Homeland Security: Preliminary Observations on Efforts to Target
Security Inspections of Cargo Containers (16-DEC-03,
GAO-04-325T).
After the attacks of September 11, 2001, concerns intensified
that terrorists would attempt to smuggle a weapon of mass
destruction into the United States. One possible method for
terrorists to smuggle such a weapon is to use one of the 7
million cargo containers that arrive at our nation's seaports
each year. The Department of Homeland Security's U.S. Customs and
Border Protection (CBP) is responsible for addressing the
potential threat posed by the movement of oceangoing cargo
containers. Since CBP cannot inspect all arriving cargo
containers, it uses a targeting strategy, which includes an
automated targeting system. This system targets some containers
for inspection based on a perceived level of risk. In this
testimony, GAO provides preliminary findings on its assessment of
(1) whether CBP's development of its targeting strategy is
consistent with recognized key risk management and computer
modeling practices and (2) how well the targeting strategy has
been implemented at selected seaports around the country.
-------------------------Indexing Terms-------------------------
REPORTNUM: GAO-04-325T
ACCNO: A09032
TITLE: Homeland Security: Preliminary Observations on Efforts to
Target Security Inspections of Cargo Containers
DATE: 12/16/2003
SUBJECT: Counterterrorism
Inspection
Shipping industry
Terrorism
Weapons
National preparedness
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GAO-04-325T
United States General Accounting Office
GAO Testimony
Before the Subcommittee on Oversight and Investigations, Committee on
Energy and Commerce, House of Representatives
For Release on Delivery Expected at 1:00 p.m. EST In Camden, New Jersey
Tuesday, December 16, 2003
HOMELAND SECURITY
Preliminary Observations on Efforts to Target Security Inspections of Cargo
Containers
Statement of Richard M. Stana, Director Homeland Security and Justice
GAO-04-325T
Highlights of GAO-04-325T, testimony before the Committee on Energy and
Commerce and the Subcommittee on Oversight and Investigations
After the attacks of September 11, 2001, concerns intensified that
terrorists would attempt to smuggle a weapon of mass destruction into the
United States. One possible method for terrorists to smuggle such a weapon
is to use one of the 7 million cargo containers that arrive at our
nation's seaports each year. The Department of Homeland Security's U.S.
Customs and Border Protection (CBP) is responsible for addressing the
potential threat posed by the movement of oceangoing cargo containers.
Since CBP cannot inspect all arriving cargo containers, it uses a
targeting strategy, which includes an automated targeting system. This
system targets some containers for inspection based on a perceived level
of risk. In this testimony, GAO provides preliminary findings on its
assessment of (1) whether CBP's development of its targeting strategy is
consistent with recognized key risk management and computer modeling
practices and (2) how well the targeting strategy has been implemented at
selected seaports around the country.
GAO is completing its assessment and developing recommendations to address
strategy development and implementation challenges.
www.gao.gov/cgi-bin/getrpt?GAO-04-325T.
To view the full product, including the scope and methodology, click on
the link above. For more information, contact Richard M. Stana at (202)
512-8777 or [email protected].
December 16, 2003
HOMELAND SECURITY
Preliminary Observations on Efforts to Target Security Inspections of Cargo
Containers
CBP has taken steps to address the terrorism risks posed by oceangoing
cargo containers. These include establishing a National Targeting Center,
refining its automated targeting system, instituting a national training
program for its personnel that perform targeting, and promulgating
regulations to improve the quality and timeliness of data on cargo
containers. However, while CBP's strategy incorporates some elements of
risk management, it does not include other key elements, such as a
comprehensive set of criticality, vulnerability and risk assessments that
experts told GAO are necessary to determine risk and the types of
responses necessary to mitigate that risk. Also, CBP's targeting system
does not include a number of recognized modeling practices, such as
subjecting the system to peer review, testing and validation. By
incorporating the missing elements of a risk management framework and
following certain recognized modeling practices, CBP will be in a better
position to protect against terrorist attempts to smuggle weapons of mass
destruction into the United States.
CBP faces a number of challenges at the six ports we visited. CBP does not
have a national system for reporting and analyzing inspection statistics
and the data provided to us by ports were generally not available by risk
level, were not uniformly reported, were difficult to interpret, and were
incomplete. CBP officials told us they have just implemented a new module
for their targeting system, but it is too soon to tell whether it will
provide consistent, complete inspection data for analyzing and improving
the targeting strategy. In addition, CBP staff that received the national
targeting training were not tested or certified to ensure that they had
learned the basic skills needed to provide effective targeting. Further,
space limitations and safety concerns about inspection equipment
constrained the ports in their utilization of screening equipment, which
has affected the efficiency of examinations.
Source: Customs and Border Protection, U.S. Department of Homeland
Security
Mr. Chairman and Members of the Subcommittee:
I appreciate the opportunity to be here today to participate in this
hearing on the security of oceangoing cargo containers. In the aftermath
of the terrorist attacks of September 11, 2001, there is heightened
concern that terrorists may try to smuggle weapons of mass destruction
into a U.S. port using one of the millions of cargo containers that arrive
at our nation's seaports each year. If terrorists did so and detonated
such a weapon (e.g., a nuclear or radiological explosive device) at a
seaport, the incident could cause widespread death and damage to the
immediate area, perhaps shut down seaports nationwide, cost the U.S.
economy billions of dollars, and seriously hamper international trade.
The Department of Homeland Security and its U.S. Customs and Border
Protection (CBP) are responsible for addressing the threat posed by
terrorist smuggling of weapons in oceangoing containers. To carry out this
responsibility, CBP uses a targeting strategy, which includes a
computerized model called the Automated Targeting System, to help select
(or "target") containers for additional review and/or inspection.
Organizations that are involved in security matters, such as CBP,
frequently employ certain risk management practices, including computer
modeling, to help them prioritize their activities and use of resources.
In essence, risk management is a systematic process to analyze threats,
vulnerabilities, and critical assets to better support management
decisions.
This statement presents the preliminary results from our latest effort in
a series of GAO reports that evaluate CBP's response to the terrorist
threat.1 Based upon our ongoing assessment of CBP's targeting strategy for
this subcommittee, I will provide our preliminary findings on (1) whether
CBP's development of its targeting strategy is consistent with recognized
risk management and computer modeling practices and (2) how well the
targeting strategy has been implemented at selected seaports around the
country. Our preliminary findings are based on extensive data collection
and analysis at CBP, consultations with experts in terrorism and risk
management, visits to six seaports, and related interviews with federal
and local government and private sector officials responsible for port
security and operations. Additional information on our scope and
methodology can be found at the end of this statement. Our work focused
primarily on the
1A listing of relevant GAO reports appears at the end of this statement.
targeting system rather than the sufficiency of inspections at the ports
once a container has been targeted.
Summary While CBP has taken steps to address the terrorism risks posed by
oceangoing cargo containers, its targeting strategy neither incorporates
all key elements of a risk management framework, nor is it consistent with
certain recognized practices associated with modeling. To its credit, CBP
established the National Targeting Center to serve as the national focal
point for targeting imported cargo and for distributing periodic
intelligence alerts to the ports. CBP has refined its targeting system,
which was originally designed to identify narcotics contraband, to help
identify containers posing potential terrorist threats for possible
physical screening and inspection. It also instituted a national training
program for its personnel that perform targeting. Further, CBP promulgated
regulations aimed at improving the quality and timeliness of transmitted
cargo manifest data for use in the targeting system. However, while its
strategy incorporates some elements of risk management, CBP has not
performed a comprehensive set of threat, criticality, vulnerability and
risk assessments that experts said are vital for determining levels of
risk for each container and the types of responses necessary to mitigate
that risk. Regarding recognized modeling practices, CBP has not subjected
the targeting system to external peer review or testing as recommended by
the experts we contacted. CBP has a program to randomly select and inspect
containers, to compare these results with those generated by the targeting
system. However, because the inspections can be waived, randomly selected
containers might not be inspected, which limits the usefulness of the
program to help improve the targeting system By incorporating the missing
elements of a risk management framework and following recognized modeling
practices, CBP would have better information to make management decisions
related to preventing terrorist from smuggling weapons of mass destruction
into the United States.
CBP faces a number of challenges in implementing the targeting strategy at
the six ports we visited that could limit the strategy's effectiveness.
First, CBP does not have a national system for reporting and analyzing
inspection statistics and the data provided to us by ports were generally
not readily available by risk level, were not uniformly reported, were
difficult to interpret, and were incomplete. CPB officials told us they
have just implemented a new module for their targeting system to better
collect national data on the results of inspections, but it is too soon to
tell whether it will provide consistent, complete inspection data for
analyzing and improving the targeting strategy. In addition, CBP staff
that received
the national targeting training were not tested or certified to ensure
that they had learned the basic skills needed to provide effective
targeting. Further, we found that space limitations and safety concerns
about inspection equipment constrain the ports in their utilization of
screening equipment, which has affected the efficiency of examinations.
Background
Maritime Cargo Containers Are Important and Vulnerable
Cargo containers are an important segment of maritime commerce.
Approximately 90 percent of the world's cargo moves by container. Each
year, approximately 16 million oceangoing cargo containers enter the U.S.
carried aboard thousands of container vessels. In 2002, approximately 7
million containers arrived at U.S seaports, carrying more than 95 percent
of the nation's non-North American trade by weight and 75 percent by
value. Many experts on terrorism-including those at the Federal Bureau of
Investigation and academic, think tank and business organizations- have
concluded that the movement of oceangoing cargo containers are vulnerable
to some form of terrorist action. A terrorist incident at a seaport, in
addition to killing people and causing physical damage, could have serious
economic consequences. In a 2002 simulation of a terrorist attack
involving cargo containers, every seaport in the United States was shut
down, resulting in a loss of $58 billion in revenue to the U.S. economy,
including spoilage, loss of sales, and manufacturing slowdowns and halts
in production.2
CBP Has A Layered Approach to Select and Inspect Cargo Containers
CBP is responsible for preventing terrorists and weapons of mass
destruction from entering the United States. As part of its
responsibility, it has the mission to address the potential threat posed
by the movement of oceangoing containers. To perform this mission, CBP has
inspectors at the ports of entry into the United States. While most of the
inspectors assigned to seaports perform physical inspections of goods
entering the country, some are "targeters"-they review documents and
intelligence reports and determine which cargo containers should undergo
additional documentary
2The consulting firm Booz Allen Hamilton and The Conference Board
sponsored the simulation in 2002. In the simulation, representatives from
government and industry participated in a scenario involving the discovery
and subsequent detonation of radioactive bombs hidden in cargo containers.
reviews and/or physical inspections. These determinations are not just
based on concerns about terrorism, but also concerns about illegal
narcotics and/or other contraband.
The CBP Commissioner said that the large volume of imports and its limited
resources make it impossible to physically inspect all oceangoing
containers without disrupting the flow of commerce. The Commissioner also
said it is unrealistic to expect that all containers warrant such
inspection because each container poses a different level of risk based on
a number of factors including the exporter, the transportation providers,
and the importer. These concerns led to CBP implementing a layered
approach that attempts to focus resources on potentially risky cargo
containers while allowing other cargo containers to proceed without
disrupting commerce.
As part of its layered approach, CBP employs its Automated Targeting
System (ATS) computer model to review documentation on all arriving
containers and help select or "target" containers for additional
documentary review and/or physical inspection. The ATS was originally
designed to help identify illegal narcotics in cargo containers. ATS
automatically matches its targeting rules against the manifest and other
available data for every arriving container, and assigns a level of risk
(i.e., low, medium, high) to each container. At the port level, inspectors
use ATS, as well as other data (e.g., intelligence reports), to determine
whether to inspect a particular container. In addition, CBP has a program,
called the Supply Chain Stratified Examination, which supplements the ATS
by randomly selecting additional containers to be physically examined. The
results of the random inspection program are to be compared to the results
of ATS inspections to improve targeting. If CBP officials decide to
inspect a particular container, they might first use equipment such as the
Vehicle and Cargo Inspection System (VACIS) that takes a gamma-ray image
of the container so inspectors can see any visual anomalies. With or
without VACIS, inspectors can open a container and physically examine its
contents.
Other components of the layered approach include the Container Security
Initiative (CSI) and the Customs-Trade Partnership Against Terrorism
(C-TPAT). CSI is an initiative whereby CBP places staff at designated
foreign seaports to work with foreign counterparts to identify and inspect
highrisk containers for weapons of mass destruction before they are
shipped to the United States. C-TPAT is a cooperative program between CBP
and members of the international trade community in which private
companies
agree to improve the security of their supply chains in return for a
reduced likelihood that their containers will be inspected.3
Risk Management and Modeling Are Important Security Practices
Risk management is a systematic process to analyze threats,
vulnerabilities, and the criticality (or relative importance) of assets to
better support key decisions linking resources with prioritized efforts
for results. Risk management is used by many organizations in both
government and the private sector. In recent years, we have consistently
advocated the use of a risk management approach to help implement and
assess responses to various national security and terrorism issues.4 We
have concluded that without a risk management approach that provides
insights about the present threat and vulnerabilities as well as the
organizational and technical requirements necessary to achieve a program's
goals, there is little assurance that programs to combat terrorism are
prioritized and properly focused. Risk management could help to more
effectively and efficiently prepare defenses against acts of terrorism and
other threats. Key elements of a risk management approach are listed
below.
o Threat assessment: A threat assessment identifies adverse events that
can affect an entity, which may be present at the global, national, or
local level.
o Vulnerability assessment: A vulnerability assessment identifies
weaknesses in physical structures, personnel protection systems, processes
or other areas that may be exploited by terrorists.
o Criticality assessment: A criticality assessment identifies and
evaluates an entity's assets or operations based on a variety of factors,
including importance of an asset or function.
o Risk assessment: A risk assessment qualitatively and/or quantitatively
determines the likelihood of an adverse event occurring and the severity,
or impact, of its consequences.
3For more information on these programs, see U.S. General Accounting
Office, Container Security: Expansion of Key Customs Programs Will Require
Greater Attention to Critical Success Factors, GAO-02-770 (Washington,
D.C.: July 2003).
4For example, see U.S. General Accounting Office, Homeland Security: A
Risk Management Approach Can Guide Preparedness Efforts, GAO-02-208T
(Washington, D.C.: July 2003).
o Risk characterization: Risk characterization involves designating risk
on a scale, for example, low, medium, or high. Risk characterization forms
the basis for deciding which actions are best suited to mitigate risk.
o Risk mitigation: Risk mitigation is the implementation of mitigating
actions, taking into account risk, costs, and other implementation
factors.
o Systems Approach: An integrated systems approach to risk management
encompasses taking action in all organizational areas, including
personnel, processes, technology, infrastructure, and governance.
o Monitoring and evaluation: Monitoring and evaluation is a continuous
repetitive assessment process to keep risk management current and
relevant. It includes external peer review, testing, and validation.
Modeling can be an important part of a risk management approach. To assess
modeling practices related to ATS, we interviewed terrorism experts and
representatives of the international trade community who were familiar
with modeling related to terrorism and/or ATS and reviewed relevant
literature. There are at least four recognized modeling practices that are
applicable to ATS as a decision-support tool.
o Conducting external peer review: External peer review is a process
that includes an assessment of the model by independent and qualified
external peers. While external peer reviews cannot ensure the success of a
model, they can increase the probability of success by improving the
technical quality of projects and the credibility of the decisionmaking
process.
o Incorporating additional types of information: To identify documentary
inconsistencies, targeting models need to incorporate various types of
information to perform complex "linkage" analyses. Using only one type of
information will not be sufficient enough to yield reliable targeting
results.
o Testing and validating through simulated terrorist events: A model
needs to be tested by staging simulated events to validate it as a
targeting tool. Simulated events could include "red teams" that devise and
deploy tactics in an attempt to define a system's weaknesses, and "blue
teams" that devise ways to mitigate the resulting vulnerabilities
identified by the red team.
Positive Steps Taken, But Targeting Strategy Lacks Key Components Of Risk
Management And Modeling
o Using random inspections to supplement targeting: A random selection
process can help identify and mitigate residual risk (i.e., the risk
remaining after the model-generated inspections have been done), but also
help evaluate the performance of the model relative to other approaches.
CBP has taken several positive steps to address the terrorism risks posed
by oceangoing cargo containers. For example, CBP established the National
Targeting Center to serve as the national focal point for targeting
imported cargo containers and distributing periodic intelligence alerts to
the ports. CBP also modified its ATS, which was originally designed to
identify narcotics contraband, to include targeting rules for terrorism
that could identify high-risk containers for possible physical screening
and inspection. In addition, CBP developed a training course for staff
responsible for targeting cargo containers. Further, CBP also promulgated
regulations aimed at improving the quality and timeliness of transmitted
cargo manifest data for use in the targeting system. However, while its
strategy incorporates some elements of risk management, CBP has not
performed a comprehensive set of threat, criticality, vulnerability and
risk assessments that experts said are vital for determining levels of
risk for each container and the types of responses necessary to mitigate
that risk. Regarding recognized modeling practices, CBP has not subjected
ATS to external peer review or testing as recommended by the experts we
contacted. Further, CBP has implemented a random inspection designed to
improve its targeting rules, but officials at ports can waive the
inspections.
CBP Has Taken Several Steps to Improve Its Targeting Strategy
CBP has recognized the potential threat posed by oceangoing cargo
containers and has reviewed and updated some aspects of its layered
targeting strategy. According to CBP officials, several of the steps that
CBP has taken to improve its targeting strategy have resulted in more
focused targeting of cargo containers that may hold weapons of mass
destruction. CBP officials told us that, given the urgency to take steps
to protect against terrorism after the September 11, 2001, terrorist
attacks, that they had to take an "implement and amend" approach. That is,
they had to immediately implement targeting activities with the knowledge
they would have to amend them later. Steps taken by CBP include the
following:
o In November 2001, the U.S. Customs Service established the National
Targeting Center to serve as the national focal point for targeting
imported cargo for inspection.5 Among other things, the National
Targeting Center interacts with the intelligence community and distributes
to the ports any intelligence alerts it receives. The National Targeting
Center also assists targeters in conducting research on incoming cargo,
attempts to improve the targeting of cargo, and manages a national
targeting training program for CBP targeters.
o In August 2002, CBP modified the ATS as an anti-terrorism tool by
developing terrorism-related targeting rules and implementing them
nationally. According to CBP officials responsible for ATS, these
targeting rules were developed in consultation with selected intelligence
agencies, foreign governments, and companies. CBP is now in the process of
enhancing the ATS terrorism-related rules. The newest version of the ATS
rules, which is still being tested, gives added risk points when certain
rules apply collectively to the same container. CBP refers to this as the
"bundling" of rules. In these circumstances, CBP would assume an elevated
level of risk for the cargo. Related to this, CBP is currently in the
process of developing and implementing further enhancements-known as the
"findings module"-to capture additional information related to individual
inspections of cargo containers, such as whether an inspection resulted in
the discovery of contraband.
o In 2002, CBP also developed a 2-week national training course to train
staff in targeting techniques. The course is intended to help ensure that
seaport targeters have the necessary knowledge and ability to conduct
effective targeting. The course is voluntary and is conducted periodically
during the year at the Los Angeles, Long Beach and Miami ports, and soon
it will be conducted at the National Targeting Center. In fiscal year
2003, approximately 442 inspectors completed the formal training and CBP
plans to train an additional 374 inspectors in fiscal year 2004.
o In February 2003, CBP began enforcing new regulations about cargo
manifests-called the "24 hour rule"-which requires the submission of
complete and accurate manifest information 24 hours before a
5The commercial operations and inspection programs at the U.S. Customs
Service (in the Department of the Treasury) were incorporated into CBP (in
the new Department of Homeland Security) effective March 1, 2003.
container is loaded on a ship at a foreign port.6 Penalties for
noncompliance can include a CBP order not to load a container on a ship at
the port of origin or monetary fines. The rule is intended to improve the
quality and timeliness of the manifest information submitted to CBP, which
is important because CBP relies extensively on manifest information for
targeting. According to CBP officials we contacted, although no formal
evaluations have been done, the 24-hour rule is beginning to improve both
the quality and timeliness of manifest information. CBP officials
acknowledged, however, that although improved, manifest information still
is not always accurate or reliable data for targeting purposes.
Targeting Strategy Does Not Incorporate Key Elements of Risk Management
While CBP's targeting strategy incorporates some elements of risk
management, our discussions with terrorism experts and our comparison of
CBP's targeting system to recognized risk management practices showed that
the strategy does not fully incorporate all key elements of a risk
management framework. Elements not fully incorporated are discussed below.
o CBP has not performed a comprehensive set of assessments for cargo
containers. CBP has attempted to assess the threat of cargo containers
through contact with governmental and non-governmental sources. However,
it has not assessed the vulnerability of cargo containers to tampering or
exploitation throughout the supply chain, nor has it assessed which port
assets and operations are the most critical in relation to their mission
and function. These assessments, in addition to threat assessments, are
needed to understand and identify actions to mitigate risk.
o CBP has not conducted a risk characterization for different forms of
cargo, or the different modes of transportation used to import cargo. CBP
has made some efforts in this regard by characterizing the risk of each
oceangoing cargo containers as either low, medium, or high-risk. But, CBP
has not performed a risk characterization to assess the overall risk of
cargo containers, or determine how this overall risk characterization of
cargo containers compares with sea cargo arriving in other forms, such as
bulk cargo (e.g., petroleum and chemical gas
6This rule is also known as the Advance Manifest Regulation, 67 Fed. Reg.
66318 (2002). The final regulation was issued October 31, 2002, with
implementation beginning February 1, 2003.
shipments) or break-bulk cargo (e.g., steel and wood shipments).
Additionally, CBP has not conducted risk characterization to compare the
risk of cargo containers arriving by sea with the risk of cargo containers
(or other cargo) arriving by other modes, such as truck or rail. These
characterizations would enable CBP to better assess and prioritize the
risks posed by oceangoing cargo containers and incorporate mitigation
activities in an overall strategy.
o CBP actions at the ports to mitigate risk are not part of an
integrated systems approach. Risk mitigation encompasses taking action in
all organizational areas, including personnel, processes, technology,
infrastructure, and governance. An integrated approach would help assure
that taking action in one or more areas would not create unintended
consequences in another. For example, taking action in the areas of
personnel and technology-adding inspectors and scanning equipment at a
port-without at the same time ensuring that the port's infrastructure is
appropriately reconfigured to accept these additions and their potential
impact (e.g., more physical examinations of containers), could add to
already crowded conditions at that port and ultimately defeat the purpose
of the original actions.
We recognize that CBP implemented the ATS terrorist targeting rules in
August 2002 due to the pressing need to utilize a targeting strategy to
protect cargo containers against terrorism, and that CBP intends to amend
the strategy as necessary. However, implementing a comprehensive risk
management framework would help to ensure that information is available to
management to make choices about the best use of limited resources. This
type of information would help CBP obtain optimal results and would
identify potential enhancements that are well-conceived, cost-effective,
and work in tandem with other system components. Thus, it is important for
CBP to amend its targeting strategy within a risk management framework
that takes into account all of the system's components and their vital
linkages.
Targeting Strategy Not Consistent With Key Recognized Modeling Practices
Interviews with terrorism experts and representatives from the
international trade community who are familiar with CBP's targeting
strategy and/or terrorism modeling told us that the ATS is not fully
consistent with recognized modeling practices. Challenges exist in each of
the four recognized modeling practice areas that these individuals
identified: external peer review, incorporating different types of
information, testing and validating through simulated events, and using
random inspections to supplement targeting.
o With respect to external review, CBP consulted primarily with in-house
subject matter experts when developing the ATS rules related to terrorism.
CBP officials told us that they considered these consultations to be an
extensive process of internal, or governmental, review that helped adapt
ATS to meet the terrorist threat. With a few exceptions, CBP did not
solicit input from the extended international trade community or from
external terrorism and modeling experts.
o With respect to the sources and types of information, ATS relies on
the manifest as its principal data input, and CBP does not mandate the
transmission of additional types of information before a container's risk
level is assigned. Terrorism experts, members of the international trade
community, and CBP inspectors at the ports we visited characterized the
ship's manifest as one of the least reliable or useful types of
information for targeting purposes. In this regard, one expert cautioned
that even if ATS were an otherwise competent targeting model, there is no
compensating for poor input data. Accordingly, if the input data are poor,
the outputs (i.e., the risk assessed targets) are not likely to be of high
quality. Another problem with manifests is that shippers can revise them
up to 60 days after the arrival of the cargo container. According to CBP
officials, about one third of these manifest revisions resulted in higher
risk scores by ATS-but by the time these revisions were received, it is
possible that the cargo container may have left the port. These problems
with manifest data increase the potential value of additional types of
information.
o With respect to testing and validation, CBP has not attempted to test
and validate ATS through simulated events. The National Targeting Center
Director told us that 30 "events" (either real or simulated) are needed to
properly test and validate the system. Yet CBP has not conducted such
simulations to test and validate the system. Without testing and
validation, CBP will not know whether ATS is a statistically valid model
and the extent to which it can identify high-risk containers with
reasonable assurance. The only two known instances of simulated tests of
the targeting system were conducted without CBP's approval or knowledge by
the American Broadcast Company (ABC) News in 2002 and 2003. In an attempt
to simulate terrorist smuggling highly enriched uranium into the United
States, ABC News sealed depleted uranium into a lead-lined pipe that was
placed into a suitcase and later put into a cargo container. In both
instances, CBP targeted the container that ABC News used to import the
uranium, but it did not detect a visual anomaly from the lead-lined pipe
using the VACIS and therefore did not open the container.
o With respect to instituting random inspections, CBP has a process to
randomly select and examine containers regardless of the risk. The
program-the Supply Chain Stratified Examination-measures compliance with
trade laws and refocused it to measure border security compliance. One
aspect of this new program is random inspections. However, CBP guidance
states that port officials may waive the random inspections if available
resources are needed to conduct inspections called for by ATS targeting or
intelligence tips. Accordingly, although the containers targeted for
inspection may be randomly selected, the containers being inspected from
the program may not be a random representation. Therefore, CBP may not be
able to learn all possible lessons from the program and, by extension, may
not be in a position to use the program to improve the ATS rules.
Our visits to six seaports found that the implementation of CBP's
targeting strategy faces a number of challenges. Specifically, CBP does
not have a uniform national system for reporting and analyzing inspection
statistics by risk category that could be used for program management and
oversight. We also found that the targeters at ports that completed the
national training program were not tested and certified, so there is no
assurance that they have the necessary skills to perform targeting
functions. Further, we found that space limitations and safety concerns
constrain the ports in their utilization of screening equipment, which can
affect the efficiency of examinations.
Targeting Strategy Faces Implementation Challenges
CBP Lacks National System To Track Cargo Container Inspections By Risk
Category
A CBP official told us that CBP does not have a national system for
reporting and analyzing inspection statistics by risk category. While
officials at all the ports provided us with inspection data, the data from
some ports were generally not available by risk level, were not uniformly
reported, were difficult to interpret, and were not complete. In addition,
we had to contact ports several times to obtain these data, indicating
that basic data on inspections were not readily available. All five ports
that gave information on sources of data said they had extracted data from
the national Port Tracking System. However, this system did not include
information on the number of non-intrusive examinations or physical
examinations conducted, according to risk category. Moreover, a CBP
headquarters official stated that the data in the Port Tracking System are
error prone, including some errors that result from double counting. One
port official told us that the Port Tracking System was not suitable for
extracting the examination information we had requested, so they had
developed a local report to track and report statistics. Our findings are
consistent with a March 2003 Treasury Department Inspector General Report
which found, among other things, that inspection results were not
documented in a consistent manner among the ports and examination
statistics did not accurately reflect inspection activities.7 A CBP
official said that they are in the process of developing a replacement for
the Port Tracking System to better capture enforcement statistics but this
new system is still in its infancy.
Separately, CBP officials said that they are trying to capture the results
of cargo inspections through an enhancement to ATS called the findings
module. A National Targeting Center official stated that the findings
module would allow for more consistency in capturing standardized
inspection results and would also serve as a management control tool.
National Targeting Center officials said that the module would be able to
categorize examination results according to the level of risk. A CBP
official told us the module was being implemented nationwide in late
November 2003. While the ATS findings module shows potential as a useful
tool for capturing inspection results, it is too soon to tell whether it
will provide CBP management with consistent, complete inspection data for
analyzing and improving the targeting strategy.
Staff Testing and Certification Could Help Strengthen Targeting Process
While over 400 targeters have completed the new national targeting
training, CBP has no mechanism to test or certify their competence. These
targeters play a crucial role because they are responsible for making
informed decisions about which cargo containers will be inspected and
which containers will be released. According to National Targeting Center
officials, the goal is for each U.S. seaport to have at least one targeter
who has completed national targeting training so that the knowledge and
skills gained at the training course can be shared with other targeters at
their port of duty. To train other staff, however, the targeter who took
the training must have attained a thorough understanding of course
contents and their application at the ports. Because the targeters who
complete the training are not tested or certified on course materials, CPB
has little
7Office of Inspector General, Department of the Treasury, Protecting the
Public: Security, Inspection and Targeting of Vessel Containers at U.S.
Seaports Can Be Improved, OIG-03074, March 28, 2003. This report
summarized audit work done at a number of ports during 2001and 2002 on
targeting, securing and inspecting cargo containers. The report was done
by the Treasury Office of Inspector General because, at that time,
inspections were done by the U.S. Customs Service.
assurance that the targeters could perform their duties effectively or
that they could train others to perform effectively.
CBP could have better assurance that staff can perform well if CBP tested
or certified their proficiency after they have completed the national
targeting training. This would also increase the likelihood that course
participants are in a position to effectively perform targeting duties and
could train others at the ports on how to target potentially suspicious
cargo. Further, it would lessen the likelihood that those who did not do
well in class are placed in these important positions. Such testing and
certification of targeting proficiency would demonstrate CBP's intent to
ensure that those responsible for making decisions about whether and how
to inspect containers have the knowledge and skills necessary to perform
their jobs well.
Space Limitations and Safety Concerns Constrain Use Of Inspection
Equipment
One of the key components of the CBP targeting and inspection process is
the use of non-intrusive inspection equipment. CBP uses inspection
equipment, including VACIS gamma-ray imaging technology, to screen
selected cargo containers and to help inspectors decide which containers
to further examine. A number of factors constrain the use of non-intrusive
inspection equipment, including crowded port terminals, mechanical
breakdowns, inclement weather conditions, and the safety concerns of
longshoremen at some ports. Some of these constraints, such as space
limitations and inclement weather conditions, are difficult if not
impossible to avoid.
According to CBP and union officials we contacted, concern about the
safety of VACIS is a constraint to using inspection equipment. Union
officials representing longshoremen at some ports expressed concerns about
the safety of driving cargo containers through the VACIS because it emits
gamma rays when taking an image of the inside of the cargo container.
Towing cargo containers through a stationary VACIS unit reportedly takes
less time and physical space than moving the VACIS equipment over
stationary cargo containers that have been staged for inspection purposes.
As a result of these continuing safety concerns, some longshoremen are
unwilling to drive containers through the VACIS. CBP's response to these
longshoremen's concerns has been to stage containers away from the dock,
arraying containers in rows at port terminals so that the VACIS can be
driven over a group of containers for scanning purposes. However, as
seaports and port terminals are often crowded, and there is often limited
space to expand operations, it can be space-intensive and time consuming
to stage containers. Not all longshoremen's unions have
safety concerns regarding VACIS inspections. For example, at the Port of
New York/New Jersey, longshoremen's concerns over the safety of operating
the VACIS were addressed after the union contacted a consultant and
received assurances about the safety of the equipment. Similar efforts by
CBP to convince longshoremen's unions about the safety of VACIS have not
been successful at some of the other ports we visited.
In closing, as part of a program to prevent terrorists from smuggling
weapons of mass destruction into the United States, CBP has taken a number
of positive steps to target cargo containers for inspection. However, we
found several aspects of their targeting strategy are not consistent with
recognized risk management and modeling practices. CBP faces a number of
other challenges in implementing its strategy to identify and inspect
suspicious cargo containers. We are now in the process of working with CBP
to discuss our preliminary findings and to develop potential
recommendations to resolve them. We plan to provide the subcommittee with
our final report early next year.
This concludes my statement. I would now be pleased to answer any
questions for the subcommittee.
Contacts and For further information about this testimony, please contact
me at (202) 512-8816. Seto Bagdoyan, Stephen L. Caldwell, Kathi Ebert, Jim
Russell,Acknowledgments Brian Sklar, Keith Rhodes, and Katherine Davis
also made key contributions to this statement.
Appendix: Scope And Methodology
To assess whether the CBP's development of its targeting strategy is
consistent with recognized risk management and modeling practices, we
compiled a risk management framework and recognized modeling practices,
drawn from an extensive review of relevant public and private sector work,
prior GAO work on risk management, and our interviews with terrorism
experts. We selected these individuals based on their involvement with
issues related to terrorism, specifically concerning containerized cargo,
the ATS, and modeling. Several of the individuals that we interviewed were
referred from within the expert community, while others were chosen from
public texts on the record. We did not assess ATS's hardware or software,
the quality of the threat assessments that CBP has received from the
intelligence community, or the appropriateness or risk weighting of its
targeting rules.
To assess how well the targeting strategy has been implemented at selected
seaports in the country, we visited various CBP facilities and the Miami,
Los Angeles-Long Beach, Philadelphia, New York-New Jersey, New Orleans,
and Seattle seaports. These seaports were selected based on the number of
cargo containers processed and their geographic dispersion. At these
locations, we observed targeting and inspection operations; met with CBP
management and inspectors to discuss issues related to targeting and the
subsequent physical inspection of containers; and reviewed relevant
documents, including training and operational manuals, and statistical
reports of targeted and inspected containers. At the seaports, we also met
with representatives of shipping lines, operators of private cargo
terminals, the local port authorities, and Coast Guard personnel
responsible for the ports' physical security. We also met with terrorism
experts and representatives from the international trade community to
obtain a better understanding of the potential threat posed by cargo
containers and possible approaches to countering the threat, such as risk
management.
We conducted our work from January to November 2003 in accordance with
generally accepted government auditing standards.
Related GAO Products
Maritime Security: Progress Made in Implementing Maritime Transportation
Security Act, but Concerns Remain. GAO-03-1155T. Washington, D.C.:
September 9, 2003.
Container Security: Expansion of Key Customs Programs Will Require Greater
Attention to Critical Success Factors. GAO-03-770. Washington, D.C.: July
25, 2003.
Homeland Security: Challenges Facing the Department of Homeland Security
in Balancing its Border Security and Trade Facilitation Missions.
GAO-03-902T. Washington, D.C.: June 16, 2003.
Container Security: Current Efforts to Detect Nuclear Material, New
Initiatives, and Challenges. GAO-03-297T. Washington, D.C.: November 18,
2002.
Customs Service: Acquisition and Deployment of Radiation Detection
Equipment. GAO-03-235T. Washington, D.C.: October 17, 2002.
Port Security: Nation Faces Formidable Challenges in Making New
Initiatives Successful. GAO-02-993T. Washington, D.C.: August 5, 2002.
Homeland Security: A Risk Management Approach Can Guide Preparedness
Efforts. GAO-02-208T. Washington, D.C.: October 31, 2001.
Homeland Security: Key Elements of a Risk Management Approach.
GAO-02-150T. Washington, D.C.: October. 12, 2001.
Federal Research: Peer Review Practices at Federal Science Agencies Vary.
GAO/RCED-99-99. Washington, D.C.: March 17, 1999.
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