High-Value Security SOP (HK)

1. Purpose

This SOP describes UDB's high-value shipment security controls, evidence standards, and incident-response steps to reduce theft/tampering risk and improve claim defensibility for eligible shipments handled under UDB Logistics Limited (“UDB”) in Hong Kong.

For air cargo security workflows, this SOP operates alongside UDB’s Regulated Agent / RAR controls and does not replace applicable CAD, airline, terminal, or RASP requirements.

2. Scope

This SOP applies to high-value / protected shipments where UDB confirms enhanced security handling in writing (HV Addendum / Value Protection / customer instruction / internal risk flag).

It covers UDB’s operational controls during:

• receipt into UDB-controlled or appointed partner custody;
• contracted warehouse / staging / preparation where applicable;
• air cargo security workflow coordination where applicable;
• handover to terminal / airline / GHA / screening or security service provider;
• exception management and evidence preservation support.

Carriage, terminal, warehouse, screening, and other third-party operations remain performed by third parties and subject to their rules and constraints.

3. Warehouses and operational locations

UDB conducts high-value handling in Hong Kong through UDB-controlled workflows and appointed / contracted facilities and service providers, including contracted warehouse and transportation arrangements where applicable.

Where cargo processing, storage, or secure transportation is performed through a contracted warehouse or contractor, such arrangements are controlled under UDB’s RASP / Regulated Agent procedures and applicable contractor declarations, CAD/RAR requirements, airline/terminal procedures, and customer instructions.

For public due diligence purposes, UDB may describe these as controlled / contracted warehouse and operational locations. Specific contractor details, floor plans, access arrangements, and security layouts are maintained as controlled operational records and may be shared only under controlled disclosure where appropriate.

4. Definitions

• Protected Shipment: shipment covered by signed HV Addendum and/or Value Protection, or confirmed in writing by UDB.
• Chain of Custody Evidence: the minimum evidence set showing quantity/condition at receipt and at handover.
• Tamper Evidence Controls: controls designed to indicate unauthorized opening or manipulation (seal/tape/marking + logging).
• Air Cargo Security Evidence: evidence related to RA/RAR, SPX/UNK, screening, terminal/airline acceptance, seal, warehouse, transportation, or security-control status where applicable.
• SPX / Known Cargo: cargo accepted as secure for carriage in accordance with applicable RA/RAR procedures.
• UNK / Unknown Cargo: cargo requiring security screening or additional controls before acceptance as secure cargo, in accordance with applicable RA/RAR procedures.
• Secure Transportation Controls: controls used to preserve cargo integrity during movement, including sealed vehicles, locks, tamper-evident controls, driver/vehicle verification, and transportation records where applicable.

5. High-Value tiers (HV-1 / HV-2 / HV-3)

UDB applies tiered security controls to distinguish service level and align customer/insurer expectations.

5.1 HV-1 (baseline protected)

Use when: protected shipment with normal risk profile. Controls: standard chain-of-custody evidence + basic tamper-evidence + controlled storage/handling.

5.2 HV-2 (enhanced security)

Use when: high declared value and/or sensitive commodity and/or elevated theft exposure. Adds: reinforced evidence pack, stricter sealing/verification, tighter access discipline, and enhanced exception escalation.

5.3 HV-3 (critical/highest)

Use when: very high value, theft-attractive goods, customer mandate, or specific risk flags (routing, parties, prior incidents). Adds: dual verification, stronger physical/transport controls where applicable, and active incident governance readiness.

Tier assignment is determined by UDB based on declared value, commodity risk, routing, custody complexity, and operational feasibility. Where a tier is not specified, UDB applies HV-1 by default for protected shipments.

Commodity guidance (indicative HS references):

• Mobile phones / consumer electronics (typically HS Chapter 85; e.g., HS 8517.12 / 8517.13; and other electronics often under HS 84/85).
• Regulated fragrances / perfumes (typically HS 3303; and some fragrance preparations under HS 3302 depending on description).
• Where fragrances/perfumes are DG-classified (e.g., UN 1266 / ID 8000), DG acceptance and documentation requirements under the DG & Lithium Policy (HK) apply.
• HS codes are indicative only; final HS classification remains the shipper’s responsibility and may vary by product description and customs practice.
• Thresholds (unless otherwise agreed in writing): X = HKD 2,500,000; Z = HKD 7,500,000; Y = 1,000 kg gross per shipment/AWB.

• HV-1: protected shipments below HV-2 thresholds.
• HV-2: declared value ≥ X, or gross weight ≥ Y, or theft-attractive/security-sensitive routing/party risk flag.
• HV-3: declared value ≥ Z, or gross weight ≥ 3,000 kg per shipment/AWB, or critical risk flag.

6. Minimum security controls (apply to all HV tiers)

6.1 Identification and intake verification

At receipt into UDB-controlled or appointed partner custody in Hong Kong:

• verify AWB/booking reference or pre-AWB identifiers;
• verify piece count, external markings, packaging condition, and gross weight where available;
• verify RA/RAR, SPX/UNK, screening/security status where applicable;
• verify visible signs of tampering, reseal, forcible opening, unusual packaging, or other cargo integrity concerns.

6.2 Evidence at warehouse / partner location

UDB will maintain available evidence for HV shipments at UDB-controlled or appointed partner locations:

• photo set where permitted showing piece count, markings, outer packaging condition;
• warehouse / CCTV / security reference where available and permitted;
• SPX/UNK, screening, seal, warehouse, or terminal references where applicable.

For HV-2/HV-3, warehouse photo set is mandatory where permitted by site, terminal, security, customer, and applicable rules.

6.3 Sealing / tamper-evidence

Where applicable, tamper-evident controls may include tape, pallet/strap sealing, seal number logging, tamper-evident wrapping/covers/nets, locked/sealed truck compartments, or other secure transportation controls accepted under applicable procedures.

6.4 Access discipline

• restricted access to cargo storage/staging/processing areas, role-based;
• need-to-handle / need-to-know principle;
• controlled handover timing and minimized dwell where feasible;
• identity checks / visitor control where applicable.

7. Handover controls

7.1 Handover proof (always)

For Hong Kong handover, UDB keeps and provides handover proof where available, such as:

• AWB / HAWB / SLI / booking or handling reference;
• warehouse release note / terminal or airline acceptance record;
• GHA / CTO / RACSF / screening or security-control reference where applicable;
• SPX/UNK or security status reference where applicable;
• acceptance references and timestamps.

Handover proof must be provided to the customer upon request, subject to third-party confidentiality, security, and legal restrictions.

7.2 Photography in restricted areas

Terminal, warehouse, airport, RACSF, CTO, airline, or security-controlled areas may impose security restrictions, including photography limitations.

Where photography is not permitted, UDB relies on warehouse evidence, official handover documents, terminal/airline/GHA records, screening/security references, and partner-issued irregularity reports where applicable.

8. Tier-specific controls

8.1 HV-1 additions (baseline protected)

• warehouse / partner evidence set recommended;
• basic tamper evidence where feasible;
• security status check where applicable.

8.2 HV-2 additions (enhanced)

• mandatory warehouse / partner photo set where permitted;
• mandatory tamper-evidence controls unless prohibited by site/security/authority rules;
• second verification before dispatch / handover;
• SPX/UNK / screening / security status check where applicable.

8.3 HV-3 additions (critical)

• dual verification: two-person check or supervisor confirmation;
• minimize storage dwell and custody transitions where feasible;
• pre-alert escalation readiness (Ops Manager / Control Tower where applicable) prior to handover;
• consider enhanced secure transportation controls where applicable and operationally feasible.

9. Incident handling (loss / tampering / shortage allegations)

If shortage/loss/tampering/suspected unlawful interference is alleged or suspected:

• (a) classify as S1/S2 operational security incident under SLA definitions;
• (b) assign an Incident Owner;
• (c) preserve and compile evidence, including:
  • warehouse / partner intake evidence (photos/video references where available and permitted);
  • handover proof (AWB/HAWB/SLI, warehouse release note, terminal/airline/GHA acceptance records, timestamps);
  • internal logs (piece count verification notes, seal logs, security status references);
  • SPX/UNK, screening, RACSF/CTO/GHA references where applicable;
  • partner reports where available (irregularity report / handling notes).

Evidence preservation: UDB will use best efforts to request third-party evidence preservation where feasible (e.g., CCTV hold reference, warehouse/terminal access logs, seal checks, screening/security records), subject to third-party cooperation, aviation security restrictions, confidentiality, and legal constraints.

Evidence pack (deliverable). For confirmed S1/S2 incidents, UDB will provide an initial evidence pack within 24 hours after handover or incident confirmation, subject to availability, third-party confidentiality, aviation security restrictions, and legal restrictions. The initial evidence pack includes (where available):

• piece count, markings, and outer condition evidence;
• seal/tape/tamper-control log where used;
• AWB/HAWB/SLI, warehouse release note, terminal/airline/GHA acceptance record and timestamp;
• SPX/UNK, screening, RACSF/CTO/security references where applicable;
• weight/acceptance records where available;
• CCTV reference number or hold request reference where provided.

10. Customer communication and approvals

• customer approvals are required for chargeable actions (repacking, rework, rebooking, screening, storage, special handling, secure transportation, licence/permit support);
• UDB documents approvals in writing (email/messaging channel).

11. Records and retention

UDB retains HV handling evidence and incident records for operational, compliance, and claims support purposes, typically at least 5 years, unless a longer period is required.

Air cargo security / RA/RAR records are retained in accordance with applicable CAD/RAR requirements and UDB’s RASP. Where specific RASP retention periods apply, those periods govern the relevant security records.

12. Limitations

This SOP describes UDB operational controls and evidence standards. It does not guarantee third-party outcomes and does not expand liability beyond the Terms & Conditions (HK) and applicable signed addenda.

This SOP does not replace applicable CAD/RAR, airline, terminal, warehouse, screening, DG, customs, or legal requirements.