LECTURE NOTES

915333 - AVIATION ANCILLARY SERVICE

BBA – AIRLINE AND AIRPORT MANAGEMENT
SEMESTER – III

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 UNIT – 3

CARGO SERVICES AT EXPORT SHED

Cargo import & cargo export is highly dependent on the laws of different
countries. The import and the export both depend on the laws of all the
countries involved in the import/export procedures. Because there are different
rules what can be brought in or out of each country.

Shipment Procedure

Export cargo can be exported to the overseas buyer by sea, air or land.
However, shipment by sea is the most popular and generally resorted to, as it is
comparatively cheaper. Besides, the ship's capacity is far greater than other
modes of transportation. Nevertheless, transportation by air is utilized for export
of expensive items like, diamonds, gold, etc. The shipment stage includes the
following steps:

 Reservation of shipping Space:

Once the export contract is finalized, the exporter reserves the required
space in the vessel for shipment. On accepting the exporter's request, the
shipping company issues a shipping Order. The original copy of the
shipping order is given to the exporter and the duplicate is sent to the
commanding officer of the ship. The shipping order is an instruction by
the shipping company to the commanding officer of the ship that the
goods as per the details given should be received on board.

 Arrangement of Internal Transportation up to the Port of Shipment:

The exporter makes necessary arrangements for transportation of goods

to the port either by road or railways. On loading goods into the railway
wagon, the railway authorities issue a 'Railway Receipt', which may be
either 'freight paid' or freight to pay'. It serves as a title to the goods. The
exporter endorses the railway receipt in favour of his agent to enable him
to take delivery of the goods at the port of shipment.

 Preparation and Processing of Shipping Documents:

As the goods reach the port of shipment, the exporter should issue
detailed instructions to the C&F agent for the shipment of cargo along
with a complete set of the documents listed below:

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  Letter of Credit along with the export contract or export order.
 Commercial Invoice (2 copies)
 Packing List or Packing Note.
 Certificate of Origin.
 GR Form (original and duplicate)
 ARE-1 Form.
 Certificate of Inspection, where necessary (original copy)
 Marine Insurance Policy.

 Customs Clearance:
The cargo must be cleared from the Customs before it is loaded on the
ship. For this, the above mentioned documents, along with five copies of
shipping bill, are to be submitted to the Customs Appraiser at the
Customs House. The Customs Appraiser ensures that all the formalities
relating to exchange control, quality control, pre-shipment inspection and
licensing have been complied with by the exporter. After verification, all
documents, except the original GR, original copy of Shipping Bill and
one copy of Commercial Invoice, are returned to the C&F agent.
 Obtaining 'Carting Order' from the Port Trust Authorities:
The C&F agent, then, approaches the Superintendent of the concerned
Port Trust for obtaining the 'Carting Order' for moving the cargo inside
the dock. After obtaining the Carting Order, the cargo is physically
moved into the port area and stored in the appropriate shed.
 Customs Examination and Issue of 'Let Export Order':
The Customs Examiner at the port of shipment physically examines the
goods and seals the packages in his presence. The same can be arranged
for at the factory or warehouse of the exporter by making an application
to the Assistant Collector of Customs. The Customs Examiner, if
satisfied, issues a formal permission for the loading of cargo on the ship
in the form of a Let. Export Order'.
 Obtaining 'Let Ship Order' from the Customs Preventive Officer:
Let Export Order' must be supplemented by a 'Let Ship Order' issued by
the Customs Preventive Officer. The C&F agent submits the duplicate
copy of Shipping Bill, duly endorsed by the Customs Examiner, to the
Customs Preventive Officer who endorses it with the 'Let Ship Order'.

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  Obtaining Mate's Receipt and Bill of Lading:
The goods are then loaded on board the ship for which the Mate or the
Captain of the ship issues Mate's Receipt to the Port Superintendent. The
Port Superintendent, on receipt of port dues, hands over the Mate's
Receipt to the C&F Agent. The C&F Agent surrenders the Mate's Receipt
to the Shipping Company for obtaining the Bill of Lading. The Shipping
Company issues two to three negotiable and two to three non-negotiable
copies of Bill of Lading.

CARGO SERVICES AT IMPORT SHED

An import is a good or service bought in one country that was produced in

another. Imports and exports are the components of international trade. If the
value of a country's imports exceeds the value of its exports, the country has a
negative balance of trade, also known as a trade deficit.

In accordance with international practices, all goods imported into the country
or exported out of country by air or other routes are governed by the provisions
of the custom act, 1962 and other laws related to entry/exit from the country.
Custom administration ensures that the import and export of goods are in
compliance with the custom act and other laws in force.

Importing goods can be complex without the right expertise and resources. Air
India was appointed as an independent custodian at our base station Mumbai.
As a custodian, Air India looks after total cargo activities that is from the stage
of receipt of export shipments in the warehouse till placed on the aircraft with
regard to export cargo and from the stage of import shipments being received
from the flight till delivery to the consignee as regarding import activities.
Facilities are available for acceptance and storage of all kinds of cargo including
special cargo, perishables, dangerous goods, cargo requiring cold storage,
valuables, live animals, heavy outsized cargo etc.

Documents Required

 Bill of entry (issued by customs only)

 Commercial Invoice
 Airway bill or Bill of Lading
 Certificate of Origin
 Delivery order from shipper/airline and freight forwarder.

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  The CHA requires KYC documents for customs clearance.
 License for Import (In case of particular goods)
 Certificate of Insurance (If necessary)
 Letter of Credit or LC
 Technical Write-up or Literature (Only required for specific goods)
 Industrial License (Only required for specific goods)
 Test Report (If any)
 RCMC Registration/Membership Certificate (If required)
 GATT declaration
 License for duty benefits (As an option the importer may choose):
AA(DEEC)/ DFIA/ EPCG/ EOU
 And other specific documents for your goods are necessary to import
customs clear in importing country.

CARGO SERVICES AT TRANSIT SHED

Cargo (or freight) is goods or produce transported, generally for commercial

gain, by ship, aircraft, train, van or truck. In addition to people, airports are
accountable for moving in large volumes of cargo round the clock. Cargo
airlines often have their own on-site and adjacent infrastructure to rapidly
transfer parcels between ground and air modes of transportation.

Cargo airlines (or airfreight carriers) are airlines dedicated to the transport of
cargo. Some cargo airlines are divisions or subsidiaries of larger passenger
airlines. Aircrafts were first used for carrying mail as cargo in 1911. Eventually
manufacturers started designing aircrafts for other types of freight as well.

There are many commercial aircrafts suitable for carrying cargo such as the
Boeing 747 and the bigger An-124, which was purposely built for easy
conversion into a cargo aircraft. Such large aircraft employ quick-loading
containers known as Unit Load Devices (ULDs), much like containerized cargo
ships. The ULDs are located in front section of the aircraft. Most nations own
and utilize large numbers of cargo aircraft such as the C-17 Globe master III for
airlift logistic needs.

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CARGO AIRCRAFT HANDLING

Airports handle not only passengers but also considerable quantities of cargos.
The following categories of cargos are as follows.

Perishable Cargo

Definition

Perishable goods are those whose condition or suitability for original purpose
may deteriorate if exposed to undue changes in temperature or humidity, or
delay in carriage.

Acceptance

Perishable cargo shall only be accepted for carriage when it is reasonably

certain that it will reach its destination in good condition. The shipper shall
provide written instructions as to the maximum acceptable duration of
transportation and of any special handling required. These instructions shall be
shown on the air waybill and the packages. Prior to acceptance the carrier shall
ensure that the necessary en-route arrangements have been made including:

 Ensuring that the shipper is advised of the maximum time before flight
departure that the carrier will accept the cargo;
 Making any necessary onward reservations;
 Ensuring that special handling facilities such as re-icing are available and
arranged if agreed and required.

The IATA "Perishable" label shall be attached to each package and where
applicable the "This Way Up" label.

Stowage

The carrier shall provide information relating to the temperature variations

within the compartments of their aircraft during flight so that temperature
sensitive items may be stowed in an appropriate compartment to ensure their
protection. Perishable items shall be loaded so that they are suitably accessible
in case any handling is required at an en-route and/or destination station.

Wet ice and perishable cargo containing fluid or moisture which could leak onto
the compartment floor shall be treated as wet cargo.

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Flowers

Flowers shall be stowed so as to avoid direct contact with the compartment

floor or walls.

Flowers should not be stowed in the same hold or ULD as fresh fruit and
vegetables due to ethylene gas produced by vegetables which may deteriorate
flowers.

Fresh Fruits and Vegetables

When fresh fruit and vegetables are loaded in quantities which require stacking
in ULDs, care should be taken to ensure that the airspace is possible between
the packages.

This is particularly important with fresh fruit and vegetables having a high
moisture content. Owing to the minimum packing requirements care should be
taken when loading fresh fruit and vegetables with general cargo.

Sea Food

Fish shall be completely enclosed in watertight containers and handled as wet

cargo. Any wet ice used shall be sealed within its own watertight container.

The temperature ranges to be maintained are:

 Fresh fish - not to exceed 5°C (41°F);

 Frozen fish - not to exceed -12°C (10°F).

(This will require use of refrigerated/temperature controlled container.)

Vaccines and Medical Supplies

Short life radioactive isotopes shall be handled with extreme urgency and, in
accordance with IATA DGR.

AIR CARGO

Air cargo is another term for air freight. It is the carriage or the transportation of
goods through an air carrier. Transport services via air are the most valuable
when it comes to moving express shipments around the globe and it consists of
air mail, air freight and air express.

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Air cargo also flies in the same gateway as the commercial or passenger
airlines.

Air India Cargo is one of the world's leading Cargo carrier with an extensive
global as well as domestic network. We possess highly-experienced & skilled
employees to serve growing list of customers as we offer a high-quality of air
freight services with premium facilities.

Air India has a dedicated modern fleet of Boeing and Airbus aircrafts with huge
Cargo capacities available to carry loads to more than 74 online International as
well as 56 Domestic destinations currently besides hundreds of offline trucking
points as we have tied up with various trucking companies worldwide to carry
Cargo safely.

Air India in order to be digitally up-to-date with Industry practice uses the latest
state of Art technology for Cargo activities called Logistic Management System
(LMS) for Cargo Sales & Operational purpose available 24 & 7 to serve our
Customers better. The LMS system supports EDI interface with Indian
Customs. The Logistics Management System (LMS) is in use, providing an
end-to-end solution with accuracy and availability of real-time information with
reference to booking, acceptance, stowage, unitization, handling, manifestation,
carriage, transshipment, delivery etc., within Air India network.

Air India is an active member of IATA as well as ICH & Air India carries all
types of cargo including dangerous goods (hazardous materials) and live
animals, provided such shipments are tendered according to IATA Dangerous
Goods Regulations, IATA Live Animals Regulations, and Perishables &
Temperature Control respectively.

CARGO BOOKING OF PERISHABLE CARGO AND LIVE ANIMALS

Perishable goods (such as fruits, flowers, and vegetables) were among the first
commodities carried by air. However, such goods deteriorate over time and
under extreme temperatures and humidity, and must thus be handled with
particular care.

With years of operating experience, airlines have developed effective handling

techniques for chilled and frozen products, providing shippers with optimum,
cost-efficient packaging methods.

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Perishable Cargo Regulations (PCR)

The Perishable Cargo Regulations manual is an essential reference guide for all
parties involved in the packaging and handling of temperature-sensitive
products. The manual is endorsed by the IATA Live Animals and Perishables
Board (LAPB) and underpinned by the expertise of major airlines and scientific
data supplied by research institutions.

In response to the pharmaceutical industry's need and request for a standalone

regulation, all content related to the transport and handling of pharmaceutical
products was extracted from the Perishable Cargo Regulations (PCR), into the
standalone specialized publication Temperature Control Regulations (TCR).
Therefore, the 16th edition extracted all content related the PCR into the
standalone TCR.

 Cargo that is perishable and may spoil or decay because of changes in

altitude, temperature, humidity, climate, or other environmental
conditions or because of expiration
 Will decay rapidly if not refrigerated, or if some other preservation
technique is not employed.

Individual procedures are applicable for different perishable goods:

 Fresh / Frozen Fish and seafood (PES)

 Fresh / Frozen Meat (PEM)
 Flowers and Plants / Cut Foliage (PEF)
 Fresh fruit and vegetables (PEP)
 Foodstuffs -Food for human or animal consumption (EAT)
 Hatching eggs (HEG)
 Vaccines, medical supplies and live human organs (LHO)

INDUSTRY RELATIONS

The airport/airline relationship

Airlines and airports, through their respective international organisations, play a

crucial role in the activities of ICAO, whose chief aims, as contained in Article
44 of the Chicago Convention, are to develop the principles and techniques of
international air navigation and to foster the planning and development of
international air transport so as to, amongst other things.

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 Ensure the safe and orderly growth of international civil aviation
throughout the world
Encourage the development of airlines, airports and air navigation
facilities for international civil aviation
Meet the needs of the people of the world for safe, regular, efficient and
economical air transport
Prevent economic waste caused by unreasonable competition
Ensure that the rights of contracting states are fully respected and that
every contracting state has a fair opportunity to operate international
airlines
Promote safety of flight in international air navigation
A wide ranging and effective relationship

With observer status to ICAO, the International Air Transport Association

(IATA) and Airports Council International (ACI) are regularly invited to and
take active part in, various meetings of the Organisation dealing with subjects of
common interest. Of particular significance is their involvement in the Air
Navigation Commission (ANC), which is the principal body of ICAO
responsible for the development of Standards and Recommended Practices
(SARPs) and Procedures for Air Navigation Services (PANS). The Commission
is assisted in its work by small groups of experts nominated by Contracting
States and international organisations and approved by the Commission. These
include IATA and ACI.

The important distinction between a Standard and a Recommended Practice is

sometimes not well understood. A Standard is any specification whose uniform
application is recognised as necessary for the safety or regularity of
international air navigation and to which Contracting States will conform in
accordance with the Convention. A Recommended Practice is any specification
whose uniform application is recognised as desirable for the safety, regularity or
efficiency of international air navigation.

SARPs are detailed in the 18 Annexes to the Chicago Convention that cover all
aspects of international civil aviation and for which the considered views and
expertise of key stakeholders are essential for a thorough understanding of all
issues involved.

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The valuable contribution of these organisations have contributed to the
universal acceptance of SARPs and related procedures by Contracting States
and the world aviation community, following approval by the ICAO Council.

IATA and ACI, along with many other recognised international organisations,
also take part in thematic conferences of ICAO and the Assembly of the 190
Member States. The Assembly is the sovereign body of the Organisation and
normally meets every three years – except for extraordinary sessions. At the
Assembly, the complete work of the Organisation in the technical, economic,
legal and technical cooperation fields is reviewed in detail, and guidance is
given to the other bodies of ICAO for their future work. This is another valuable
opportunity for IATA and ACI to present their positions before the global
decision-making body of ICAO.

In the day-to-day implementation of decisions and programmes, IATA and ACI

work closely with their counterparts in the various Bureaux of the Secretariat of
ICAO, namely Air Navigation, Air Transport, Technical Co operation Bureau,
Legal Bureau and Administration and Services.

Over the years, the ongoing relationship with all levels of the Organisation has
led to significant and long-lasting improvements in the overall safety, security
efficiency and sustainability of international civil aviation. The following
section describes some of the more recent initiatives that have brought together
IATA, ACI and ICAO.

AIR WAYBILL

An air waybill (AWB) is a legally binding transport document issued by a

carrier or agent that provides details about the goods being shipped. It provides
detailed information on the contents of the shipment, the sender and recipient,
terms and conditions, and other information. The AWB is a standard form that
is distributed by the International Air Transport Association (IATA).

Consider the document as a receipt for the sender or consignor. An air waybill
is also referred to as a consignment note or dispatch note. The AWB is non-
negotiable and acts as evidence of the contract of carriage from airport to
airport. There are three parties involved in an air waybill – the sender, the
airline, and the recipient.

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Functions of the AWB

The air waybill serves many functions, including:

Evidence of receipt of goods by an airline

Contact information among all parties
Contract of carriage between shipper and carrier
Freight bill
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 Customs declaration
Description of the goods
Guide for handling and delivering goods
Tracking of shipment

Features and Format of the AWB

An AWB is typically a one-page document that is packed with important

information. The bill is designed and distributed by the IATA and is used in
domestic and international shipping. The document itself is issued in eight sets
of different colors, with the first three copies being the original.

 The first original (green) is the issuing carrier’s copy.

 The second (pink) is the consignee’s copy.
 The third (blue) is the shipper’s copy.

The fourth copy is brown and functions as the receipt and proof of delivery. The
other four copies are white.

The air waybill may come with an airline logo at the top right corner or it may
be a neutral AWB. The two are essentially identical outside of the airline logo
and pre populated information for the airline.

Each air waybill must include the carrier’s name, office address, logo, and
AWB number, which is an 11-digit number that can be used to make bookings
and track the status and location of the shipment.

The top-left quadrant of an air waybill document will contain information for
the shipper, consignee, agent, airport of departure, and airport of destination.

The top-right quadrant will contain the information for the airline – either in the
form of printed and prepopulated text and logos or manually-entered
information. The top-right section will also contain information about the
declared value for carriage and declared value for customs.

The middle of the page will contain information on the contents of the
shipment, including the number of pieces, gross weight, chargeable weight, total
charge, and the nature and quantity of goods.

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The bottom portion of the air waybill will contain additional charges and taxes,
an area for the signature of the shipper or agent, and an area to enter the date,
time, and place of execution.

Electronic Air Waybill

An electronic air waybill (e-air waybill or e-AWB) was introduced in 2010, and
on January 1, 2019, it became the default contract of carriage for all air cargo
shipments. Paper air waybill documents are still accepted, but IATA mostly
uses the e-AWB nowadays. The electronic version requires and communicates
the same information as the paper version.

The transportation of cargo requires a decent amount of paper for each

shipment, which means that paper must be kept track of and sent around.
Storing the documents electronically keeps things safe and organized and
reduces the need for paper.

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