PORTUGAL: 9/11 ACT COSTLY TO IMPLEMENT &

UNCLAS LISBON 002368 SIPDIS SIPDIS STATE DEPT FOR EUR/WE KEVIN OPSTRUP MADRID FOR DHS/ICE EILEEN ESCOTO CBP WASHDC FOR ROBERT A MULLER E.O. 12958: N/A TAGS: ETRD EWWT AMGT PTER PO SUBJECT: PORTUGAL: 9/11 ACT COSTLY TO IMPLEMENT & DETRIMENTAL TO TRANSATLANTIC TRADE REF: STATE 119837 ¶1. On September 7, Pol/Econ Officer delivered reftel talking points on Title XVII of the 9/11 Act which calls for 100% scanning of all US-bound shipping containers by 2010 to Jose Figueiredo, Deputy Director-General for Customs and Special Taxes. Figueiredo stated that Portugal does not have the funding, infrastructure or manpower to implement the Act which would require heavy investments by the GOP to revamp Lisbon's ports and/or create clearance process backlogs that could be detrimental to transatlantic trade. Figueiredo noted that the issue is being debated in Brussels by all member states, and he expects a unified EU response within the next few months. ¶2. According to statistics from the Container Security Initiative (CSI) team in Lisbon, less than 6% of all US-bound cargo from the Lisbon port was scanned in 2006. Even with the July 2007 GOP purchase of new scanning equipment, which should be functional by late September, Figueiredo does not expect the scanning numbers for 2007 to exceed 10%. The GOP expects to begin talks about implementing the DOE,s Megaports Program in early 2008. Hoffman