The Hindu Business Line : India against US move to scan in-bound box shipments

New Delhi, April 17 India and 29 other Asia-Pacific countries are gearing up to oppose the proposed implementation of a US law that mandates 100 per cent scanning of all US-bound container shipments at the country of export with effect from July 1, 2012.

Citing cost implications, 81 customs administrators from 30 Asia-Pacific countries said here on Thursday that it would be impossible for many developing countries in this region to ensure 100 per cent scanning of US-bound container shipments.

Briefing reporters on the deliberations at the 12th World Customs Organisation’s Asia-Pacific regional heads’ meeting here, Mr P.C. Jha, who heads Indian customs and excise administration, said that the delegates expressed concern over the US initiative.

This matter will also be taken up at the annual meeting of the World Customs Organisation (WCO) in Brussels in February next year. “We will send a report to the WCO Secretariat about the views expressed by the 81 delegates,” Mr Jha said.

According to the US law, all containers entering the US will have to be 100-per-cent scanned at the country of export before they are shipped. It also provides for deputing US officials in the country of export to oversee the scanning of containers.

The customs administrators of the Asia-Pacific region feel that this would involve a lot of cost in terms of having container scanners.

India at present has only two container scanners in operation at Nava Sheva port. “One is a mobile gamma ray scanner and the other is a fixed x-ray scanner. We already have given sanction for seven more scanners — four fixed and three mobile,” Mr Jha said.

These are to be installed at four ports including Kandla, Chennai, and Tuticorin.

The CBEC chairman highlighted that setting up the additional scanners would cover only a few ports in the country. Scanners cost anywhere between Rs 15 crore and Rs 150 crore, depending on the technology utilised.

India’s exports to the US stood at about $24 billion in 2006. The European Union had also objected to the US law, stating that it would place an unfair burden on European companies and that taxpayers there would have to foot the bill for imaging equipment and deploying more personnel.

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