Indirect Air Carrier (IAC)

An Indirect Air Carrier (IAC) is, in TSA's definition, "any person or entity within the United States not in possession of an FAA air carrier operating certificate, that undertakes to engage indirectly in air transportation of property" (49 CFR 1540.5). In practice that is an air freight forwarder or consolidator: it takes the shipper's cargo under its own house air waybill and tenders it to an airline.

What the security rules require: 49 CFR part 1548

• Security program: no IAC may offer cargo to an aircraft operator operating under a full program (or full all-cargo program) unless it has and carries out an approved security program (49 CFR 1548.5). TSA renews IAC programs annually, and new applications are made through its Indirect Air Carrier Management System
• Chain of custody: the program covers the cargo from acceptance until it is transferred to the airline, whether or not the IAC ever physically handles it
• Known shipper program: for cargo loaded on aircraft in the US, the IAC must vet its shippers and keep known shipper cargo separate from unknown shipper cargo (49 CFR 1548.17)
• Screening: cargo for passenger aircraft is screened, by the airline or at a TSA-certified cargo screening facility, under TSA's 100% screening requirement

IAC vs airline vs ocean NVOCC

The airline flies the cargo under the master air waybill. The IAC is responsible for its own shippers' cargo up to the point it hands it over, and issues the house air waybill. The ocean counterpart is the NVOCC, licensed by the FMC rather than TSA. On imports into the US, the forwarder, or the IAC or foreign IAC, may also file ACAS data with CBP instead of the airline.

Why it matters to a shipper

The IAC's security program is what lets it accept your cargo and hand it to the airline. Ask a new forwarder for its IAC status, and expect to be vetted as a known shipper before the first shipment. Airlift USA operates as a TSA-regulated Indirect Air Carrier; see air freight.