Air Cargo Regulation Reform

NEW AIR CARGO regulations will come into effect on 1 July 2016, with exporters having until 1 July 2017 to comply.

The need for new regulations has risen as a recent audit by the US Transportation Security Administration found that Australia did not meet security requirements for inbound cargo to the US. In order for Australian exporters to comply with TSA standards, examination has to happen at the piece level (the smallest size of cargo that can be effectively examined) by x ray, explosive traces detection or physically. This can become a labourious task as consolidated cargo needs to be de-consolidated in order to be examined.

Who will be impacted by the reform?

  • Exporters
  • Freight Forwarders
  • Cargo Terminal Operators
  • Aircraft Operators

The Department of Infrastructure and Regional Development suggests two solutions for exporters that ensure that cargo is meeting regulation requirements.

1. Enhanced Examination – this method requires all cargo to be examined on a piece level
2. Known Consignor Scheme for exporters – this method requires businesses that export to the US to apply to become ‘Known Consignors’. Known Consignors are recognised as using international best practice security controls.

More information on Known Consignors

  • Businesses wishing to apply to become Known Consignors will be required to undergo an application, validation and approval process that will be overseen by the Department of Infrastructure and Regional Development.
  • Known Consignors must have an approved Security Program to operate, and offences will apply for non-compliance with the Program.
  • The Security Program will be based on the International Civil Aviation Organisation (ICAO) six pillars of essential security measures for industry participants.

Six Pillars of essential security measures

The regulations will take effect 1 July 2016, and it is anticipated that transitional arrangements may need to be made from 1 July 2016 to 1 July 2017. From 1 July 2017 all US-bound air cargo will need to be examined to the level meeting regulation.

These changes in regulation will directly affect exporters and it is important that processes and solutions are implemented as soon as possible to avoid costs and delays. If you have any questions about how this regulation change could affect your business, call us and speak with a Seabridge exports specalist today.

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