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US denies talks on CSI with Malaysia halted

Despite the statement by the Minister of Transport, Datuk Seri Dr Ling Liong Sik that there would no more discussion with US Customs on the Container Security Initiative (CSI), recent reports from Washington said US Customs plans to send senior officials to Kuala Lumpur in the coming weeks to reopen talks on Malaysia's potential involvement.

 
"We have started the screening process and any relevant information we find will be passed on to the US authorities," Dr Ling said after a post-Cabinet briefing at his office.

 
The Minister added that the screening process would be conducted by local authorities and no US Customs officials would be posted in the country.

 
But in a recent comment, Patricia McCauley, director of the CSI Task Force, said: "We are sensitive to Malaysia's interest in CSI, and because of that awareness assistant commissioner Donald Shruhan will be visiting Malaysia to open discussions, probably in the next three to four weeks."

 
The US Customs attaché based in Singapore, Peter Gravas, who has been involved in the initial discussion with the Ministry of Transport and the Royal Malaysian Customs & Exercise Department, is also likely to join the delegation.

 
Ms McCauley denied reports that official talks on CSI had already taken place and Malaysia had spurned the US overtures.

 
Ms McCauley said that Malaysian ports had not been included in the top 20 global ports singled out for inclusion in CSI when the list was first drawn up.

 
Meanwhile, the European commission has objected to moves by US government to offer incentives to ports that sign the contentious Container Security Initiative (CSI) and penalizing those that either do not join in, or are too small to take part.

 
The Commission, which has complained about the approach taken by the US Customs in concluding bilateral agreements with some of the members countries of the Commission rather than dealing with the Commission as a single entity, cargoes processed in Europe are typically expected to enjoy quicker customs clearance in the US.

 
Conversely, cargoes from non-participating ports could suffer processing delays.

 
The fear is that US-bound boxes will increasingly be routed through ports such as Rotterdam, which will both create bottlenecks and adversely affect other port sector players.

 
Among the countries in the EC which has not signed the CSI is the United Kingdom which declared recently that it would only join "if it judged such a move to be in its interest, and only if the outcome was a fair and level playing field".

 
The European Commission is said to be considering launching infringement procedures against countries that have signed up to the US Container Security Initiative, a group that includes the Netherlands, Germany, Belgium and France.

 
Commission officials believe that bilateral deals put ports in non-signatory states at a disadvantage, and will increase both port congestion and costs.

 
So far, 13 ports in eight countries in Europe and Asia have decided to participate in the initiative, under which American customs officials are at liberty to inspect boxes in local ports before they are loaded for the US.

             

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