Our vision is to establish a global benchmark of efficiency in Australian border related security, compliance and logistics activities ... read more

UPDATE 4 July 2015

Australian exporters to set a global benchmark in transport security

The United States Transport Security Administration (TSA) has recently determined that Australia does not currently meet their security requirements and mandated remedial action of 100% examination (x-ray, explosive trace device or physical examination) of export cargo at piece level if it is carried on a passenger aircraft to the US.

The deadline of 1 August 2015 to meet this requirement placed the onus on airline contracted cargo terminal operators located on airport to break down, examine and rebuild consolidations. One industry representative at an Office of Transport Security forum last week held in Sydney summed up the views of all by describing that this outcome will resemble a "train crash" at the CTOs.

The good news is that an industry contingent, led by the Australian Federation of International Forwarders (AFIF), has influenced government to government intervention to defer the compliance deadline.

AFIF have indicated that it is likely that we will now have up to two years to meet the US requirements contingent on achieving various reforms and milestones.

Freight forwarders will clearly need to look at examination options as a part of their receipt and consolidation process.

It is understood that suppliers of X-ray technology require lengthy lead time (up to 6 months) to import, install and train in the use of the equipment. In conjunction with this, there is a need to implement IATA Resolution 651 to standardise electronic security declarations.

Exporters too will have new responsibilities through the 'Known Consignor' scheme.

Known Consignors will be directly regulated by OTS and will secure their US-bound air cargo by implementing approved security measures at their facilities. This means that US bound air cargo originating from Known Consignors would not require further examination before uplift onto an aircraft, provided it remained secure until it was loaded onto an aircraft.

The Known Consignor will be a separate process to the Australian Trusted Trader program which also has a similar element of supply chain security. OTS indicated that where possible, duplication of administration in these programs would be addressed.

By way of background, the Known Consignor scheme was proposed by OTS in 2013 but was abandoned with a change of government as a part of the mantra of 'reducing red tape'.

We now have another chance to get this right … let's not be complacent again and this time let's take the opportunity to set a global best practice benchmark on transport security.

Paul Zalai – FTA

2 July 2015

US Bound Air Cargo Security

The United States Transport Security Administration (TSA) has recently determined that Australia's current air cargo security does not meet their security requirements.

Australian supply chain participants will be required to examine 100% of export cargo at piece level if it is carried on a passenger aircraft to the US.

At yesterday's forum in Sydney hosted by the Office of Transport Security (OTS) Department of Infrastructure and Regional Development, an explanation was given that "piece level" examination refers to examination of cargo at a low level of consolidation before it is packed into unit load devices or onto pallets. The definition of a piece in an Australian context varies depending on which of the three approved examination methods are being used 1) X-ray; 2) Explosive Trace Detection; and 3) physical examination.

Approval to complete examinations is contingent on meeting the Enhanced Air Cargo Examination (EACE) requirements.

The US has set a deadline for Australia of 1 August 2015 to comply.

Freight forwarders present at the forum highlighted operational difficulties as a part of the proposed physical examination requirement at piece level whilst an approved supplier of X-ray technology explained the lengthy lead time (up to 6 months) to import, install and train in the use of the equipment.

The onus therefore appears to be on the cargo terminal operators on airport to break down, examine and rebuild consolidations. One industry representative summed up the views of all by describing that this outcome will resemble a "train crash" at the CTOs.

Qantas Freight have outlined potential costs and operational issues in meeting requirements – please click HERE

The Australian Federation of International Forwarders (AFIF) has taken the industry lead with approaches to the Australian government recommending immediate implementation of IATA Resolution 651. This provides numerous benefits to many sectors of the industry, by standardising Security Declarations with the (CSD) and the implementation of the Electronic Security Declaration (eCSD) – for further details please click HERE.

We understand that the Australian government is responding by engaging with the US for a delayed implementation with a response to enhance security by allowing approved businesses to examine cargo off-airport and establishing a 'Known Consignor' scheme. Known Consignors will be directly regulated by OTS and would secure their US-bound air cargo by implementing approved security measures at their facilities. This means that US bound air cargo originating from Known Consignors would not require further examination before uplift onto an aircraft, provided it remained secure until it was loaded onto an aircraft.

The Known Consignor will be a separate process to the Australian Trusted Trader program which also has a similar element of supply chain security. OTS indicated that where possible, duplication of administration in these processes would be addressed.

By way of background, the Known Consignor scheme was proposed by OTS in 2013 but was abandoned with a change of government as a part of the mantra of "reducing red tape".

Whilst we support the reduction of unnecessary regulation, it appears as that in this case the government has not done Australian exporters or the international logistics sector any favours by failing to meet the US expectations.

We now watch with interest to see the effectiveness our government to government relations to buy us more time to implement the vision explained by the OTS.

For further information, please click HERE

Paul Zalai - FTA