Introduction

The TSA — short for Transportation Security Administration — is a public body in the USA that is responsible (in part) for the coordination and governance of all the physical and digital security of transportation systems in the country. Like several other security-related bodies, the TSA also falls under the United States Department of Homeland Security (DHS). The main role of TSA is to consolidate and optimize airport security procedures to make air travel security safer for users. One of the most important tools in the TSA's arsenal is a program called the Known Shipper Management System, which is useful for international trade carried out through the airfreight route.

Here are the explanations of all the various terminologies used in this program before understanding the program itself:

What is a Known Shipper?

A ‘known shipper’ is simply a title or accreditation given by the TSA to certain air freight shippers. A shipper becomes a known shipper when they are evaluated closely and vetted in multiple ways by their air carrier or a certified freight forwarder. After the vetting process is comprehensively done, the carrier or forwarder will forward valuable collected information from it to the TSA, which carries out some checks before approving (or rejecting) the known shipper status for shippers who have qualified cleanly. As expected, local and foreign air carriers, IACs, and other stakeholders associated with an air trade operation must comply with a multitude of security requirements to transition their clients from shippers to known shippers.

What Are the Benefits of Becoming a Known Shipper?

Post-approval, qualified Known Shippers can use passenger flights as well as cargo-only flights for their air trade deliveries. Those who have not qualified can only do so through cargo-only flights. This gives known shippers more choices in terms of the carrier, the proportion of luggage distribution, and, most importantly, pricing. With such a greater number of options, known shippers’ trade activities are comparatively frugal as compared to unknown ones.

This diversity in options also enables traders to select faster options to make reduce the overall shipping times of deliveries. This increase in speed is a result of known shippers having a greater number of routes (owing to the access available to passenger planes).

As one can see, this increases the flexibility of shipments in multiple ways, such as enabling customers to modify their shipment schedules at any time in the pre-shipment phase. In this way, air freight traders can, again, complete their deliveries on time or before time.

Additionally, known shippers also have to undergo a greater number of rigorous screening tests, while known ones just have to put their goods through just the X-ray machine. In basic terms, known air freight traders have it much simpler and faster with the help of the TSA Known Shipper Management Program.

Also Read: CBP Form 7501 Entry Summary - A Vital Import Document For US

What Is a Known Shipper Number?

After approval, a known shipper is assigned a number by the TSA Known Shipper Management System. This is a reference metric for such shippers and helps the system identify them. The number is required in multiple places while a shipper makes bookings. It is worth knowing that the known shipper works only for cargos and goods shipped from the US to external countries through the airway route.

What Are the Requirements for Becoming a Known Shipper?

The TSA stands for security and safety. Hence, the known shipper policy is all about shippers abiding by the safety standards set at the domestic or international level. Some of the factors that underline these requirements are:

  • Background checks of the trader
  • Security threat assessment
  • Regular security and awareness training
  • Secure access controls
  • A secure infrastructure
  • Proper supervision of staff, sites or bases where the delivery carrier will touch down (if applicable).

The TSA designs such factors and can change them as per their requirement. In such cases, the freight forwarder will need to brief traders about any changes or updates.

How Do I Apply for Known Shipper?

There isn't a fixed process for shippers to register themselves as 'known shippers.' All that needs to be done is for shippers to visit the official TSA website, after which they will be redirected to an air transporter or a freight forwarding partner to verify their information via the TSA website. After this, the TSA officially gets back to the trader to let them know whether their application has been approved or rejected.

What are some of the limitations to ship as a known shipper?

Cargo planes normally have higher threshold limits regarding the weight and height of goods being transported. It is also a figure that may change from one aircraft to another. The Boeing 747 cargo plane allows goods with a maximum height of 300 centimeters per cargo piece, while its corresponding people carrier, the 747, allows the height to be up to 160 centimeters.

What is the Known Shipper Management System?

The Known Shipper Management System or program is a key tool to maintain records of all shippers using the air freight channel. This helps the TSA authorities to have greater control over the security aspect of air freight trade coming into the US or leaving the country. Through this program, the TSA provides additional air cargo privileges to known shippers to encourage more shippers to apply for the same.

Also Read: Shipper's Letter of Instruction | Meaning, Format & more

What Is the Purpose Of KSMS?

The KSMS was formed in the aftermath of 9/11 with one purpose in mind — to never let an attack like that take place ever again through the air freight channel. The KSMS program contains stringent compliance rules that include shippers and freight forwarders doing a thorough security check of the goods being delivered for trade, the security precautions in place for safe delivery, and several other regulations that need to be adhered to.

Steps for becoming a Known Shipper as a business

As stated earlier, there isn't a formal application process. Simply, shippers need to get in touch with an international air carrier or a freight forwarding company. This is followed by these entities letting the trader know about the extensive list of documents and details that the TSA needs as proof of the trader's validity as a business. Once these documents are gathered and sent to the TSA for approval, the body can take anywhere between 24 hours to two weeks to approve or reject them. The time taken for the completion of the process depends on factors such as vital information being missing from the documentation provided or if there are several companies awaiting approval simultaneously.

This process is similar for individuals as it is for businesses and is useful for security monitoring and record-keeping by the TSA.