International Trade Transaction

AIR WAYBILL

Group 6
Vu Nguyen Phuc Anh Nguyen Dao Ngoc Bich
Nguyen Phan Gia Bao Nguyen Thi Xuan Hiep
Ly Nguyen Thien Bao Pham Ho Phu Huan
Kieu Thanh Van Anh Nguyen Thuc Hien
Tran Bui Bich Hoan Ngo Minh Hai
Nguyen Quynh Chi Le Yen Giang
Duong Viet Duc
Table of Content

01 Definition and function of AWB

02 Main contents of AWB

03 Classification

04 Examples

Difference between AWB and B/L

05 Risks and recommendations
Notes when using AWB
01 Definition and
Function of AWB
 What is an Air waybill (AWB)?

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

carrier or agent that provides details about the goods being shipped.

The AWB is a standard form that is distributed by the International Air

Transport Association (IATA).
 Parties
involved
01 Sender(seller)

02 Airline

03 Recipient(buyer)
 Functions
It acts as an evidence of receipt of goods by an airline.

Contract of carriage between shipper and carrier.

The Air Waybill also play the role of:

● Freight bill
● Customs declaration
● Contact information among all parties
● Description of the goods might be included
● Guide for handling and delivering goods
● Tracking of shipment
 02
Main contents of Air
Waybill
The front side

AWB number

Issuing carrier’s name and

address

Name and address for shipping and

Consigning goods
 The front side

Information about the

Route
goods

Airport of Sender’s
Information about
departure and authorisation and
charges
destination signature
 The back side

Regulations on the
liability of the carrier

Terms related to shipping

Classification of AWB
03
Design and distribution of AWB
 3.1. Classification of AWB
Based on the issuer of AWB
Airline-specific AWB
(Airlines AWB)
Refers to receipts issued by the airline, each
airline AWB must include the carrier’s name,
head office address, logo, and air waybill
number.
Neutral Air Waybill (NAWB)
or air consignment note
Refers to a receipt issued by an international
airline for goods and an evidence of the
contract of carriage, but it is not a document of
title to the goods.
● Issued by a carrier either directly or
through its authorized agent
 3.1. Classification of AWB
Based on goods collection
House AWB- HAWB
When the freight forwarder or
shipping forwarder receives the
goods sent via air cargo from the
supplier, they provide the
supplier with an airway bill
An Electronic Air Waybill
Master AWB-MAWB (E-AWB)
When the primary carrier or a term used by the International
the shipping company Air Transport Association (IATA)
receives the freight for the transfer of crucial
forwarder’s goods, they sign information related to the trade
and issue an airway bill between the primary cargo
operator and the freight operator
3.2. Design and distribution of
AWB

● One-page document that is packed with important

information
AWB ● Designed and distributed by the IATA
● Is used in domestic and international shipping
● Has at least 8 copies
04
PDF

Examples Zalo
QUESTIONS

What is the commodity in this AWB?

 QUESTIONS

What is the commodity in this AWB?

COTTON FABRIC
 QUESTIONS

Who are shipper and consignee in this

AWB?
 QUESTIONS

Who are shipper and consignee in this

AWB?

Shipper: VARDHMAN GROUP in LUDHIANA, INDIA

Consignee: SONG HONG GARMENT JOINT STOCK
COMPANY at 105 _ NGUYEN DUC THUAN _ NAM
DINH CITY _ NAM DINH PROVINCE _ VIET NAM
QUESTIONS

Who issues this AWB? (issuer)

 QUESTIONS

Who issues this AWB? (issuer)

DHL AIR LTD. in PLANTATION,

FLORIDA, USA
QUESTIONS

Where are the ports of departure

and destination?
 QUESTIONS

Where are the ports of departure

and destination?

Departure: SAHNEWAL AIRPORT - INDIA

Destination: NOIBAI AIRPORT
 Fill in

EXERCIS
E
A Malaysian company is selling mechanical
devices to a Vietnamese company, contracting
with an intermediary company located in
Singapore.
the BLANK
SET OF ACTUATOR
INVOICE NO.: PI 10818 & PI 10920
DIM (CMS): 88X48X63/01 SGD
87X67X58/01

ALLIANCE 21 PTE LTD HANOI

SINGAPORE AIRPORT A21120882

INFORM CONSIGNEE IMMEDIATELY
UPON ARRIVAL DOCUMENTS ATTACHED
TO AIRWAY BILL

PANARON SDN BHD

NO.28, JALAN TANJUNG SD 13/2,
BANDAR, KUALA LUMPUR, MALAYSIA

ANPHANAM INTER CO.,LTD

NO.20 BO DE STR, LONG BIEN DISTR,
HANOI, VIETNAM

ALLIANCE 21 PTE LTD SINGAPORE

BRANCH

KEYWORDS
 7

1 6

8
5
10

9
 05
Difference between AWB and B/L
Arising risks and responsive
recommendations
Notes when using AWB
5.1. Difference between AWB and B/L

Air waybill Bill of lading

Always a non-negotiable transport document, When issued in negotiable form, represents

Document cannot represent title to the goods title to the goods

Issued by the air cargo carrier, after the Issued by the carrier, after the goods are
Time of complete consignment has been received shipped on board a vessel and the vessel
issuance by the carrier and the aircraft departs from departs from the port of loading
the airport of departure

Number of originals Issued in 8 sets, 3 originals and the rest In full set, 3 originals and 3 copies
and copies issued are copies
5.1. Difference between AWB and B/L

Air waybill Bill of lading

Mode of transport Air shipments Port-to-port sea shipments

A transport document for air shipments A transport document for sea shipments.
Applicable Incoterms
(FAS, FOB, CFR and CIF cannot be used) All Incoterms can be used

AWB does not specify the exact flight in B/L specifies the vessel in which the goods
Specificness
which the goods will be shipped will be shipped

Governing Hague Rules, The Hague-Visby Rules and

Warsaw Convention, Hague amendment,
International US COGSA (US Carriage of Goods by Sea
Montreal Convention
Regulations Act 1936)
5.2. Arising risks and responsive recommendations

Risk 1
A risky way to prepare the airway bill in the name of the buyer →
the consignee can obtain the goods from the carrier at destination,
without paying the issuing bank or the consignor

Recommendation 1.1 Recommendation 1.2

Consign to a third party like Arrange payment on a COD

the issuing bank and mention (cash on delivery) basis and
the bank as consignee consign the goods directly to
the importer
5.2. Arising risks and responsive recommendations

Risk 2
Exporter makes mistakes when filling up air waybill

● Cargo could get held up by customs

● Be held liable for any damages suffered by the carrier or individuals

involved in the shipment process

Recommendation
Simple checklist on filling:

● Complete every part of the form and do it correctly

● When filling the form by hand, write cleanly and clearly
● Take out a clear print of the bill
● Enter full addresses, including ZIP/postal codes
● Make sure that your shipment information – such as weight, dimension, value, HS
code – are correct
● In the special handling section, point out if your shipment contains dangerous
goods by ticking the appropriate box
● Sign and date the AWB, an AWB is valid only if it has the signatures of both the
shipper and carrier
5.3. Notes when using AWB
❖ Shipment Date

1
If there is a note on the AWB about "actual date of dispatch", this date will always be considered as
the shipment date, regardless of whether the L/C is required or not.

2
If the L/C does not require the actual date of dispatch to be shown on the AWB and the AWB also
does not show a separate note about the actual date of dispatch, the date separately noted on the
AWB is the shipment date.
❖ What happens when:
The L/C asks for a negotiable AWB

An air waybill may be issued in a non-transferable

form, even if the credit requires such AWB in the
form of negotiable
International Standard Banking Practice
(ISBP 745)
❖ What happens when:
The L/C asks for a negotiable AWB
Excerpts from ISBP 745

When a credit requires an air transport document to demonstrate

that goods are delivered “to order of (a particular Party)”, the
shipment will be sent to that Party itself, without mentioning
the word “To order of”.

When a credit requires an air transport document to demonstrate International Standard Banking Practice
that the goods are delivered “To Order” without naming the
subject/Party, The goods will be sent to either the Issuing Bank
or the person requesting the opening of the LC (applicant)
without having to mention the words “To order of”.
❖ What happens when:
The L/C asks for a negotiable AWB
Viet Nam
The civil aviation law does not have any
regulations regarding the consideration of the
air waybill as a document of ownership of
goods.
The air waybill is not transferable and cannot
be endorsed by the air waybill.
Reality
There are many cases where many units can
still ask the bank to issue an endorsement on
the back of the air waybill.
But when the consignee makes a letter of
indemnity, if there is a risk, he will be fully
responsible and then ask the bank to issue
endorse for collection
 References
● https://bowagateglobal.com/2019/05/25/difference-between-air-waybill-and-bill-of-lading/#:~:text=Air%20waybill
%20is%20issued%20by,from%20the%20port%20of%20loading.
● https://logisticsinvietnam.vn/co-the-ky-hau-van-don-hang-khong-air-waybill-hay-khong/
● https://howtoexportimport.com/Is-Airway-bill-a-documents-of-title--82.aspx
● https://hocxuatnhapkhau247.com/van-don-hang-khong-airway-bill/
● https://www.container-transportation.com/van-don-hang-khong.html
● https://www.academia.edu/33394490/airway_bill_1_docx
● https://xuatnhapkhauleanh.edu.vn/van-don-duong-hang-khong-airway-bill-awb.html
● https://truongphatlogistics.com/van-don-hang-khong-airway-bill-awb-la-chung-tu-gi/
● https://corporatefinanceinstitute.com/resources/knowledge/other/air-waybill-awb/
● https://docs.google.com/viewerng/viewer?url=https://sanketoan.vn/upload/9-awb-thuvienxuatnhapkhauvnpdf
539.pdf
● https://www.academia.edu/33394490/airway_bill_1_docx
THANK YOU
For listening