U.S. Agency Grounds Air Cargo Firm

Citing “repeated security infractions,” federal officials Wednesday revoked certification for a Torrance company that consolidates and delivers cargo to airlines at Los Angeles International Airport, where it is placed in the belly of passenger aircraft for shipment.

The action, which forbids passenger carriers at LAX to accept goods from J.H. World Express Inc., is only the second time the Transportation Security Administration has revoked a freight forwarder’s certificate for not meeting security standards.

A spokeswoman for the TSA, the federal agency charged with fortifying the nation’s aviation system against a terrorist attack, refused to detail the security violations.

“There were multiple violations over the course of months that were not adequately addressed,” said Jennifer Marty-Peppin. “These violations are directly related to security requirements that all freight forwarders must meet and are not due to any specific terrorist ties at the company.”

Congressional investigators have repeatedly said cargo in passenger aircraft remains an inviting target for terrorists. Most of the 23 billion pounds of commercial cargo shipped every year by air isn’t screened for explosives.

Thousands of companies that deliver goods to airlines for shipment in passenger aircraft are required under federal law to prove to airlines they know what they are shipping and its origin. TSA inspectors make random checks to ensure that firms abide by the rules.

The TSA said it had conducted numerous inspections at J.H. World Express’ cargo facility and found “repeat, multiple violations.”

The agency added that it had worked with the company to correct the infractions, but that it wasn’t satisfied with the firm’s response.

J.H. World Express officials said the violations arose from onerous paperwork and training requirements imposed by the TSA and were not directly related to the physical security of the goods that flow through the company’s warehouse.

“We didn’t do anything wrong,” said Jimmy Hsu, the company’s president. “The customers we handle have been with us for a long time -- believe me, there’s nothing to worry about.”

Hsu said the 20-year-old small business handles two or three shipments a week of computers, fabrics, machinery, medical equipment and other goods that it delivers to airlines at LAX that fly to Southeast Asia, Central Europe and South America.

Hsu said he would ship the goods on freighters while he worked through his attorney to comply with TSA requirements. Federal rules allow him to reapply for certification in 90 days. Until then, airlines that accept goods from the company face a fine of up to $25,000 per violation.

Aviation security experts said they were troubled that the TSA wouldn’t specify what security regulations J.H. World Express violated.

“This doesn’t indicate that the whole system is safe and this one bunch are the bad eggs,” said Michael Boyd, president of Boyd Group, a consulting firm in Evergreen, Colo. “If there was an unsafe situation, or an unsecure situation, we should know about it.”