The United States (US) Transportation Security Administration (TSA) has recently re-evaluated Australia's air cargo security arrangements for exports to the US. The TSA has determined that Australia's current arrangements do not meet US Government security requirements. To meet US requirements, Australia will be obliged to examine 100 per cent of our export cargo at piece-level, if it is carried on a passenger aircraft to the US. What this means is each individual box, carton or other item in a shipment must be examined by technology or physically inspected. This will have a significant impact on US-bound exports from Australia.
To meet this challenge, the Australian Government has developed a two part strategy, which we are working with industry to implement quickly:
- Allowing approved businesses to examine air cargo off-airport; and
- Establishing a Known Consignor scheme.
Off-Airport Examination
All US-bound cargo that does not come from a Known Consignor will need to undergo piece-level examination. This means an item of cargo would need to be examined at a low level of consolidation before it is packed into unit load devices or onto pallets. Examination will require different piece definitions for each approved method of examination.
Known Consignor
Known Consignors will be a new category of industry participant directly regulated by the Department. Known Consignors will secure their US-bound air cargo at source by implementing approved security measures at their facilities. This means that air cargo originating from Known Consignors would not require further examination before being loaded onto an aircraft.
The Way Ahead
The Government, led by the Department of Infrastructure and Regional Development, is negotiating with the TSA on this matter. The Government is seeking agreement to a four-year phased implementation plan which will give Australian industry time to adapt to these new requirements.
The Government is working with US authorities to agree transition arrangements and to minimise the impact on Australia's freight export industry.
The Department is also collaborating closely with other government agencies to explore options to harmonise air cargo exports. This approach will reduce industry's regulatory burden and provide for tailored and proportionate regulatory requirements in the future.
The Department would, however, urge industry to make contingency plans should the US Government not agree to a phased implementation strategy.
Consultation with Industry
These changes will have a significant impact on exporters, freight forwarders, airlines and airports around Australia. The Department is committed to working closely with businesses to transition to these new arrangements.
- Discussion Paper: Maintaining US acceptance of Australian air cargoPDF: 965 KB
Australian Privacy Principle 5 Notice: US Acceptance of Australian Air Cargo
The Department of Infrastructure and Regional Development (the Department) is collecting information for the purposes of informing the development of new air cargo security arrangements for US-bound air cargo, in accordance with the Privacy Act 1988 and as authorised under the Aviation Transport Security Act 2004.
Any personal information collected by the Department during this consultation process will be stored securely and will not be disclosed to any third parties.
The Department's privacy policy contains information regarding complaint handling processes and how to access and/or seek correction of personal information held by the Department. The Privacy Officer can be contacted on (02) 6274 6495.