TSA ISSUES FINAL RULE TO REDUCE REGULATORY BURDEN FOR INDIRECT AIR CARRIERS
March 4, 2024
On February 8, 2024, the Transportation Security Administration (“TSA”) issued a final rule to reduce the frequency of Indirect Air Carrier (“IAC”) renewal applications for the IAC security program. The program ensures that “IACs are held accountable for securing the goods entrusted to them throughout those legs of the supply chain for which they are responsible.” Specifically, the rulemaking requires renewal once every three years as opposed to the current requirements, which mandate that IACs submit a renewal application each year. By receiving and consolidating cargo from one or more shippers, IACs act as intermediaries between a shipper of air cargo and an air carrier. To secure the air cargo supply chain in the United States while also reducing regulatory costs, the final rule reduces the frequency that IACs must renew their security program certifications. When TSA first implemented the annual renewal requirement in 2006, it assumed that an annual cycle was the best way to confirm that each IAC complied with TSA security requirements. TSA now acknowledges that it can guarantee compliance through a nationwide schedule of regular annual inspection, reducing the need for annual renewals. TSA further noted that its ability to withdraw approval of any IAC security program provides an effective safeguard in the event that TSA identifies an ongoing security risk.
If you have any questions, please contact Evelyn Sahr at 202.659.6622 or esahr@eckertseamans.com; Drew Derco at 202-659-6665 or dderco@eckertseamans.com; Jay Julien at 202.659.6648 or jjulien@eckertseamans.com, or any other attorney at Eckert Seamans with whom you have been working.
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