KNOWLEDGE LAB TSA AIR CARGO SCREENING: WHAT CAN YOU EXPECT Thursday, October 11, 2012 3:00 pm – 4:00 pm

1. KNOWLEDGE LAB TSA AIR CARGO SCREENING: WHAT CAN YOU EXPECT Thursday, October 11, 2012 3:00 pm – 4:00 pm

2. DOUGLAS FOSTER Acting Branch Chief International Policy Organization Transportation Security Administration U.S. Department of Homeland Security

3. GARY LUPINACCI Transportation Security Specialist Office of Security Policy & Industry Engagement Transportation Security Administration U.S. Department of Homeland Security

4. TSA’s Efforts to Ensure 100% Screening of Air Cargo on Passenger Aircraft

5. Agenda

6. Background

7. Background – 100% Screening Legislation • The Implementing Recommendations of the 9/11 Commission Act of 2007 (9/11 Act) requires 100% screening of cargo transported on passenger aircraft departing U.S. airports (domestic), and destined for U.S. airports from foreign Last Points of Departure (LPD) airports (international inbound) by August 3, 2010, with an interim milestone of 50% screening by February 1, 2009 • Level of security required to be commensurate with checked baggage • Methods of screening include: x-ray systems, explosives detection systems (EDS), explosives trace detection (ETD), explosives detection canine teams, and physical search

8. 100% Screening – Domestic Cargo • TSA established a system to successfully accomplish the screening mandate for cargo originating at U.S. locations (domestic cargo), including: • Published Interim Final Rule (IFR) on September 16, 2009 and Final Rule (FR) on August 11, 2011 • Established the Certified Cargo Screening Program (CCSP) • Has approved 81 cargo screening technologies for use by industry 9/11 Act 50 % 75 % 100 % February 2009 May 2010 August 2007 August 2010 Industry has successfully complied with the 100% screening requirements for domestic cargo

9. 100% Screening - Domestic, CCSP Participant Breakdown January 2010 versus December 2011 December 2011 – 1209 facilities January 2010 – 555 facilities Shippers: 22% Air Freight Forwarders/ IACs: 71% Air Freight Forwarders/ IACs: 46% Shippers: 46% ICSFs*: 7% ICSFs*: 8% *Independent Cargo Screening Facilities

10. 100% Screening - Domestic, CCSP Snapshot as of January 2012 • Accounted for almost ½ of total cargo uplifted in the U.S. by weight

11. Yemen Incident – Security Measures • In response to the attempted terrorist attack originating from Yemen on October 29, 2010, TSA issued Security Directives (SDs) and Emergency Amendments (EAs) for passenger and all-cargo aircraft operators for flights into the United States • SD/EAs were issued immediately, with subsequent updates. Additional security measures included the introduction of screening requirements predicated upon risk-based analysis of shippers

12. 100% Screening - International Inbound Cargo • TSA has adopted a two-fold approach to implementing 100% screening of international inbound cargo transported on passenger aircraft: • Increase screening requirements in the air carrier Standard Security Programs (SSPs) • Recognize commensurate foreign air cargo security programs through the National Cargo Security Program (NCSP) to enable air carriers flying directly into the United States to follow only a single program • In 2009, TSA and U.S. Customs and Border Protection (CBP) began an initiative to explore using CBP’s Automated Targeting System (ATS) to target high-risk cargo for screening • TSA has worked jointly toward global harmonization of air cargo security standards with industry associations, the Universal Postal Union (UPU), World Customs Organization (WCO), and the International Civil Aviation Organization (ICAO), among others

13. Risk-Based Framework for Securing the Global Supply Chain

14. Risk-Based Framework for Securing the Global Supply Chain • Department of Homeland Security (DHS) Secretary working groups were established in early 2011 to provide recommendations on air cargo security • Building upon existing risk-based efforts, in January 2012, DHS released The National Strategy for Global Supply Chain Security outlining clear goals to promote the efficient and secure movement of goods and foster a resilient supply chain system. Efforts will be guided by three key principles: • Finding smarter and more cost effective ways to address security threats and maximize resources/expertise from across the United States Government • Fostering an all-of-nation approach to leverage the critical roles played by state, local, tribal and territorial governments, and private sector partners in strengthening supply chains; and • Enhancing coordination with the international community and international stakeholders who also have key supply chain roles and responsibilities “The key to evaluating potential risk is information—by sharing and leveraging information we can make informed decisions about how to best mitigate risk. And the more we know the better we become at providing security that is seamless and efficient” DHS Secretary Janet Napolitano, January 2012

15. Risk-Based Framework for Securing the Global Supply Chain (cont.) • TSA is incorporating the risk-based approach to achieve 100% screening of international inbound cargo transported on passenger aircraft • Risk-based analysis of shipments and shippers to determine tiered screening protocols • All cargo shipments designated as higher-risk would undergo enhanced screening using approved screening methods, while lower-risk shipments would be required to undergo other physical screening • 100% of international inbound cargo will be physically screened • In February 2012, TSA issued proposed enhanced security measures, building on the extensive screening procedures already in place, for 100% risk-based screening of international inbound cargo including a potential implementation date of December 1, 2012 • TSA is requesting feedback from the airline industry, which will be reviewed prior to implementation

16. Advance Air Cargo Screening (ACAS)

17. Air Cargo Advance Screening (ACAS) • TSA and CBP are partnering with industry to implement the voluntary Air Cargo Advance Screening (ACAS) pilot—an expansion of the ATS initiative—to explore the feasibility of collecting pre-departure information on international inbound air cargo and assessing its risk from non-U.S. locations • ACAS is being piloted in overlapping phases, allowing TSA and CBP to identify and address key issues and challenges at each phase • Express air carriers • Passenger air carriers and freight forwarders • All-cargo carriers Express Carrier Pilot Passenger Air Carrier Pilot All-Cargo Pilot

18. National Cargo Security Program (NCSP)

19. National Cargo Security Program (NCSP) • NCSP recognition remains key to achieving the 100% screening requirement for international inbound cargo, providing benefits to TSA, partner countries, and industry. • Allows for the recognition of screening completed earlier in the supply chain, where applicable • Allows carriers to follow one screening program

20. TSA Outreach Efforts

21. TSA Outreach Efforts • TSA will continue to pursue air cargo security harmonization activities and outreach to industry and governments through multiple channels • TSA has been engaged with ICAO to develop a threat and risk analysis for air cargo through the Working Group on Threat and Risk and has been a part of the Working Group on Air Cargo Security (WGACS) to define high-risk cargo and recommended practices to ICAO members states • TSA and CBP work closely through the WCO on advance data collection • TSA and CBP have been closely engaged with the UPU to address challenges in global mail security • TSA continues to work closely with industry associations globally Outreach Efforts

22. Summary

23. Summary • The 9/11 Act requires TSA to establish a system to ensure 100% screening of both domestic and international inbound cargo on passenger aircraft • In line with DHS’ National Strategy for Global Supply Chain Security, TSA has provided air carriers a path toward achieving 100% screening of international inbound cargo through risk-based analysis of shippers and shipments to determine tiered screening protocols • The NCSP remains an important component of TSA’s risk-based strategy to achieve 100% screening of international inbound cargo on passenger aircraft • TSA is continuing outreach to industry and international partners

24. KNOWLEDGE LAB TSA AIR CARGO SCREENING: WHAT CAN YOU EXPECT Thursday, October 11, 2012 3:00 pm – 4:00 pm