Changes to Air Cargo Security – Known Consignor scheme

Changes to Air Cargo Security – Known Consignor scheme

What is changing?

The Australian Government has released draft amendments to the Aviation Transport Security Regulations 2005 (the Regulations) for your comment before they come into force. The Regulations provide the legal framework for the security of air cargo including the Regulated Air Cargo Agent (RACA) and Accredited Air Cargo Agent (AACA) schemes. The amended regulations will change the RACA and AACA schemes and create a Known Consignor scheme for exporters.

Why are the changes needed?

Currently, the majority of Australia’s out-bound international air cargo is examined after it has been consolidated onto crates, pallets or unit load devices.   United States legislation requires all airlines transporting air cargo to the US on a passenger flight to examine 100% of air cargo at piece-level. Piece-level examination means that each individual box, carton or other item in a shipment must be examined by technology or physically inspected before it is loaded onto a US-bound aircraft.

From 1 July 2017, all US-bound air cargo will either need to be examined at piece-level or originate from a Known Consignor in order to be exported by air to the US.

How does the Known Consignor scheme work?

The Known Consignor scheme is a new initiative that will offer export businesses an alternative way to meet US air cargo requirements. Instead of having their US-bound air cargo examined at a piece level by another regulated business, Known Consignors will meet and maintain a high level of security to ensure their cargo is safe to load on an aircraft.

The Known Consignor scheme will recognise export businesses that apply security controls to ensure their US-bound air cargo does not contain unauthorised explosives. Approved Known Consignors will be responsible for securing air cargo that originates from their business until that air cargo is provided to another regulated business.

From 1 July 2017, air cargo will not be accepted on US-bound aircraft unless it has undergone piece-level examination by technology or physically inspected, or originates from a regulated Known Consignor.