Mandatory Pre-load Air Cargo Targeting Program

Summary#

These are proposed changes to the Regulations Amending the Canadian Aviation Security Regulations, 2012 (Air Cargo) that would turn an existing pilot program into a required national program. Under the proposal, Transport Canada would require all air carriers bringing cargo to Canada to send advance cargo data so risky shipments can be identified before loading. The notice was published on March 18, 2023 and people had 75 days from that date to comment.

What it does#

• Creates a mandatory Pre-load Air Cargo Targeting (PACT) program. All air carriers bringing cargo from outside Canada would need to submit advance cargo information before loading. Mail and passenger baggage are excluded.
• Requires air carriers to provide these eight pieces of information for every shipment before it is loaded:
  • air waybill number
  • name and address of the original shipper
  • name and address of the consignee
  • a description of each piece of cargo
  • number of pieces
  • total weight
• Requires flight details to be sent to Transport Canada as soon as feasible after departure and before arrival.
• Transport Canada would run an automated risk check (using new IT systems and AI analytics) and could:
  • request more information,
  • order screening of cargo,
  • issue a “Do Not Load” (DNL) notice to block shipment.
• Air carriers must not load cargo until they receive confirmation of receipt of the data (the system aims to send confirmations within five minutes for routine low-risk shipments).
• Sets penalties enforceable as administrative monetary penalties (AMPs): up to $25,000 for serious failures (for example, transporting cargo after a DNL or failing to control a detected threat) and up to $10,000 for information-reporting failures.
• Makes small clarifications to Parts 11 and 12 of the Canadian Aviation Security Regulations, 2012 (CASR 2012) to separate rules for flights from Canada and flights from outside Canada.
• Records submitted under PACT would generally be kept for up to 18 months unless a threat is confirmed.

Note: this is a proposed regulatory change (not yet law) and would come into force only after final publication in the Canada Gazette, Part II.

Who's affected#

• All air carriers that transport cargo to Canada — both Canadian and foreign operators — would be required to submit the data. Historically this involved about 24 Canadian carriers and about 116 foreign carriers.
• Freight forwarders and other third parties who send data on behalf of carriers may also be involved.
• Shippers and receivers could be affected if a shipment is selected for extra screening or is given a DNL and delayed or blocked.
• Small businesses: the government estimates five Canadian air carriers qualify as small businesses; the small-business impact is expected to be limited (estimated at about $615 per small carrier over 10 years).

Why it matters#

• The aim is to make it harder for dangerous or high-risk cargo to get on planes heading to Canada by spotting problems before loading. That adds a security layer earlier in the supply chain.
• The government estimates the program would cost about $6.3 million in present value over 10 years: $4.2 million to the government and $2.1 million to industry. Those are mainly setup, IT, and staff costs and ongoing processing costs.
• Benefits are mostly described qualitatively because it is hard to put a reliable number on how much risk would be avoided. The analysis notes that preventing a single catastrophic attack would avoid very large human and economic costs (an illustrative figure used in the analysis was $2.23 billion for a Pan Am 103–type fatality scenario), but the actual reduction in risk from these rules is uncertain.
• The proposal also brings Canada more in line with international programs (for example, the U.S. Air Cargo Advance Screening (ACAS)) so it fits with how other trading partners handle advance cargo information.
• Practically, air carriers and shippers should expect new routine steps: submitting standard data feeds, responding to requests for more information or screening, and the possibility of delays if cargo is flagged.