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‘A fantastic achievement’ – ETRC Secretary General Keith Spinks welcomes LAGs breakthrough - 25/11/09

Published: 25/11/09

Source: ©The Moodie Report

By Martin Moodie in Dubai

INTERNATIONAL. European Travel Retail Council (ETRC) Secretary General Keith Spinks has welcomed the proposed two-stage lifting of restrictions on air passengers carrying liquids, aerosols and gels (LAGs) in excess of 100ml from April 2011 and April 2013, respectively.

As reported, all restrictions on LAGs will be lifted in EU and EEA countries from 29 April, 2013. And two years earlier, on 29 April 2011, passengers transferring within EU/EEA airports (from any originating country) will be able to retain their LAGs.

Martin Moodie spoke to ETRC Secretary General Keith Spinks just after the announcement was made during the annual Middle East Duty Free Association (MEDFA) conference in Dubai yesterday.

Keith first can I clarify the two dates you mentioned – April 29, 2011 and April 29, 2013 – and what specifically will happen on those two dates? The earlier date applies specifically and only to transfer passengers, correct?

Keith Spinks:
Correct. As of April 29, 2011 any passenger arriving into the EU and transferring onto another flight will be able to carry their duty free purchases with them through security screening points as long as the items are inside a sealed tamper-evident bag (STEB) that meets the ICAO specifications and includes a receipt that the products were purchased within the last 36 hours.

"I would hope that by the time we get to 2013 there won’t be any restrictions on liquids anywhere in the world"
Keith Spinks
ETRC
Secretary General
Ok. And that earlier date of 2011 for transfer passengers is the result of ETRC lobbying?

Basically yes. What’s actually happened here is that the Commission proposed an extension to the current rules and restrictions. The current restrictions are due to expire in April of next year. They had asked for an extension because it takes time to get the [security] technology in place which will efficiently screen liquids. It will take time for that technology to be in effect, active and working. So they have extended that to 2013.

However, they have also accepted that there is no question about the supply chain security for the liquids that go into the duty free shops. The STEB system has been working within the EU since 2006. So they’re prepared to lift the restrictions on transfer passengers arriving in the EU – wherever they’re coming from, i.e. any originating airport – from April 29, 2011.

So from that earlier date the transfer issue within EU airports is solved – though it remains unresolved for airports elsewhere?

Yes. This is purely EU, Switzerland, Norway and Iceland. So that is done and dusted.

That’s a big breakthrough.

Oh it’s a huge breakthrough though I have to say it’s still subject to ratification by the European Parliament. But we’ve been working very closely with the European Parliament over the past few months on the issue of transfer passengers and they have always been very supportive of the ETRC and our push to get a solution for transfer passengers.

They were actually pushing for April 2010 so we’ve got to talk to the European parliament now to advise them that we understand the one-year delay [to 2011] and the need for airports to be able to work out how they are going to be able to facilitate transfer passengers.

We will talk to the parliament and say ‘Look we accept the 2011 deadline’. Hopefully the parliamentarians will see this as a major advantage, even though they wanted 2010. It’s certainly a bigger advantage than the original proposal which was being pushed, of a ‘big bang’ [lifting of restrictions] for all passengers [transfer and landside/airside] at the same time.

Some airports will put in screening technology; some will find another way of treating transfer passengers carrying their STEBs; and some may have a special transfer screening point for transfer passengers with STEBs as opposed to those without STEBs. They will all need to look at that now.

But landside to airside restrictions remain in place?

Yes, until April 29, 2013.

Keith, given that the problem started in Europe and the breakthrough has come in Europe, what effect do you think this will have elsewhere in the world – and particularly on similar restrictions that are in place in other countries? Do you think this will accelerate movement in Asia and North America, for example?

I think it will. We have clear indications that the US is looking at how quickly they can lift the liquid restrictions in the US itself. They will have technology in place, probably by February or March next year... to screen for liquid explosives. They will probably move to lifting the restrictions on all passengers earlier than us.

Elsewhere, I think this should give an impetus for those countries that are currently restricting transfer passengers to rethink it. The country, in particular, that I am thinking of is Australia which operates ‘last port of call’ screening for transfer passengers.

They need to look at that and I hope that they will. If we’ve found a solution for the EU, I would have thought they can find a solution there. I would hope that by the time we get to 2013 there won’t be any restrictions on liquids anywhere in the world.

For the 30 countries that comprise the EU and the EEA to have taken this decision is a really great breakthrough. The really good thing about this is that it will help us bring back consumer confidence. We’ve lost so much business through people being confused.

Obviously once all this is ratified the trade faces a big, big job on communication?

Yes. But we’ve got 16 months to get that message and that communication right. That’s now the most important thing – what is the message we’re going to convey, how is it going to be conveyed and when do we convey it?

The one thing we don’t want happening is for people to start carrying liquids and then have them confiscated because they got the date wrong. So the message we are going to communicate has to be clear and we have to define exactly what we are going to say. If we get it wrong, confusion will reign again and we can’t afford that.

Are there any potential stumbling blocks to ratification?

The ratification by the European parliament will probably take about three months.

"This decision will really give a boost to the industry and maybe even get back what we have lost since the restrictions were first put in place"
Keith Spinks
ETRC
Secretary General
And the Commission?

The Commission ratification process is more about the College of Commissioners themselves... the Commissioner for Transport will table this and they will either say yes or no. But we don’t anticipate any problems with the Commission.

We might have some problems with the Parliament over the 2013 date. They were trying to push it faster. They were looking at 2012 as a compromise.

On the transfer passengers they were looking for April 2010. It’s gone to April 2011. My personal point of view is that if we as ETRC representing the industry can make it clear that we are happy with that... then I think the Parliament will go with it.

Globally, this must be a red-letter day for the business?

I think so. It will actually help retailers outside the EU the most. And it will bring back consumer confidence. Because if people have their liquids, aerosols and gels taken off them when they arrive in the EU, then that’s not giving a pretty picture of the EU.

From a political point of view I think it’s great; from a commercial point of view I think it’s fantastic. In 16 months time, retailers here in Dubai or Abu Dhabi or anywhere else in the world will be able to sell their liquor, perfumes and cosmetics freely to any traveller going into the EU, as long as they seal the goods in a tamper-evident bag. I think that’s a fantastic achievement.

Is this the beginning of the end of a very dark period in the duty free industry?

Very much so... from 2006 we have had a miserable time of it. This decision will really give a boost to the industry and maybe even get back what we have lost since the restrictions were first put in place. I know that our colleagues in places like Canada will be very pleased that this has happened.

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