episode 5: customs and mail• mail will be getting mandated, postal operators as new stakeholders...

29 Sept 2020

Episode 5: Customs and Mail

https://www.iata.org/en/events/e-cargo/

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Sessions and Speakers

2

Episode 5: Customs and Mail, 22 September 2020

14h00Opening Remarks

Tahir Syed, IATA

14h10Customs Regulatory Updates

Christian Piaget, IATA

14h25Customs’ demand for MAIL advance data

Bernard Heuzeveldt, AF/KLM

14h45New PLACI Regulations (Cargo and Mail) and Impact on Airlines

Rani Joseph George, Lufthansa Cargo AG

15h00EU-ICS2, IATA and UPU

Andre Majeres, IATA

Data Filing Regulation?

▪ Allow authorities to better identify high-risk consignments

▪ Facilitate cross-border clearance for the legitimate trade

▪ Improve Data Driven Customs Security Processes

Efficient and effective customs security and safety capabilities:

Pre-Loading Advance Cargo Information (PLACI) Filing Programs

ACAS - Air Cargo Advance Screening

PACT - Preload Air Cargo Targeting PREDICT - Pre-Departure Information for Cargo Targeting

ICS2 - Import Control SystemsUnited States (US) Europe (EU)

CANADA United Kingdom (UK)

Who does ACI/PLACI programs affect?

▪ Postal operators;

▪ Express delivery services;

▪ Air cargo carriers;

▪ Freight forwarding logistics companies;

▪ Ultimate consignees;

▪ Maritime, railway and road carriers;

▪ Representatives of above.

What are the Building Blocks?

1Data Set

2General

Principles

3Business

Processes

If I am not ready in time

▪ Cargo will be stopped at Customs border.

▪ Customs will not proceed with goods clearance.

▪ Non-compliance may result in sanctions/penalties.

▪ Poor quality declarations will either be rejected or subject to unnecessary interventions.

29 September 20207

29 September 20208

Customs regulatory requirements for airlines’ advance reportingChristian Piaget

IATA Cargo Border Management

Digital Cargo Webinar – Episode 5/Customs & Mail

Agenda

1. Applicable international standards

2. Existing regulations

3. Incoming regulations

29 September 2020Digital Cargo Webinar – Episode 5/Customs & Mail9

Creation of the WCO SAFE Framework

9/11


Yemen incidentWCO SAFE

Pre-loading (“7+1”)→ Security

On arrival (complete cargo + goods declaration)→ Safety, security, fiscal, etc.

A B

Check Point 1

Check Point 3

Check Point 2

When do we file Cargo data to Customs?

What are the applicable regulations today?

International Standards


Regulations Pilots

Future PLACI countries…?

19 CFR §122.48a

19 CFR §122.48b (PLACI)

EU Customs Code (incl. PLACI)

UK PreDICT

PACT

HK

IN

JP

MU

MG70+ countries pre-arrival

Pre-loading (“7+1”)→ Security

On arrival (complete cargo + goods declaration)→ Safety, security, fiscal, etc.

A B

Check Point 1

Check Point 2

New Mail requirement:When will Mail data be filed to Customs?

Check Point 3

POST

Message mapping required!

POST

How IATA can help

Industry groups


Guidance materials & updates

Publications

Cargo Customs Working Group/CCWGCargo Messaging Working Group/CMWG

https://www.iata.org/en/publications/store/cargo-xml-toolkit/

https://www.iata.org/en/publications/placi-standard-procedures-for-preloading-advance-cargo-information/

https://www.iata.org/en/programs/cargo/cbm/fal/

How IATA can help


Thank You

www.iata.org

Digital Cargo Webinar, Episode 5Customs and MailTuesday September 29th 2020

How could MAIL advance data compliance in new (EU) regulations impact airline operation!

Bernard HeuzeveldtProduct Owner Compliance, Security and Customs AFKL [email protected]

18 Impact

• Mail vs Cargo

• Who does what

• Cargo: carriers do the filing for PLACI and we have self filers based on bilateral agreements

who can file their XFZB/FHL to authorities

• Mail: Actually posts are selffilers but they only file the items which, when approved by

destination authorities, are loaded into receptacles. Receptacles are closed and are the

‘pieces’ that carriers transport as part of a consignment

• Import vs Transit

• Import: origin post files via destination post with destination authorities – in case destination

is in EU, the point of entry in EU might have transiting restrictions which do not apply in

destination courty

• Transit: for EU no EAD for transiting EU with destination outside EU.

19 Impact

• Postal AWB

• Only for documentation purposes

• Could also be used

• Cargo systems and MAL special handling codes

• MAL must make sure that PAWBs are not going to places only ‘cargo’ AWBs should go

• Routing – when to create PAWB

• From post point of view :Items are filed on O&D – when origin non EU post files to non EU

• Self filers

• All posts are self filers but on item level. The receptacles (House waybills) are not being

EADed . Carrier will only do ACI – advance cargo

• Conversion Cardit to IATA CXML

• IATA, UPU and IPC did a good job preparing

• PAWB/ FWB must be accompanied by (X)FHL to indicate which receptacles travel in the

consignment. Ideally all receptacles at the same time.

• Acceptance/ reject procedures

• Each receptacle at origin must be checked against the cardit and must be rejected when not on

cardit. This could alter the content of the PAWB when PAWB was created by post

• Resdit without Cardit

• This cannot be used anymore due to the nature of EAD

• ‘Paper CN38/41’ transportation

• As mail needs to be digital to be transported paper docs cannot be the acomnpanying docs

anymore. I do not think carriers will digitize these at origin.

Thank You

Bernard HeuzeveldtProduct Owner Compliance, Security and Customs AFKL [email protected]

New PLACI Regulations (Cargo

and Mail) and Impact on Airlines

29.09.2020, Rani Joseph George

Lufthansa Cargo

|

22

Timeline for implementing ICS 2

ICS 2

sundown ICS1 from 03/25

Lufthansa Cargo

|

23

➢ Release 1 – 15. MAR 2021

• Only PLACI (Pre-Loading Advanced Cargo Information) for Air Express and Airmail

• Only point-to-point, Transit excluded

➢ Release 2 – 1. MAR 2023

• Complete ICS 2 (PLACI plus arrival) for General Cargo

• Complete ICS 2 (PLACI plus arrival) for Air Express

• Complete ICS 2(PLACI plus arrival) for Airmail

➢ Release 3 – 1. MAR 2024

• Complete ICS 2 for alle other modes (Road, Rail, Maritime)

Implementation in 3 Releases

ICS 2

Lufthansa Cargo

|

24

Impact on airlines

ICS 2

➢ What does it mean for us?

• PreLoading is still not the standard (industry is still learning)

• More stakeholders

• Mail will be getting mandated, postal operators as new stakeholders

• Multiple filing with freight forwarders to consider

• More data

• HS codes

• Business processes

• Process to handle Referrals needs to be set up

• Implement process for interfacing with postl operators, freight forwarders

• Implement process to include mail into the cargo handling process

Lufthansa Cargo

|

25

Impact on airlines 2

ICS 2

➢ What does it mean for us?

• IT

• Adapt handling system to reflect new processes

• Adapt customs filing system

• Adapt interface of both

• Integrate interface to mail (postal AWB)

• Possibly adapt to new data fields if required

• Data and messaging standards

• E.g. Postal AWB likely to mandate CXML messaging, as CIMP cannot handle a receptacle as

HAWB number

• Common messaging standards a prerequisite for communication between multiple

stakeholders

Lufthansa Cargo

|

26

Challenges industry will be facing

ICS 2

• Data quality – not new, but increasingly relevant

• Compatibility of stakeholder approaches: A shipment is filed on HAWB level (20 Houses); Airline

only gets one MAWB from FF; however, airline will be copied in responses for 20 HAWBs from

customs

• How to identify if a shipment was self filed, or needs to be airline filed

• Availability of data (e.g. HS code)

• Allowances for data in IT

• Timeline of implementation – quite a short period of time remaining for quite comprehensive

changes

• Getting used to react and ensure customs clearance before loading

• Intertwining cargo and mail which are normally two independent areas of business

• Process-wise

• Technically (IT)

• How to deal with late referrals

Lufthansa Cargo

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27

Call for action and possible action plan

ICS 2

➢ How do we prepare?

• Get to know what is coming up

• Get familiar with guidance docs

• Outline your future processes

• Get in touch with your provider (or new provider) and implement

• Upgrade existing systems, create new interfaces

• Inform and prepare/train your organziation

• Start now by creating awareness within your organziation and towards customers

• Use any e-inititives to drive home importance of data quality and timely availability

Lufthansa Cargo

|

28

Call for action and possible action plan - 2

ICS 2

➢ How IATA can further support industry

● Consider launching a program to:

● Create industry awareness proactively

● Push for adoption of the new business processes

● Take steps to ensure high-quality, precise data is provided

● Support development and update of IT systems for exchange of information

● Provide specialized training

EU-ICS2, IATA and UPU

Andre MAJERES

IATA Cargo, Mail & eCommerce Operations

29 September 2020

Mail Electronic Advanced

Data (EAD)

Our discussion today

• IATA-UPU Global Postal Model

• The Postal Air Waybill number (PAWB#)

• IATA’s guidance material for Mail PLACI (EU ICS2 Release I)

• Work in progress

29 September 202030

IATA and UPU – The Global Postal Model

29 September 202031

We are facing today a strong feeling of urgency

Traditionally, Mail is treated as a specific product by the air carriers and follows its own business processes &

standards. Due to this special handling, Mail was generally exempted from cargo advance data filing regulations

introduced by national governments to mitigate security risks.

Considering security is a top priority and in line with ICAO and WCO’s latest international standards, many government

authorities are tightening their security measures by upscaling their existing risk assessment programs.

The EU has specifically planned to implement such extension in the coming months.

Cargo and Mail Systems

29 September 202032

▪ Complete disconnect

▪ Separate Business Processes

▪ Different Messaging Standard

EU-ICS2 and The Global Postal Model

29 September 202033

▪ Post transmits Mail Item Data to Customs

▪ Get Acceptance from Customs

▪ Post transmits Data to Carrier

▪ Carrier transmits Consignment Data to Customs

EU-ICS2 release 1:Is it business as usual for Carriers?

General Perception: Posts will transmit Mail Item Data to destination customs and Carriers are not involved

Ground Reality: Carriers might have the mail consignment in their custody without knowing if there is any late referral issued by an EU Member State (late referral scenario)

29 September 202034

For EU-ICS2 release-1, Carriers must make sure that

necessary business processes are available to address

late referral scenario.

IATA guidance material for Mail PLACIEU ICS2

The purpose of the paper is to serve as a guide for air carriers & their partners to be ready to file the mail advance data to the EU member states under the new EU-Import Control System (ICS2).

Building blocks of EU-ICS2 release program including timelines, implementation strategy etc. are reviewed and impact on air carriers is analyzed.

This paper identifies:

1. The new operating procedures that need to be in place between air carriers and posts

2. Gaps between mail and cargo existing business processes

3. Emphasizes the need for further standardization work to be undertaken by IATA & UPU.

29 September 202035

IATA guidance material for Mail PLACIEU ICS2

29 September 202036

IATA guidance material for Mail PLACIEU ICS2 release 2

29 September 202037

▪ Business Processes Synchronization

▪ Postal Air Waybill number - A Common Denominator

▪ Assignment of Postal Air Waybill number

▪ Messaging Standards alignment

▪ Conversion from CARDIT – XFWB and XFHL

▪ Laboratory testing

The PAWB# - Postal Operator Process

29 September 202038

The PAWB# - Carrier Process

29 September 202039

The PAWB# - Synchronization and Mapping

29 September 202040

IATA and UPU made a laboratory test to map a

CARDIT message to a XFWB and XFHL message

And it was successful…

The only common denominator allowing for the conversion was the PAWB#

Work in progress – Business processes

✓ Mail consignments will no longer be exempted from the risk assessment as of March 2021. To ensure compliance with the new Mail EAD regulations, air carriers and postal operators must upgrade their Cargo and Mail systems

✓ While IATA and UPU have come a long way to address the challenges of EU-ICS2, there are still issues for the standardization of the outstanding business processes such as late referrals when Mail is already handed over, Mail Part Consignment, Mail Transfer and Transit Mail.

✓ As the Mail consignment is transiting through the EU without involvement of the local EU postal operator, this maintains a security risk for aviation and industry, and we must agree and implement new business processes and SOPs to mitigate the risk.

✓ IATA believes that under the current EU legislation, if this issue is not resolved by March 2023, air carriers will not be able to carry mail consignments transiting through EU.

29 September 202041

Work in progress

✓ Customs authorities need to be engaged to assess the validity of these business processes and newly developed solutions hence, the mail EAD pilots must include EU customs/member states on top of the Postal Operators and air carriers.

3rd Party IT Service Providers for Mail handling solutions are going to play a key role in the industry readiness for EU-ICS2.

29 September 202042

IATA and UPU are urging all stakeholders involved in the transportation of Mail to volunteer for those pilots and show

the feasibility of the measures put in place

29 September 202043

Thank you

Andre MAJERESManager Cargo, Mail & eCommerce Operations and Standards

[email protected]

www.iata.org/cargo

mailto:[email protected]

http://www.iata.org/cargo

Q& A Session

44

Episode 5: Customs and Mail, 22 September 2020

Opening Remarks

Tahir Syed, IATA

Customs Regulatory Updates

Christian Piaget, IATA

Customs’ demand for MAIL advance data

Bernard Heuzeveldt, AF/KLM

New PLACI Regulations (Cargo and Mail) and Impact on Airlines

Rani Joseph George, Lufthansa Cargo AG

EU-ICS2, IATA and UPU

Andre Majeres, IATA

episode 5: customs and mail• mail will be getting mandated, postal operators as new stakeholders...

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