New rules for out-bound air cargo

air_cargo

The way that air cargo leaving Australia is being screened is changing and it will affect all members who use air freight or are part of the logistics chain.

By 1 March 2019, all exports sent overseas by airfreight will need to be checked at piece level (so pallets will be broken down) unless they have been sent from a Known Consignor (KC) and sent to the airport via a secure supply chain.

  • If your business exports cargo by air to the US there will be no change.
  • If your business exports cargo by air to destinations other than the US, there will probably be an increased level of screening required. You should contact your freight forwarder, or Regulated Air Cargo Agent (RACA), to discuss what the changes will mean for your cargo.
  • Businesses approved as KCs will be able to use their KC security program for air cargo they export to all international destinations, not just the US.
  • 100% piece-level domestic air cargo screening proposed to be phased in, with the highest priority being our major airports.
  • Exporters of products requiring cold chain logistics should contact their service providers to discuss their options for x-ray facilities.

Currently, most of Australia’s out-bound international air cargo is examined after it has been consolidated onto crates, pallets or unit load devices. However, new Australian rules require all airlines transporting air cargo to examine 100% of air cargo at ‘piece-level’. Piece-level examination means that each individual box, carton or other item in a shipment must be examined by technology or physically inspected before it is loaded onto aircraft. This is in line with international best practice.

As such, from 1 March 2019, all export air cargo will either need to be examined at piece-level or originate from a ‘Known Consignor’ in order to be exported by air. An approved Known Consignor will be responsible for securing air cargo that originates from their business until that air cargo is provided to another regulated business.

The following info-graphic shows the two main options available to exporters:

cargo_chart_Aug18

Option One: Becoming a Known Consignor. Known Consignors must demonstrate that they have security measures and procedures in place to meet international security requirements, and can secure their export air cargo from where it originates, until it is handed to another regulated business. Entry into the Known Consignor Scheme is by application, validation (an on-site inspection), and approval by the Department of Home Affairs (the Department). To begin an application, please submit an expression of interest.

Option Two: Using a Regulated Air Cargo Agent. For infrequent exporters it may be more cost effective to use a Freight Forwarder who is accredited for Air Shipments and can arrange to have your cargo inspected. Check this page to see if your current Freight Forwarder is accredited.

You can’t avoid these changes if you wish to continue to send airfreight to the world. Any cargo that arrives at the airport without meeting these rules will be delayed or may be refused loading.

To find out more about the Known Consignor scheme, visit the Department of Infrastructure and Regional Development website. Ai Group members seeking further advice may contact Louise McGrath, Ai Group’s National Manager – Business and International Advisory Services on 03 9867 0158.

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Louise McGrath
Having joined Ai Group in 2000, Louise has managed a number of trade-related projects including trade missions, business matching and the development of export-related training programs. Since 2009 she has led Ai Group's service delivery to our smaller associations, providing governance, policy and business development support, and is Executive Officer of the Australia Saudi Business Council and the Australian Russian Dialogue.

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