Air Freight Security Changes in European Regulation 2013

1. Air Freight SecurityChanges in European Regulation 2013

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

4. 3-year Interim RuleforKnownShipper

5. Comparisonofthescreeningamount Actual 2012 Expected 2013 Freightofknownshipper Screenedfreight Freightofknownshipper Screenedfreight Approx. 80% of all airfreightshipmentswouldbesubjectedto a screeningas a smallamountofshippersarecertified 95 % of all airfreightshipmentsare not subjectedto a screeningasthemajorityoftheshippershassigneda securitydeclarationbefore April 2010

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 andSlovakia will have an high increasingpartofunsecuredfreight • Denmark, Polandand Czech Republik currentlyhave an 100% screeningwhich will partiallydecreasebecauseoftheimplementationofthesecuredsupplychain • Great Britain, France andSwitzerlandalreadyhave an officialapprovaloftheshippers => thereforenochange

7. Airfreight Security Europe – 2“Types” of Customers Passenger or Cargo Flight KnownConsignor UnknownConsignor Regulated Agent Regulated Agent Regulated Agent Passenger or Cargo Flight Screening

8. Airfreight Security Europe • A shipmentpickedupat a knownconsignorishandledfromourofficesas a securedshipment, fulfilling all therequirementsof a securedsupplychain • These shipmentsdon‘tneedtobescreenedbeforeloaded on an aircraft • The knownconsignorneedtobeacceptedbyeitherthe national authorityor a certifiedindependentvalidator • Eachsiteneedstobecertifiedseparatly in thecountrythe individual siteislocated in Passenger or Cargo Flight Known Consignor Regulated Agent Regulated Agent

9. Responsibilitiesof a KnownConsignor businesspartners Physical Security Security Training / ThreatAwareness Procedural Security Accesscontrols Personnel Security

10. 6-Point Plan tobecome a KnownConsignor • Analyse oftheprocesses in regardstothe “pointofdefiningproductasairfreight“ • Definition ofthe secured area • Nomination oftheresponsiblepersonsforsecurity • Staffbackground check • Stafftraining • Ifnecessary in thecountry: writingofthesecurityprogramme • On-site visitfromtheauthorityandentrance in the „European databaseofknownconsignorsandregulatedagents“

11. EC (Regulation) 300 Onceknownconsignor – alwaysknownconsignor? • 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.

12. EU Database • Eachcertifiedknownshipperisentered in an European databaseand valid for all freightforwarderswithin Europe. Eachsitefromtheshipperisenteredseparatelywith an ID codeforeach individual site. • At least thepick-upaddress, depending on thecountry, needstobetheknownshipper. • The databaseisonlyaccessiblefor securityawarenesstrainedstaffwith a personalizeduserandpassword

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 • All shipmentspickedupat an unknownconsignorneedtobescreened • The allowedscreeningmeasuresdifferbetweenthe countries, howeverthefirstmeasurementandmostusedisthe X-Ray UnknownConsignor Regulated Agent Passenger or Cargo Flight Screening

15. Screening measures X-Ray Electronic tracedetection (ETD) Maximum measures 1.70mx1.70m Dark Image possibility Samples fromthe outside, insideandcontentofthepackage -> openingofthepackage Trace detectiondogs Hand search Onlyallowed in a few countries Not for all kindsofgoods Openingofthepackage

16. Challenges Air Freight Export 2013 Problems Challenges DACHSER • High increasedscreeningamounts • Delays • Costs • Liabilityrisks • „bottleneck“ incl. freightbacklog • Keepingdelaysto a minimum • Fulfillingairlinecommitments • Sustainingourcurrentprocesses

17. EU (VO) 300 – Certification of known consignor… • Increased frequency of authority controls • 100% screening of transfer shipments? • Dramatic increase of unsecured shipments • Expected changes in aviation security • DACHSER GmbH & Co. KG, Air & Sea Logistics Strategy • 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 EU reaction

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