Aviation Security: Preliminary Observations on TSA's Progress and Challenges in Meeting the Statutory Mandate for Screening Air Cargo on Passenger Aircraft
Published: 2009-03-18T00:00:00

Fast Facts:

Highlights:
section_title: Why GAO Did This Study
paragraphs: The Implementing Recommendations of the 9/11 Commission Act of 2007 mandates the Department of Homeland Security (DHS) to establish a system to physically screen 50 percent of cargo transported on passenger aircraft by February 2009 and 100 percent of such cargo by August 2010. This testimony provides preliminary observations on the Transportation Security Administration's (TSA) progress in meeting the mandate to screen cargo on passenger aircraft and the challenges TSA and industry stakeholders may face in screening such cargo. GAO's testimony is based on products issued from October 2005 through August 2008, and its ongoing review of air cargo security. GAO reviewed TSA's air cargo security programs, interviewed program officials and industry representatives, and visited two large U.S. airports.
section_title: What GAO Found
paragraphs: TSA has made progress in meeting the air cargo screening mandate as it applies to domestic cargo. TSA has taken steps that will allow screening responsibilities to be shared across the air cargo supply chain--including TSA, air carriers, freight forwarders (which consolidate cargo from shippers and take it to air carriers for transport), and shippers--although air carriers have the ultimate responsibility for ensuring that they transport cargo screened at the requisite levels. TSA has taken several key steps to meet the mandate, including establishing a new requirement for 100 percent screening of cargo transported on narrow-body aircraft; revising or eliminating most screening exemptions for domestic cargo; creating the Certified Cargo Screening Program (CCSP) to allow screening to take place at various points in the air cargo supply chain; and establishing a screening technology pilot. Although TSA estimates that it achieved the mandated 50 percent screening level by February 2009 as it applies to domestic cargo, the agency cannot yet verify that the requisite levels of cargo are being screened. It is working to establish a system to do so by April 2009. Also, TSA's screening approach could result in variable percentages of screened cargo on passenger flights. TSA and industry stakeholders may face a number of challenges in meeting the screening mandate, including attracting participants to the CCSP, and technology, oversight, and inbound cargo challenges. TSA's approach relies on the voluntary participation of shippers and freight forwarders, but it is unclear whether the facilities needed to meet TSA's screening estimates will join the CCSP. In addition, TSA has taken some steps to develop and test technologies for screening air cargo, but the agency has not yet completed assessments of these technologies and cannot be assured that they are effective in the cargo environment. TSA's limited inspection resources may also hamper its ability to oversee the thousands of additional entities that it expects to participate in the CCSP. Finally, TSA does not expect to meet the mandated 100 percent screening deadline as it applies to inbound air cargo, in part due to existing inbound screening exemptions and challenges it faces in harmonizing security standards with other nations.

section_title: Letter
paragraphs: I appreciate the opportunity to participate in today’s hearing to discuss the  security of the air cargo transportation system. In 2007, about 7.6 billion  pounds of cargo was transported on U.S. passenger flights—56 percent of  which was transported domestically and 44 percent of which was  transported on flights to the United States (inbound cargo). In response to  the terrorist attacks of September 11, 2001, the Aviation and  Transportation Security Act (ATSA) was enacted in November 2001.  ATSA created the Transportation Security Administration (TSA) and  required it to provide for the screening of all passengers and property,  including cargo, U.S. mail, and carry-on and checked baggage that is  transported on passenger aircraft. Recognizing the need to strengthen the  security of air cargo, Congress passed, and the President signed into law,  the Implementing Recommendations of the 9/11 Commission Act of 2007  (9/11 Commission Act), which mandates the establishment of a system to  physically screen 50 percent of cargo on passenger aircraft—including the  domestic and inbound flights of foreign and U.S. passenger operations—by  February 2009, and 100 percent of such cargo by August 2010.
The 9/11 Commission Act establishes minimum standards for screening air  cargo, and requires that such standards provide a level of security  commensurate with the level of security for the screening of checked  baggage. Although the mandate is applicable to both domestic and  inbound air cargo, TSA stated that it will address the mandate for  domestic and inbound cargo through two separate systems. For example,  while TSA interprets these standards to mean that all cargo, with certain  exceptions, must be screened by TSA-approved methods, the exceptions  vary greatly between domestic and inbound cargo. This testimony will  therefore address efforts to meet the screening mandate as it applies to  domestic and inbound cargo separately.
My testimony today includes preliminary observations on (1) TSA’s  progress in meeting the 9/11 Commission Act mandate to screen air cargo  transported on passenger aircraft as it applies to domestic cargo, and (2)  the challenges TSA and industry stakeholders may face in screening such  cargo, including challenges TSA may face in meeting the mandate as it  applies to inbound cargo. My comments are based on GAO reports and  testimonies issued from October 2005 through August 2008 addressing the  security of the air cargo transportation system. More detailed information  on our scope and methodology appears in our published reports.
This statement also includes information from our ongoing review of air  cargo security requested by the Chairman of the House Committee on  Homeland Security, Bennie G. Thompson, and Congressman Edward J.  Markey. The results of this review will be issued later this year. To  determine the progress TSA has made in meeting the 9/11 Commission Act  mandate, and to identify any ongoing challenges, we reviewed TSA’s air  cargo security programs, and interviewed TSA air cargo program officials  and representatives from various air cargo industry associations. We also  conducted site visits to two large U.S. commercial airports that process  domestic and inbound air cargo to observe screening operations and  technologies, and interviewed local TSA officials and representatives from  air carriers, freight forwarders, and shippers to obtain their views on TSA’s  system to implement the screening mandate. Our site visits and interviews  with industry stakeholders were based on a judgmental sample and are not  generalizable to the entire air cargo industry.
We conducted our work in accordance with generally accepted  government auditing standards. Those standards require that we plan and  perform the audit to obtain sufficient, appropriate evidence to provide a  reasonable basis for our findings and conclusions based on our audit  objectives. We believe that the evidence obtained provides a reasonable  basis for our findings and conclusions based on our audit objectives.
subsections: section_title: Background
paragraphs: Air cargo ranges in size from 1 pound to several tons, and in type from  perishables to machinery, and can include items such as electronic  equipment, automobile parts, clothing, medical supplies, fresh produce,  and human remains. Cargo can be shipped in various forms, including  large containers known as unit loading devices (ULD) that allow many  packages to be consolidated into one container that can be loaded onto an  aircraft, wooden crates, consolidated pallets, or individually  wrapped/boxed pieces, known as loose or bulk cargo. Participants in the  air cargo shipping process include shippers, such as individuals and  manufacturers; freight forwarders; air cargo handling agents, who process  and load cargo onto aircraft on behalf of air carriers; and air carriers that  load and transport cargo. A shipper may take or send its packages to a  freight forwarder who in turn consolidates cargo from many shippers onto  a master air waybill—a manifest of the consolidated shipment—and  delivers it to air carriers for transport. A shipper may also send freight by  directly packaging and delivering it to an air carrier’s ticket counter or  sorting center, where the air carrier or a cargo handling agent will sort and  load cargo onto the aircraft.
According to TSA, the mission of its air cargo security program is to  secure the air cargo transportation system while not unduly impeding the  flow of commerce. TSA’s responsibilities for securing air cargo include,  among other things, establishing security requirements governing  domestic and foreign passenger air carriers that transport cargo and  domestic freight forwarders. TSA is also responsible for overseeing the  implementation of air cargo security requirements by air carriers and  freight forwarders through compliance inspections, and, in coordination  with DHS’s Directorate for Science and Technology (S&T Directorate), for  conducting research and development of air cargo security technologies.  Of the nearly $4.8 billion appropriated to TSA for aviation security in fiscal  year 2009, approximately $123 million is directed for air cargo security  activities. TSA was further directed to use $18 million of this amount to  expand technology pilots and for auditing participants in the CCSP.
Air carriers and freight forwarders are responsible for implementing TSA  security requirements. To do this, they utilize TSA-approved security  programs that describe the security policies, procedures, and systems they  will implement and maintain to comply with TSA security requirements.  These requirements include measures related to the acceptance, handling,  and screening of cargo; training of employees in security and cargo  screening procedures; testing for employee proficiency in cargo screening;  and access to cargo areas and aircraft. Air carriers and freight forwarders  must also abide by security requirements imposed by TSA through security  directives and amendments to security programs.
The 9/11 Commission Act defines screening for purposes of the air cargo  screening mandate as a physical examination or nonintrusive methods of  assessing whether cargo poses a threat to transportation security. The act  specifies that screening methods include X-ray systems, explosives  detection systems (EDS), explosives trace detection (ETD), explosives  detection canine teams certified by TSA, physical search together with  manifest verification, and any additional methods approved by the TSA  Administrator. For example, TSA also recognizes the use of  decompression chambers as an approved screening method. However,  solely performing a review of information about the contents of cargo or  verifying the identity of the cargo’s shipper does not constitute screening  for purposes of satisfying the mandate.
section_title: TSA Has Made Progress in Meeting the Screening Mandate as It Applies to Domestic Cargo; However, TSA Cannot Yet Verify Whether the Mandated Level Is Being Met
subsections: section_title: TSA Has Made Progress in Meeting the 50 Percent and 100 Percent Mandated Screening Levels as They Apply to Domestic Cargo
paragraphs: TSA has taken several key steps to meet the 9/11 Commission Act air  cargo screening mandate as it applies to domestic cargo. TSA’s approach  involves multiple air cargo industry stakeholders sharing screening  responsibilities across the air cargo supply chain. TSA, air carriers, freight  forwarders, shippers, and other entities each play an important role in the  screening of cargo, although TSA has determined that the ultimate  responsibility for ensuring that screening takes place at mandated levels  lies with the air carriers. According to TSA officials, this decentralized  approach is expected to minimize carrier delays, cargo backlogs, and  potential increases in cargo transit time, which would likely result if  screening were conducted primarily by air carriers at the airport.  Moreover, because much cargo is currently delivered to air carriers in a  consolidated form, the requirement to screen individual pieces of cargo  will necessitate screening earlier in the air cargo supply chain—before  cargo is consolidated. The specific steps that TSA has taken to address the  air cargo screening mandate are discussed below.
TSA revised air carrier security programs. Effective October 1, 2008,  several months prior to the first mandated deadline, TSA established a  new requirement for 100 percent screening of nonexempt cargo  transported on narrow-body passenger aircraft. Narrow-body flights  transport about 26 percent of all cargo on domestic passenger flights.  According to TSA officials, air carriers reported that they are currently  meeting this requirement. Effective February 1, 2009, TSA also required air  carriers to ensure the screening of 50 percent of all nonexempt air cargo  transported on all passenger aircraft. Although screening may be  conducted by various entities, each air carrier must ensure that the  screening requirements are fulfilled. Furthermore, effective February 2009,  TSA revised or eliminated most of its screening exemptions for domestic  cargo. As a result, most domestic cargo is now subject to TSA screening  requirements.
TSA created the Certified Cargo Screening Program (CCSP). TSA  also created a program, known as the CCSP, to allow screening to take  place earlier in the shipping process and at various points in the air cargo  supply chain. In this program, air cargo industry stakeholders—such as  freight forwarders and shippers—voluntarily apply to become Certified  Cargo Screening Facilities (CCSF). This program allows cargo to be  screened before it is consolidated and transported to the airport, which  helps address concerns about the time-intensive process of breaking down  consolidated cargo at airports for screening purposes. TSA plans to  inspect the CCSFs in order to ensure they are screening cargo as required.  TSA initiated the CCSP at 18 major airports that, according to TSA  officials, account for 65 percent of domestic cargo on passenger aircraft.  TSA expects to expand the CCSP nationwide at a date yet to be  determined. CCSFs in the program were required to begin screening cargo  as of February 1, 2009.
While participation in the CCSP is voluntary, once an entity is certified by  TSA to participate it must adhere to TSA screening and security  requirements and be subject to annual inspections by TSIs. To become  certified and to maintain certification, TSA requires each CCSF to  demonstrate compliance with increased security standards to include  facility, personnel, procedural, perimeter, and information technology  security. As part of the program, and using TSA-approved screening  methods, freight forwarders must screen 50 percent of cargo being  delivered to wide-body passenger aircraft and 100 percent of cargo being  delivered to narrow-body passenger aircraft, while shippers must screen  100 percent of all cargo being delivered to any passenger aircraft. Each  CCSF must deliver the screened cargo to air carriers while maintaining a  secure chain of custody to prevent tampering with the cargo after it is  screened.
TSA conducted outreach efforts to air cargo industry stakeholders.  In January 2008, TSA initiated its outreach phase of the CCSP in three  cities and subsequently expanded its outreach to freight forwarders and  other air cargo industry stakeholders in the 18 major airports. TSA  established a team of nine TSA field staff to conduct outreach, educate  potential CCSP applicants on the program requirements, and validate  CCSFs. According to TSA officials, in February 2009, the agency also  began using its cargo TSIs in the field to conduct outreach. In our  preliminary discussions with several freight forwarders and shippers,  industry stakeholders reported that TSA staff have been responsive and  helpful in answering questions about the program and providing  information on CCSP requirements.
TSA established the Air Cargo Screening Technology Pilot and is  conducting additional technology pilots. To operationally test ETD  and X-ray technology among CCSFs, TSA created the Air Cargo Screening  Technology Pilot in January 2008, and selected some of the largest freight  forwarders to use the technologies and report on their experiences. TSA’s  objectives for the pilot are to determine CCSFs’ ability to screen high  volumes of cargo, test chain of custody procedures, and measure the  effectiveness of screening technology on various commodity classes. TSA  will provide each CCSF participating in the pilot with up to $375,000 for  purchasing technology. As of February 26, 2009, 12 freight forwarders in  48 locations are participating in the pilot. The screening they perform as  part of the operational testing also counts toward meeting the air cargo  screening mandate.
TSA expanded its explosives detection canine program. To assist air  carriers in screening consolidated pallets and unit loading devices, TSA is  taking steps to expand the use of TSA-certified explosives detection  canine teams. TSA has 37 canine teams dedicated to air cargo screening— operating in 20 major airports—and is in the process of adding 48  additional dedicated canine teams. TSA is working with the air carriers to  identify their peak cargo delivery times, during which canines would be  most helpful for screening.
In addition, we reported in October 2005 and April 2007 that TSA, working  with DHS’s S&T Directorate, was developing and pilot testing a number of  technologies to screen and secure air cargo with minimal effect on the  flow of commerce. These pilot programs seek to enhance the security of  cargo by improving the effectiveness of screening for explosives through  increased detection rates and reduced false alarm rates. A description of  several of these pilot programs and their status is included in table 1.
section_title: TSA Cannot Yet Verify that Screening Is Being Conducted Domestically at the Mandated Level, and TSA’s Current Approach Could Result in Variable Percentages of Screened Cargo
paragraphs: TSA estimates that it achieved the mandate for screening 50 percent of  domestic cargo transported on passenger aircraft by February 2009, based  on feedback from air cargo industry stakeholders responsible for  conducting screening. However, TSA cannot yet verify that screening is  being conducted at the mandated level. The agency is working to establish  a system to collect data from screening entities to verify that requisite  screening levels for domestic cargo are being met. Effective February  2009, TSA adjusted air carrier reporting requirements and added CCSF  reporting requirements to include monthly screening reports on the  number of shipments screened at 50 and 100 percent. According to TSA  officials, air carriers will provide to TSA the first set of screening data by  mid-March 2009. By April 2009, TSA officials expect to have processed and  analyzed available screening data, which would allow the agency to  determine whether the screening mandate has been met. Thus, while TSA  asserts that it has met the mandated February 2009, 50 percent screening  deadline, until the agency analyzes required screening data, TSA cannot  verify that the mandated screening levels are being achieved.
In addition, although TSA believes its current screening approach enables  it to meet the statutory screening mandate as it applies to domestic cargo,  this approach could result in variable percentages of screened cargo on  passenger flights. This variability is most likely for domestic air carriers  that have a mixed-size fleet of aircraft because a portion of their 50  percent screening requirement may be accomplished through the more  stringent screening requirements for narrow-body aircraft, thus allowing  them more flexibility in the amount of cargo to screen on wide-body  aircraft. According to TSA, although this variability is possible, it is not a  significant concern because of the small amount of cargo transported on  narrow-body flights by air carriers with mixed-size fleets. However, the  approach could result in variable percentages of screened cargo on  passenger flights regardless of the composition of the fleet. As explained  earlier, TSA is in the process of developing a data reporting system that  may help to assess whether some passenger flights are transporting  variable percentages of screened cargo. This issue regarding TSA’s current  air cargo security approach will be further explored during our ongoing  review.
Lastly, TSA officials reported that cargo that has already been transported  on one passenger flight may be subsequently transferred to another  passenger flight without undergoing additional screening. According to  TSA officials, the agency has determined that this is an approved screening  method because an actual flight mimics one of TSA’s approved screening  methods. For example, cargo exempt from TSA screening requirements  that is transported on an inbound flight can be transferred to a domestic  aircraft without additional screening, because it is considered to have  been screened in accordance with TSA screening requirements. According  to TSA, this scenario occurs infrequently, but the agency has not been able  to provide us with data that allows us to assess how frequently this occurs.  TSA reported that it is exploring ways to enhance the security of cargo  transferred to another flight, including using canine teams to screen such  cargo. This issue regarding TSA’s current air cargo security approach will  be further explored during our ongoing review.
section_title: TSA Faces Participation, Technology, Oversight, and Inbound Cargo Challenges in Meeting the Screening Mandate
subsections: section_title: It Is Unclear Whether TSA Will Be Able to Attract the Voluntary Participants Needed to Meet the 100 Percent Screening Mandate
paragraphs: Although industry participation in the CCSP is vital to TSA’s approach to  spread screening responsibilities across the supply chain, it is unclear  whether the number and types of facilities needed to meet TSA’s screening  estimates will join the CCSP. Although TSA is relying on the voluntary  participation of freight forwarders and shippers to meet the screening  goals of the CCSP, officials did not have precise estimates of the number  of participants that would be required to join the program to achieve 100  percent screening by August 2010. As of February 26, 2009, TSA had  certified 172 freight forwarder CCSFs, 14 shipper CCSFs, and 17  independent cargo screening facilities (ICSF).
TSA estimates that freight forwarders and shippers will complete the  majority of air cargo screening at the August 2010 deadline, with shippers  experiencing the largest anticipated increase when this mandate goes into  effect. According to estimates reported by TSA in November 2008, as  shown in figure 1, the screening conducted by freight forwarders was  expected to increase from 14 percent to 25 percent of air cargo  transported on passenger aircraft from February 2009 to August 2010,  while the screening conducted by shippers was expected to increase from  2 percent to 35 percent. For this reason, increasing shipper participation in  the CCSP is necessary to meet the 100 percent screening mandate.
As highlighted in figure 1, TSA estimated that, as of February 2009,  screening of cargo delivered for transport on narrow-body aircraft would  account for half of the mandated 50 percent screening level and 25 percent  of all cargo transported on passenger aircraft. TSA expected screening  conducted on cargo delivered for transport on narrow-body passenger  aircraft to remain stable at 25 percent when the mandate to screen 100  percent of cargo transported on passenger aircraft goes into effect. TSA  anticipated that its own screening responsibilities would grow by the time  the 100 percent mandate goes into effect. Specifically, TSA anticipated that  its canine teams and transportation security officers would screen 6  percent of cargo in August 2010, up from 4 percent in February 2009. It is  important to note that these estimates—which TSA officials said are  subject to change—are dependent on the voluntary participation of freight  forwarders, shippers, and other screening entities in the CCSP. If these  entities do not volunteer to participate in the CCSP at the levels TSA  anticipates, air carriers or TSA may be required to screen more cargo than  was projected.
Participation in the CCSP may appeal to a number of freight forwarders  and shippers, but industry participants we interviewed expressed concern  about potential program costs. In preliminary discussions with freight  forwarders, shippers, and industry associations, stakeholders told us that  they would prefer to join the CCSP and screen their own cargo in order to  limit the number of entities that handle and open their cargo. This is  particularly true for certain types of delicate cargo, including fresh  produce. Screening cargo in the CCSP also allows freight forwarders and  shippers to continue to consolidate their shipments before delivering them  to air carriers, which results in reduced shipping rates and less potential  loss and damage. However, TSA and industry officials with whom we  spoke agreed that the majority of small freight forwarders—which make  up approximately 80 percent of the freight forwarder industry—would  likely find prohibitive the costs of joining the CCSP, including acquiring  expensive technology, hiring additional personnel, conducting additional  training, and making facility improvements. TSA has not yet finalized cost  estimates for industry participation in air cargo screening, but is in the  process of developing these estimates and is planning to report them later  this year. As of February 26, 2009, 12 freight forwarders in 48 locations  have joined TSA’s Air Cargo Screening Technology pilot and are thus  eligible to receive reimbursement for the technology they have purchased.  However pilot participants, to date, have been limited primarily to large  freight forwarders. TSA indicated that it targeted high-volume facilities for  the pilot in order to have the greatest effect in helping industry achieve  screening requirements.
In response to stakeholder concerns about potential program costs, TSA is  allowing independent cargo screening facilities to join the CCSP and  screen cargo on behalf of freight forwarders or shippers. However, it is  unclear how many of these facilities will join. Moreover, according to  industry stakeholders, this arrangement could result in freight forwarders  being required to deliver loose freight to screening facilities for screening.  This could reduce the benefit to freight forwarders of consolidating freight  before delivering it to air carriers, a central part of the freight forwarder  business model.
section_title: TSA Has Taken Some Steps to Develop and Test Technologies for Screening Air Cargo, but Has Not Yet Completed Assessments to Ensure Their Effectiveness
paragraphs: TSA has taken some steps to develop and test technologies for screening  and securing air cargo, but has not yet completed assessments of the  technologies it plans to allow air carriers and program participants to use  in meeting the August 2010 screening mandate. To date, TSA has  approved specific models of three screening technologies for use by air  carriers and CCSFs until August 3, 2010—ETD, EDS, and X-ray. TSA  chose these technologies based on its subject matter expertise and the  performance of these technologies in the checkpoint and checked baggage  environments. According to TSA officials, the agency has conducted  preliminary assessments, but has not completed laboratory or operational  testing of these technologies in the air cargo environment.
After the technology pilot programs and other testing are complete, TSA  will determine which technologies will be qualified for screening cargo  and whether these technologies will be approved for use after August 3,  2010. However, TSA is proceeding with operational testing and evaluations  to determine which of these technologies is effective at the same time that  screening entities are using these technologies to meet air cargo screening  requirements. For example, according to TSA, ETD technology, which  most air carriers and CCSFs plan to use, has not yet begun the  qualification process. However, it is currently being used to screen air  cargo as part of the Air Cargo Screening Technology Pilot and by air  carriers and other CCSFs. Although TSA’s acquisition guidance  recommends testing the operational effectiveness and suitability of  technologies prior to deploying them, and TSA agrees that simultaneous  testing and deployment of technology is not ideal, TSA officials reported  that this was necessary to meet the screening deadlines mandated by the  9/11 Commission Act. While we recognize TSA’s time constraints, the  agency cannot be assured that the technologies it is currently using to  screen cargo are effective in the cargo environment, because they are still  being tested and evaluated. We will continue to assess TSA’s technology  issues as part of our ongoing review of TSA’s efforts to meet the mandate  to screen 100 percent of cargo transported on passenger aircraft.
Although TSA is in the process of assessing screening technologies,  according to TSA officials, there is no single technology capable of  efficiently and effectively screening all types of air cargo for the full range  of potential terrorist threats. Moreover, according to industry  stakeholders, technology to screen cargo that has already been  consolidated and loaded onto a pallet or ULD may be critical to meet the  100 percent screening mandate. Although TSA has not approved any  technologies that are capable of screening consolidated pallets or ULDs  containing various commodities, according to TSA, it is currently  beginning to assess such technology. TSA officials reported that they do  not expect to qualify such technology prior to the August 2010 deadline.
Air cargo industry stakeholders we interviewed also expressed some  concerns regarding the cost of purchasing and maintaining screening  equipment for CCSP participants. Cost is a particular concern for the  CCSP participants that do not participate in the Air Cargo Screening  Technology Pilot and will receive no funding for technology or other  related costs; this includes the majority of CCSFs. Because the technology  qualification process could result in modifications to TSA’s approved  technologies, industry stakeholders expressed concerns about purchasing  technology that is not guaranteed to be acceptable for use after August 3,  2010. We will continue to assess this issue as part of our ongoing review of  TSA’s efforts to meet the mandate to screen 100 percent of cargo  transported on passenger aircraft.
In addition to the importance of screening technology, TSA officials noted  that an area of concern in the transportation of air cargo is the chain of  custody between the various entities that handle and screen cargo  shipments prior to its loading onto an aircraft. Officials stated that the  agency has taken steps to analyze the chain of custody under the CCSP,  and has issued cargo procedures to all entities involved in the CCSP to  ensure that the chain of custody of the cargo is secure. This includes  guidance on when and how to secure cargo with tamper-evident  technology. TSA officials noted that they plan to test and evaluate such  technology and issue recommendations to the industry, but have not set  any time frames for doing so. Until TSA completes this testing, however,  the agency lacks assurances that existing tamper-evident technology is of  sufficient quality to deter tampering and that the air cargo supply chain is  effectively secured. We will continue to assess this issue as part of our  ongoing review of TSA’s efforts to meet the mandate to screen 100 percent  of cargo transported on passenger aircraft.
section_title: Limited Staffing Resources May Hamper TSA’s Ability to Effectively Oversee the Thousands of Additional Entities Involved in Meeting the Air Cargo Screening Mandate
paragraphs: Although the actual number of cargo TSIs increased each fiscal year from  2005 to 2009, TSA still faces challenges overseeing compliance with the  CCSP due to the size of its current TSI workforce. To ensure that existing  air cargo security requirements are being implemented as required, TSIs  perform compliance inspections of regulated entities, such as air carriers  and freight forwarders. Under the CCSP, TSIs will also perform  compliance inspections of new regulated entities, such as shippers and  manufacturers, who voluntarily become CCSFs. These compliance  inspections range from an annual review of the implementation of all air  cargo security requirements to a more frequent review of at least one  security requirement. According to TSA, the number of cargo TSIs grew  from 160 in fiscal year 2005 to about 500 in fiscal year 2009. However,  cargo TSI numbers remained below levels authorized by TSA in each fiscal  year from 2005 through 2009, which, in part, led to the agency not meeting  cargo inspection goals in fiscal year 2007. As highlighted in our February  2009 report, TSA officials stated that the agency is still actively recruiting  to fill vacant positions but could not provide documentation explaining  why vacant positions remained unfilled. Additionally, TSA officials have  stated that there may not be enough TSIs to conduct compliance  inspections of all the potential entities under the CCSP, which TSA  officials told us could number in the thousands, once the program is fully  implemented by August 2010. TSA officials also indicated plans to request  additional cargo TSIs in the future, although the exact number has yet to  be formulated. According to TSA officials, TSA does not have a human  capital or other workforce plan for the TSI program, but the agency has  plans to conduct a staffing study in fiscal year 2009 to identify the optimal  workforce size to address its current and future program needs. Until TSA  completes its staffing study, TSA may not be able to determine whether it  has the necessary staffing resources to ensure that entities involved in the  CCSP are meeting TSA requirements to screen and secure air cargo. We  will continue to assess this issue as part of our ongoing review of TSA’s  efforts to meet the mandate to screen 100 percent of cargo transported on  passenger aircraft.
section_title: TSA Has Taken Some Steps to Meet the Screening Mandate as It Applies to Inbound Cargo but Does Not Expect to Achieve 100 Percent Screening of Inbound Cargo by the August 2010 Deadline
paragraphs: To meet the 9/11 Commission Act screening mandate as it applies to  inbound cargo, TSA revised its requirements for foreign and U.S.-based air  carrier security programs and began harmonization of security standards  with other nations. The security program revisions generally require  carriers to screen 50 percent of nonexempt inbound cargo. TSA officials  estimate that this requirement has been met, though the agency is not  collecting screening data from air carriers to verify that the mandated  screening levels are being achieved. TSA has taken several steps toward  harmonization with other nations. For example, TSA is working with  foreign governments to improve the level of screening of air cargo,  including working bilaterally with the European Commission (EC) and  Canada, and quadrilaterally with the EC, Canada, and Australia. As part of  these efforts, TSA plans to recommend to the United Nations’  International Civil Aviation Organization (ICAO) that the next revision of  Annex 17 to the Convention of International Civil Aviation (due for release  in 2009) include an approach that would allow screening to take place at  various points in the air cargo supply chain. TSA also plans to work with  the International Air Transport Association (IATA), which is promoting an  approach to screening cargo to its member airlines. Finally, TSA  continues to work with U.S. Customs and Border Protection (CBP) to  leverage an existing CBP system to identify and target high-risk air cargo.
However, TSA does not expect to achieve 100 percent screening of  inbound air cargo by the August 2010 screening deadline. This is due, in  part, to TSA’s inbound screening exemptions, and to challenges TSA faces  in harmonizing its air cargo security standards with those of other nations.  TSA requirements continue to allow screening exemptions for certain  types of inbound air cargo transported on passenger aircraft. TSA could  not provide an estimate of what percentage of inbound cargo is exempt  from screening. In April 2007, we reported that TSA’s screening  exemptions on inbound cargo could pose a risk to the air cargo supply  chain and recommended that TSA assess whether these exemptions pose  an unacceptable vulnerability and, if necessary, address these  vulnerabilities. TSA agreed with our recommendation, but has not yet  reviewed, revised, or eliminated any screening exemptions for cargo  transported on inbound passenger flights, and could not provide a time  frame for doing so. Furthermore, similar to changes for domestic cargo  requirements discussed earlier, TSA’s revisions to inbound requirements  could result in variable percentages of screened cargo on passenger flights  to the United States. We will continue to assess this issue as part of our  ongoing review of TSA’s efforts to meet the mandate to screen 100 percent  of cargo transported on passenger aircraft.
Achieving harmonization with foreign governments may be challenging,  because these efforts are voluntary and some foreign countries do not  share the United States’ view regarding air cargo security threats and risks.  Although TSA acknowledges it has broad authority to set standards for  aviation security, including the authority to require that a given percentage  of inbound cargo be screened before it departs for the United States, TSA  officials caution that if TSA were to impose a strict cargo screening  standard on all inbound cargo, many nations likely would be unable to  meet such standards in the near term. This raises the prospect of  substantially reducing the flow of cargo on passenger aircraft or possibly  eliminating it altogether. According to TSA, the effect of imposing such  screening standards in the near future would be, at minimum, increased  costs for international passenger travel and for imported goods, and  possible reduction in passenger traffic and foreign imports. According to  TSA officials, this could also undermine TSA’s ongoing cooperative efforts  to develop commensurate security systems with international partners.
TSA agreed that assessing the risk associated with the inbound air cargo  transportation system will facilitate its efforts to harmonize security  standards with other nations. Accordingly, TSA has identified the primary  threats associated with inbound air cargo, but has not yet assessed which  areas of inbound air cargo are most vulnerable to attack and which  inbound air cargo assets are deemed most critical to protect. Although  TSA agreed with our previous recommendation to assess inbound air  cargo vulnerabilities and critical assets, it has not yet established a  methodology or time frame for how and when these assessments will be  completed. We continue to believe that the completion of these  assessments is important to the security of inbound air cargo.
Finally, the amount of resources TSA devotes to inbound compliance is  disproportionate to the resources for domestic compliance. In April 2007,  we reported that TSA inspects air carriers at foreign airports to assess  whether they are complying with air cargo security requirements, but does  not inspect all air carriers transporting cargo into the United States.  Furthermore, in fiscal year 2008, inbound cargo inspections were  performed by a cadre of 9 international TSIs with limited resources,  compared to the 475 TSIs that performed domestic cargo inspections. By  mid-fiscal year 2008, international compliance inspections accounted for a  small percentage of all compliance inspections performed by TSA,  although inbound cargo made up more than 40 percent of all cargo on  passenger aircraft in 2007. Regarding inbound cargo, we reported in May  2008 that TSA lacks an inspection plan with performance goals and  measures for its international inspection efforts, and recommended that  TSA develop such a plan. TSA officials stated in February 2009 that they  are in the process of completing a plan to provide guidance for inspectors  conducting compliance inspections at foreign airports, and intend to  implement the plan during fiscal year 2009. Finally TSA officials stated that  the number of international TSIs needs to be increased.
Madam Chairwoman, this concludes my statement. I look forward to  answering any questions that you or other members of the subcommittee  may have at this time.
section_title: GAO Contact and Staff Acknowledgements
paragraphs: For questions about this statement, please contact Stephen M. Lord at  (202) 512- 4379 or lords@gao.gov. Contact points for our Offices of  Congressional Relations and Public Affairs may be found on the last page  of this statement.
Individuals making key contributions to this testimony include Steve D.  Morris, Assistant Director; Scott M. Behen; Glenn G. Davis; Elke  Kolodinski; Stanley J. Kostyla; Thomas Lombardi; Linda S. Miller; Yanina  Golburt Samuels; Daren K. Sweeney; and Rebecca Kuhlmann Taylor.
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