1. Air Freight Security Changes in European Regulation 2013

2. Legal principles The Security Chain All those participating in the air freight shipment must know and adhere to the requirements of the EU standards and be able to prove their conformance accordingly. Aim: Protect all air freight shipments against interference by a third party from packing through to loading into the aircraft

3. Legal principles – Change in Regulation Legal Regulations Regulation (EC) Nr. 2320/2002 Establishing common rules in the field of civil aviation security Commission Regulation (EC) Nr. 622/2003 Laying down measures for the implementation of the common bassic standards on aviation security Regulation (EC) Nr. 300/2008 On common regulations in the field of civil aviation security Commission Regulation (EU) Nr. 185/2010 Laying down detailed measures for the implementation of the common basic standards on aviation security

4. 3-year Interim Rule for Known Shipper

5. 95 % of all airfreight shipments are not subjected to a screening as the majority of the shippers has signed a security declaration before April 2010 Approx. 80% of all airfreight shipments would be subjected to a screening as a small amount of shippers are certified Comparison of the screening amount Actual 2012Expected 2013 Freight of known shipperScreened freightFreight of known shipperScreened freight

6. European countries concerned The new EU regulation results in differential effects in April 2013 within the European DACHSER-countries Germany, Austria, Netherlands, Belgium, Portugal and Slovakia will have an high increasing part of unsecured freight Denmark, Poland and Czech Republik currently have an 100% screening which will partially decrease because of the implementation of the secured supply chain Great Britain, France and Switzerland already have an official approval of the shippers => therefore no change

7. Airfreight Security Europe – 2 “Types” of Customers Known Consignor Regulated Agent Passenger or Cargo Flight Regulated Agent Unknown Consignor Screening Passenger or Cargo Flight

8. Airfreight Security Europe Known Consignor Regulated Agent Passenger or Cargo Flight A shipment picked up at a known consignor is handled from our offices as a secured shipment, fulfilling all the requirements of a secured supply chain These shipments don‘t need to be screened before loaded on an aircraft The known consignor need to be accepted by either the national authority or a certified independent validator Each site needs to be certified separatly in the country the individual site is located in

9. Responsibilities of a Known Consignor

10. 6-Point Plan to become a Known Consignor Analyse of the processes in regards to the “point of defining product as air freight“ Definition of the secured area Nomination of the responsible persons for security Staff background check Staff training If necessary in the country: writing of the security programme  On-site visit from the authority and entrance in the „European database of known consignors and regulated agents“

11. A known consignor shall be re-validated at regular intervals not exceeding 5 years. This shall include an on-site verification in order to assess whether the known consignor still complies with the requirements. The validity time for a known consignor is different in each European country, varying between one and five years validity. EC (Regulation) 300 Once known consignor – always known consignor?

12. EU Database Each certified known shipper is entered in an European database and valid for all freight forwarders within Europe. Each site from the shipper is entered separately with an ID code for each individual site. At least the pick-up address, depending on the country, needs to be the known shipper. The database is only accessible for security awareness trained staff with a personalized user and password

13. EC (Regulation) 300 Independent Validation (Case Study Switzerland) Security training for at least one person Implementation of security measures Inspection (validation) on location by an independent validator Submittal of a security program Certification by the national authority Entry in a national database of known shipper Unprompted yearly conformation or running updates of the security program Announced and non-announced occasional inspections  No. of Known Shipper end of March 2009: 11,000  No. of Known Shipper 1st of April: 1,460 Costs for certification between CHF 5,000-12,000!

14. Airfreight Security Europe Regulated Agent Unknown Consignor Screening Passenger or Cargo Flight All shipments picked up at an unknown consignor need to be screened The allowed screening measures differ between the countries, however the first measurement and most used is the X-Ray

15. Screening measures X-Ray Electronic trace detection (ETD) Trace detection dogs Hand search Maximum measures 1.70mx1.70m Dark Image possibility Samples from the outside, inside and content of the package -> opening of the package Only allowed in a few countries Not for all kinds of goods Opening of the package

16. Challenges Air Freight Export 2013 High increased screening amounts Delays Costs Liability risks „bottleneck“ incl. freight backlog ProblemsChallenges DACHSER Keeping delays to a minimum Fulfilling airline commitments Sustaining our current processes

17. EU reaction Expected changes in aviation security Long-term contracts with screening services providers at airport Purchase of our own equipment (e.g. at Frankfurt Airport) Continuous analysis on whether to purchase our own control equipment & possibilities DACHSER GmbH & Co. KG, Air & Sea Logistics Strategy

18. Solution Customer Information Sales Information EU countries & Overseas Sales Countrysized Screening Concepts Ops Support Operations Customer Forum Screening Day Events  Dachser Competence