Industry Session, Tel Aviv July 1st 2010 EU Safety and Security Risk Management Systems European Commission / Taxation and Customs Union 1968-2008

IATA Competition Law Compliance Follow the prepared agenda Do not discuss: Pricing, including fares, service charges, commissions, etc. Bids on contracts or allocation of customers Geographic/Product market allocations and marketing plans, including expanding or withdrawing from markets Group boycotts Your commercial relations with agents, airlines or other third parties Any discussion aimed at influencing the independent business decisions of your competitors You will be asked to leave the conference call, and the conference call may be terminated, if the above-mentioned discussions occur Cargo Business Process & Standards Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 2009 Version 1.2 04 Feb. 2009

Disclaimer Information provided is for guidance only and is not legally binding This presentation contains excerpts from certain European Commission (EC) presentations and web pages In the event of any discrepancies between this information and that of the EC, the EC information will take precedence Cargo Business Process & Standards Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 2009 Version 1.2 04 Feb. 2009

Meeting Objectives Provide an overview of what EU requires as of 1 January 2011 Ensure awareness that business arrangements must be established between the forwarders and carriers Raise awareness that certain technical requirements may have to be met Promote and Provoke effective Airfreight Industry compliance Cargo Business Process & Standards Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 2009 Version 1.2 04 Feb. 2009

Meeting Agenda Background Economic Operator Systems Export Systems Import Control System (ICS) Aviation Security Legislation Cargo Business Process & Standards Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 2009 Version 1.2 04 Feb. 2009

EU Safety and Security Risk Management Systems Part 1, Background European Commission / Taxation and Customs Union 1968-2008

WCO SAFE Framework

World Customs Organization Safe Framework of Standards WCO has defined the principles and standards for the 21st Century Customs The first objective of the WCO Safe Framework is to harmonize advance electronic cargo information and allow for advanced risks assessment WCO has defined standard procedures, timelines and data requirements 166 countries have signed the WCO letter of intent to implement the WCO Safe Framework of Standards Many countries have implemented advance electronic cargo information such as US, CA, IN and many are in progress EU, CN, MX, ZA, NG Cargo Business Process & Standards Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 2009 Version 1.2 04 Feb. 2009

IATA Strategy and Position

IATA Strategy CUSAG & IFCWG IATA Customs Advisory Group (CUSAG) Comprises 20 airlines or airlines associations Monitors Advance Cargo Reporting around the world Ensures Customs align as much as possible to international standards IATA FIATA Customs Working Group (IFCWG) Co-chaired by an airline and a freight forwarder Comprises 6 airlines and 6 freight forwarders associations Develops recommendations on customs issues that involve airlines and forwarders Cargo Business Process & Standards Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 2009 Version 1.2 04 Feb. 2009

IATA Position Paper Advance Security Notification (extract) Electronic submission should only become mandatory when Customs has the capability to communicate electronically without paper in parallel All countries requiring advance security risk assessment information should move toward the WCO Framework of standards It must be clear and unambiguous as to which party is responsible for providing each element of advance information Customs should not require more information than laid out in the WCO Safe Framework of Standards Timings for submission of advance data should be consistent globally and in accordance with the WCO: Import Short haul: At time of “Wheels Up” of aircraft; Import Long haul: 4 hours prior to arrival at the first port in the country of destination Export information: Not earlier than 30 minutes prior departure Cargo Business Process & Standards Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 2009 Version 1.2 04 Feb. 2009

EU Multi-Annual Strategic Plan (MASP)

Meeting Agenda Background Economic Operator Registration Export Systems Import Control System (ICS) Aviation Security Legislation Cargo Business Process & Standards Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 2009 Version 1.2 04 Feb. 2009

EU Safety and Security Risk Management Systems Part 2 - Economic Operator Registration & ID European Commission / Taxation and Customs Union 1968-2008

Economic Operator Registration & Id. (EORI) Legal Basis – EC 312/2009 EC 312/2009 legislation answers the following questions: What is an EORI number? Who needs an EORI number? Which country issue an EORI number? How to get an EORI number? Why Carriers and Forwarders need an EORI number? EORI guidelines have been published by the EC EORI website is available including EORI online training Cargo Business Process & Standards Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 2009 Version 1.2 04 Feb. 2009

Economic Operator Registration & Id. (EORI) Who needs an EORI Number? Economic Operators (EO) Based in the EU EO is defined as “ a person who in the course of his business is involved in activities covered by Customs legislation” such as Importing into the EU, exporting from the EU or Transiting goods through the EU are activities covered by Customs legislation Economic Operators (EO) based outside of the EU who engage in activities covered Customs legislation in the EU Cargo Business Process & Standards Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 2009 Version 1.2 04 Feb. 2009

Economic Operator Registration & Id Economic Operator Registration & Id. (EORI) Which country issues an EORI Number? If the Economic Operators (EO) is Based in a specific EU Member State then this state shall issue the EORI # If based outside of the EU the EORI # will be issued by the State where the EO performs its 1st Customs activities e.g. Customs Declaration Exit or entry summary declaration Apply for AEO status Multinational companies often consist of parent company with several legal entities which can obtain their EORI # Cargo Business Process & Standards Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 2009 Version 1.2 04 Feb. 2009

Economic Operator Registration & Id. (EORI) How to get an EORI Number? EO who already deals with customs authorities in their own country should have an identification number Unless you have received an EORI number contact your Customs If you never registered and need an EORI # then apply: In your country if based in the EU In the EU where you are required to register if based outside of the EU The list of authorities who assign EORI and project managers are available on the EC website Public interface is available via the Europa web portal with EORI #, name and address of EO who agreed to share such information Cargo Business Process & Standards Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 2009 Version 1.2 04 Feb. 2009

Economic Operator Registration & Id. (EORI) Having an EORI does not grant Authorised Economic Operator (AEO) Status AEO status is granted to entities who meet certain criteria and grants them customs facilitations such as:- Reduced scrutiny on shipments Reduced advance data requirement for Safety and Security checks (if all parties involved have AEO status) EU has initiated mutual AEO recognition programmes with various non-EU states e.g. US, Japan Cargo Business Process & Standards Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 2009 Version 1.2 04 Feb. 2009

Meeting Agenda Background Economic Operator Systems Export Systems Import Control System (ICS) Aviation Security Legislation Cargo Business Process & Standards Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 2009 Version 1.2 04 Feb. 2009

EU Safety and Security Risk Management Systems Part 3 – Export Systems European Commission / Taxation and Customs Union 1968-2008

EU Export Systems Rules applicable • Goods leaving the customs territory of the Community have to be covered by one of the following: – Export declaration – Exit summary declaration – Re-export notification Regulation (EC) No 2913/92, OJ L 302, 1992, p. 1 Regulation (EC) No 648/2005, OJ L 117, 2005, p. 13 Regulation (EC) No 2454/93, OJ L 253, 1993, p. 1 Regulation (EC) No 1875/2006, OJ L 360, 2006, p. 64 Regulation (EC) No 273/2009, OJ L 91, 2007, p. 14 Regulation (EC) No 430/2010, OJ L 125, 2010, p. 10 Cargo Business Process & Standards Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 2009 Version 1.2 04 Feb. 2009

EU Export Systems Export declaration Required for: – EU goods to be brought to a destination outside EU – EU goods brought to special fiscal territories within EU – Ship and aircraft supplies – Non-EU goods that are re-exported Lodged by exporter or his representative Export declarations are lodged at the office of export For export declarations that contain safety and security data deadlines for lodgement apply (30 min. before aircraft that will carry goods out of EU leaves) Export procedure is discharged once the goods exit EU and confirmation of exit is sent by the office of exit Cargo Business Process & Standards Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 2009 Version 1.2 04 Feb. 2009

EU Export Systems Exit summary declaration Lodged for goods that are exiting and for which no export declaration is required: Goods moved between two MS via a territory of a third country Goods transiting EU Responsible for lodgement – carrier (other person can lodge with knowledge and consent of the carrier) Deadlines for lodgement apply (30 min. before aircraft that will carry goods out of EU leaves) Cargo Business Process & Standards Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 2009 Version 1.2 04 Feb. 2009

EU Export Systems Re-export notification Lodged for goods that exit directly from a free zone or temporary storage Responsible for lodgement – carrier (other person can lodge re-export notification with knowledge and consent of the carrier) Notification should be lodged at the office of exit following national specifications No deadlines apply Cargo Business Process & Standards Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 2009 Version 1.2 04 Feb. 2009

Meeting Agenda Background Economic Operator Systems Export Control System (ECS) Import Control System (ICS) Aviation Security Legislation Cargo Business Process & Standards Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 2009 Version 1.2 04 Feb. 2009

EU Safety and Security Risk Management Systems Part 4 – Import Control System (ICS) European Commission / Taxation and Customs Union 1968-2008

Legal Basis (1) Regulation 648/05 (Amendment to Customs Code) Authorised Economic Operators (AEO) Common risk management framework/Customs controls Electronic pre-arrival declarations (Entry Summary Declarations, ENS) for goods entering the EU  ICS Cargo Business Process & Standards Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 2009 Version 1.2 04 Feb. 2009

Legal Basis (2) Regulation 648/05 (Amendment to Customs Code) Responsibility for providing the ENS (Reg. 648/05, Art. 36b 3 & 4): “The person who brings the goods or who assumes responsibility for the carriage of the goods into the customs territory of the Community”. Or “with his knowledge and consent (agreed interpretation): the person who acts in his name, or any person who is able to present the goods in question or to have them presented to the competent customs authority, or a representative” Cargo Business Process & Standards Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 2009 Version 1.2 04 Feb. 2009

Legal Basis (3) Regulation 1875/06 (Amendment to the CC implementing provisions) Implementing provisions for Reg. 648/05 (e.g. time limits) 31 December 2010 Includes Annex 30A (data requirement for ENS and EXS); Relevant for air transportation: Explanatory notes Table 1 (default data set) Table 5 (AEO reduced dataset) New table 6 to be introduced for ‘diversion request’ Cargo Business Process & Standards Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 2009 Version 1.2 04 Feb. 2009

Business Process

Business Process: Import within the EU Step 1 Step 2 only if needed! Step 3 Step 4 Entry summary declaration Diversion request Arrival notification Presentation of goods Covered by functional specs ICS phase 1 To be defined and implement by Member States Reg. 1875/06 Art 181b Art 183e (new process) Art 184g Art 186 (1) Short haul: take off Long haul: 4 hours prior to arrival When diversion is confirmed, prior to arrival Upon arrival Unloading of goods For all the goods on board, including FROB for third countries (one or multiple ENS) For the aircraft (for parts of the cargo if MRN /MRN item number of the ENS is provided) For the goods to be unloaded Cargo Business Process & Standards Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 2009 Version 1.2 04 Feb. 2009

Step 1a: Send ENS to Customs Standardised electronic ICS message defined by EC (same data in all the MS) but format defined at national level Sent to: Office of first Entry and possibly to the Office of Lodgement in another MS (if accepted there) Prior to arrival (legal time limits!) 4hrs prior to arrival for long haul Prior/at departure (“wheels up”) for short haul Must contain Annex 30A data, including entry key data: Mode of transport at border Identity of means of transport: IATA or ICAO flight number Expected date (and time) of arrival Office of first Entry Cargo Business Process & Standards Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 2009 Version 1.2 04 Feb. 2009

Step 1b: Customs registers ENS Customs generates Movement Reference Number (MRN) upon registration of the ENS Confirmation of ENS registration communicated electronically by Customs to: Person lodging ENS and Carrier declared in ENS (if connected to ICS & if EORI number declared) This confirmation contains information such as: Person lodging the ENS (e.g. forwarder); Carrier’s transport document; MRN; and other elements  Enable carrier to make sure that an ENS has been lodged Cargo Business Process & Standards Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 2009 Version 1.2 04 Feb. 2009

Step 1c: ENS Amendments Sent to Office of first Entry declared in the ENS By Person lodging the ENS or by Representative declared in the ENS Acceptance communicated to: Sender of the amendment request Carrier, if Connected to ICS EORI number declared He has applied for this functionality in the MS (under discussion) Cargo Business Process & Standards Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 2009 Version 1.2 04 Feb. 2009

Business Process: Import within the EU Step 1 Step 2 only if needed! Step 3 Step 4 Entry summary declaration Diversion request Arrival notification Presentation of goods Covered by functional specs ICS phase 1 To be defined and implement by Member States Reg. 1875/06 Art 181b Art 183e (new process) Art 184g Art 186 (1) Short haul: take off Long haul: 4 hours prior to arrival When diversion is confirmed, prior to arrival Upon arrival Unloading of goods For all the goods on board, including FROB for third countries (one or multiple ENS) For the aircraft (for parts of the cargo if MRN /MRN item number of the ENS is provided) For the goods to be unloaded Cargo Business Process & Standards Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 2009 Version 1.2 04 Feb. 2009

Diversion request (IE323) Step 2: Diversion Request Person lodging ENS Trader at Entry (carrier) Trader request. diversion Office of Lodgement Declared Office of first Entry Actual Office of first Entry Office of subsequent Entry Diversion request (IE323) (Entry Key or MRNs) ICS notifies Diversion (IE303) Diversion acceptance (IE325)

Step 2a: Diversion Request Standardised electronic ICS message (same in all the MS) Sent by the operator of the active means of transport entering the EU or by his representative Data requirements in Annex 30A (Table 6) Prior to arrival Sent to the Office of first Entry declared in the ENS Required only if : Diversion at Office of first Entry and Diversion to a Member State not declared in the ENS (neither as first nor as subsequent Office of Entry) Not required in case of national diversions or in case of diversions at subsequent Offices of Entry Cargo Business Process & Standards Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 2009 Version 1.2 04 Feb. 2009

Step 2b: Diversion Request Must contain references enabling Customs to identify the related ENS Mode of transport at border Identity of means of transport: IATA or ICAO flight number Expected date of arrival Declared and Actual Office of first Entry MRN = optional alternative Declared Office of first Entry Notifies the sender of the registration of the diversion request Immediately informs the actual Office of first Entry using ICS (sending the risk analysis results) Cargo Business Process & Standards Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 2009 Version 1.2 04 Feb. 2009

Business Process: Import within the EU Step 1 Step 2 only if needed! Step 3 Step 4 Entry summary declaration Diversion request Arrival notification Presentation of goods Covered by functional specs ICS phase 1 To be defined and implement by Member States Reg. 1875/06 Art 181b Art 183e (new process) Art 184g Art 186 (1) Short haul: take off Long haul: 4 hours prior to arrival When diversion is confirmed, prior to arrival Upon arrival Unloading of goods For all the goods on board, including FROB for third countries (one or multiple ENS) For the aircraft (for parts of the cargo if MRN /MRN item number of the ENS is provided) For the goods to be unloaded Cargo Business Process & Standards Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 2009 Version 1.2 04 Feb. 2009

(operator of the active Step 3: Arrival notification Person lodging ENS Trader at Entry (operator of the active means of transport) Trader request. diversion Office of Lodgement Declared Office of first Entry Actual Office of first Entry Office of subsequent Entry Arrival notification with Entry Key or MRNs Acceptance of arrival

Step 3: Arrival Notification Not harmonised (to be implemented by the Member States) Existing reporting systems may be used For the Customs to check ENS risk analysis results and to initiate appropriate controls upon arrival, also for FROB not being presented to Customs Sent by the operator of the active means of transport (aircraft) At the latest upon arrival at the Office of first Entry Not to be provided at Offices of subsequent Entry (at least not for s&s purposes) Must contain references to the ENS (Entry key and/or MRN): Mode of transport at border Identity of means of transport: IATA or ICAO flight number Expected date of arrival Actual Office of first Entry MRN = optional alternative Cargo Business Process & Standards Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 2009 Version 1.2 04 Feb. 2009

Business Process: Import within the EU Step 1 Step 2 only if needed! Step 3 Step 4 Entry summary declaration Diversion request Arrival notification Presentation of goods Covered by functional specs ICS phase 1 To be defined and implement by Member States Reg. 1875/06 Art 181b Art 183e (new process) Art 184g Art 186 (1) Short haul: take off Long haul: 4 hours prior to arrival When diversion is confirmed, prior to arrival Upon arrival Unloading of goods For all the goods on board, including FROB for third countries (one or multiple ENS) For the aircraft (for parts of the cargo if MRN /MRN item number of the ENS is provided) For the goods to be unloaded Cargo Business Process & Standards Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 2009 Version 1.2 04 Feb. 2009

(Trader presenting goods) Step 4: Presentation of goods (at location where goods are unloaded) Person lodging ENS Trader at Entry (Trader presenting goods) Trader request. diversion Office of Lodgement Declared Office of first Entry Actual Office of first Entry Office of subsequent Entry Presentation of goods Acceptance of presentation * National Specifications

Step 4: Presentation of Goods Not harmonised (to be implemented by the Member States) Existing reporting systems may be used Must cover goods to be unloaded only Must contain references to the ENS (Entry Key and/or MRN): Mode of transport at border Identity of means of transport: IATA or ICAO flight number Expected date of arrival Actual Office of first Entry MRN = optional alternative Cargo Business Process & Standards Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 2009 Version 1.2 04 Feb. 2009

Structure of Information

Structure of Information (1) Customs Messages The EC as well as each Member State are providing specifications: High level list of data elements for Entry Summary declarations are defined in Annex 30A of EC regulation 1875/06 Detailed list of Data elements of the Entry Summary Declaration as well as Customs responses are provided by the EC Format (e.g. EDIFACT, XML) and detailed list of data elements for all messages are provided by each Member State List of ICS specifications per counties are now available Cargo Business Process & Standards Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 2009 Version 1.2 04 Feb. 2009

Structure of Information (2) Industry Messages IATA has emended its standard CIMP & CXML messages: House Waybill, Air Waybill, House Manifest and Flight Manifest messages have been updated to support the EC requirements Key changes related to the EU requirements are: Additional Customs Information Identifiers; A more flexible Other Customs Information (OCI) line; Inclusion of the OCI line in the Consolidation List (FHL) message As examples, these changes will facilitate the exchange of: The Movement Reference Number (MRN) The Economic Operators Registration Identification (EORI) number The scheduled arrival date & time at first point of entry IATA CIMP available at: http://www.iata.org/ps/publications/Pages/cimp.aspx Cargo Business Process & Standards Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 2009 Version 1.2 04 Feb. 2009

Guidelines

Industry Roles & Responsibilities (1) Carrier reports ENS Carrier (or its representative e.g. GHA) reports the Entry Summary Declaration (ENS) Forwarder will send FWB & FHL containing the required information to the Carrier Using this information the Carrier will compose and submit the ENS to Customs e.g. BE Customs Customs performs risk assessment and provides the MRN back as well as the notification of controls if applicable Cargo Business Process & Standards Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 2009 Version 1.2 04 Feb. 2009

Industry Roles & Responsibilities (2) Forwarder reports ENS Forwarder reports the Entry Summary Declaration (ENS) information with Carrier knowledge and consent Forwarder will obtain the Entry Key information (AWB, Flight etc.) and Carrier EORI # from the Carrier Using this information Forwarder will compose and submit the ENS to Customs e.g. BE Customs Customs performs risk assessment and provides the MRN back to the Forwarder & Carrier and the notification of controls if applicable If Carrier EORI # provided & as an EDI connection with Customs Forwarder will send FWB & FHL including the MRNs to the Carrier Upon arrival the Carrier will provide Customs the Entry Key in the Arrival Notification rather than the individual MRNs - Cargo Business Process & Standards Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 2009 Version 1.2 04 Feb. 2009

Guidelines & Scenario: Import within EU IATA has actively participated in a working group organised by the World Shipping Council to develop guidelines, overseeing the air mode sections. Scenarios (examples) have also been published by the EC and the scenario related to Air Mode are available on page Cargo Business Process & Standards Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 2009 Version 1.2 04 Feb. 2009

National Implementation Timelines

National Implementation ICS Timelines (1/2) Cargo Business Process & Standards Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 2009 Version 1.2 04 Feb. 2009

National Implementation ICS Timelines (2/2) Cargo Business Process & Standards Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 2009 Version 1.2 04 Feb. 2009

National Contacts

National Implementation ICS National Project Managers National project managers can be contacted to have more information on ICS at national levels List of ICS project managers per country is now available Cargo Business Process & Standards Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 2009 Version 1.2 04 Feb. 2009

Other Considerations

MRN: Movement Reference Number Last 2 digits of the year (YY) Identifier of the country of the Member State having registered/accepted the appropriate declaration message and having generated the MRN (ISO alphabetic 2 country code) Unique identifier for import movement per year and country (alphanumeric 13) Check digit (alphanumeric 1) Example: 07IT9876AB88901235 Cargo Business Process & Standards Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 2009 Version 1.2 04 Feb. 2009

Office of lodgment vs. first entry vs. subsequent entry Office of Lodgment must be the Office of First Entry ! 3. Subsequent office of entry (Provide Pre-Arrival Notification & Arrival Notification for goods to be unloaded) 2.Office of first entry (Provide Pre-Arrival Notification & Arrival Notification for goods to be unloaded) 1.Office of lodgment (Lodge Entry Summary Declaration, risk analysis) Cargo Business Process & Standards Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 2009 Version 1.2 04 Feb. 2009

Link between HWB/AWB & ENS At what level an ENS should be created? ENS can be created at House Waybill or at Air Waybill level depending on: Arrangements made between the Carriers and the Shipper/Forwarder Goods description needs to allow Customs to perform risk analysis Merging goods descriptions of different commodities in one single ENS line item description is possible (356 characters limitation) Examples: One ENS per MAWB with line item data equal to a HAWB. Each line item will have an acceptable goods description or an aggregation of goods descriptions Same as number 1 but no aggregation of descriptions One ENS per HAWB with ENS line item equal to one good description Cargo Business Process & Standards Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 2009 Version 1.2 04 Feb. 2009

Consignee Can it be the Forwarder? According to Annex 30A the Consignee is the ‘Party to whom goods are actually consigned’ The objective is to get the importer address, if possible Forwarder info acceptable if actual Consignee is not available to the Person lodging the ENS Not providing the actual Consignee may aim to a higher level of risk Cargo Business Process & Standards Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 2009 Version 1.2 04 Feb. 2009

Interlining Who need to lodge an ENS? Carrier A’s flight AA1234 is used for all Carrier B consignments Carrier A is responsible to ensure that ENSs are lodged for all consignments Carrier A & B will lodge ENSs for their own air waybill consignments Carrier B will provide flight number AA1234 on the ENSs lodged Carrier B is liable for the data accuracy and relevance of its ENSs Carrier B identify Carrier A as the “carrier” with Carrier A’s EORI # in its ENSs Customs office will notify MRNs to both carriers if EORI# & EDI connection Upon arrival Carrier A lodge an arrival notification to Customs office of first entry of all MRNs (or entry key) Cargo Business Process & Standards Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 2009 Version 1.2 04 Feb. 2009

Code Share Who need to lodge an ENS? Carrier A operates an aircraft with flight identification number AA1234 Carrier A has a code share arrangement with Carrier B Carrier B’s flight identification number is BB4567 Carrier A & B are responsible to lodge ENSs for their own consignment Upon arrival Carrier A is responsible to lodge an arrival notification to Customs office of first entry It is up to the national customs authorities to decide if one or two arrival notification must be made If only one then all MRNs shall be provided or “entry Key” with both flight identification Cargo Business Process & Standards Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 2009 Version 1.2 04 Feb. 2009

AEO: Authorized Economic Operator Authorized Economic Operators can benefit from reduced data set in the ENS Documented in regulation 1875/2006 Annex 30A, Table 5 The ‘specific circumstance indicator’ ‘E’ shall be declared The Person lodging the ENS and all declared Consignees must be recorded in EORI and declare the EORI TIN and have an AEO certificate for safety and security or for customs simplifications and safety and security AEO competent authorities and AEO certificate holders can be found at the following website http://ec.europa.eu/taxation_customs/dds/aeohome_en.htm Cargo Business Process & Standards Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 2009 Version 1.2 04 Feb. 2009

Goods Description Non acceptable goods descriptions Document TAXUD 1402/2007 rev. 2 published on CIRCA (SAD section) Document provides guidelines Non acceptable goods descriptions may trigger results in the risk analysis Merging goods of different commodities (e.g. shoes and engines) in one single goods item of an ENS should be avoided Cargo Business Process & Standards Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 2009 Version 1.2 04 Feb. 2009

FROB Do I need an ENS? Freight remaining on board for a third country will need an Entry Summary declaration The Arrival Notification will also cover FROB Cargo Business Process & Standards Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 2009 Version 1.2 04 Feb. 2009

Primary Trade Issues Where the FF is expecting the Carrier to submit the ENS data required as part of the legal obligation, the Carrier will need quality data from the FF at origin to be able to:- Ensure the data submission is made within the laid down time limits Provide data at a level which will ensure the shipments are not subjected to undue scrutiny, e.g. HAWB Level Data not MAWB Level Data Receiving such data in paper format from the FF at origin will not allow the Carrier to consolidate the flight data, prepare it and send it forward to the EU Customs Office of first entry within the time limits Where a FF, with the Carriers knowledge and consent undertakes to submit the data to the EU Customs Office of First Entry themselves, they will need to:- Be aware where the aircraft is first entering the EU (First Airport of Arrival) Be aware of the Carriers EORI to quote in the ENS Be able to receive back the MRN issued by the EU Customs Authority Cargo Business Process & Standards Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 2009 Version 1.2 04 Feb. 2009

Meeting Agenda Background Economic Operator Systems Export Control System (ECS) Import Control System (ICS) Aviation Security Legislation Cargo Business Process & Standards Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 2009 Version 1.2 04 Feb. 2009

EU Aviation Security Legislation Legal Basis Regulation (EC) No 300/2008 of the European Parliament and of the Council EU Commission Regulation (EC) No 185/2010 EU Commission Regulation (EC) No 272/2009 Cargo Business Process & Standards Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 2009 Version 1.2 04 Feb. 2009

EU Aviation Security Legislation Key Factors (1) Requires Member States to Implement enhanced Aviation Security Programmes Lays down requirements for Cargo Screening Lays down requirements for Known Consignor/Shipper and Regulated Agent accreditation Lays down requirements for Cargo Security Certification including data elements Cargo Business Process & Standards Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 2009 Version 1.2 04 Feb. 2009

EU Aviation Security Legislation Key Factors (2) Leaves many decisions on how to implement the Aviation Security to the MS Administrations e.g Known Consignor / Regulated Agent accreditation methodology Cargo Security Certification May be in a separate CSC document or in the Transport Document May be in paper or electronic format CSC Archiving and Audit rules Cargo Business Process & Standards Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 2009 Version 1.2 04 Feb. 2009

EU Aviation Security Legislation Current Situation Many Member States are not yet able to properly inform trade on their requirements Those Member States that have implemented the Regulation have done so differently, e.g. France require a CSC in a separate paper declaration Luxembourg accept CSC in the e-AWB Known Consignor / Regulated Agent Accreditation is more difficult to obtain in some MS’s than others Cargo Business Process & Standards Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 2009 Version 1.2 04 Feb. 2009

EU Aviation Security Legislation Speaking at Air Cargo Handling Conference 2010, held in Brussels, Belgium, Dr Andrew Traill, Policy Director for the European Shippers Council said:- “ Many shippers would not become Known Consignors because the EU regulations and requirements were confusing, left shippers unsure of any tangible benefits and unsure of the costs involved.” Cargo Business Process & Standards Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 2009 Version 1.2 04 Feb. 2009

EU Aviation Security Legislation IATA Proposal Formulate a Working Group to identify a common recommended method of implementation to include Member State Administrations (Aviation or Transport Ministries) Airlines Shippers GHA’s Address the requirement for standard Known Consignor and Regulated Agent accreditation to be harmonised / standardised Address the requirement for CSC to be harmonised / standardised Cargo Business Process & Standards Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 2009 Version 1.2 04 Feb. 2009