KARACHI, March 11: Almost two-third of Pakistan's export cargo worth about $7.50 to $8 billion will come under a close scrutiny of an international tight security code from July next.

Compliance with this security code is mandatory for all the countries-a whole chain from manufacturers, exporters, road carriers, air carriers, ports, vessels-that trade with US.

This security code has been designed by the Bush administration after 9/11 and has now been adopted by the EU, Australia, New Zealand, Sweden, Malaysia and Singapore.

Many more countries are expected to adopt this code. Focus is placed on cargo and people entering and leaving the US as well as on the port and the vessels security.

Under this system it is mandatory to inform US authorities 24 hours before loading of the cargo at the port of origin of all the details of the ship entering the US port of the entire manifest of cargo in containers.

This security system is comprehensive and almost covers all the economic, business and transport activities in a country that trade with the US and countries that have adopted this code.

"These measures and regulations were aimed at cargo and conveyance visibility-at securing access to information on goods, equipment, conveyances and crew throughout the supply chain," an UNCTAD document on international trade security reveals.

The security code is eventually expected to bring within its net more than 6 billion tons of trade cargo that moves in seas in a year. As many as 50,000 shipping vessels and over 200 million containers that move to and from 4,000 ports of the world and touch any US port would also be covered under this system.

The Americans have already selected 20 "top ports" in Asia and Europe for putting into place the infrastructure needed for the operation of security code. These ports include Singapore, Hong Kong, Shanghai, Genoa, Kobe, Hamburg, Rotterdam and many others.

Of all these 20 ports, US customs officials are deployed in seven ports. Scanners have been installed to pre-screen cargo in the containers and cargo is loaded only after US approval. Dubai, Colombo and ports in India will soon come under this security system.

Pakistan's compliance with this security code apparently looks a remote possibility with only 110 days now left for the deadline. The Customs is reported to have constituted a Task Force and the National Logistic Cell has been asked to purchase three scanners for installation at the Karachi Port to screen the outgoing containers.

Businessmen awareness on this system is too little. The awareness about this system demands knowledge and a minimum level of education that is wanted in a large number of exporters in Pakistan.

About 25 per cent of Pakistan's total export trade-$2 billion plus-goes to the US market and about the same amount of Pakistan's export is shared by the EU. The five other countries that have adopted US security code share about 10 to 15 per cent exports from Pakistan. Overall 60 to 65 per cent of Pakistan's export trade is threatened with the new security code.

Irfan Naqvi, an UNCTAD consultant on international trade facilitation and security made a detailed presentation on the new system before a gathering of businessmen and senior custom officials on Thursday at the Federation of Pakistan Chambers of Commerce and Industry with FPCCI Vice President Engineer M.A. Jabbar in the chair.

After 9/11, the Bush administration created a Homeland Security Department-a sort of super department-that designed Container Security Initiative (CSI) and USA Customs Trade Partnership (C-TPAT) agreement. The compliance with CSI is mandatory and compulsory and in case of default render the country, the importer and the vessel out of bound from the US ports.

But the C-TPAT is voluntary and Irfan Naqvi disclosed that as many as 600 companies of the world have subscribed to this agreement and have now access to relevant data and information of the system. Irfan Naqvi believes that a few business groups in Pakistan might have opted to subscribe the C-TPAT.

One of the conditions of CSI is the identification of "High Risk" containers. There are apparently no parameters within which a risk cargo can be defined.

Engineer MA Jabbar who was chairing the session suggested to the UNCTAD consultant to incorporate bio terrorism code also in the port and shipping security code.

Jabbar said that under GATT legal framework and WTO security concerns of a country has provisions for taking adequate protectionist measures. He recalled Douglas Cruickshank, a UNCTAD international trade security consultant in his presentation during last November had warned that Americans would never compromise on trade security code and will ensure that it is enforced. He had, therefore, urged all the countries to start making preparations for compliance.

Irfan Naqvi's attention was drawn towards the imported Australian wheat, which is found infected with Karnal Bunt and is not only unfit for human consumption but is hazardous.

Experts say that transportation of this infected wheat from Karachi to upcountry could wreak havoc with Pakistan's agriculture as karnal fungus is very infectious and could damage wheat crops in the years to come as well.

"Can Pakistan take up this case with the international community," he was asked. Naqvi, however, expressed his inability as he has no information about the infection of Australian wheat nor does he have scientific information about its fall out effects. "Only the experts in Pakistan government can decide on this issue," he said.