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Viewing cable 07RIGA700, LATVIA TO FOLLOW EU'S LEAD ON NEW U.S. LAW ON MARITIME

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Reference ID Created Released Classification Origin
07RIGA700 2007-09-20 10:26 2011-08-25 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Riga
VZCZCXYZ0294
RR RUEHWEB

DE RUEHRA #0700 2631026
ZNR UUUUU ZZH
R 201026Z SEP 07
FM AMEMBASSY RIGA
TO SECSTATE WASHDC 4359
UNCLAS RIGA 000700 
 
SIPDIS 
 
SIPDIS 
SENSITIVE 
 
E.O. 12958: N/A 
TAGS: ETRD EWWT AMGT PTER LG
 
SUBJECT: LATVIA TO FOLLOW EU'S LEAD ON NEW U.S. LAW ON MARITIME 
CARGO SCANNING REQUIREMENTS 
 
REF: STATE 119837 
 
1. (SBU) Summary: Latvia is seeking guidance from the European Union 
in response to the new U.S. law requiring 100 percent scanning for 
all U.S.-bound maritime cargo prior to loading at a foreign port by 
2012. GOL representatives expressed concern about the cost of 
meeting the new requirement and the potentially negative impact such 
a requirement would have on trade and cargo flow. They added that 
they plan to follow the European Commission's lead on this issue. 
End Summary. 
 
2. (SBU) PolEconOff delivered reftel points September 10 to Harijs 
Arnicans, Head of the Ship and Port Security Inspectorate in the 
Maritime Administration of Latvia (MAL); September 14 to Aigars 
Krastins, Director of the Ministry of Transportation's Maritime 
Department; and September 18 to Andis Drulle, Director of the 
National Customs Board. All three responded that Latvia would take 
direction from the European Commission on how to respond to the new 
U.S. law. 
 
3. (U) In Latvia the National Customs Board is responsible for all 
cargo scanning and falls under the Ministry of Finance; the Maritime 
Department, which is part of the Ministry of Transportation, 
implements national policy and strategy development in the maritime 
field and represents Latvia in international maritime organizations; 
the MAL is a private component of the Ministry of Transportation's 
Maritime Department. (Comment: MAL functions as a state agency 
within the Maritime Department but is considered a "company" because 
its budget comes from shipping dues, not government funds.) 
 
4. (SBU) Mr. Drulle of the National Customs Board said the European 
Commission's present position on the U.S. requirement, as he 
understands it, is that the requirement would impose an unduly 
expensive and unfeasible burden on ports not only in the European 
Union but all over the world; as such, current scanning requirements 
based on risk analysis should be allowed to continue. Mr. Drulle 
said EU member states have estimated that the cost to meet the U.S. 
requirement would amount to approximately $20 million per port. He 
also said that currently about 250 maritime cargo containers per 
month are exported to the United States from Latvia's port in Riga 
but none directly. All U.S.-bound maritime containers from Latvia 
pass through major Western European ports such as Rotterdam and 
Antwerp before reaching U.S. ports. 
 
5. (U) Mr. Arnicans of MAL interpreted the U.S. law as a requirement 
affecting all direct U.S.-bound shipping containers. As Latvia does 
not have containers going directly to the United States, he asked 
what requirements, if any, would the new U.S. law impose on foreign 
ports that are loading shipping containers indirectly going to the 
United States.  (Note, Post is seeking clarification on this 
interpretation of the law.  End note.) 
 
6. (SBU) Mr. Krastins of the Ministry of Transportion's Maritime 
Department said he understood the need for 100 percent scanning of 
U.S.-bound maritime cargo, but wondered how feasible it would be to 
execute such a requirement on all affected EU ports. He added that, 
although Latvia does not at the moment ship cargo directly from 
Latvian to U.S. ports, it could be a possibility in the future, 
especially if transit through Latvia increases as East-West trade 
grows. Mr. Krastins said discussion of the new U.S. requirement, 
since it deals primarily with security, should include 
representatives from the Ministry of Finance, Interior and Defense. 
 
BAILEY