The Singapore Aircargo Agents Association (SAAA) has highlighted that the government subsidies for security measures applicable to ‘Unknown Consignments’ has expired as of 30 June 2010. As such the Cargo Terminal Operators — SATS and CIAS — have set fees to recover the cost of the measures from 1 July 2010. SATS notified the industry that it would charge a fee of SGP$0.02/kg subject to a minimum charge of $20/shipment for screening of unknown export shipments.

The Regulated Air Cargo Agent Regime (RCAR) is a security measure implemented in Singapore on 1 April 2008 which focuses on consignments being exported out of Singapore on commercial passenger flights.

Under the RCAR, Known Consignments are subject to random screening. On the other hand, Unknown Consignments are subject to full security measures at the airfreight terminals.

SAAA representative Alex Koh said the association met the Civil Aviation Authority of Singapore (CAAS) together with SATS “to ensure that the charges as applied were only for the reason of recovering their handling costs.”

“Our association had been fully involved with the RCAR programme since day one and we have represented our members’ and the publics’ concern with the charges of x-rays for the Unknown Consignor (UC). Besides this, we are supporting the Singapore Police Force (SPF) to encourage all freight forwarders who have export shipments, to become Regulated Cargo Agents (RCA). We had established and agreed with the SPF that those freight forwarders who are not RCA shall be treated as unknown consignors. Therefore, all their shipments shall be determined as UC andwill have to be X-rayed.”

Koh added: “Unfortunately, we failed to convince the authorities that they should make it mandatory for every freight forwarder who engages in air exports to become an RCA.” This he said has made it difficult for the SAAA to push their membership to go through the process of becoming an RCA.

This is in part, because the air cargo agents much submit their procedures in a documented form as to how they handle export shipments by air, including the type of security safeguards they have in place. Only after the SPF is satisfied with the agent’s manual, will they approve them as RCAs.

Additionally, once the RCA status has been granted, the company must undergo bi-yearly audits which translates to added expenses. “Nevertheless, SAAA has done what it can to encourage all freight forwarders to go for the RCAstatus,” Koh concluded.