Upcoming TSA Change Will Lead to New Screening Requirements for Certain Air Freight
Freight forwarders are urging shippers to enroll in a government-run cargo screening program before the end of October, when their air freight will no longer benefit from an exemption for cargo deemed ”impracticable to screen.” So far, “very few” shippers are enrolled in the program, said Brandon Fried of the Airforwarders Association, sparking fear of export delays or potential compliance violations by shippers unaware of the impending change.
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Informing shippers of the change has been a challenge. The Transportation Security Administration, which is set to end the Impracticable to Screen exemption Oct. 31, has called on forwarders and trade associations to spread the news to shippers, Fried, executive director of AfA, said in an interview. The association for the past several months has informed shippers during webinars and at in-person meetings across the country.
The group has also urged its members to tell their shippers about the change, which will end an exemption that had allowed cargo deemed impossible to screen to avoid traditional screening methods when transported on international flights. TSA is ending the exemption -- which had applied to exports of airplane engines, drums with petroleum residue and other hazardous materials -- because other countries have said they will not continue to accept cargo from the U.S. unless all of it is subject to stricter screening procedures.
Affected shippers -- which Fried said could include Boeing, Apple and 3M -- will instead likely need to enroll in the TSA’s Certified Cargo Screening Program to continue exporting those goods on an air carrier. The program allows shippers to register their own screening facilities with TSA, which will conduct periodic inspections of those warehouses and require them to adhere to specific TSA security requirements, among other conditions, according to guidance the agency released earlier this year.
Fried said "just now the shippers are waking up” to the change. “My phone is ringing more with shippers on the other end asking me questions.” AfA is telling members to continue spreading the word before the Oct. 31 deadline. "There will be no refuge," he said. "They're going to have to comply.”
While he said the change could affect about 3% of all cargo shipping, it will have an outsized impact on the shippers it does affect. “If you're a chemical manufacturer, a pharmaceutical manufacturer or maybe an airplane engine manufacturer, this is a big deal,” he said. “And if you're dealing with the aviation side, that represents a good portion of our GDP.”
Other trade groups and companies also have tried to inform shippers. The National Customs Brokers & Forwarders Association of America has hosted at least two webinars in recent weeks with TSA officials, telling its members that the air freight forwarding industry “will experience significant changes.” Freight forwarder JAS in a March client alert called on the TSA to conduct “much” more “preparatory work and communication with shippers” ahead of the deadline, saying the administration had prevented TSA-certified entities, including JAS, from sharing information about the change because it was deemed “sensitive security information.”
Communication hasn't been the only challenge. Fried said there has been “some resistance” by shippers to joining the Certified Cargo Screening Program even though most companies who apply for the program “have robust security measures already in place, probably exceeding those that the government requires as a baseline.”
Some companies also are concerned about more red tape. “A lot of shippers up to this point didn't want to fall under another umbrella of regulation,” Fried said. Part of enrolling in the program means “TSA is your new best friend,” he said. “They're in your facilities,” and “you have got to be compliant” or TSA could levy monetary penalties.
But some shippers may not have a choice if they want to continue exporting certain goods by air. Enrolling in the cargo screening program “will be the only realistic available option to continue to move certain cargo come November 2023,” JAS said, warning that some exporters may have to “move via ocean freight” if they’re not prepared.
“Time is fleeting,” Fried said. “We've got to step up and get this done quickly.”