Securing Air Cargo with Border Management Solutions

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Elwin Byrd
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1 Securing Air Cargo with Border Management Solutions Christian Piaget Senior Manager Cargo Customs & Claims To represent, lead and serve the airline industry

2 ABOUT IATA Founded in 1945 As the prime vehicle for inter-airline cooperation in promoting safe, reliable, secure and economical air services - for the benefit of the world's consumers. Our mission To represent, lead, and serve the airline industry. Our vision To be the force for value creation and innovation driving a safe, secure and profitable air transport industry that sustainably connects and enriches our world. IATA in numbers 265 Member airlines 83% of total air traffic Employees 66 Offices in 62 countries 2

3 Air Cargo: a conduit for world trade transporting over $6.8 trillion of goods representing over 35% by value

4 Air cargo has not improved in 30 years Estimated average end-to-end (shipper to consignee) air cargo transportation time: ~ 6 days Effective time in the air: from a few hours up to 20 hours... 90% of the transit time for air cargo is spent not moving, but waiting to move! (Air Cargo News ) 4

5 1. Screening 5

6 One size does not fit all! 6

7 What are the current expectations? Screening technologies should be: affordable reliable effective fast automated capable of screening various commodities able to handle large volumes as well as oversized pieces of cargo. 7

Conflicting Regulation Global Collaboration Lack of Standards No Mutual/

8 Limited Dialogue Promote Dialogue Lack of Cargo Specific Solutions Difficult to screen using current technologies Ad-hoc Cargo Solutions Technology Innovation Conflicting Regulation Global Collaboration Lack of Standards No Mutual/ Bilateral Recognition International Screening and Equipment Standards Process Harmonization 8

9 Air cargo has not improved in 30 years Estimated average end-to-end (shipper to consignee) air cargo transportation time: ~ 6 days Effective time in the air: from a few hours up to 20 hours... 90% of the transit time for air cargo is spent not moving, but waiting to move! (Air Cargo News ) 9

10 2. Advance Cargo Information 10

House Waybill FHL 44. MRN 16. ORIGIN L/C Instr. 17. Air Waybill 70. Handling fees 27. Air Waybill FWB 28. House Waybill FHL 35. Cargo Receipt FOH 38. Pouch 39. Customs Rel. Exp. 40.

11 The problem: good vs info flows 34. Receipt 33. Transport Order 4. L/C Notification 5. Invoice 6. Packing List 18. Air Waybill 19. Credit Note Pouch content: House Waybill (paper) Invoice Packing List Certificate of origin Regulatory documents 13. Invoice 14. Packing List 15. Letter of Instr. 24. Booking 25. Air Waybill FWB 26. House Waybill FHL 44. MRN 16. ORIGIN L/C Instr. 17. Air Waybill 70. Handling fees 27. Air Waybill FWB 28. House Waybill FHL 35. Cargo Receipt FOH 38. Pouch 39. Customs Rel. Exp. 40. Cargo Acceptance 36. Export Goods Declaration 37. Customs Release Export 29. Invoice 30. Packing List 31. Air Waybill 32. Certificate of Insurance 41. Flight Manifest FFM 45. Pouch 46. Air Waybill FWB 47. House Waybill FHL 48. Flight Manifest FFM 42. ACI 43. MRN 9. Certification Request 10. Invoice 11. Packing List 12. Certificate of Conformity 56. Invoice 57. Air Waybill 58. House Waybill 59. Import Goods Declaration 60. Customs fees 61. Customs Release Import 49. Air Waybill FWB 50. House Waybill FHL 51. Flight Manifest FFM 3. L/C Application 7. Invoice 8. Packing List 20. Debit Note DESTINATION 54. Pouch 55. Air Waybill FWB 62. Customs Rel. Import 52. Freight arrival notification 53. Handling Forwarder 64. Receipt 63. Transport Order 66. Consignee Receipt 67. Air Waybill 68. Customs fees 69. Handling fees 65. Receipt 1. Purchase Order or Sales Contract 2. L/C Application 21. Invoice 22. Packing List 23. Debit Note Goods flow Information flow 37 info items sent 70 times IATA Cargo - International Air Transport Association

12 WCO SAFE Advance Cargo Information Check Point 2 A B Pre-loading ( 7+1 ) Security Check Point 1 Check Point 3 On arrival (complete cargo + goods declaration) Safety, security, fiscal, etc. 12

13 WCO SAFE Implementation - intention

14 WCO SAFE Implementation - effective

15 Advanced Cargo Information (ACI): Remaining challenges for the industry Use for other customs risks than security (e.g. IPR, Drugs, fiscal) Ask for data elements not listed in the SAFE data sets Do not follow the defined limits for the provision of ACI. Wish to amend the time limits to provide for ACI prior to loading of an aircraft Request carriers to provide information held by other parties in the supply chain (e.g. freight forwarders, exporters, importers) through single filling Try and implement ACI without sufficient time to test and discuss with Business 15

16 16

17 3. Capacity Building 17

18 Some of our External Stakeholders / Partners 18

Cargo Security Capacity Building: The Background Inconsistent security regulatory environment with limited international recognition Different understanding of air cargo supply chain security and

19 Cargo Security Capacity Building: The Background Inconsistent security regulatory environment with limited international recognition Different understanding of air cargo supply chain security and perceptions of threat i.e. levels of risk International standards and security programs not leveraged i.e. ICAO Annex 17 Screening of cargo at the airport creates bottlenecks, increases costs and delays shipments 19

The Security Capacity Building Value Proposition Enhanced national air cargo supply chain security Quantitative benefits: Reduction of cargo loss and mishandling Increased speed of supply chain

20 The Security Capacity Building Value Proposition Enhanced national air cargo supply chain security Quantitative benefits: Reduction of cargo loss and mishandling Increased speed of supply chain (time saving), job creation, tax revenues, etc Qualitative benefits: Streamlined business processes Increased global reputation Enhanced collaboration between agencies and air cargo industry 20

21 IATA Cargo Capacity Building Activity MX CR CO BR SN KZ EG TRLB JO PK BH KE RU TH VN PH MY ID CL Secure Freight Pilots ( ) Cargo Security Capacity Building activity (since 2015) 21

22 Conclusion 22

For IATA World Cargo Symposium (March2017) cf. http://www.iata.org/events/wcs/pages/index.

23 For IATA World Cargo Symposium (March2017) cf. For IATA Cargo Security and Facilitation Forum (October 2017) cf. (in due time)

CORE and MMT: Data Pipelines and Cross Border Messaging

CORE and MMT: Data Pipelines and Cross Border Messaging David Hesketh, Customs Research and Development United Kingdom UN/CEFACT Transport and logistics Domain Group 23 rd April 2015 Geneva Consistently