New rules designed to thwart terrorists by restricting US visas and stopping the illegal transport of goods on ships are causing significant disruptions to international trade, according to public- and private-sector officials tracking the program. The most seriously impacted are businesses and visitors from the Middle East and South Asia.

American authorities this week began enforcing a rule that requires ocean carriers to provide the US Customs Service with manifests of what is in cargo containers one day before their ships leave a foreign port bound for the United States.

Companies say new maritime shipping rule has created a fundamental shift in they way they operate. Until last week, they could transmit information after they left a foreign port, allowing more flexibility and last-minute adjustments.

Many companies along the international supply chain report that the new “24-Hour Rule,” a reaction to the Sept. 11 attacks, is causing small but significant disruptions in the movement of foreign goods to American ports.

“The new (US Customs) rules are just one more bureaucratic hassle imposed on foreign shippers by the American government,” says an exporting company executive based in Oman, who spoke to Strategic Policy on condition of anonymity. “In practical terms, it is not slowing down our deliveries. But it adds a burden to us in terms of time and cost. And this is something we either must absorb or pass along to our customers.”

Jay Ahern, US Customs assistant commissioner for field operations, says his agency is basically pleased with the response so far from companies involved in shipping products. Customs is focusing on making sure that cargo descriptions are accurate and is “exceptionally pleased” so far, Ahern says.

His agency will soon begin assessing the timeliness of reports and then go into more detail examining descriptions as it phases in the 24-Hour Rule.

American businesses are being impacted much more negatively by new US State Department visa rules for foreign visitors. Many US companies say they are losing business because of post-Sept. 11 security requirements make visiting America far more difficult. The problem stems from US government efforts to guard against terrorists entering the country. And it is indicative of a visa-issuance system that some business executives say has in some areas slowed or stalled since the government began implementing the new measures last summer.

In early October 2002, the backlog of unprocessed foreign visas at the US Department of State reached 25,000, Lately, however, State Department officials say the department is speeding the process. The average waiting time is hovering around four months, up from about one month prior to new security measures.

Overseas visitors most severely impacted by the new visa restrictions are foreign business executives offering goods or services from emerging markets or entering the US to buy sensitive technologies. Countries specifically targeted by State for additional visa processing are China, India, Russia, and all countries in the Middle East, North Africa and Asia where Islam has a large presence.

As a result of the processing delays, many foreign concerns have lost business to competitors from other countries. American firms, conversely, have had to move meetings — and, sometimes, entire factories — overseas to enable their foreign-born workers to work in US operations.

The new visa measures require that the Central Intelligence Agency (CIA) and Federal Bureau of Investigation (FBI) — the two US agencies responsible, respectively, for American intelligence and counterintelligence — must clear visas for foreign nationals from several Arab and/or Muslim countries and businessmen involved in buying certain high-tech products.

The immediate result was a backlog of cases, though the State Department says the system is improving and the waiting time has lessened.

“(The new visa application process) has affected a great many people. But our national-security concerns have caused us to impose this new regimented review. We’re doing our best to find ways to minimize inconvenience,” says Stuart Patt, spokesman for the State Department’s Bureau of Consular Affairs.

The State Department would not comment on specific numbers or any backlog related to the new visa-review processes. Overall, the department had 7.5 million visa applications for the 12 months ended Sept. 30, 2002, and refused 27.8 percent. In the previous 12 months, the department had 10 million applications and refused 25 percent, Patt says.

“We do still want people to come to the United States. We’re not discouraging them for applying for visas, but we are going to screen as much as possible to make sure we are not issuing visas to people who should not get them,” says Patt. A report by the State Department’s inspector general released in December said at visa-issuing posts “the new clearance procedures ... have not identified any potential terrorists applying for visas.”

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Arab News Features 13 February 2003