Scanning of export containers

A controversy is fast developing between the exporters and the Customs department, with regard to the need to screen all export cargo containers. As reported in the newspapers the Pakistan Customs have asked the two ports and the container terminal operators to provide space in their premises for installation of scanners for the purposes of scanning of all export containers by the National Logistics Cell (NLC).
The trade also contends that the directive by the customs may be at the behest of the NLC, who have been actively pushing for this new commercial venture.
The ostensible reason for this initiative is stated to be that since Pakistan is a signatory to the WTO regime and therefore bound to adhere to the requirements of the Container Security Initiative (CSI) and the ISPS code.
The correct position however is, that scanning of containers is not a WTO regime requirement. Furthermore the CSI is part of the United States Bureau of Customs and Border Protection, an agency under the US department of Homeland Security, procedure launched in 2002 in the aftermath of 9/11, and only applies to exports to the US.
Its stated purpose is to identify high-risk maritime cargoes and examine them for Weapons of Mass Destruction (WMD) or WMD related equipment and parts.
The CSI programme requires deployment of a team of US Customs agents at the port of loading/shipment on a US bound vessel and they work with the host nation's counterparts to target containers that pose a potential threat.
The CSI focus initially has been on twenty large ports that account for approximately two-thirds of the container volume to the United States.
However, ports not in the initial list are at liberty to join if they meet their requirements in respect of volume, equipment, procedures and information sharing.
The exporters are agitating that since all the cargo destined for the United States gets transhipped through the larger ports and does get screened there, installation of scanners at the Karachi and Bin Qasim ports would add to their cost as they would have to pay scanning charges twice.
They, in fact, would prefer if such equipment is not installed here and view it as money making venture of the NLC. Before matters come to a head between the trade and the functionaries it is desirable that the ministry of commerce takes the initiative and convenes a meeting of all the stake-holders, including the officials of the ministries of finance and communications.
This meeting should determine, whether CSI is mandatory for all exports from Pakistan or only to the US.
Secondly, since the CSI programme envisages posting of US Custom officials, confirmation sought that such officials would indeed be posted at the Karachi and Bin Qasim ports and their container terminals.
Thirdly, will the CSI inspection be then carried out in Pakistan and such cargo exempted from CSI inspection at the transhipment port to avoid burden of double inspection charges and fourthly, who would pay for the CSI screening programme. Would it be possible to fund it from the Export Development Fund or a grant from a foreign donor.
In our view it would be a folly not to include our ports in the CSI inspection programme because sooner or later this procedure would also apply to exports to other developed countries besides the US.
The question of who should screen and whether the NLC should be involved in this exercise needs to be considered carefully particularly, when it is the declared policy of the government to leave business and trade matters to the private sector and not enhance the role of the public sector.