREASE IN NUMBER OF CUSTOMS INSPECTORS ASSIGNED OVERSEAS.

    (a) In General.--The Secretary of Homeland Security shall 
substantially increase the number of United States Customs Service 
inspectors assigned to duty outside the United States under the 
Container Security Initiative of the United States Customs Service with 
responsibility for inspecting intermodal shipping containers being 
shipped to the United States.
    (b) Staffing Criteria.--In carrying out subsection (a) the 
Secretary of Homeland Security shall determine the appropriate level 
for assignment and density of customs inspectors at selected 
international port facilities by a threat, vulnerability, and risk 
analysis which, at a minimum, considers--
            (1) the volume of containers shipped;
            (2) the ability of the host government to assist in both 
        manning and providing equipment and resources;
            (3) terrorist intelligence known of importer vendors, 
        suppliers or manufactures; and
            (4) other criteria as determined in consult with experts in 
        the shipping industry, terrorism, and shipping container 
        security.
    (c) Minimum Number.--The total number of customs inspectors 
assigned to international port facilities shall not be less than the 
number determined as a result of the threat, vulnerability, and risk 
assessment analysis which is validated by the Administrator of the 
Transportation Security Administration within 180 days after the date 
of enactment of this Act.
    (d) Plan.--The Secretary shall submit a plan to the Senate 
Committee on Commerce, Science, and Transportation and the House of 
Representatives Committee on Transportation and Infrastructure, with 
timelines, for phasing inspectors into selected port facilities within 
180 days after the enactment of this Act.

SEC. 8. RANDOM INSPECTION OF CONTAINERS.

    (a) In General.--The Under Secretary of Homeland Security for 
Border and Transportation Security shall develop and implement a plan 
for random inspection of shipping containers in addition to any 
targeted or pre-shipment inspection of such containers required by law 
or regulation or conducted under any other program conducted by the 
Under Secretary.
    (b) Civil Penalty for Erroneous Manifest.--
            (1) In general.--Except as provided in paragraph (2), if 
        the Under Secretary determines on the basis of an inspection 
        conducted under subsection (a) that there is a discrepancy 
        between the contents of a shipping container and the manifest 
        for that container, the Under Secretary may impose a civil 
        penalty of not more than $1,000 for the discrepancy.
            (2) Manifest discrepancy reporting.--The Under Secretary 
        may not impose a civil penalty under paragraph (1) if a 
        manifest discrepancy report is filed with respect to the 
        discrepancy within the time limits established by Customs 
        Directive No. 3240-067A (or any subsequently issued directive 
        governing the matters therein) for filing a manifest 
        discrepancy report.
                               D23/

Summary: Intermodal Shipping Container Security Act - Directs the Under Secretary of Homeland Security for Border and Transportation Security to take into account a certain National Maritime Transportation Security Plan to ensure that the strategy for dealing with threats to transportation security incorporates relevant aspects of the Plan and addresses all modes of commercial transportation to, from, and within the United States.

Directs the Secretary of Homeland Security to submit to Congress a strategic plan for integrating security for all modes of transportation by which intermodal shipping containers arrive, depart, or move in interstate commerce. Establishes the Senior Steering Group to develop solutions to conflicts among constituent agencies regarding intermodal shipping container security.

Amends Federal shipping law to direct the Secretary of Transportation to develop a system to increase the number of intermodal shipping containers physically inspected (including nonintrusive inspection by scanning technology), monitored, and tracked within the United States. Requires, beginning in 2007, no less than 50 percent of all ocean-borne shipping containers entering the United States to incorporate "Smart Box" or equivalent technology.

Requires the Secretary of Homeland Security to: (1) report to Congress a preliminary plan for strengthening the Bureau of Customs and Border Protection's container targeting system; (2) issue regulations reducing from 60 days to 45 days after arrival at a U.S. port the time period for revisions to a container manifest that is submitted to the Bureau of Customs and Border Protection; (3) develop a system to share threat and vulnerability information with all of the industries in the supply chain; and (4) substantially increase under the Container Security Initiative the number of U.S. Customs Service inspectors assigned to duty outside of the United States with responsibility for inspecting intermodal shipping containers being shipped to the United States.

Directs the Under Secretary to implement a plan for random inspection of shipping containers in addition to any targeted or preshipment inspection of such containers required by law. Sets forth civil penalties for discrepancies found in container manifests.