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Background

FTA and APSA have received a large volume of member enquiries in relation to the "piece-level" examination requirements for air cargo exports to the US effective 1 July 2017.

Below is a summary of the main issues.
 
Preparedness of Freight Forwarders and CTOs
 
Freight forwarders are in a difficult position in deciding whether to invest in technology, systems, staff training and revised processes to meet the piece-level examination requirements. Before they can make an informed commercial decision, they appear to be waiting on advice from cargo terminal operators (CTOs) on details of changes to existing export security terminal fees and lodgement times for cargo bound to the US.

In response FTA/ APSA has engaged with Menzies Aviation, dnata and Qantas Freight. The CTOs appear to also be in a difficult position of not being able to determine the volume of cargo they will need to examine and what resources and processes they will need to deliver an effective service. We understand that CTOs are trialing screening solutions and we are hopeful of more details on costs and services to be released in the near future.
 
Preparedness of Exporters
 
In parallel to this activity, we also been engaging with the Office of Transport Security (OTS) and received the following update from Sachi Wimmer, Executive Director Office of Transport Security (OTS) on Friday evening, 24 February 2017

We have been focusing on the transitional tasks to ensure successful delivery of the project as we move towards the 1 July 2017 US 'piece level' examination requirements. These include continuing communications with exporters and freight forwarders, supporting uptake of piece-level screening with industry, and undertaking assessments and validations of the first wave of known consignor businesses wanting to enter the scheme.

With only four months until the requirements for piece level examination starts ensuring that industry is prepared will be challenging.

For examination by technology, while overall coverage is good for express parcel post, we are seeing some capability and capacity gaps around the country, particularly in EMD capability and in some states, x-ray capacity.  You can assist us by talking to us early about your intentions to enter the examination business, particularly if you intend to apply for an EACE notice prior to 1 July 2017.

The Known Consignor Scheme is up and running and to date, we have over 260 Expressions of Interest, 81 applications received with 50 validations conducted and 7 approved known consignors.

However, the response to the Known Consignor Scheme is still relatively low and our experience is that there is quite a delay between people being given the application form and when they return it.  With only 126 days until 1 July, we really need a quicker turn around on applications coming in. Further information on the Known Consigner Scheme can be found on the Departments website at the following link Known Consigner Scheme

We have been contacting businesses exporting to the US and there is confusion amongst both exporters and freight forwarders about what examination is available, what the Known Consignor Scheme is and what businesses need to do to join. We would appreciate you working with your colleagues and members to continue to push the message out about the 1 July requirements and working with export businesses to help them determine whether the Known Consignor Scheme is the best option for them or to ensure they have examination arrangements in place for their US cargo. As well, we value you encouraging any exporters you know who are interested in the Known Consignor Scheme, to apply as a matter of urgency – noting that if they don't they may not be able to export for a period of time after 1 July.

OTS web site

• Air cargo security

• Regulated Air Cargo Agent Scheme As at 10 February 2017

• List of Approved Known Consignors

Information Session

Changes to Air Cargo Export Security Requirements – FTA026 - 3 CPD points – Stream B

During September 2016 we were privileged to have Scott Stone (General Manager, Air Cargo Taskforce, Office of Transport Security, Department of Infrastructure and Regional Development) deliver a detailed presentation at our CPD & CBC - Border and Biosecurity Compliance Program.

The session was recorded and is available FREE and EXCLUSIVE to FTA / APSA members - available HERE

PDF copy of the presentation is available HERE

Please note that an online assessment relating to the presentation is available via www.ComplianceNetFTA.com at a cost of $38.50 (incl GST) - FREE with annual CPD/CBC membership package - for further details about CPD/CBC packages, please click HERE.

Consultancy Services

To find out more about our consultancy services, please click HERE or contact Robert (Bob) Labrum at 0452 213 027.

We will continue to keep members up to date on pertinent detail.

In the interim, if you require any further enquiries, please do not hesitate to contact me on 02 99751878, 0408280123 or pzalai@FTAlliance.com.au

Paul Zalai - FTA / APSA