1. Questions for Organizational Phase Presented to APEC TPT-WG Workshop on Air Cargo Security June 24, 2008; Bangkok Phil Hollingdale Chief, International Cooperation

2. 2 Outline Canada’s Air Cargo Security Pilot Project Questions Canada asked before beginning Challenges Canada is encountering Group Discussion

3. 3 Canada’s Air Cargo Security Strategy Phase I – Review and Policy Analysis perform analysis of air cargo industry, assess international best practices, and develop and consult on policy options Conduct an air cargo security risk assessment and identify priorities Phase II – Program Design design a secure supply chain framework (shipper, freight forwarder and air carrier program elements), evaluate technology and screening standards evaluate level of interoperability between federal organizations analyze costs and funding options Phase III – Operational Pilot Testing provide cost/benefit analysis and pilot-test known-shipper program (approx. 1 000 companies), audit protocols and test screening technology Finalize plan for implementation and submit to approving authorities; Phase IV – Implementation (5 years) Fully regulate supply chain programs and an enhanced layered approach

4. 4 Questions to ask: What do you need? Who needs to be involved – who will be affected? –Industry –Government partners –Do they have a choice? –Do you need to consult? Do you have authority to regulate it?

5. 5 Questions… part 2 Only one option vs. more flexible approach? Who pays? Is it consistent with international standards? Does it need to be harmonized with certain trading partners’ systems?

6. 6 Challenges Organization – large amount of research and development of proposed program Industry may not embrace it (another government regulation) … competitive advantage Who pays? User? Government? Cost recovery? Privacy concerns (CSP – background checks)

7. 7 Project Risks & Issues Key risks and issues include: –Security incident – An incident will change the scope and timeline for changes to standards –Schedule and Timeline – Timeline is fixed due to the priority and the schedule does not have much room for slippage –International pressures – Unilateral action by other countries could have a range of impacts –Project complexity - Diverse industry with many players creates challenges in universal buy-in –Legal restrictions – Definitions under the Aeronautics Act such as “aviation facility” constrain options under the Minister’s existing authority –Resources – Potential for insufficient capital, human or technical resources –Information sharing – Limitations on sharing security and stakeholder information

8. 8 For more information visit our new website at: www.tc.gc.ca/aircargosecurity