Last week we spoke about the most significant change to the Australian Aviation Industry in decades, that is, the introduction of 100% piece-level x-ray/physical screening of air freight. This week we want to introduce further changes to the industry involving air freight.
The Known Consignor scheme has been introduced to help streamline the way goods are cleared for export from Australia by air. From March 1st, 2019, all export air cargo will either need to be examined at piece-level or originate from a ‘Known Consignor’ in order for the goods to be exported by air. An approved Known Consignor will be responsible for securing their cargo that originates from their business/warehouse, until that cargo is handed over to another regulated business i.e. RACA or CTO.
A Known Consignor MUST demonstrate that they have security measures and procedures in place, to meet the stringent international air export security requirements, and that they are able to secure their export air cargo from where it originates, until it is handed to another regulated agent. Entry into the Known Consignor Scheme is by application and will require validation (an on-site inspection), and approval by the Department of Home Affairs (the Department).
The below diagram shows the two main options available to air export cargo:
Costs that may be incurred in becoming a Known Consignor include:
- The creation of security procedures and documentation
- Installation of security equipment
- Security training for staff that will be handling and preparing the cargo for air export
Benefits associated with becoming a Known Consignor:
- Minimises potential delays at airport terminal/CTO
- Cargo lead times are reduced
- Cost benefit as cargo is already security cleared and will not require examination
If you require more information about the Known Consignor scheme, visit the Department of Infrastructure and Regional Development website.
For more than a century, BCR has continued to help small, medium and large businesses achieve an optimum logistics solution with warehousing and transportation, including air freight and sea freight services to and from the major ports including Brisbane, Sydney, Melbourne, Adelaide and Fremantle (Perth).