liiea - april 15 th, 2010 slide 1 air cargo security &screening regulations air cargo safety...

LIIEA - April 15th, 2010Slide 1

Air Cargo Security &Screening RegulationsAir Cargo Safety & Dangerous Goods Regulations

LIIEALIIEALIIEALIIEALong Island Import Export Association, Inc.

UTi’s Journey in Becoming a CCSF

(Certified Cargo Screening Facility)


In the Beginning . . .


What’s all this screening about?

• The term "screening" is defined as a "physical examination or non-intrusive method of assessing whether cargo poses a threat to transportation security.

• Methods include x-ray systems, explosives detection, canine teams, or a physical search together with manifest verification.“

• Alternate methods– Pharmaceuticals– Hazardous Goods, with properly filed documentation


TSA Solution

Allocating Screening Responsibility across the Supply Chain


Indirect Air Carrier Pilot

• TSA conducted an IAC screening pilot with high volume forwarders at 18 airports– FF participation was limited to providers handling

+200 containers annually– Two types of equipment was mandated to be used

to screen cargo, (AT X-ray and ETD)

• TSA’s objectives for this pilot was to:– Determine the IAC community’s ability to screen cargo volumes– Measure the effectiveness of screening technology on all commodity types– To evaluate chain-of-custody procedures for screened cargo as it moves from the IAC

to the air carrier.– Gain perspectives on cargo screening flows and equipment

IAC Screening pilot included:

14 entities, 63 locations and 18 cities for a diverse population sample.


UTi & the Pilot Program

Key factors influencing our participation:

• Industry image• Existing Infrastructure readiness• Competitive advantage as advisor• Influencer on outcome• Government Funding

Money

PrestigeInfluence Compliance

GrowthTime

oj


Security RequirementsPhysical Access Controls:

Procedures and mechanisms must be in place to prevent unauthorized entry to facilities where Certified cargo is screened, prepared, and stored; maintain control of employees, contractors and visitors; and protect company assets.

Personnel Security:Processes must be in place to screen prospective employees and contractors to TSA standards, and to periodically check current employees with unfettered access to passenger air cargo.

Procedural Security:Security measures must be in place to ensure the integrity and security of processes relevant to the transportation, handling, and storage of cargo throughout the supply chain.

Physical Security:Cargo handling and storage facilities must have physical barriers and deterrents that guard against unauthorized access. Examples include fencing, gates and gate houses, parking restrictions, building structure requirements, locking devices and key controls, adequate lighting, and alarm systems and video surveillance cameras.

Information Technology Security:Processes must be in place that provide for password protection of user accounts and identify improper access or the altering of data on automated systems.

Facility Validation:Allow initial and recurring validations by TSA or a TSA approved organization.

.


UTi Pilot Project – The Journey

Q22009 Additional sites

rolled out

Feb2009

Screening begins

Jan2009

Equipment installed,

employees trained

Dec2008

4 sites receive certification

Nov2008

Site certification visits begun

Oct2008

Facility Security Plans and Screening

Equipment proposals approved

TSA agreement

received and signed

Sep2008

Screening equipment proposals

submitted to TSA

Training developed and administered

Aug2008

Cargo Characterization studies done

July2008

Received Alternative Procedures from

TSA

June2008

Facility Security Plans created and submitted to TSA for

approval

Facility Security Coordinators

identified

May2008

UTi accepted into CCSP Technology

Screening pilot

UTi applies to become a certified Cargo Screening

Facility in multiple gateway cities

May2008


Project Scope

• There were eleven members on the project team contributing from 10 - 20% of their time. Additional project members were called upon as needed.

• The project plan consisted of over 120 category action items, many that required redundant activities for each of the site locations being accredited.

• Stakeholder positions were extended to our clients and included regularly scheduled conference calls sharing non sensitive information on the project.


Cost & Benefit

Costs

• Facility Space Demands• Equipment Costs• Equipment Maintenance• Facility Permits & Upgrades• Labor Demands• Process Flow Changes• TSA Reporting• TSA Inspections

Benefit

• Controlled Cargo Flows• Managed Screening Costs• ULD Utilization• Transit Predictability• Improved Security• Controlled Screening on

sensitive commodities• Ability to ship in bulk

configurations• Avoidance of security fees


Reporting Obligations

Monthly Reports are sent to the TSA to Monitor Productivity and Screening Costs


The Safety Act

The Safety Act, creates certain liability limitations for claims arising out of, relating to, or resulting from an Act of Terrorism where Qualified Anti-Terrorism Technologies have been deployed.


Safety Act - Services

The SAFETY Act evaluation process and criteria apply to services. To seek Designation for a service, you must define how you perform your service and provide information supporting the utility, effectiveness, and safety of the service.

This will generally include establishing that your service is implemented by a well-documented and reproducible process, that this process is consistently effective, and that it can be expected to remain effective in future deployments.

Forwarders who have been granted certification are:

• Expeditors International of Washington

• Geodis Wilson USA Incorporated

• Kuehne & Nagel Incorporated

• UTi United States Incorporated

• World Courier Incorporated


Program Statistics

As of March 2010:• There are 305 companies authorized to tender or transport in

chain of custody screened cargo.• There currently 385 Indirect Air Carrier Certified Cargo

Screening Facilities.• Facilities are currently located in 25 states, (includes Guam and

Puerto Rico).• The TSA is actively seeking expansion of this program.


TSA Approved Equipment


TSA Approved Equipment

• Manufacturers of X-Ray machines report speeds as fast as 30 seconds per carton, but contributing factors significantly reduces the flow rates.

• Explosive Trace Detection rates are slightly higher, at 24 seconds per carton but carries additional costs related to consumables.

• Commodities often will influence best technology to use.

Contrary to some manufacturer claims, as of this date, NO bulk screening equipment has been approved by the TSA


Why not Participate?

3PLs, manufacturing facilities, warehouse & distribution centers are all eligible if they deliver shipments directly to an airline or forwarder.

Regional Compliance Coordinators


Air Transport Association

“We have heard that many companies currently participating in programs such as C-TPAT, TAPA, USDA/FDA, Good Importer Practices and other types of initiatives are finding the CCSP certification process to be more like a small step than a giant leap.

We believe that the CCSP offers our customer the best solution to meeting the 100 percent screening mandate – in a way that maintains control in the private sector and offers maximum security with minimal disruption in the supply chain.”

James C May, President & CEO

Air Transportation Association


Closing Remarks

• Consider doing your own evaluation on the Cost / Benefits of becoming a CCSF- , whether you’re a Service Provider or Manufacturer/Shipper

• Be prepared for additional delays come August – 100% will have more of an impact than many think. Watch May when we go to 75% as a further indicator.

• If you engage make sure your company’s resources have sufficient bandwidth in the areas of security and compliance.. .

• Try to work with someone who has been engaged in the program and use the TSA as a collaborative and highly informative ally.

• Prepare for more pressure on overseas origins to screen inbound shipments, screening will be going global.


Air Cargo Security &Screening RegulationsAir Cargo Safety & Dangerous Goods Regulations

LIIEALIIEALIIEALIIEALong Island Import Export Association, Inc.

UTi’s Journey in Becoming a CCSF

(Certified Cargo Screening Facility)

liiea - april 15 th, 2010 slide 1 air cargo security &screening regulations air cargo safety...

Documents

cargo handling

cargo screening flows

storage of cargo

screened cargo

cargo volumesmeasure

physical security

passenger air cargo

screening responsibility