Air Cargo Security (ACS) Program

Airports Council International – Atlanta March 28, 2007

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Presentation

• Overview of Canada’s secure supply chain approachfor transportation security

• Description of the developmental project phases including the required elements of the Cargo Security Plan

• Outline implications for industry stakeholders

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Global Supply Chain

ICAO

IMO

WCO

Transportation Security

Customs Security

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Air Cargo Security Air Cargo Security -- ChallengesChallengesAirport, Carrier, Forwarder Impact• Change & Risks to Operation • Facility/Space Requirements• Staffing• Costs (Capital & Recurring)• Varied levels of service (Just in Time)• Location - specific requirements

Technologies Available

• CT & Trace Technologies• Multi-view X-Ray • Mobile truck scanners• Van scanners• Cargo X-Ray Inspection Units• Pallet Cargo X-rayInspection Systems

• Combinations of these technologies

• Canine and/or RASCO

Cargo Screening:? How

? Where? When

Cargo Profile• Small Packages• Banking

Locked Boxes• Mail• Diagnostics

Specimens• Pallets or shrink wrap• Damaged and/or

unusable goods (film)• Human remains• Body parts• Hazmat • Fresh Foods• Live animals

Protocol• What are carrier requirements?• What are staffing limitations?• Conflicting security requirements• International lessons learned

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Air Cargo Supply ChainTransportation Security

Shipper Freight Forwarder (or other intermediary)

Air Carrier

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Canada’s Air Cargo Security Objectives

• Enhance aviation security in Canada

• Facilitate the flow of international and domestic air cargo

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Canada’s Two-pronged Approach

Two key areas of air cargo security enhancement:

1. Hardening of supply chain security for• air carriers• intermediaries (freight forwarders)• shippers

2. Improvement of cargo screening

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Securing Air Cargo Throughout or along the Supply Chain Note: If at any point, air cargo security integrity is compromised, it must be treated as unknown cargo.

Regulated Air Carrier Prepares shipments for carriage on aircraft

Regulated Agent (i.e. Freight Forwarders)/Shippers

Stores, consolidates or performs other functions

Is cargo secure?

YES NO

Is cargo secure?

YES NO

Non-regulated ShipperPrepares air cargo shipment

Regulated Shipper Prepares air cargo shipment

Non-regulated Agent or ShippersStores, consolidates or performs other functions

Certify shipment and

convey as known cargo

Convey shipment as

unknown cargo

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Key Principles

• Risk-based

• Efficiency

• Balanced Regulatory Approach

• Integration and Interoperability

• Sustainability

• Compatible internationally

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ACS Developmental Projects : Overview

• address the need to improve security standards along the air cargo supply chain and to test screening technologies in several sites across Canada

• lay the groundwork for an enhanced and comprehensiveACS Program for Canada complete with new performance standards and regulations

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ACS Developmental Projects : Participation Phases

Phase I : (Spring 2007) – Air Carriers and Freight Forwarders

• Air Carriers participation in the pilot projects will be regulated through existing Air Carrier Security Measures. Freight Forwarders participating in the pilot projects will become “Voluntarily Regulated Agents” through an MOU.

Phase II : (Fall 2007) – Shippers• Shippers (e.g. manufacturers and exporters)

participation via MOU. Participants will become “Voluntarily Regulated Shippers”.

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ACS Developmental Projects : Participation Process

• Memorandum of Agreement (MOU)• MOU signed by Freight Forwarders and Shippers• Security Assessment and Cargo Characterization

Questionnaire completed• Cargo Security Plan (CSP) submission completed• Transport Canada (TC) reviews, accepts or rejects CSP• TC inspections• Registration in the Canadian Air Cargo Secure Supply

Chain Management System (SSCMS)

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CSP : Required ElementsCSP : Required Elements

1) Cargo Security Management1) Cargo Security Management:

• Cargo Security Coordinator• CSP• Protect security information and equipment• Maintain records• Report security incidents• Procedures to respond to security incidents• Security self-audit

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CSP : Required Elements (ContCSP : Required Elements (Cont’’d)d)

2) Personnel with Security Duties or Unrestricted Access to Secure Air Cargo:

To be designated an Authorized Cargo Representatives (ACR) staff orcontractors require:

• Background checks

• Written statement of security duties

• Employee confirmation of duties

• Appropriate training and awareness

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CSP : Required Elements (ContCSP : Required Elements (Cont’’d)d)3) Cargo Acceptance Procedures (Air Carriers and Freight

Forwarders only):

• Screening procedures must be performed on ALL air cargo– Verification of security status of company and person

tendering cargo– Verification of documentation including Shipment Security

Declaration– Inspection of cargo for tampering– Other security procedures as required depending on results of

initial screening• Must be performed by an ACR

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CSP : Required Elements (ContCSP : Required Elements (Cont’’d)d)

4) Cargo Storage Procedures:

• Unrestricted access must be limited to ACRs• Strict access control procedures for Air Cargo must be enforced• “Known” and “unknown” cargo must be segregated• Storage area must be equipped to prevent and detect unauthorized

access

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CSP : Required Elements (ContCSP : Required Elements (Cont’’d)d)

5) Ground Transportation Security:

• Cargo verified against manifest during loading• Unrestricted access must be limited to ACRs• Strict access-control procedures and control of security items must

be enforced • “Known” and “unknown” cargo must be segregated and identified at

all transfer points• Conveyances must be equipped to prevent and detect unauthorized

access

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Next Steps for Canada

• Evaluating and assessing developmental projects for cost benefits to industry, and interoperability and compatibility with international and U.S. supply chain programs

• Continuing to engage all industry stakeholders in detailed discussions for enhancements to air cargo security and specifically supply chain security

• Continue to work with international trading partners on developing enhancements through initiatives such as the Security and Prosperity Partnership

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Conclusion

• Protecting the global air cargo supply chain from terrorists is a shared responsibility among nations, government and industry

• The developmental projects will lay the groundwork for a renewedand comprehensive air cargo security regime, complete with performance standards and regulations

• Canada’s ACS developmental projects will enhance existing layers of Air Cargo Security and harmonize a ‘made-in-Canada’ approach with leading international partners

• Continual participation by all air cargo supply chain partners is critical to developing the best system to serve Canada’s industry and travellers