MUTUAL RECOGNITION AIR CARGO SECURITY CANADA - US. Presentation to Border Commercial Consultative Committee February 12, 2014

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1 MUTUAL RECOGNITION AIR CARGO SECURITY CANADA - US Presentation to Border Commercial Consultative Committee February 12, 2014

2 Introduction Overview Canadian Air Cargo Security Program Overview What is Mutual Recognition? How does this build on Canada s Perimeter Strategy? Next steps DRAFT 2

3 Canada s Air Cargo Security (ACS) Program DRAFT 3

4 Security and the Economy Security threats are real and Canada remains a target Air cargo is key to the Canadian economy Need to balance security requirements to ensure the continued flow of air cargo DRAFT 4

5 Canada s Air Cargo Security Program Pilot Project ( ) Budget 2010 provided funding to enhance air cargo security - Phase One: Requirements for air carriers and freight forwarders - Phase Two: Requirements for shippers and other cargo operators, expanding the secure supply chain DRAFT 5

6 The Approach = Secure cargo = Unsecure cargo DRAFT 6

7 Program Membership Air Carriers (mandatory) All Air Carriers are subject to the security measures Freight Forwarders (voluntary) Apply to become a member of the ACS Program Registration and Eligibility Assessment Application and Compliance Assessment Approval to screen cargo or accept from the secure supply chain Shippers (voluntary) Apply to become a member of the ACS Program Registration and Eligibility Assessment All members of the ACS Program are subject to audit and inspection activities 7

8 Requirements for Air Carriers Under the Security Measures Respecting Air Cargo, Air Carriers: must ensure 100% of cargo transported on outbound passenger flights is secure cargo; must accept secure cargo from other entities in the ACS Program or screen the cargo using one of the four approved methods of screening; must control access to secure cargo and ensure personnel with access to secure cargo are authorized to do so and trained; and are subject to on-going inspection and oversight activities. 8

9 Requirements for Freight Forwarders Under the Security Measures Respecting Air Cargo, freight forwarders who are members of the ACS Program: can accept secure cargo from other members of the ACS Program or screen the cargo using one of the four approved methods of screening; must document the security status and chain of custody of the cargo; must control access to secure cargo and ensure personnel with access to secure cargo are authorized to do so and trained; and are subject to on-going inspection and oversight activities. 9

10 Enhancements to Secure Supply Chain Beginning in 2015, all cargo on all passenger flights must be screened. The secure supply chain will be expanded to include shippers and other cargo operators. Shippers will be able to screen cargo under the amended regulations. Enhanced provisions for cargo shipped on all-cargo flights are expected to come into force in Consultations were held across Canada on all-cargo provisions in the fall of 2013 to gather industry input. Future Requirements Air cargo must be actively screened Proposed regulatory amendments Allow shippers to screen their own cargo; Allow other cargo operators such as trucking companies and warehouse operators to handle and store screened cargo. DRAFT 10

11 Program Membership in 2014 Air Carrier (mandatory) All Air Carriers operating in Canada Regulated Agent (voluntary) Cargo operators that screen cargo and can accept cargo from a Known Consignor, Account Consignor or another Regulated Agent. Known Consignor (voluntary) Shippers (consignors) who originate cargo Screen their own goods Account Consignor (voluntary) Shippers (consignors) who originate cargo Certified Agent (voluntary) Cargo operators who handle and transport cargo on behalf of an Account Consignor, Known Consignor, Regulated Agent or Air Carrier 11

12 WHAT IS MUTUAL RECOGNITION? DRAFT 12

13 Mutual Recognition Effective March 31st, Based on a comprehensive document and site review of each country s ACS program Cargo shipped on passenger flights to the United States must be tendered by a shipper who is registered with the ACS Program and screened. Under the agreement, cargo shipped on passenger aircraft will be screened at the point of origin and will not need to be rescreened at the border or prior to upload in the other country. DRAFT 13

14 Benefits The objective of MR is to contribute to an acceptable international standard that allows for greater facilitation of goods and commerce between countries and eases the burden on industry by lifting, where appropriate, duplicative or redundant security measures Allows for both countries to transport air cargo across the border without being re-screened - the "screened once, accepted twice" principle. 14

15 Next Steps Transport Canada and TSA continue to work together on operational pieces of the mutual recognition agreement. Recognizing screening process of other entities earlier in the supply chain (i.e. freight forwarders and shippers) Harmonizing chain of custody standards Addressing issues with trucked air cargo ( flying trucks ) DRAFT 15

16 ACS Support Centre Questions? ACS website: DRAFT 16