WASHINGTON — A coalition that includes four major apparel retailer and importer associations urged senators Thursday to pass a strong port security bill and defeat potential amendments requiring 100 percent screening of cargo, which they argue could bring global commerce to a standstill.
The plea came as the Senate prepared today to debate port security legislation.
The Supply Chain Security Coalition comprises several groups, including the National Retail Federation, Retail Industry Leaders Association, American Apparel & Footwear Association and U.S. Association of Importers of Textiles & Apparel. The coalition said in a letter that screening of all cargo “is unrealistic and could potentially decrease security by forcing containers to sit for extended periods of time, which would then put them at greater risk of tampering.”
The coalition said it supports legislation that authorizes additional testing and evaluation of scanning technology.
The substance of the Senate bill was not disclosed, but it could mirror legislation approved by a Senate panel in May for a pilot program at three foreign ports to test and establish a 100 percent-integrated screening system within one year. That bill also would require 22 U.S. ports to establish procedures and technology to examine 100 percent of all U.S. containers for radiation by the end of next year.
The House passed a port security bill in May authorizing more than $5 billion over five years to strengthen security at the ports, including the provision for the 22 ports. If passed by the Senate, the bills would have to go to conference to reconcile the differences.
Senate Democrats, seeking to make port security an election-year issue, are expected to press for 100 percent inspection of all containers at foreign ports. They argue the estimated 5 percent scanning rate of more than 11 million containers entering the country annually is dangerously low. Republican leaders in the House and Senate have resisted full inspection, maintaining it is not practical.
Retailers and wholesalers imported $89.2 billion worth of apparel and textiles to the U.S. last year and are concerned about the potential for Congressional intervention in global commerce.
“U.S. manufacturing depends on ‘just-in-time’ delivery,” said Allen Thompson, vice president for supply chain security for RILA, which includes Wal-Mart, Target and Sears as members. “Even a delay of several days in delivering needed inputs to U.S. manufacturing would have a devastating impact on the economy.”
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Retailers are fending off potentially costly legislation and waging port battles on both coasts. The NRF sent a letter late Wednesday to California Gov. Arnold Schwarzenegger urging him to veto legislation that would impose a $60 user fee on every 40-foot container moving through the ports of Los Angeles and Long Beach, arguing it would force retailers to shift imported products to ports in other states. The NRF said the measure would cost retailers and other shippers an estimated $500 million a year.
The California Senate and Assembly passed the bill last week and it is awaiting action by Schwarzenegger.
Tracy Mullin, NRF president and chief executive officer, said in the letter that the container fees in the California bill “violate the Commerce Clause of the U.S. Constitution, international law and U.S. treaty obligations, and would expose the state of California to court challenge were it to become law.”
She added, “The fee would substantially increase the cost of moving goods through L.A.-Long Beach and adversely impact these ports’ competitiveness and workforce as retailers and other shippers are forced to look for alternative ports outside the state…to enter their goods.”