Pre-Loading Advance Cargo Information (PLACI)

TIACA Position Paper

Pre-Loading Advance Cargo Information (PLACI)

TIACA Position Paper

Pre-Loading Advance Cargo Information (PLACI):

March 2015

Introduction

The International Air Cargo Association (TIACA) represents all major segments of the air cargo and air logistics industry, including all-cargo and combination airlines, forwarders, airports, ground handlers, road carriers, customs brokers, logistics companies, shippers, IT companies, aircraft and equipment manufacturers, trade press, and educational institutions.In this paper, TIACA presents the views of its members regarding ongoing initiatives to use advance data on air cargo shipments for aviation security risk assessment.

Background

In the wake of the October 2010 “Yemen incident” in which terrorists shipped explosives in toner cartridges within printers, government and industry stakeholders have collaborated to test whether advance data on air cargo shipments can be used for aviation security risk assessment. These initiatives have involved customs and aviation security regulators, as well as air cargo industry stakeholders. Pilots have been undertaken in the United States, EU and Canada, and the U.S. and EU are currently moving forward with rulemakings on advance data. These pilots have been developed based on the fundamental principle that, working together, regulators and industry can enhance security without impeding commercial flows. This must continue to be the guiding principle as these pilots move into the realm of actual regulations.

The progress of these programs is being followed closely by the World Customs Organization (WCO) and International Civil Aviation Organization (ICAO), and these institutions have established a Joint Working Group on Advance Cargo Information (JWGACI) to consider global issues related to advance data regimes. The JWGACI has adopted the phrase “pre-loading advance cargo information” (PLACI), in referring to these programs so TIACA will use that acronym throughout this paper.

The nature of PLACI

PLACI is an additional layer of security in a multilayered, risk-based air cargo system which may be adopted as an optional security enhancement by countries that determine this is a necessary step to address security threats.Even without PLACI, the global air cargo industry has numerous layers of security, as required under each country’s national cargo security programs within the framework of ICAO Annex 17’s standards and recommended practices.

PLACI adds to this existing matrix of security measures an additionalcapability,designed to specifically address a possible “bomb in the box” scenario such as that with the 2010 Yemen incident. PLACI has only one purpose: to identify potential high-risk cargo by analyzing consignment data, which is provided by industry to customs and aviation security authorities early in the air cargo supply chain, and to require any necessary follow up actions.

PLACI concepts have thus far been tested through the U.S., EU and Canada pilots, each of which has had varying degrees of industry participation. The air cargo supply chain has several business models, so it is essential to run pilots that have sufficient industry participation to test all air cargo operational models, including those for the express, general cargo and mail segments of the business.

PLACI Data

The PLACI pilots have clearly established the following with respect to the data to be used for civil aviation risk assessment:

1. The consignment data should be provided as early as possible in the supply chain. The earlier regulators receive consignment data, the earlier they can review it, ensure it is complete (and, if it is not, notify the filer so this can be corrected), and conduct their civil aviation risk assessment.

1. The “7+1” data set has been validated to be sufficient for initial civil aviation risk assessment.The “7+1” data elements are: (7) - thenumber of pieces, total weight, general cargo description, shipper name, shipper address, consignee name, and consignee address (all as described on the house air waybill), plus (1) -the house air waybill number.[1] The various pilots have tested these data elements and have validated their usefulness for an initial civil aviation risk assessment. The WCO has taken several steps to incorporate 7+1 into its SAFE Framework of Standards and is expected to finalize this action in June 2015.

1. The “7+1” data set can generally be provided early in the supply chain. These data elements are among the first available in the supply chain, and industry has been providing them through the PLACI pilots.

PLACI submission

TIACA believes that, in order to encourage industry to provide the 7+1 data elements as early as possible, regulators should enable all relevant parties in the supply chain to submit data. This is particularly true for forwarders and postal operators, who generally have access to consignment data well before carriers. In order to support filing by forwarders, regulators should take the following steps:

• allow for dual filing (that is, allowforwarders to provide some data, but allow airlines to provide data as well); and

• provide a portal or other easily accessible system for small and medium forwardersto use when submitting PLACI data. Smaller forwarders generally lack the IT capabilities needed to file directly with customs authorities.

Furthermore, any PLACI regulations must take into account the fact that industry is providing this data to the best of its knowledge, at an early stage of the supply chain, in order to promote the shared objective of enhancing security. Because of this reality, regulators should not assess penalties on industry participants for any errors or updates to PLACI, as that data is provided on a best efforts basis - exceptfor cases of egregious or fraudulent activity.

Finally, regulators should ensure that industry can make the PLACI submission to a single point of entry.There are three aspects to this issue:

1. Single PLACI program, single country, single window: For countries that implement their own PLACI program (such as the United States and Canada), industry should submit data only once, into a “single window” – rather than having to submit to customs and aviation security authorities separately.

1. Single PLACI program, multiple countries, single window: In cases where multiple countries adopt the same PLACI program (e.g., the EU with PRECISE), data should be submitted only once, into a single window that is accessible by the customs and aviation security authorities of all participating countries. Unfortunately, this does not appear to be likely for PRECISE - instead, each individual EU member state will likely be expected to conduct its own risk analysis. This means that industry will need to know a shipment’s exact routing before being able to provide PLACI data for targeting, so that it can submit to the appropriate country (or multiple country) authority. As a result, data likely will not be able to be transmitted until later in the supply chain, relative to when it can be provided to the U.S. or Canada through their common portals – an operational burden for industry and a limitation on the principle that data should be provided as early in the supply chain as possible.

1. Multiple PLACI programs, multiple countries, single window: Ultimately, with multiple PLACI programs in place around the globe, the ideal model is for industry to make a single PLACI submission into a common portal. That portal should be accessible to all PLACI customs and civil aviation authorities. Alternatively, regulators should extend mutual recognition to each others’ risk assessments, so that shipments are not subject to multiple PLACI analyses and potentially differentresults. TIACA recognizes this is a concept that would require some time for proper development and testing by industry and regulators, but believes it is the global approach needed for the optimal operation of PLACI programs.

Regulator analysis of PLACI, potential referrals and interoperability

Once industry submits PLACI, customs and aviation security regulators, using a combination of automated and manual processes, review it and determine whether any additional actions are required. Regulators’ follow-up communications in this regard are called referrals. Regulators may initially determine that the PLACI provided is incomplete or submitted incorrectly and, in such cases, will require the filer to provide the full set of PLACI data. Once this initial exchange of information is complete and regulators have a bona fide PLACI submission, they perform a civil aviation risk assessment and determine whether the shipmentshould be subject to additional security measures.

The following sections address the principal issues related to PLACI referrals.

Response preferences and timing

TIACA believes PLACI programs should be flexible enough to accommodate different business operating models and industry response preferences. For example, in cases where aPLACI transmission is complete and there are no referrals, regulators should either reply or not reply based on the sender’s preference.Given the diversity in business models, some senders will prefer a response while others will not.

If a return message is requested, regulators should reply witheither “approval to move” or “assessment complete.” This response message should be sent within one minute of receiving the complete PLACI data set.In the case of incomplete data, where a referral for additional data must be sent, this should be done also within one minute.

In cases where the initial review of PLACI indicates a need for additional analysis, the data arereferred for further review by regulators. When this happens, TIACA believes that such action must be completed, and a message sent to the filer, within a timeframe that is mutually agreed by all PLACI regulators and industry stakeholders.

Screening

In assessing PLACI, aviation security regulators utilize advanced algorithms, the latest intelligence, and other techniques to determine whether a shipment needs high-risk screening. If so, a regulated party – as recognized by the destination country – must perform the screening. This means that regulators must ensure there are PLACI communication protocols with parties that are authorized to perform high-risk screening – which may not be the case for the party that files the PLACI data.

Interoperability

There are many issues related to the interoperability of PLACI systems with the various national security cargo programs that have not yet been addressed in the PLACI pilots. TIACA believes it is essential to focus on the following interoperability issues:

1. Risk analysis and determinations:Countries that implement PLACI regimes should agree to either share a common risk analysis formula or should accept each others’ risk analysis decisions. This is an essential operational issue for industry, because many shipments transit other countries during their international routing.Industry needs to be able to rely on a “one time analysis” for a shipment – otherwise, industry will have to file multiple PLACI submissions to different governments for the same shipments, creating operationaldisruption and delay, as shipments might have to routinely be off-loaded and deconsolidated at every transit point. Furthermore, the same shipment could be subject to different PLACI results from different countries. Industry recognizes that there may be instances, based on specific intelligence, where it may be necessary to off-load a particular shipment – but this cannot be performed on a routine basis without completely changing (and damaging) the industry’s business model.
2. Mutual recognition: Currently, many countries have mutual recognition agreements with trading partners by which they recognize the other country’s national cargo security program as being commensurate with their own. However, differences within these commensurate programs - including which parties are authorized to screen and which procedures to use for high-risk screening – have significant implications for PLACI regimes. TIACA believes that all mutual recognition agreements should include high-risk screening protocols.Further, where such mutual recognition existsand where PLACI identifies a shipment that needs high-risk screening, regulatedparties should screen based on the high-risk screening protocols of the country where the shipment is located. The destination country (i.e., the one that originated the PLACI requirement for high-risk screening) should accept that screening as sufficient.
3. Global standards:Over the longer term, regulators and industry stakeholders should develop, through ICAO and/or multilateral agreements, common protocols for PLACI-initiated high-risk screening.

Shipments continue moving

The PLACI pilots have established that air cargo shipments can be allowed to move, at the carrier’s option, even if the PLACI data analysis and risk assessment is not complete. That is, shipments continue to move unless a “do not load” (DNL) is issued, up to the earliest point where applicable security measures can be taken – but in no case later than the last point of departure to the PLACI country. This is a tenet that is fundamental to the guiding principle of the PLACI approach: that enhanced security is achieved without impeding commercial flows. And its efficacy is corroborated by the more than 200 million shipments analyzed through the U.S. PLACI pilot (the Air Cargo Advance Screening, or ACAS pilot) without the need to issue a single DNL – that is, the extensive piloting of PLACI has demonstrated that the vast majority of shipments require no referrals or only minimal follow-up action to complete the PLACI data set.

Commercial disruptions could be significant if shipments are held, rather than continuing to move. For example, it is common in large geographic markets, such as the United States, Brazil and China, for air cargo shipments to transit one or two domestic ports before departing the country (such as a routing from Denver to Newark to London). In addition, transit shipments are also quite common in the industry. Shipments may originate in the Caribbean, for example, and fly first to the United States, where they may be transferred onto another plane for shipment to European markets. Industry would have to dramatically alter its business procedures to build the infrastructure necessary to identify the entire transit route for all shipments, and to file the requisite, potentially multiple, PLACI submission(s) from the point of origin. In the case of multiple flown legs, it is therefore necessary that PLACI systems accept data via dynamic filing, allowing industry to file as shipments move toward destination and routing is confirmed. It would be far more cost-effective, without compromising security, to maintain the “okay to move” approach adopted under the PLACI pilots.

In short, TIACA believes it is critical that shipments be allowed to continue moving through the air cargo supply chain, unless a DNL is issued, withreferrals carried out as soon as practicable. Otherwise, PLACI will not achieve one of its twin goals of maintaining commercial flows.

Assumption of compliant actions

TIACA believes that, under PLACI regulations, regulators must assume industry compliancewith high-risk measures. That is, when regulators issue a high-risk message, the recipientmay simply “acknowledge receipt.”The recipient is responsible for complying with the message and taking any necessary actions (as is the case with all other areas of air cargo security programs), but does not need to report back explicitly on its compliance activities. However, the recipient would retain records of its activities so that its compliance could be audited.

TIACA notes that this should be the default requirement, and that some industry members may elect to go beyond this and report back to regulators on their compliant actions.

Implementation of PLACI regulations

The implementation of PLACI regulations should be in a linear fashion. That is, the customs portion of the regulations should be implemented first. This will ensure that industry and regulators are able to transmit the necessary data and messages successfully. Once thatis affirmed, the second stage of PLACI regulation may be implemented. This latter stage deals with incorporating PLACI procedures into civil aviation security regulations, if needed.

Postal Shipments

PLACI regimes should apply to both cargo and postal shipments. As the postal stream is distinct from other air cargo business models, it is essential that PLACI pilots test this model as well. Implementation of PLACI regulations for mail must take into account the characteristics of the postal stream in order to ensure that necessary data is provided and analyzed, security is enhanced, and postal flows are unimpeded.

PLACI and supply chain business models

PLACI will gain in efficiency and reduce the burden to industry by leveraging existing supply chain business models PLACI systems should adopt an outcome oriented approach, and be flexible enough to adapt to diverse supply chain business models such as express, general cargo and post. This will ensure that all supply chain models are able to provide the necessary data, and that the data can be analyzed and security enhanced, while commercial flows are unimpeded.