U.S. Department of Homeland Security

1. U.S. Department of Homeland Security APRIL, 2010

2. Overview • The attacks of September 11, 2001, led to the largest and most complex reorganization of the federal government since the department of defense was created over 60 years ago • The post 9/11 re-organization included the establishment of the U.S. Department of Homeland Security (DHS) • On March 1, 2003 DHS took over operational control of nearly 180,000 employees from incoming agencies and offices, including some 60,000 TSA employees from the Department of Transportation

3. Who is TSA? • TSA Mission, Vision and Core Values • The Transportation Security Administration protects the Nation’s transportation systems to ensure freedom of movement for people and commerce. • The Transportation Security Administration will continuously set the standard for excellence in transportation security through its people, processes, and technology. • To enhance mission performance and achieve our shared goals with Stakeholders and affiliated Agencies.

4. Security Programs and Contingency Plans The Department of Homeland Security has rated the National Threat Advisory Level as Orange.

5. Goals Establish indisputable confidence in our Nation’s transportation system Secure the Nation’s freedom of movement in the interest of national security, public safety and economic growth

6. What we do… Layers of Security We have layers of security to enhance the security of the traveling public and the Nation's transportation system. Each one of these layers alone is a deterrent, capable of deterring criminal acts. In combination their security value is multiplied, creating a much stronger, formidable system.

7. Regulatory Division • Inspection, Compliance and Oversight • Airports, Aircraft Operators (passenger and cargo), Canine and Surface • conduct inspections, investigations, and outreach to prevent attacks, share best practices, solve problems and ensure compliance • 49 Code of Federal Regulation 1540, 1542, 1544, 1546 and 1548 • Provide interpretations and clarifications of TSA security procedures and requirements • Incident response

8. Regulatory Division Monitor threats Provide incident information Make recommendations or implement security procedures as appropriate Seek innovative ways to enhance security by participating in the evaluation, testing and the implementation of new programs Administer legal enforcement actions by means of civil penalties

9. Regulatory Division-Cargo • 19 CARGO INSPECTORS • AIR CARRIERS, TSA APPROVED INDIRECT AIR CARRIERS, CERTIFIED CARGO SCREENING FACILITIES • PERFORM COMPREHENSIVE AND SUPPLEMENTAL INSPECTIONS • JFK AREA OF RESPONSIBILITY INCLUDES: 78 AIR CARRIERS TO INCLUDE BOTH PASSENGER AND ALL CARGO OPERATIONS 662 TSA APPROVED INDIRECT AIR CARRIERS 63 TSA APPROVED CERTIFIED CARGO SCREENING FACILITIES

10. Regulatory Division-Cargo • Participates in “Cargo Strikes” which is a national effort in airports throughout the US • Conducts Special Emphasis Inspections (SEI) or tests periodically focusing on a particular aspect of a regulated entities operation • Participates in “Town Hall” meetings providing updates to industry on changes to regulatory programs

11. Certified Cargo Screening Program Non-SSI Presentation

12. 100% Screening Requirement Background • The legislation mandates 100% screening by August 2010 and requires TSA to: • Establish a system to screen 100% of cargo transported on passenger aircraft. • Provide a level of security commensurateto that of passenger baggage. • Meet inspection benchmarks. • President Bush approved Implementing Recommendations of the 9/11 Commission Act of 2007 on August 3, 2007. Congressionally Mandated Cargo Screening Benchmarks 50% 9/11 Act 100% August 2010 August 2007 February 2009

13. 100% Screening Requirement Impacts • All cargo must be screened at the piece level by TSA-approved methods prior to being loaded on a passenger aircraft. • Screening capacity at a single point in the supply chain is not sufficient enough to accomplish this requirement. • Significant carrier delays, cargo backlogs, and transit time increases are expected. ~15 million pounds moves on PAX daily. Cargo must be broken down to piece level and screened by piece. August 2010 100% Screening Required by Congress

14. Piece Level Cargo • Piece level cargo is the individual item within a shipment. The number of pieces is determined by the number of pieces identified by the shipper-level documentation. • By February 3, 2009, all cargo must be broken down and 50% of the individual pieces must be screened prior to being loaded on a passenger aircraft. • By August 3, 2010, cargo must be 100% screened at the piece level.

15. Ensure chain of custody Future Air Cargo Supply Chain In the future, screening responsibility will be allocated across the supply chain. Risk Assessment Freight Forwarder **Screening Air Carrier Known Shipper United States Air Cargo Distribution by Weight* 100% Screened **Screening CCSF: Freight Forwarder Passenger Aircraft 15% All-Cargo Aircraft 85% **Screening CCSF: Shipper / 3PL / Manufacturer Freight Forwarder Notes: **Screening must occur prior to consolidation. Screening methods: electronic, manual, and canine.

16. Certified Cargo Screening Program

17. CCSP was developed to: • Allow screening of cargo early in the air cargo supply chain by a trusted, vetted, and audited facility. • Establish the integrity of a shipment through enhanced physical and personnel security standards at Certified Cargo Screening Facilities (CCSFs). • Maintain the integrity of a shipment throughout the supply chain by utilizing stringent chain of custody methods. • Participation in CCSP is voluntary, but once in, CCSFs must: • Adhere to increased TSA-directed security standards. • Share responsibility for supply chain security. • Employ chain of custody. • Permit onsite validations. • Submit a Facility Security Plan (FSP). • Be subject to TSI-C inspections. Certified Cargo Screening Program Overview The Certified Cargo Screening Program (CCSP) is a facility based program.

18. Indirect Air Carriers Air Carriers Airports Shippers, Manufacturers, Warehouses, Third Party Logistic Companies ( ACs ) ( IACs ) Currently Regulated Entities Newly Regulated Entities: CCSFs Indirect Indirect Air Carriers (IACs) Air Carriers (ACs) Airports Air Carriers Airports What is a regulated entity? • A regulated entity is an entity that TSA has imposed mandatory requirements on through an order, regulation, or other means to impose binding and enforceable requirements. Regulations are first published in the Federal Register and codified in the Code of Federal Regulations (CFR). • Certified Cargo Screening Facilities (CCSFs) will need to be regulated: • To count CCSF cargo as screened. • To enable compliance to be enforced.

19. Who can become a Certified Cargo Screening Facility? Facilities screening under the CCSP will be known as Certified Cargo Screening Facilities (CCSFs). • Facilities currently applying to become Certified Cargo Screening Facilities: • Independent facilities may emerge to screen cargo for other entities. • Any entity with a desire to screen cargo must have a secure facility. • CCSFs must be no more than one node back from a currently regulated entity (freight forwarder/air carrier). • Facilities that are not currently regulated by TSA will become regulated under the program. Shipping Facilities Freight Forwarding Facilities Third Party Logistics Providers Manufacturing Facilities Warehouses Distribution Centers

20. CCSP Standards

21. CCSP Program Standards • During Phase One: • Non-regulated entities will operate under a regulatory Order issued by TSA. • Freight forwarders and air carriers will operate under Alternate Procedures (APs) to their standard security programs (SSPs). • At full rollout, all CCSFs will operate under the Certified Cargo Screening Standard Security Program (CCSSSP). O R D E R M S P I A C S S P A O S S P F A C A O S S P Certified Cargo Screening Standard Security Program

22. Operational Process Flows • The diagram below is a conceptual example of a general operational process flow at a CCSF. Shipper’s Compliance Responsibility Access Control Area TSA-approved Chain of Custody Freight Forwarder’s Compliance Responsibility

23. CCSP Benefits • The benefits of participating in the Certified Cargo Screening Program may outweigh costs carried by the facility in meeting program guidelines. CCSF Benefits CCSF Costs CCSP: • Decreased log jams (carrier delays) and expedited supply chain flow. • Ability to build bulk configurations. • Ability to continue to ship certain cargo types without potential invasive screening later on in the chain. • Implement facility and chain of custody standards*. • Facility audits. *Facility Standards include physical access controls, personnel, procedural, physical, and information technology security.

24. Q & A Additional questions may be emailed to CCSP@dhs.gov.

25. Questions?