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31 December, 2007 11:00:13 | in import-export

New U.S. Bill Might Affect Global Trade



AmCham PeruInfo provided and translated by the
American Chamber of Commerce of Peru (AmCham Peru)




By Aldo Defilippi, Executive Director of AmCham Peru

U.S. Congress has decreed a bill about the inspection of 100% of merchandise, which is about to be signed by President Bush shortly. This bill requires that 100% of the containers shipped in foreign ports be inspected by non intrusive equipment or X-ray detection equipment in that same foreign port before it is loaded onto the ship.

This is the Container Security Initiative (CSI). This bill will enter into force by July 1st, 2012 and will imply that in the next 5 years a new inspection system should be installed in our ports if we want to keep on exporting to the United States. The European Union has already stated its position in relation to the complications that such a measure would bring in terms of trade facilitation, higher port costs, delays, etc.


Hence, the requisites for a CSI port should be applied in a mandatory way by every port that has a trade relation with the U.S and all shipments that the U.S. exports should also be scanned in origin (by a reciprocity principle). Therefore, global trade will be safer, not ontly by guns and drugs, but also smuggling will be attacked as well.

However, it is possible that the non intrusive inspection system might save costs, facilitate trade and make trade safer, only if it is not required that during a certain amount of time –at which there will not be availability of equipment due to an artificial increase in its demand and a reduced supply by the producers of the equipment- at least not 100% of all the exports should be expected to comply with this new measure. If not, there would be a risk of creating barriers to global trade and the idea of trade facilitation would be lost.

Moreover, nowadays, most of the American ports have the aforementioned equipment, while the ports of other countries, especially developing countries, don’t. Thus, a dispute is about to be seen, particularly between United States and the rest of the countries, led by the European Union, who considers that the U.S. requirements are quite too much. Actually, and ideal scheme would be that the 100% of the shipments should be inspected in origin and only the risky ones should be inspected in destiny.

Thus, as it can be noticed, the trade facilitation is a subject that might be on the news for quite a long time, but it is necessary to take action in order to really implement it. What actions will Peru take in this matter?

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1 Comments

# Rosana Orbegoso Pea says :
3 March, 2008 [ 08:29 ]

More than a comment I have a question:
Is it OK to bring two suit cases full of shoes about 40 pairs on a comercial airline (continental) from Peru to the US?
The suitcases will be under 50 lb each and the purpose is resale in the US. I understand that the US allows Peru exports into US market duty free as per the Trade Promotion Agreement.
Your promt response will be greatly appreciated. Thanks!


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