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TIOL-DDT 1138 · Tuesday, 23 June 2009 · story 2 of 5

WCO and IATA work together to take the Paper out of Air Cargo

By Vijay Kumar

The World Customs Organisation has endorsed the International Air Transport Association's e-freight project, and encourages its Member Customs administrations to work collaboratively with their aviation counterparts to facilitate the adoption of e-freight in their respective countries.

International airfreight shipments can require up to 30 different documents, which contribute to increased costs and longer transport times. IATA e-freight replaces paper documents with IATA and WCO electronic messages based on UN/ CEFACT standards, dramatically improving service to customers through faster transit times, lowering costs and improving reliability for the air cargo supply chain.

By the end of 2009, the project plans to replace 16 documents with IATA and WCO electronic messages and by the end of 2010, 20 documents will be supported by an electronic standard, constituting approximately 64% of the paper volume.

How WCO Members benefit from IATA e-freight

For customs authorities and governments, the benefits of e-freight include:

  • The promotion of WCO standards and e-customs among traders;

  • A better, stronger and more competitive air cargo supply chain — e-freight promises to save the worldwide air cargo supply chain USD 4.9 billion annually including a saving of 24 hours on average from shipment times, reduced inventory for shippers and lower document processing costs for shippers, freight forwarders and airlines;

  • The provision of advanced electronic data which allows for more effective risk management screening and targeted interventions;

  • The harmonisation of import and export data through electronic messages which reduces customs revenue leakage;

  • Better visibility and track & trace of shipments.

As of March 2009, IATA e-freight was live in 19 countries, including 8 of the top 10 locations by international cargo volumes: France, Germany, Hong Kong, the Netherlands, Singapore, South Korea, UK and the USA. The remaining two countries, China and Japan, are expected to become e-freight live this year.

WHERE IS INDIA?