1. EU ACC3 David Alexander General Manager: Compliance Services Professional Cargo Security Presentation to the SAAFF Congress October 2013 Air Cargo Security Developments

2. Operation Hemorrhage

3. Cost of Operation Hemorrhage? USD 4 200.00

4. The Aim? Economic disruption Spend billions to inspect each and every package Supply chain disruption

5. Air cargo security exposed This or That? How do we know?

6. Lessons All ports of call in Operation Hemorrhage applied ICAO Annex 17 measures Made Known or Secure cargo so it was accepted in supply chain Standard screening did not detect the devices

7. Air cargo security challenges Two weaknesses identified Transfer and Transit cargo Screening and screening methods

8. Classification of Risk Green countries no validation required, free movement of cargo White countries require independent validation, then free movement of cargo Red countries require independent validation and enhanced security measures

9. Result Revised EU air cargo security Regulations in 2010 (EU185/2010) ACC3 EU Aviation Security Program Declaration of Commitments by air carriers by February 2012 Validation by 1 st July 2014

10. In South Africa? Changes to Part 108 in South Africa Enhanced security measures for High Risk Cargo Changes for Transfer and Transit cargo

11. South Africa? World class air cargo security regime Direct flights to recognized by the TSA More robust and comprehensive than some EU systems

12. Why must South Africa implement validations? Not on the Green list…….

13. What is validation? Validation that the RA3 has a security program that is comprehensive and robust Security measures meet EU standards Focus on people, procedures and screening Allows RA3 to tender secure cargo for 5 years

14. Validation ensures that you have THISNOT THIS!

15. Validation is not…… A validation of South African Part 108 procedures Does not replace Part 108

16. ACC3 Air Cargo or Mail Carrier operating into the Union from a Third Country Airport

17. ACC3 Based on air carriers, not foreign states Exceptions for air carrier flying from a green country Cargo must be screened or come from a secure supply chain

18. Specifics Screening to be in-line with EU Regulations HRCM (high risk cargo and mail) to be double screened Regulated Agents (RA3) and Known Consignors (KC3) to be independently validated

19. What about Regulated Agents and Known Consignors? RA and KC must also be validated (direct or indirect) ACC3 must cover them in their IV activity…or RA and KC can be validated in their own right Carriers are responsible for ensuring their cargo meets the new EU Regulations prior to loading Secure Supply Chain – trust but verify (IV)

20. HRCM? Cargo from a Red or restricted country Significant damage Suspected tampering Leaks and smells and weight Documentation

21. The future? From 1st July 2014, EU bans air cargo from 3rd countries unless stations and supply chain are Independently Validated (ACC3) Validation can only by done by Independent Validators (IVs) accredited by an EU Member State Re-validated every 5 years

22. Path to validation Become a Part 108 Regulated Agent or Know Consignor If you are a Part 108 RA you have 80% of measures already in place Proper pre validation

23. Options? Forget validation, tender unknown cargo Independent validation

24. Consequences and dangers of non validation Liability in the case of an incident (company and Directors personally) Delays at air carrier Air carriers screening cost (open season?) Moral responsibility

25. A South African first! Kintetsu World Express first southern African logistics company to receive top EU security accreditation - RA3 designation

26. FAQ Cost? Time to become validated as an RA3 or KC3. What if I do not wish to become an RA3 or KC3? Will this affect my business?

27. Contact details. David Alexander 082 308 0169 011 701 3320 (24/7) david@prisk.co.za www.professionalgroup.co.za