# Presentation: 497903

## TSA Air Cargo Security Program

**March 18, 2005**

## Vision ~ Air Cargo Security 

- DHS AIR CARGO VISION: A layered air cargo security solution that denies terrorists an opportunity to exploit the system by using an optimal combination of information and technology-based solutions...
- MISSION: To provide the most effective security program possible, while maintaining effective stewardship of resources and without unduly impeding the flow of commerce
- GOAL: To secure the air cargo supply chain including cargo, conveyances and people through the implementation of a layered, threat-based, risk-managed security system
- RISK-MANAGED = 100% (physical / electronic) inspection of elevated-risk* cargo
- * to be defined by Freight Assessment Program

## Current Air Cargo Landscape

- Complex set of stakeholders operating under a myriad of different security programs....
- Stakeholders
- 285 air carrier (domestic/foreign, passenger/all-cargo) operators
- 3,800 registered IACs (indirect air carriers, also known as freight forwarders)
- 1.5M known shippers (400K currently in the database)
- US Air Carriers
- Combined Passenger and Cargo Operations
- Aircraft Operator Standard Security Program (AOSSP)
- All-Cargo Operations
- Domestic Security Integration Program (DSIP)
- Twelve Five Standard Security Program (TFSSP)
- Non-US Air Carriers (Operating Flights To, From, or Over U.S.)
- Combined Passenger and Cargo Operations
- Model Security Program (MSP)
- All-Cargo Operations
- Air Carrier International Security Procedure (ACISP)

## “The Way Ahead”

**“****The Way Ahead”**

- Aviation Security Advisory Committee (ASAC) provided extensive recommendations on air cargo security (Oct 1, 2003)
- The Air Cargo Strategic Plan, approved and signed by Secretary Ridge January 2, 2004, incorporates ASAC recommendations and lays out 5-year roadmap for air cargo security
- Key components:
- Known Shipper Program
- Indirect Air Carrier Program
- Freight Assessment Program
- Increased Regulatory Oversight
- Implementation will be via rulemaking

## NPRM Addressed....

- Civil Aviation Security: General Rules (49 CFR 1540)
- Airport Security (49 CFR 1542)
- Foreign Air Carriers (49 CFR 1546)
- Aircraft Operators (49 CFR 1544)
- Indirect Air Carriers (49 CFR 1548)

## NPRM Status

- Public comment period closed on January 10th
- Work of summarizing and analyzing the comments is complete
- Received a total of 676 comments from 134 unique commenters
- Much misunderstanding surrounding TSA intent regarding SIDA expansion and security threat assessments
- Many commenters are looking for the “how” ~ which will be addressed in revised security programs
- Internal TSA team is working at a very fast pace to consider all the comments and to draft necessary changes to the regulations
- TSA executive level coordination will be followed by DHS and OMB coordination and clearance

## Known Shipper Database

- To strengthen the Known Shipper Program, TSA deployed a centralized Known Shipper Database [Feb 04]
- Use is currently voluntary
- Currently, 89 air carriers and over 500 Indirect Air Carriers participate and have contributed approximately 400,000 known shippers to the database
- Total population of US known shippers estimated at 1.5 million
- NPRM proposes to mandate participation in centralized database

## Freight Assessment System ~ Objectives/Timing

- Freight Assessment System (FAS) is the cornerstone of the Air Cargo Strategic Plan
- Goal: Reduce risk of transporting cargo on passenger and all-cargo aircraft
- Pre-screening will identify “elevated risk” cargo that must be inspected by carriers
- Incorporates elements of Known Shipper and Indirect Air Carrier programs combined with shipment specific data to determine level of risk for each shipment
- Reduces current reliance on random inspections
- Will implement a flexible, scalable risk assessment process that will use cutting-edge technology to assist in identifying high-risk cargo for inspection
- Supports the goals of the TSA Air Cargo Security Strategic Plan:
- Enhance shipper and supply chain security
- Identify elevated risk cargo through prescreening
- Identify technology for performing targeted air cargo inspections
- Secure all cargo aircraft through appropriate facility security measures
- Planned Timeline: “Pilot” will be conducted by end of CY05, with deployment occurring during CY06 and CY07

## FAS Guiding Principles ~ and Results  

- Design, develop and implement a FAS that is inclusive of all relevant efforts within DHS
- Reuse and incorporate solutions already identified by CBP or elsewhere within DHS to avoid duplication of effort and inefficient use of resources (i.e., “No stovepipe systems”)
- Avoid requiring industry to provide same data to multiple USG agencies
- ------------------------
- TSA is partnering with CBP to leverage capabilities being developed as part of CBP Automated Commercial Environment (ACE) modernization program
-  FAS is fully aligned with the ACE schedule
- As of Feb 15th, TSA developers working side-by-side with CBP developers to jointly develop software to be hosted on CBP systems

## FAS Risk Model Data Elements

**IAC Risk**

**External Factor Risk**

**Carrier & Flight Risk**

**FAS Risk Model Data Elements**

**Shipment Risk**

| Current Threat Conditions |
| --- |
| Watch List |
| Country of Origin |
| Region of Origin |
| Country of Destination |
| System Transaction History |
| Region of Destination |
| Airport of Departure |
| Airport of Destination |
| Flight Date |
| Flight Time |

- +

- +

- +

| Dimensions (LxWxH) |
| --- |
| Weight |
| Origination |
| Destination |
| Insurance |
| Receiver Name |
| Receiver Address |
| Shipper Name |
| Shipper Address |
| Value |
| Content Verification
(through inspection) |
| Multi-mode Travel Route |
| Number of Handlers |
| Classification Codes |
| Date |
| Hazmat Data |
| Trucking Company and Driver Data |
| Piece Count |

| Contact Name |
| --- |
| Company Name |
| Address |
| Employee Names |
| 3rd Party History |
| Typical Cargo Classification |
| KS and D&B Scores |
| Inspection Results/
Vulnerabilities |
| System Transaction History |
| Shipper Profile |

- Data used in Pilot Risk Model

| Contact Name |
| --- |
| Company Name |
| Address |
| Employee Names |
| 3rd Party History |
| Typical Cargo Classification |
| IAC and D&B Scores |
| Inspection Results/ Vulnerabilities |
| System Transaction History |
| IAC Profile |

| Inspection Results/Vulnerabilities |
| --- |
| Flight Route |
| Cargo – PassengerRelationship |
| Carrier Name |
| Carrier Address |
| System Transaction History |
| Carrier Profile |
| D&B Score |
| Aircraft Type |

- +

**f ****(current) ****=  ****Random Inspection    +    IAC    +    Shipper**

**f ****(pilot)****=  **

**Known Shipper Risk**

- (Not currently based upon risk assessment)

-   (Approved: Y/N)            (Known: Y/N)

## FAS Architecture

## Freight Assessment System Pilot Timeline

## Innovative Regulatory Programs

- Focus cargo inspections, Phase II (began Nov 2004)
- 15 airports selected monthly for focus inspections
- Broad system look at air carrier and IAC compliance
- Cargo strikes (began Sep 2004)
- Concentrated week-long inspections of IACs at a specific airport
- Typically includes about 15 TDY cargo inspectors (C-ASIs) from HQ and field sites
- Very effective ~ measures regulated party compliance _and_ provides superb training for C-ASIs
- Special emphasis assessments (SEAs), Phase I
- New program on our 2005 roadmap
- SEAs target another area of potential vulnerability, acceptance of cargo from unknown shippers for transport on passenger aircraft
- Involves realistic testing

## Initial Cargo Strikes Have Targeted Highest Volume Areas

- Cargo strikes target the higher-volume commercial carrier airports
- Cargo strikes (conducted or planned for near-term execution) involve airports that handle almost half of total cargo volume, and 60% of the passenger air carrier cargo volume

## Metrics ~ Overarching Conclusions

- Overall inspections:
- Show that compliance is improving
- IACs represent the greatest compliance challenge, and also
- .... the greatest compliance opportunity
- Cargo Strikes:
- Targeted towards passenger carrier airports with the highest cargo volume
- Utilize human resources efficiently and flexibly to target greatest vulnerabilities (IACs and violations commonly found at IACs)
- Have an immediate impact on compliance
- Education and Outreach Efforts:
- Conducted with regulated parties to improve understanding of security rqm’ts
- Helps to improve compliance across-the-board

**Notes:**
Compliance with air cargo security requirements has improved over past two years
TSA has identified the types of regulated parties and security requirements that represent the greatest incidents of non-compliance
Cadre of dedicated cargo inspectors allows us to allocate our resources with a flexible and focused methodology to target areas of non-compliance
Preliminary findings show that concentrated inspection efforts focused on specific regulated parties in specific geographic area have lasting impact on compliance rates
By the end of June, monthly cargo strikes will have targeted airports representing 3/5ths of the passenger air carrier cargo volume
Education and outreach programs have been launched to:
Improve lines of communication between TSA Field Agents and regulated parties
Increase understanding of security requirements (based on rules, security directives, emergency amendments, etc.), and
Allow local TSA staff to conduct outreach with new IAC applicants prior to TSA HQ approval of their application

## TSA Has Developed Infrastructure To Record Inspections and Violations

- TSA has electronically recorded results from more than 40,000 cargo inspections since January 2003
- The overall violation rate for all inspected entities for the last two years was 11%
- TSA has strategically used technology to track and target inspections.  As evident in the chart, there was a sharp increase in the number of inspections recorded in PARIS beginning in January ’04. This tool dramatically enhances the organization’s ability to record, analyze, and share vital information with multiple stakeholders simultaneously.

## IACs Represent the Greatest Compliance Opportunity

**IACs Represent the Greatest Compliance Opportunity**

- IAC inspections have led to a greater incidence of violations than all other inspection types combined.  Violations found from IAC inspections account for approximately 72% of total violations* while only 23% of inspections** for the last two years .

***IAC inspections & violations***

- *3186 violations from the Domestic Indirect Carrier Inspections and Focus Cargo Inspections for Indirect Air Carriers out of 4409 total violations.
- **9454 Domestic Indirect Carrier Inspections and Focus Cargo Inspections for Indirect Air Carriers out of 40372 total inspections

## Progress on Key Congressional Mandates

- Tripling of inspection requirements for passenger air carriers    [DHS Appropriations Act]
- Draft AOSSP change issued to passenger carriers on February 15th
- 30-day comment period complete
- Hiring 2d 100 cargo aviation security inspectors (C-ASIs)    [DHS Appropriations Act]
- Approximately half of positions have already been filled by trained inspectors
- Have worked closely with HR on an accelerated competitive hiring process for remainder
- More than 7,500 applications received
- Certification lists have been issued for all remaining vacancies and local hiring managers are in final stages of interviews/selection
- Set an aggressive internal goal of having all 100 on board by March 31st
- Hardened container pilot    [Intelligence Reform Act]
- Detailed planning underway
- Office of Technology is lead; Air Cargo Programs Office is partnering and cost-sharing
- 2 certified vendor products (Telair and Galaxy)
- 2 potential airline partners (Continental and United)
- Pilot to commence NLT June 15th
- Air Cargo final regulations    [Intelligence Reform Act]
- Due within 240 days of enactment
- On track to meet that timeline