Air Cargo Security in Japan Soshi MURAKAWA Special Assistant to the Director Aviation Security Office Aviation Safety and Security Promotion Division Civil Aviation Bureau Ministry of Land, Infrastructure, Transport and Tourism Thank you, Chair. Good morning, ladies and gentlemen. I am Soshi Murakawa, Special Assistant to the Director, Aviation security office, Civil Aviation Bureau, Japan. It is my great pleasure to take this opportunity to introduce you about Japan’s Air cargo security measures on this workshop. Restricted

Contents Overview of Aviation Security System in Japan Air Cargo Security in Japan Regulated Agent Regime Screening Quality Control My presentation is divided into 2 parts. The first part is “overview of aviation security system in Japan”. The second is “Air cargo security in Japan” The second part is the main topic of this workshop. I am focusing on 3 topics, Regulated agent, Screening of air cargo, and quality control of air cargo security. This presentation will last 15min. Restricted

I. Introduction - Civil Aviation Activities in Japan- International Passengers flow to and from Japan (Unit: Thousand) I would like to introduce Civil aviation activity in Japan. This slide shows air traffic flow of total number of international passengers to and from Japan. The flow between Asia Pacific area and Japan is about 33 million per year. Considering the magnitude of air traffic, Japan is directly responsible for the safety of approximately 5% of the world’s traffic volume. Restricted

I. Introduction - Civil Aviation Activities in Japan- 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 US UK China Germany Japan France Australia Canada Singapore Korea Russia Italy India 2005 2006 Air Cargo Handling Volume In million ton-kilometers This slide show Air cargo handling volume, Ton-kilometers on scheduled services by major countries. Japan handled 21 billion ton-kilometers for 2006. This was the fifth amount in the world. Japan: 21,706 million ton-kilometers for 2006 The fifth amount in the world ICAO: Annual Report of the Council, 2006 Restricted

I. Introduction - Aviation Security System in Japan - < Major Responsibilities > JCAB Policy, law and regulation making Coordination among relevant agencies Inspection Airport Operators Access control Airport contingency plan Airport Security Committee Air Carriers Screening of passengers and their baggage Security Measures for air cargo Security measures for aircraft Regulated Agent Police Patrol of Airport Terminal and Surrounding Areas Response to Matters such as Bomb Threat or Hijacking Next, I would like to briefly introduce Aviation Security Authority and other key stakeholders regarding aviation security. JCAB has a full responsibility to maintain and enhance aviation security in accordance with ICAO ANNEX 17. JCAB has established all necessary regulations which require aviation security measures. And JCAB has a responsibility to inspect the security measures taken by air carriers, airport operators, and regulated agents. In Japan, air carriers provide security measures for screening passengers and their baggage, and security measures for air cargo onto aircrafts. Airport operators need to take some parts of security measures, for example, access control. Airport security committee must be established and controlled by airport operator. Japan has introduced Regulated agents, so that they play one of the important roles for security measures. Restricted

Government (CAB) I. Introduction - Aviation Security System in Japan - Security measures for passenger and baggage Governmental agencies (police, CIQ, etc.) Carriers Air Screening of passengers, carry-on baggage and hold baggage  Security controls of catering supplies and stores to be brought onto airplanes, etc. Security measures for aircraft  aircraft security check, etc. Instruction & Education Education of screeners  Education, training and certifications of screeners Regulated Agents Security measures for air cargo Airport operators and airport terminal companies This slide shows the relationship among JCAB, air carriers, airport operators and other relevant organizations and agencies, such as police, CIQ. Air carriers and regulated agents are implementing security measures for air cargo. And CAB provide instruction and education with them. This is one of examples for sharing responsibility to aviation security. The most important thing is to ensure sufficient implementation of secure preventive measures against unlawful interference according to respective responsibility. Instruction & Education Security control of air cargo handling facilities Security control of air cargo, etc. Security control of airports Setting of security restricted areas in airports and ensuring access control Staff screening, etc. Restricted

Source: The Asahi Press I. Introduction - Past Incident of Aircraft Explosion Plot Related to Japan - Bomb explosion at Narita Airport In June 1985, a container of transfer hold baggage exploded at Narita Airport, killing two ground workers. It was revealed that this container came from Vancouver and was to be taken on board aircraft operated by Air India. Concurrent aircraft explosion over the North Atlantic One hour after the incident in Japan, another aircraft operated by Air India from Montreal to London (AI 182) exploded in the air while flying over the North Atlantic, claiming 329 lives. Let me introduce a past incident in Japan. In July 1985, a container of transfer hold baggage exploded at Narita airport and 2 ground workers were killed. In this incident, bomb was in the hold baggage. the hold baggage was unaccompanied one, the person who checked hold baggage did not get on board aircrafts. Although this case is not directly related to air cargo, this tragedy reminds us the importance of air cargo security. Source: The Asahi Press Restricted

II. Air Cargo Security in Japan 1. Regulated Agent Regime Basis of the Regulated Agent (RA) Regime ICAO Annex 17 and Security Manual Main purpose To facilitate smooth flow of air cargo while maintaining the security of air cargo. Enforcement October 1, 2005 (transition period up to March 31, 2006) April 1, 2006 (full implementation) Number of Regulated Agents (Approved freight forwarders and air transport agents) 158 Companies as of 1 March 2008 Let me move on the next part, this workshop’s topic, Air cargo security. At first, although this plenary topic is Screening, I would like to refer to Regulated Agent regime, because the main pillar of air cargo security in Japan is “Regulated Agent.” Japan has introduced RA since April 2006. and JCAB has approved about 160 agents – including both freight forwarders and air transport agents. We developed our regulated agent regime, based on Annex 17 and Security manual. And we introduced RA provisions into National Civil Aviation Security Program and issued relevant regulations. Restricted

II. Air Cargo Security in Japan 1. Regulated Agent Regime Basic concepts of RA regime in Japan - Compatibility between security of air cargo and facilitation of air cargo flow - Appropriate sorting out of secure air cargoes from other air cargoes As for secure air cargo (air cargo which has been identified as secure), smooth loading into aircraft is allowed. As for other air cargo (air cargo which has not yet been identified as secure), screening of those air cargoes is required to be carried out by regulated agents or air carriers before loading into aircraft. The purpose of RA regime is, to ensure both security of air cargo and facilitation of air cargo flow. Actually, thanks to RA regime, we succeeded in mitigating the impact of air cargo screening on the facilitation of trade. One of the most important elements is how secure air cargo is sorted out from other cargoes. Then, in our regime, air cargo, which has been identified as secure, will be allowed to be loaded onto aircraft. On the other hand, air cargo, which has not yet been identified as secure, is required to be screened by regulated agents or air carriers before loading. Restricted

MLIT II. Air Cargo Security in Japan 1. Regulated Agent Regime Outline Known Shipper Guidance and request for cooperation Safety declaration ensuring cargo safety Approval and instruction Consistent protection from known shipper to loading into aircraft Regulated Agent MLIT Application Air Cargo Security Programme Safety confirmation Unknown Cargo This chart shows the outline of relationship among main actors in our known shipper/regulated agent regime. As for Regulated Agent, based on an application with Air Cargo Security Program, MLIT approves a freight forwarder or air transport agent as a regulated agent if it is considered to be able to take appropriate security measures for air cargo. As for Known Shipper, a shipper with the intention to become a known shipper, must submit “Safety Declaration Note” to RA. It is the document that the shipper ensure that appropriate security measures have been taken in each process of parking, storing and transport to prevent unauthorized tampering of the air cargo, etc. On the contrary, RA must confirm the reliability and the safety of the shipper as a known shipper. Under the known shipper/regulated agent regime in Japan, in principle, air cargo must undergo screening for explosives if it is taken on board passenger aircraft. However, if the air cargo is handled by an RA appropriately, and then consistently protected up to loading onto aircraft, the air cargo is exempted from screening for explosives. Instruction of security measure Air Carrier Screening for explosive (ETDS, etc.) Safety confirmation of air cargo before loading into aircraft

II. Air Cargo Security in Japan 1. Regulated Agent Regime RA approval standards (Guidelines by the Civil Aviation Bureau) Compliance with the NCASP and security standards for air cargo in their air cargo security programmes Competence to execute the air cargo security program properly Air Cargo Security Programmes Category of the threat level Security measures for air cargo according to the threat level, including security control for air cargo handling facilities Methods of confirming know shippers Specific procedures for safety confirmation Education and training in aviation security Regular self-inspection concerning its security measures Other items required This slide shows the approval procedure of RA by CAB. CAB examined the following two points as criteria for approval of RA. Compliance with the NCASP and security standards for air cargo in their air cargo security program. Competence to execute the air cargo security program properly. The air cargo security program developed by RA is key element of approval procedure. CAB developed the guideline which provides the standard contents of air cargo security program. Program covers Category of the threat level Security measures for air cargo according to threat level, including security control of facility Methods of confirming known shippers Specific procedures for safety confirmation Education and training in aviation security Regular self-inspection Restricted

II. Air Cargo Security in Japan 1. Regulated Agent Regime Effective scope of safety declaration to be screened for explosives Safety declaration note and written consent AWB: Shipper=Company A Known cargo Company A: Known shipper Company X: RA or Air carrier Known cargo By submitting the safety declaration note for secure air cargo, all cargoes shipped by A (on the AWB) and handled by X are treated as known cargoes. Safety confirmation Order AWB: Shipper =Company A As for shipper, if shipper want to become known shipper, it must submit a safety declaration to RA or air carrier. Shipper must ensure that appropriate security measures have been taken in each process of packing, storing, and transport to prevent unauthorized tampering of the air cargo. After the process of proper confirmation by the RA, this shipper will be treated as a known shipper. In the case of the cargo shipped by the known shipper’s subsidiary or associated company, if the cargo is based on the order from known shipper and the name of Air Way Bill is known shipper, that cargo is treated as known cargo. Subsidiary vendor Associated companies Subsidiary (Vendor) Other companies Restricted

Regulated Agents (freight forwarders and air transportation agents) II. Air Cargo Security in Japan 1. Regulated Agent Regime Flow of Air Cargo Known Shipper Shippers identified by Air Carriers or RAs KS Unknown Shipper Shippers other than known shippers １ ２ ４ ３ ５ ６ RA 　　Regulated Agents (freight forwarders and air transportation agents) Forwarders other than RA ・Safety confirmation by the package ・Process control complying with the standards ・Refusal of acceptance ・Opening search ・Screening with an X-ray machine, etc. or ・24 hour-detention* ３ ５ ２ ４ Air Carriers Let’s see the flow of air cargo in RA regime. Air cargo must undergo screening for explosives before loading onto passenger aircraft by RA or Air carrier, except for the case of NO.1 and No.2. In these cases, the safety of cargo is ensured by security measures such as confirmation of documents, external packing, and security control of cargo handling facilities. In other cases, cargo must be screened for explosives by RA or air carrier. ３ ５ ６ １ ２ ４ ・Safety confirmation by the package ・Process control complying with the standards ・Refusal of acceptance ・ Opening search ・Screening with an X-ray machine, etc., or ・24 hour detention* * 24-hour detention is allowed only when the air cargo is to be loaded onto aircraft dedicated for air cargo transport. On board aircraft Restricted

<Screening for Explosives> II. Air Cargo Security in Japan 2. Screening Principle of security measures taken by an RA Screening for explosive of air cargo to be taken on board passenger aircraft is required, unless air cargo is handled by an RA and recognized as known cargo shipped from a known shipper. ⇒The RA shall confirm that the air cargo is shipped from known shippers, and then take preventive measures against unauthorized tampering of the air cargo. Let me move on to the next topic, screening. This is the main theme of this plenary. Air cargo must undergo screening for explosives if it is taken on board passenger aircraft. However, if the cargo is handled by RA appropriately, the cargo is exempted from screening for explosives. As for the method of screening for explosives, we adopt mainly 2 methods of screening: 1. Screening by equipments – EDS, AT, ETDS, X-ray. 2. opening search. But if the cargo is be loaded onto aircraft for cargo transport, 24-hour detention is also allowed. Opening search or screening by screening equipment (X-ray, AT, ETDS or EDS) * <Screening for Explosives> * 24-hour detention is allowed only when the air cargo is to be loaded onto aircraft dedicated for air cargo transport. Restricted

II. Air Cargo Security in Japan 2. Screening -Screening Equipment- Type of Screening equipment ETDS – Mainly used X-Ray Others Issues Cost of introduction Cost of maintenance Personnel – Training What type of screening equipments is used in Japan? RA and Air carrier normally use ETDS – Explosive trace detection devise system. ETDS is the picture in the upper. This is produced by Hitachi, Japanese maker and this ETDS got the certification from Transport Security Agency of United States. X-ray is used mainly for mails, which is not allowed to screen by open search. As far as I know, in Japan, these 2 equipments are used for the air cargo screening. As for the screening equipment, I think there are 2 issues. One is the cost of equipments – there are 2 types of cost: purchase of equipment and maintenance of equipment. Another is personnel training. In order to use it appropriately, RA and air carrier must give proper training for their personnel before implementing screening. And, only personnel who got training of specific equipments like ETDS is allowed to use such equipments. Restricted

II. Air Cargo Security in Japan 2. Screening - Financial support - Target airport: airports managed by the national government (25 airports) Target party: Air carriers, RAs, and cargo terminal building companies Target items: Cost of purchase of explosive detection machines (X-ray detection equipment, explosive trace detection systems, etc.) Cost of security screeners for detecting explosives Cost of security guards at the cargo terminal building in the airport Let me talk about the cost issue, Japan has government financial support system. Basically, financial support is given by the government up to half of the total cost for designated purposes. First, target airports are those managed by the national government (25 airports). In this regard, in the case of other kinds of airports managed by the semi-governmental airport corporations (Narita, Kansai, and Chubu) or local governments, they also provide financial support in principle in a similar way of the national government. Then, target parties include air carriers, RAs, and cargo terminal building companies. Finally, target items consist of the following three items: Cost of purchase of screening equipments Cost of security screeners for detecting explosives Cost of security guards at the cargo terminal building in airports. The source of this financial support is from “security charge.” Security charge is collected from parts of landing fee. (100yen per passenger, 300 per ton of cargo) * Proportion of the support: within a half of the total cost *　In the case of other kinds of airports managed by the semi-governmental airport corporations (Narita, Kansai, and Chubu) or local governments, they also provide financial support in principle in a similar way to the national government. Restricted

II. Air Cargo Security in Japan 3. Quality Control Requirements of submitting reports and receiving CAB’s inspection Instruction for improvement of air cargo security programme, or cancellation of the approval by the CAB Training for security officer National Civil Aviation Training program Annual training program provided by CAB Next topic is quality control. After approval of RA, we takes the following actions in order to ensure implementation of the air cargo security program and further improve the content of the program. Requirements of submitting reports Receiving CAB’s inspection After inspection, CAB may instruct the improvement of air cargo security program or cancellation of the approval by CAB (RA also have its self-inspection. The implementation of self-inspection is one of elements in air cargo security program.) Another method of quality control is training. Human resource is one of the most important elements for implementing appropriate security measures. In Japan, we have National Civil Aviation Security Training Program. This program require RAs to have security training plan and to provide appropriate training with personnel. And JCAB provides annual training to RAs according to national civil aviation security training program. This training is for the oversight personnel of security section in RAs. June 23 was the day of training. The contents of program were relevant legislation and regulations, crisis management, screening, access control and so on. Restricted

II. Air Cargo Security in Japan 3. Quality Control - Inspection - Inspection of RAs conducted by Civil Aviation Bureau Main Items of inspection Concrete contents of inspection 1. Security measures for air cargo 1. Do security measures currently implemented conform to those prescribed by the Civil Aviation Bureau for each threat level? Is access control of air cargo handling facilities, such as locking of doors of the facilities, appropriately conducted? Are security measures for air cargo, such as screening for explosives, appropriately taken? etc. 2. Confirmation of known shippers 3. Specific methods of safety confirmation 2. Are known shippers appropriately confirmed by an RA? etc. 3. Are cargoes from known shippers and unknown shippers appropriately separated? Is safety confirmation certainly conducted corresponding to each category? etc. 4. Education and training in aviation security 5. State of implementation of self-inspection 6. Others 4. Are education and training properly performed according to the programme developed by each Regulated forwarder? etc. 5. Is internal inspection conducted at least once a year? etc. 6. Is emergency contact network appropriately prepared, informed of, and displayed? Are documents to be saved appropriately saved? etc. This slide shows main items to be checked in the inspections of RAs conducted by CAB. First, main items to be checked in our inspection of RAs include the following items: Security measures for air cargo Confirmation of known shippers Specific methods of safety confirmation Education and training in aviation security State of implementation of self-inspection Others For each item, we examine appropriateness of relevant measures taken by the RA in light of its air cargo security program and our standards and guideline. Next, as standard process of our inspection of RAs, CAB sends comprehensive inquiry form to the designated RA prior to the inspection. then after the inspection, inspector compile a report, and carry out a follow-up on the indicated point in the report. ・Advance hearing on the basis of answers to inquiry form Recording by inspection report writing Follow-up on the indicated points Advance preparation Subsequent work Restricted

II. Air Cargo Security in Japan 3. Quality Control - Inspection - Inspection of Airport (Cargo security) conducted by CAB Main Items of inspection Concrete contents of inspection 1. The procedure of receiving cargo 1. Are IDs of drivers checked when receiving cargo? How do they distinguish between known cargo and unknown cargo? Are relevant documents such as confirmation note are kept appropriately? Is known cargo physically separated from unknown one? Do they take any measure to prevent the counterfeit of known cargo? etc. 2.Screening 3.Access control 2. Do they appropriately use and maintain ETDS or X-ray machine? Describe the training system and record. etc. 3. Confirm the condition of a perimeter fence around the cargo area. How do they operate gates at cargo area and the shutter of the cargo facilities? How do they control the lock of the doors to restricted area? How do they issue and control permits (personnel, vehicle)? How do they deploy guards at cargo area? etc. The inspection in Airport is also related to the cargo security quality control. This is the relevant items of air cargo security in airport inspection. Advance preparation ・Advance hearing on the basis of answers to inquiry form Subsequent work Recording by inspection report writing Follow-up on the indicated points Restricted

International Air Transport Network is expanding globally and International cooperation on Aviation Security is vital for further development of aviation. Thank you for your attention. Conclusion. Security is the most important thing for us. However, in the case of air cargo, it is not practical to screen all air cargo and there is a low risk to the perpetrator as referred in security manual. And, we have to fulfill not only security but also facilitation of cargo. Therefore, one of the important issues in this area is how to recognize or approve a cargo as secure one. And, off course, we have to introduce appropriate screening measures. ETDS is main equipment in Japan. While RA and air carrier are implementing screening, government and airport operators give financial support to them for equipments and personnel. As for air cargo security, I think it is important to involve all stakeholders – freight forwarder, air carrier, shipper, government, airport. All of them should take some responsibility of air cargo security and play its role appropriately. In conclusion, international air transport network is expanding globally and international efforts on aviation security is vital for further development of aviation. Strong commitment to aviation security will help worldwide aviation activities. Thank you for your attention.