Administration's Deregulatory Policy Slowing ACAS Rulemaking, Industry Executive Says

A Trump administration policy to repeal two regulations for every new one created could be complicating the Department of Homeland Security’s issuance of a proposed rule to make mandatory the air cargo advance screening (ACAS) program run by CBP and the Transportation Security Administration (TSA), Cargo Airline Association President Stephen Alterman told senators Sept. 28. "I think that one of the problems that they're encountering is we do have this new administration's rule that you can't put in new rules without taking two away, and the cost implications of that," he said. Acting CBP Commissioner Kevin McAleenan has argued that ACAS qualifies for an exemption from the "two-for-one" requirement because it has a national security basis (see 1705180027).

The regulation is being finalized and is “very close” to release, according to the Cargo Network Services Corporation’s (CNSC’s) understanding of recent discussions with CBP, CNSC Vice President for Government and Industry Relations Michael White said during an aviation security hearing of the Senate Commerce Subcommittee on Aviation Operations, Safety and Security. The rule has been circulating for approval “between CBP, TSA and DHS,” White said. DHS is also looking at whether such a move could be implemented under current regulations, and therefore might not require rulemaking, White said. “We need to make that final as quickly as possible, and we need to make it applicable to everybody,” Alterman said.

In written testimony to the subcommittee, White said TSA should “review” its Known Shipper program, noting that data and technology such as ACE are better at securing and tracking cargo shipments. “CBP has used the Automated Commercial Environment (ACE) system to collect trade data both in and out of the United States for all modes of transportation. Technology has also moved to a less paper-intensive environment for most government agencies,” White wrote. “We are hopeful this review will enable us to identify ways to use the technology to reduce risk and improve cargo processing.”

Full committee Chairman John Thune, R-S.D., and ranking member Bill Nelson, D-Fla., along with subcommittee Chairman Roy Blunt, R-Mo., and ranking member Maria Cantwell, D-Wash., introduced legislation Sept. 27 that would task a public-private review and security assessment of the Known Shipper program, including whether it should be “modified or eliminated,” according to the bill text. The full committee plans to mark up S. 1872, the TSA Modernization Act, on Oct. 4, the committee announced.