ICAO – WCO JOINT WORKSHOP

AIR CARGO

SECURITY AND FACILITATION

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MODULE 5

WCO AND ICAO FRAMEWORKS FOR AIR CARGO SECURITY

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Objectives

Familiarize with Framework of Standards (SAFE of FoS)

Familiarize with ICAO Framework for Air Cargo Security

Familiarize with aspects of the International Harmonization

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WCO

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SAFE FoS

Objectives

Core principles

Framework structure

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Recognition of risks to the security and facilitation of the international trade supply chain lead the WCO to take bold action

WCO Council Resolution, June 2002, forming a Joint Customs-Industry Task Force on Security and Facilitation

SAFE FoS

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Certainty and predictability at a global level

Integrated supply chain management for all transport modes

Allow Customs to meet the challenges and opportunities of the 21st Century

Objectives

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Closer cooperation among Customs administrations

Stronger Customs-to-Business cooperation

Tangible benefits for businesses

Seamless movement of goods

Objectives

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Four Core Principles

Advance electronic

information

Risk Management

Outbound inspection

Business partnership

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Pillar 1: Customs-to-Customs Cooperation - Using Commonly Accepted Standards to both Secure and Facilitate Trade (11 Standards)

Pillar 2: Customs-to-Business Partnership -Identify Secure Business Partners and Offer Benefits (6 Standards)

Pillar 3: Customs-to-Other Government and Inter-Government Agencies - cooperation to enhance supply chain security and facilitation (11 Standards)

FRAMEWORK STRUCTURE

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Standard 1: Integrated Supply Chain Management (ISCM)

Standard 2: Cargo Inspection Authority

Standard 3: Modern technology in Inspection Equipment

Standard 4: Risk-Management Systems

Pillar 1 – Customs-to-Customs

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Standard 5: Selectivity, profiling and targeting

Standard 6: Advance Electronic Information

Standard 7: Targeting and Communication

Standard 8: Performance Measures

Pillar 1 – Customs-to-Customs

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Standard 9: Security Assessment

Standard 10: Employment Integrity

Standard 11: Outbound Security Inspection

Pillar 1 – Customs-to-Customs

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The Customs administration should follow integrated Customs control procedures as outlined in the WCO Customs Guidelines on Integrated Supply Chain Management (ISCM Guidelines)

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Pillar 1 – Standard 1 Integrated Supply Chain Management

The Customs administration should have the authority to inspect cargo originating, exiting, transiting (including remaining on board), or being trans-shipped through a country

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Pillar 1 – Standard 2 Cargo Inspection Authority

Non-intrusive inspection (NII) equipment

and radiation detection equipment should be available and used for conducting inspections, where available and in accordance with risk assessment. This equipment is necessary to inspect high-risk containers or cargo quickly, without disrupting the flow of legitimate trade

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Pillar 1 – Standard 3 Modern Technology in Inspection Equipment

Pillar 1 – Standard 4 Risk Management Systems

The Customs administration should

establish a risk-management system to identify potentially high-risk shipments and automate that system

The system should include a mechanism for validating threat assessments and targeting decisions and identifying best practices

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advance electronic information

strategic intelligence

automated trade data

anomaly analysis

the relative security of a trader’s supply chain

Pillar 1 – Standard 5 Selectivity, profiling and targeting

Customs should use sophisticated methods to identify and target potentially high risk cargo:

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Pillar 1 – Standard 6 Advance Electronic Information

The Customs administration should require advance electronic information on cargo and container shipment in time for adequate risk assessment to take place

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Pillar 1 – Standard 7 Targeting and Communication

Customs administrations should provide for joint targeting and screening, the use of standardized sets of targeting criteria, and compatible communication and/or information exchange mechanisms; these elements will assist in the future development of a system of mutual recognition of controls

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The Customs administration should maintain statistical reports that contain performance measures (WCO TRS):

the number of shipments reviewed the subset of high-risk shipments examinations of high-risk shipments conducted examinations of high-risk shipments by NII technology

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Pillar 1 – Standard 8 - Performance Measures

Pillar 1 – Standard 8 - Performance Measures

The Customs administration should maintain statistical reports that contain performance measures (WCO TRS):

examinations of high-risk shipments by NII and physical means examinations of high-risk shipments by physical means only Customs clearance times positive and negative results

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The Customs administration should work with other competent authorities to conduct security assessments involving the movement of goods in the international supply chain and to commit to resolving identified gaps expeditiously

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Pillar 1 – Standard 9 Security Assessment

Pillar 1 – Standard 10 - Employee Integrity

The Customs administration and other competent authorities should be encouraged to require programs to prevent lapses in employee integrity and to identify and combat breaches in integrity

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Pillar 1 – Standard 11 Outbound Security Inspection

The Customs administration should conduct outbound security inspection of high-risk containers and cargo at the reasonable request of the importing country

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Standard 1: partnership

Standard 2: security

Standard 3: authorization

Standard 4: technology

Standard 5: communication

Standard 6: facilitation

Pillar 2 – Customs and Business Partnership

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A party involved in the international movement of goods in whatever function that has been approved by or on behalf of a national Customs administration as complying with WCO or equivalent supply chain security standards.

Authorized Economic Operators include inter alia manufacturers, importers, exporters, brokers, carriers, consolidators, intermediaries, ports, airports, terminal operators, integrated operators, warehouses, and distributors

Authorized Economic Operator in the SAFE Programme

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Pillar 2 – Standard 1: Partnership

AEOs involved in the international trade supply chain will engage in a self-assessment process measured against pre-determined security standards and best practices to ensure that their internal policies and procedures provide adequate safeguards against the compromise of their shipments and containers until they are released from Customs control at destination

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Public Private Partnership

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Pillar 2 – Standard 2

Security

AEOs will incorporate pre-determined security best practices into their existing business practices

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Pillar 2 – Standard 3 – Authorization

The Customs administration, together with representatives from the trade community, will design validation processes or quality accreditation procedures that offer incentives to businesses through their status as AEOs

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Pillar 2 – Standard 4 Technology

All parties will maintain cargo and container integrity by facilitating the use of modern technology

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Pillar 2 – Standard 5 – Communication

The Customs administration will regularly update Customs-Business partnership programmes to promote minimum security standards and supply chain security best practices

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Pillar 2 – Standard 6 – Facilitation

The Customs administration will work co-operatively with AEOs to maximize security and facilitation of the international trade supply chain originating in or moving through its Customs territory

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Other

Companies

AEO Benefits

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AEO benefits: competitive advantages

Reduction of number of controls and time needed for clearance

Direct benefits from other countries in case of MRA

Certification/logo as reliable, predictable and consistent partner

Insurance in case of incident or terrorist act

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AEO benefits: increase and improvement

Identification of inefficiencies and gaps in management of the company and the supply chain

Implementation of best practices (e.g. better communications and cooperation between divisions)

Reduction of theft and damage

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AEO benefits: recognition as reliable operator by Customs

Consultation in the development process of Customs rules

Access to information

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67 Countries with existing AEO

programmes

16 Countries with AEO programmes to be launched

AEO Map 2015:

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Concluded AEO MRAs

Currently: 34 MRAs

Date Country

June 2007 New Zealand – USA

May 2008 Japan – New Zealand

June 2008 Canada – USA

June 2008 Jordan – USA

June 2009 Japan – USA

July 2009 EU – Norway

July 2009 EU – Switzerland

June 2010 Canada – Japan

June 2010 Canada – Korea

June 2010 Canada – Singapore

June 2010 EU – Japan

June 2010 Korea – Singapore

June 2010 Korea – USA

January 2011 Andorra – EU

May 2011 Japan – Korea

June 2011 Korea – New Zealand

June 2011 Japan – Singapore

Date Country May 2012 EU-USA June 2012 China - Singapore July 2013 China - Korea October 2013 China – Hong Kong, China

November 2013 India - Hong Kong, China February 2014 Hong Kong, China - Korea March 2014 Mexico - Korea May 2014 EU – China June 2014 Korea – Turkey June 2014 Hong Kong, China - Singapore

June 2014 Malaysia – Japan June 2014 USA – Israel October 2014 USA – Mexico December 2014 USA – Singapore

April 2015 Korea – Dominican Republic June 2015 Thailand – Hong Kong, China June 2015 Malaysia-Thailand October 2015 India-Korea

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AEO MRAs under negotiation

China-Japan China-USA India-Korea India –USA Israel-Korea Malaysia-Korea New Zealand – Singapore Norway – Switzerland Thailand – Hong Kong Thailand - Korea

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Pillar 3 – Customs and other Government and Inter-Government Agencies

Three types of Cooperation under the pillar: Cooperation with Governments Cooperation between and among Governments Multinational Cooperation

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Pillar 3 – Customs and other Government and Inter-Government Agencies

Cooperation with Governments:

Standard 1: Mutual Cooperation

Standard 2: Cooperative Arrangements/Procedures

Standard 3: Alignment of security programmes

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Pillar 3 – Customs and other Government and Inter-Government Agencies

Cooperation with Governments: Standard 4: Harmonization of national control measures

Standard 5: Development of continuity and resumptions measures

Standard 6: Mutual Cooperation

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Pillar 3 – Customs and other Government and Inter-Government Agencies

Cooperation with Governments: Standard 7: Development of Cooperative Arrangements

and Protocols

Standard 8: Alignment of security

Standard 9: Harmonization of cross-border control measures

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Pillar 3 – Customs and other Government and Inter-Government Agencies

Cooperation with Governments: Standard 10: Establishment of Mutual Cooperation

Standard 11: Development of cooperative arrangements or protocols

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ICAO

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ICAO Framework for Air Cargo Security

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Regulatory Role International legal framework for the last 70 years International forum for aviation security regulators and

experts for the last 25 years

Implementation and Assistance Role Provides training and implementation support Conducts ICAO audits Offers assistance to States

Role of ICAO

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Evolution of Air Cargo Security SARPs

2010 2012 2013 2014 2011

Recurrent ICAO Aviation Security Panel

29 OCT Printer-cartridge

incidents Working Group on Air

Cargo Security

High Level Conference on

Air Cargo Security

38th ICAO

Assembly

1 JUL Amendment 12 to

Annex 17

15 JUL Amendment 13 to Annex 17 Guidance Material revised 14 NOV

Amendment 14 Annex 17

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Civil Aviation Measures

Legislative

Technical

Physical

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Legislative Measures

Chicago Convention -1944

Tokyo Convention – 1963

Hague Convention – 1970

Montreal Convention - 1971

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Legislative Measures

Protocol for the Suppression of Unlawful Acts – 1988

MEX Convention – 1991

Beijing Convention – 2010

Beijing Protocol – 2010

Montreal Protocol to the Tokyo Convention - 2014

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Technical Measures

19 Annexes to the Convention on International Civil Aviation (Montreal) Annex 9 (Facilitation ) Annex 17 (Aviation Security)

Security Manual (Doc. 8973)

Facilitation Manual (Doc. 9957)

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Annex 9 and 17 - Definitions

Standards = Necessary or mandatory Recommended Practices = Desirable Contracting State = Signatory to the Chicago Convention

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Facilitation

The efficient management of the necessary control process,

with the objective of expediting the clearance of

persons or goods

and

preventing unnecessary operational delays. Definition according to ICAO Doc. 8973

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Coordination between Facilitation and Security

38th ICAO Assembly new strategic objective:

• Emphasizing the importance of facilitation by placing it on equal footing with security.

Facilitation Priorities 2014-2016

• «Working better with what we have»

• Planning for the future

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Annex 9

Chapter 4 – Entry and departure of cargo and other Articles Information required by the public authorities Release and clearance of export and import cargo

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Annex 9

Chapter 4 – Entry and departure of Cargo and Other Articles Spare parts, equipment, stores and other material

imported or exported by aircraft operators in connection with international services

Containers and pallets Mail documents and procedures Radioactive material

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Annex 9 – AEO Definition

Authorized Economic Operator (AEO) AEO is a party involved in the international movement of goods

in whatever function that has been approved by or on behalf of a national Customs administration as complying with WCO or equivalent supply chain security standards

AEOs may include manufacturers, importers, exporters, brokers, carriers, consolidators, intermediaries, ports, airports, terminal operators, integrated operators, warehouses, distributors and freight forwarders

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Annex 9 – AEO Recommended Practices

RP 4.9.1 - consideration of introduction of AEO programmes

RP 4.9.2 – encouragement to establish agreements or arrangements for the mutual recognition of AEO or equivalent programmes

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Annex 9 – Provisions for cargo – examples

• Std. 4.5: Coordination of release/clearance of goods

• Std. 4.27: Priority: live animals & perishable/urgent goods

• Std. 4.56: Prompt release of radioactive material/ medical applications

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Annex 17 - Amendment 1-12

Amendment 8 – security control over cargo, courier and express parcels and mail

Amendment 9 – regulated agent definition

Amendment 11 – security for all-cargo operations

Amendment 12 – supply chain security

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Annex 17 - Amendment 13

Baseline security measures for both passenger and all-cargo aircraft

Enhanced security measures for high-risk cargo including new definition

Secure supply chain, including at transfer points, with security controls to be applied by a regulated agent or an entity approved by the appropriate authority (e.g. Known Consignor)

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Annex 17 - Amendment 13

Screening of cargo which cannot be accounted for by a regulated agent or by an entity approved by the appropriate authority

Security Status accompanying cargo in electronic or paper format → Consignment Security Declaration (CSD)

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Amendment 14

Screening method to be chosen according to the nature of the consignment

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Annex 17 – Cargo Standards

Standard 4.6.1 – appropriate security controls of cargo and mail prior the loading

Standard 4.6.2 – supply chain security process

Standard 4.6.3 – protection from unauthorized interference from the point of screening until departure of the aircraft

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Annex 17 – Cargo Standards

Standard 4.6.4 – application of enhanced security measures are applied to high-risk cargo and mail

Standard 4.6.5 – application of screening or other security controls confirmed by regulated agent, or an entity that is approved by the appropriate authority

Standard 4.6.8 – cargo and mail confirmed and accounted for shall be issued with security status

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Annex 17 – Cargo Standards

Standard 4.6.9 - Transfer cargo and mail subjected to appropriate security controls prior to being loaded

Standard 4.6.10 - Where screening of cargo and mail is conducted, screening is carried out using an appropriate method or methods, taking into account the nature of the consignment

Recommendation 4.6.11 – appropriate mechanism to confirm that transfer cargo and mail has been subjected to appropriate security controls

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Guidance Material

Security Manual Doc. 8973/9

Facilitation Manual Doc. 9957

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Physical Countermeasures

Control of access to security restricted areas

Screening of passengers and their baggage

Screening of crew members and staff

Security measures relating to cargo, mail and other goods

Protection of aircraft; and

Protection of airport and navigation facilities

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Air Cargo Secure Supply Chain - Definition

“Set of interconnected security procedures that are applied to a cargo consignment to maintain the integrity of such a consignment from the point where screening or other security controls are applied until it arrives at its last airport of arrival, including through transit and/or transfer points”

ICAO Doc 8973

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Annex 17 Supply chain: security & facilitation

• Regulated Agents and Known Consignors • Secure supply chain principle • Facilitation perspective included in supply chain approach

• Guidance Material • Non-duplication of unnecessary controls • Example tool: Consignment Security Declaration – traceability

and facilitation

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Air Secure Supply Chain – Objectives (1/3)

Efficient solution, built on a risk-based approach that meets the following objectives:

– Respect existing obligations of businesses operating in the air cargo supply chain

– Share costs and responsibilities among all stakeholders

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Air Secure Supply Chain – Objectives (2/3)

Efficient solution, built on a risk-based approach that meets the following objectives:

– Facilitate the flow of cargo transported by air

– Reduce or limit possible delays generated by the application of security

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Air Secure Supply Chain – Objectives (3/3)

Efficient solution, built on a risk-based approach that meets the following objectives:

– Apply appropriate security controls for specific

categories of cargo – Preserve the primary advantages of the air transport

mode: speed, safety and security

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Advantages of Secure Supply Chain:

Shared responsibilities and application of security controls reducing the strain on airport operations

The secure movement and transfer of consignments from one entity to another

The assurance that appropriate security controls are applied

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PILLARS OF

THE AIR CARGO SECURE

SUPPLY CHAIN

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Cargo Physical Security – Preventive Measures

Deter

Detect

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Secure Supply Chain - pillars Secure supply chain programme should be applied in line with the following six pillars:

– Facility security – Personnel security – Training – Screening – Chain of custody – Oversight and compliance

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Pillar 1 – Facility Security

Physical Security Measures:

sound construction

securing of doors and windows

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Detection and prevention from unauthorized interference

Pillar 1 – Facility Security

Intrusion detection devises: alarms

CCTV

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Detection and prevention from unauthorized interference

Pillar 1 – Facility Security

Protected areas for secure cargo:

cages

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Detection and prevention from unauthorized interference

Pillar 1 – Facility Security

Staff awareness

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Detection and prevention from unauthorized interference

Staff and vehicle access control procedures: swipe cards, guards

procedures for visitors

Pillar 2 – Personnel Security

The appropriate authority should establish the background check requirements for individuals with unescorted access to air cargo and mail

These background checks should include:

– criminal history (when legally permissible); and/or – pre-employment or work history

Where background checks are not legally permissible, there may be a requirement for employees to be screened

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Pillar 3 – Training requirements

Security training programme developed by each entity should include the following training types:

– initial

– refresher at specified intervals

Training records kept for each employee

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Pillar 3 – Training requirements

Initial and recurrent training for: – security personnel who carry out security measures

for air cargo and mail (may include screening, if appropriate)

– staff with access to identifiable air cargo or mail (security awareness training)

– known consignor/regulated agent security managers and officers

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Pillar 4 – Screening - definition

“The application of technical or other means which are intended to detect weapons, explosives or dangerous devices which may be used to commit an act of unlawful interference”

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Pillar 4 – Screening

Screening may be conducted by application of:

– approved technologies or

– physical search procedures

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Pillar 4 – Screening

Screening methods must be selected according to the nature of the consignment

Screening equipment must be maintained, tested and operated in accordance with the manufacturer’s instructions

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Pillar 5 – Chain of Custody

Storage of secure cargo and mail Ground transportation Acceptance procedures Handling and loading Treatment of suspected cargo Transfer and transit cargo and mail

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Pillar 6 – Oversight and Compliance

Legislation should also be established to enable the appropriate authority (or an entity appointed to act on its behalf) to conduct oversight and quality control, including inspections and tests of personnel, measures, procedures, programmes, facilities and equipment as part of a regulated agent, known consignor and account consignor regime

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Pillar 6 – Oversight and Compliance

Regulated Agents and Known Consignors should also carry out their own internal quality control

These should be set out in their security programmes

International

Harmonization

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Pre-requisites for harmonization

• Agree on key principles and direction for air cargo security ICAO High Level Conference on Aviation Security (HLCAS) - Key Principles 38th ICAO Assembly “global approach”

• Define minimum baseline requirements and responsibilities for equivalent security outcomes

Annex 17 Security requirements Guidance Material Framework for implementation

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Pre-requisites for harmonization

• Agree on «common language»

ICAO Annex 17 definitions

Detailed and clarified in Guidance Material

Presented in ICAO-WCO Joint Publication “Moving Air Cargo Globally”

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Options for harmonization

– Harmonization through detailed regulation ICAO Guidance Material as direction • Example of regional regulations

– Harmonization through implementation ICAO Aviation Security Training Packages (ASTP) • Tools: Consignment Security Declaration

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Options for harmonization

– Harmonization through cooperation

• Aviation, customs and mail authorities

• Cooperation with industry bodies

• Multilateral or bilateral cooperation

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From regulation to implementation

ICAO has developed a framework for air cargo security and set the

minimum baseline for implementation

ICAO continues to provide the international forum for the development of international civil aviation SARPs

ICAO looks forward to continued cooperation with all stakeholders in addressing future challenges

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Discussion

Find similarities between programmes

Identify areas where measures overlap

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Challenges Fact: Two different programs with common grounds, similarities and

differences

Desirable attitude: Will to cooperate

Acknowledgement of commonalities

Support at management level

Recognize mutual responsibilities

Legal framework for exchange of information

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Similarities

Security of the supply chain

Risk based security approach

Physical security of locations

Secure business processes

Tools for self assessment to support application

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Differences

AEO: Import and Export

All modes of transport

Legal requirements with open norms

Certification also covers compliance, accounts, solvency, IT systems

RA/KC: Export

Air mode

Specific legal requirements

Certification specific location

Certification for security requirements (including screening)

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The (possible) way forward

Seek for cooperation and alignment based on current legislation (simultaneous application, combine assessment, identify

overlap of security requirements, clarify similarities and differences in relation to laws, regulations, powers, responsibilities and tasks)

Search for more legal alignment on international level (WCO SAFE Framework of Standards; - ICAO Annex 9 and/or ICAO Annex 17)

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Module Summary

Familiarized with Framework of Standards (SAFE FoS)

Familiarized with ICAO Framework for Air Cargo Security

Familiarized with aspects of International Harmonization

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End of Module 5

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