March 08, 2011

Proposed Puerto Rican Scanning Regulation Will Result in Increased Costs and Supply Chain Delays

Washington D.C., partner Douglas Heffner has written an article for Security Magazine on a proposed regulation from the Puerto Rico Ports Authority that would require all inbound cargo containers, regardless of the container’s country of origin, to be scanned for contraband.

Doug, a partner in the Corporate & Securities Practice Group and a member of its Customs & Trade Team, outlines the rationale and scope of the proposed regulation and the fact that it does not exempt companies that are considered low-security risks.  He argues that the regulation sets a bad precedent; if such requirements, under the guise of health and safety claims, were to become the norm, states could scan and charge for cargo containers originating in any other state.  The likely result would be that interstate commerce would grind to a standstill.  As such, Doug recommends that companies “band together to fight the enactment of this proposed regulation.”

 

To read the entire article, click here.

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