Pandora Intelligence Blog

Compliance essentials in Air Cargo

Written by Pandora Intelligence | Feb 10, 2025 1:10:36 PM

In the fast-paced world of air cargo, understanding regulatory frameworks is essential for the efficiency, safety and legality of the business. Ranging from sanctioned entities, hazardous materials, to endangered species, and much more, air cargo operators face a complex web of laws and regulations designed to mitigate risks and penalize undesired behaviors.

In this article, we’ll explore some of the common air cargo compliance topics. For conciseness, we will limit it the following scopes:

  1. General (international) regulations – Encompassing aspects such as but not limited to tariff and trade regulations, international treaties, and regulations specific to good types.
  2. Regulations applicable on local/national level – Comprising rules and regulations issued by local authorities on topics such as import/export of goods or sanctioned entities.
  3. Other conventions and agreements of relevance – With the purpose to ensure absence of unlawful or illicit goods in cargo and/or to provide guidance about specific types of goods.

Rules and regulations

With rules established both on national and international levels, the total number of regulations for freight carriers to comply with is significant. Further adding to this challenge, certain (geo)political events might drive authorities to (frequently) update the content of those regulations. This burdens carriers’ operations with the need for continuous monitoring of changes in regulations potentially resulting in the necessity to update of their own cargo management processes.

For conciseness or this article, we organized the rules and regulations in three levels:

General (international) regulations

International regulations establish globally recognized standards to ensure the safe and consistent transportation of air cargo. These guidelines may play a vital role in harmonizing practices across countries, facilitating seamless trade and efficient logistics, and even ensuring safety and security of stakeholders. They are developed by a range of entities, including international organizations such as the ICAO and WCO, industry associations like IATA, as well as the United Nations bodies and their affiliates.

Some examples of those are:

  • IATA Dangerous Goods Regulations (DGR)
  • Battery Shipping Regulations (BSR)
  • Infectious Substances Shipping Regulations (ISSR)
  • Live Animal Regulations (LAR)
  • Perishable Cargo Regulations (PCR)
  • Temperature Control Regulations (TCR)
  • Perishable Cargo Regulations (PCR)
  • Temperature Control Regulations (TCR)

Regulations applicable on local/national level

Local regulations are country-specific rules designed to address national priorities and concerns in air cargo transportation. These regulations often focus on sensitive areas such as the handling of strategic assets, compliance with export controls, and adherence to sanctions imposed on specific organizations or individuals. Developed by national governments and their agencies, these rules reflect each country’s unique security, economic, and environmental goals.

Some examples of those are:

  • Military goods: US ITAR; CGP; EU 52018XG0315
  • Dual-use goods: US EAR; EU 2021/821
  • Sanctions list, such as but not limited to:
    • US - Office of Foreign Asset Control (OFAC)
    • US - Bureau of Industry and Security (BIS)
    • CA - Global Affairs
    • UK - Office of Financial Sanctions Implementation (OFSI)
    • EU - Consolidated list of persons, groups and entities subject to EU financial sanctions (CFSP)
    • FR - List of Asset Freezes (GEL)
    • SG - MAS Enforcement Actions
    • UAE - Supreme Council for National Security
    • AU - Department of Foreign Affairs and Trade
    • UN - UN Security Council

Other conventions and agreements of relevance

Some international agreements and treaties that serve as critical frameworks for cooperation among countries. These texts outline shared goals and principles, which sometimes end-up being adapted and implemented as enforceable laws at the national level.

Some examples of those are:

  • CITES (Convention on International Trade in Endangered Species of Wild Fauna and Flora)
  • Montreal Protocol
  • Wassenaar arrangement

Responsibilities

Although bodies such as IATA, ICAO, and national aviation authorities play a crucial role in the air cargo rules and regulations, customs authorities also play an important role. Well known customs declaration programs are ACAS (Air Cargo Advance Screening - US), ICS2 (Import Control System - EU), PACT (Pre-load Air Cargo Targeting - Canada), PreDICT (Pre-Load Data Informed Cargo Targeting - UK) and NAIC's ACI (Advanced Cargo Information - UAE).

These authorities hold carriers responsible for ensuring that information included in the cargo manifest is complete and accurate before declaration. Inaccurate, incomplete, or fraudulent manifests may result in penalties, such as fines, goods seizures, license revocation, or criminal charges.

Consequently, manifest validation and compliance verification are critical legal concerns for airlines and freight carriers.

Conclusion

The air cargo industry relies on a robust framework of rules, regulations, and laws to maintain safety, efficiency, and global competitiveness. These regulations help ensuring safety and security, and overall - preventing accidents. They also provide consistency across international borders, facilitating smoother operations and trade. Compliance with laws and trade regulations minimizes risks, ensures lawful business practices, and prevents potential illegal activities. Moreover, legal guidelines provide clarity in regards of responsibilities and accountability of stakeholders.

In essence, these laws are vital for the industry’s smooth functioning, fostering security, reliability, and trust within the global trade. They are indispensable for the continued growth and reliability of the industry.

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This article is written for informative purpose only, is general in nature, and should not be relied upon or construed as a legal opinion or legal advice.