11 January 2005

Forwarders react to air-cargo security proposals

The following article is excerpted from the 11 January 2005 edition of “The Journal of Commerce”.

The National Customs Brokers and Forwarders Association of America, Inc., (NCBFAA) Air Forwarding Subcommittee … submitted comments in response to new air cargo security rules proposed by the Transportation Security Administration.

…. [T]he NCBFAA said it "generally" supported the rules "believing that it will enhance the security of the supply chain if properly implemented. "

The group also offered a number of recommendations, among them:

-- It urged that TSA work with the members of the trade in establishing a phased-in compliance period with the new regulations.
-- The new rules would require the development of new systems and training.
-- Implementation could not reasonably be accomplished in the anticipated 90-day period following publication of any final rules.

The NCBFAA also expressed concern that the rules literally proposed that forwarders would be "held accountable for securing the goods entrusted to them throughout [the] legs of the supply chain for which they are responsible." The group noted that air forwarders often did not have control of the cargo moving under their House Air Waybills (HAWBs) and that it would be inappropriate for TSA to automatically penalize forwarders for conduct over which they had no realistic control.

As a compromise, the NCBFAA suggested an approach similar to the one Customs took with the 24-hour advance manifest reporting rule and its effect on NVOCCs. In that instance, Customs recognized that NVOCCs realistically did not have control of cargo once it was tendered to the steamship lines, and developed the so-called "Special Bill" procedure that returned responsibilities for 24-hour rule compliance to the steamship line and their subcontractors. TSA was requested to recognize the operational realities of air transportation and mete out any penalties to the party in control of the cargo and the violation.