War on terror confuses traders

By PAM GRAHAM

Exporters, shipping companies, port operators and government officials are scrambling to meet tougher United States security rules that start coming into effect on Monday.

"The present state of play is a high level of confusion," said Barrie Saunders of communications consultants Saunders & Unsworth, which organised a meeting between port chief executives and government officials last Tuesday.

The executives left that meeting unclear about exactly what the post-September 11 world would require of them and their customers.

Exporters and freight-forwarding companies are the most concerned, because rules requiring anyone exporting to the US, or moving goods through it, to provide much more information about shipments could start operating on Monday.

The rules, which have become law faster than had been expected, will impact on the chilled meat industry.

"It's an absolutely vital issue to exporters," said Mike Flanagan of the Export Institute, which is holding a briefing for business on Wednesday.

The changes cover providing information in advance, securing containers and general port security.

Port executives said port security was already good and they were waiting for a security audit by the Ministry of Transport before making any changes. It was difficult to work out the likely cost.

"We are working closely with shipping lines and New Zealand customs services to ensure that New Zealand exports continue to flow to market without interruption and we are confident that can be achieved," said Sandy Gibson, general manager of Axis Intermodal, which handles 75 per cent of Ports of Auckland's containers.

Southport chief executive Mike O'Connor said his port was increasing security anyway.

In the future, what is inside containers will have to be verified and secured. The world's top 20 ports are x-raying some containers, but this is expensive and New Zealand has no suitable x-ray equipment.

Port of Tauranga chief executive Jon Mayson said the issue was a major one and an "example of another country putting in place conditions on our ability to export that have potentially severe cost imposts and can be another form of non-tariff barrier".

He said ports had no information about when an assessment of their security would take place.

"From the ports' perspective it is a waste of time us going spending a lot of money upgrading security, until such time we know what is required.

"We have reasonably sophisticated systems anyway. One would hope it would only require a revamp and redirection of what we do."

He expected US customs would require manifests 48 hours before loading.

"That will create issues relating to receival and discussions with shipping lines are going on."

"The unanswered question in all of these questions is who faces the additional costs."

Gibson said New Zealand had strong bio-security controls at its borders.