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President signs bill for 100 percent cargo scanning
Another reason to review your Cargo Insurance policy for coverage
President Bush signed the much debated "100 percent cargo scanning" requirement into law, implementing the additional recommendations of the 9/11 Commission.
All containers entering the United States are to be scanned by
"non-intrusive imaging and radiation detection equipment at
a foreign port before it is loaded on a vessel."
The legislation does not require all containers to be scanned for five years, until July 1, 2012. Even then, the Secretary of the Department of Homeland Security can waive the requirement for two more years, and continue in two year increments if the scanning technology needed to fulfill the requirement is unavailable. Scanning can also be delayed for reasons
"significantly impacting trade capacity
and flow of cargo."
Similarly, it requires screening of all
cargo carried on passenger aircraft
within three years, but not physical
inspection, as initially proposed. A ports of entry program will also be established to improve security and streamline the arrival process for travelers at the 20 busiest international airports.
Trade representatives have spoken out against the bill since it was introduced in the U.S. House of Representatives more than six months ago. Now, some exporters fear retaliation from other countries enacting similar regulations for containers leaving the United States. While
pre-screening is meant to target only high risk security items, it is likely to contribute to an increase in government inspections.
Shipments must be protected during transit, especially with increased government inspection. Avalon can include the Customs Damage Clause in our Cargo Insurance policies to provide coverage if damage is caused by U.S. government inspection.
For further information, please contact Andriana Davis, Product Manager at Avalon’s corporate headquarters. Andriana Davis can be reached at 847-700-8087 or at
adavis@avalonrisk.com. Please do not hesitate to contact one of our nine regional offices throughout the United States.
To view a directory of Avalon’s office locations, please
visit our Web site at
www.avalonrisk.com.
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