In August 2023, the Federal Aviation Administration Office of Hazardous Materials Safety (FAA AXH) released Advisory Circular 120-119 (AC) for use by shippers, e-commerce companies, freight forwarders, ground handlers, and distribution centers. These entities, referred to by FAA as other regulated entities (OREs) are now strongly advised and encouraged to develop an FAA-approved safety program to safely offer dangerous goods into commerce.

How is this AC different?

Traditionally, FAA uses advisory circulars to provide guidance to airlines and other FAA-regulated parties. While ACs are not binding, they include strongly recommended advice to help certificated parties remain in compliance with Title 14 Code of Federal Regulations (14CFR) Aeronautics and Space regulatory requirements.

This AC is a bit different: it addresses parties that are not certificated by FAA. Here, OREs who are not certificated by FAA are encouraged to develop and utilize safety management systems (SMS) in their operations. SMS is required for domestic air carriers and mandated worldwide for all participant states and international airlines by the International Civil Aviation Organization (ICAO), the regulatory body of the United Nations.

Why SMS?

Federal regulation has firmly entrenched SMS in the aviation community, and other modes of transport are moving towards incorporating them into their regulatory requirements. While a safety management systems program takes time and resources to develop, implement, and maintain, the downline savings are potentially significant.

Some may argue that it’s difficult to quantify the savings gained from safety, however recent SMS-related failures in the aviation community have made international daily news. The cost of not properly developing, implementing, and maintaining an SMS program can not only impact your firm’s long-term profits and industry reputation, it can cost—or save—lives. When considered holistically, the benefits of a meaningful and robust SMS system contribute to a healthy financial, cultural, and operational outlook.

What does this mean for your business?

All U.S. carriers and international carriers have SMS programs of their own, and several airports and airlines recommend the use of SMS by parties doing business with them. If your company is an ORE as described above, you can develop an SMS program for approval by FAA. For many companies, adopting and implementing their own SMS program will make day-to-day interfaces with airlines and companies that work directly with airlines more efficient.

If your company chooses to develop and implement an SMS program, FAA will review your proposed program to ensure it incorporates FAA Safety Attributes prior to approval. Keep in mind that your SMS will be scaled for the size, scope, and complexity of your operation. Because each company’s operations are different, there is no one-size-fits-all template for building an SMS program. It must be tailored to your unique business.

What are the benefits of building your own SMS?

If you build your own SMS program, you’ll understand the terminology and principles from the outset. This will help you interface and communicate effectively with regulators when they visit for an inspection, saving your company time and cost. Having your own in-house program will add greater ease to your business-to-business interactions with other organizations that have adopted SMS.

By implementing an approved SMS program, your company will become eligible for the FAA Compliance Program which aims to pre-empt and/or correct underlying causes that lead to identified failures, which often entail expensive enforcement action. This program allows members to share information, including the disclosure of violations, in a non-punitive environment, such as an internal audit that reveals honest mistakes. Because this program relies on open communication and corrective actions to minimize violations, risks, and hazards, fines and cumbersome enforcement actions are often eliminated. Additionally, SMS can energize your employees by making them part of the process of developing an authentic safety culture and expanding their knowledge beyond the specific duties they perform.

[Note that, if a violation of regulations is determined to be intentional or reckless or the violation poses an unacceptable risk to health and safety, enforcement action may be taken. This rarely happens and only in extreme cases, however it is a possibility.]

Next steps

Interested in developing a safety management systems program and an effective safety culture in accordance with your company’s business plan? First, you’ll need to engage your employees in the process of analyzing your organization and operational structure. This process involves identifying gaps in your programs, operations, policies, controls, and procedures. The good news? Your company may already implement several SMS elements in your current structure. Once these elements are identified, you can incorporate them into the development of a full program and implementation plan as outlined in the AC.

If you need help developing an SMS program tailored to the scale and scope of your business, you might bring on an SMS aviation consultant familiar with FAA’s regulations, procedures, and culture. Off-the-shelf programs or templates typically do not meet federal, or SMS requirements and the back-and-forth of revisions can cause extended delays in acceptance and implementation of a proposed program. Partnering with a subject matter expert can help you develop a program right sized to your operation that moves seamlessly from review to acceptance to implementation.

Author: Michael Burdick served as a principal hazmat inspector and hazardous materials special agent for the FAA for over 20 years, having started his career in commercial aviation. Today, Michael works with DGI as a consultant specializing in FAA compliance issues and audits.

For more information you can contact Michael directly at aviationhazmat@gmail.com