StB

1
The benefits of IATA e-freight Steve Smith
Project Director e-freightBrussels 25th March
2009
2
About IATA

• Founded in 1945, the International Air Transport
  Association (IATA) is the industrys global trade
  association
• With 225 members in more than 130 countries, IATA
  represents 93 of international scheduled traffic
  
• IATAs mission is to represent, lead and serve
  the air transport industry
• IATA delivers standards and solutions to ensure
  successful air transportation

3
IATA e-freight Why?

• The air freight supply chain faces increasing
  challenges
• Slowing economic growth means less revenue
• Customers want lower costs, faster speed and more
  reliability
• Regulators want more security and demand more
  information
• One way to meet these challenges is to migrate
  from a paper based process to a data driven
  process for transportation of goods
• IATA e-freight is taking the paper out of air
  cargo and replacing it with electronic messages

The WCO fully supports IATAs e-freight
initiative and we note that its building blocks
include many of the same strategic elements that
customs pursues globally, such as simplification,
greater accuracy, better track and trace
capability and paperless systems - WCS Bangkok
2009
4
IATA e-freight Basics

• What is it?
• A set of processes and standards and not a
  central computer system
• A joint air cargo industry programme involving
  all stakeholders of the supply chain including
  Customs and Government Agencies
• Aimed at eliminating the need to transport paper
  documents
• It is not the answer to all the legacy issues
  within the supply chain
• Why?
• US 4.9 billion in air cargo supply chain net
  savings
• When?
• By end 2008, IATA e-freight implemented in 18
  locations
• By end 2009, implement in an additional 5
  locations
• By end 2010, implemented in 44 locations
  accounting for approx 80 of
• international trading volumes

5
IATA e-freight Benefits to Customs

• Promotes the use of WCO standards and e-Customs
  programme by traders
• Traders follow one global process compliant with
  Customs requirements
• A better, stronger and more competitive air cargo
  supply chain
• Provision of advanced electronic data allows
  targeted screening
• Harmonisation of import and export data through
  electronic messaging prevents customs duties
  revenue leakage
• Better visibility and track trace of shipments

In the specific case of intra-Asian trade,
econometric analysis indicates that a 10 percent
reduction in tariffs stimulates trade by 2
percent whereas a similar reduction in
transportation costs led to a 6 percent increase
in trade (De, 2008)
6
IATA e-freight Approach

• HLA Identify locations that potentially have the
  legal and technical environment for e-freight
• DLA Confirm the locations are ready for
  e-freight including technical, regulatory,
  business process and willingness
• Implementation Implement IATA e-freight locally
  according to single operating process involving
  Airlines, Forwarders, Shippers Customs

Implement IATA e-freight
Detailed LevelAssessment(DLA)
High LevelAssessment(HLA)
19
21
54
To Date
7
IATA e-freight Basics Where?
Sweden
Norway
Denmark
Canada
UK
Germany
Netherlands
Luxembourg
South Korea
France
USA (JFK/ORD)
Spain
Hong Kong
Dubai
Singapore
Mauritius
Australia
New Zealand
18 live locations, 25 live airports as of Dec
2008
8
IATA e-freight Basics Where?
Switzerland
Belgium
China
Japan
Malaysia
5 more locations, 14 more airports to be live in
2009
9
IATA e-freight Adoption Status as of Mar 09
10
IATA e-freight Scope of Documents
Shippers
Carrier
Origin Freight Forwarders
Export Customs
Import Customs

• Invoice
• Packing List
• Certificate of Origin
• Letter of Instruction
• Dangerous Goods Declaration

Destination Freight Forwarders

• Master Air Waybill
• House Waybill
• House Manifest
• Export Goods Declaration
• Customs Release Export

• Flight Manifest
• Transfer Manifest
• Export Cargo Declaration
• Import Cargo Declaration

• Import Goods Declaration
• Customs Release Import

Consignees
2009 16 Documents in scope2010 20 Documents in
scope64 of the paper in volume
11
IATA e-freight Standards Recommended

• Trade documents UN/CEFACT XML
• Transportation documents IATA Cargo-IMP
• Customs documents WCO EDIFACT
• Future all messages will have an XML standard
  option (based on UN/CEFACT Core Components)

12
IATA e-freight Findings Process Standards

• In the absence of a Single Window environment
  traders have to submit similar data via multiple
  channels
• Not all stakeholders, including Customs
  authorities, have implemented an electronic
  platform
• Not all stakeholders, including Customs
  authorities follow international standards e.g.
  WCO UN/CEFACT
• Government authorities require messages with
  different data and in different formats (EDIFACT,
  XML, TXT)
• Some countries implement new regulations where
  additional information is requested on paper
  documents

13
IATA e-freight What you can do?

• Where IATA e-freight is live
• Publicly endorse e-freight through pro-active
  local communication to encourage participation
• Ensure that all customs stations in your
  countries endorse e-freight
• Further push the use of standard electronic
  messages to replace paper documents
• Ensure that new local regulations will not (re)
  introduce paper documents
• Where you are in the implementation phase
• Lead the e-freight implementation, e.g., South
  Korea
• Formally participate in the review of the
  e-freight process with the local Business Working
  Group
• Where you have not started implementing IATA
  e-freight
• Lobby your governments to ratify Montreal
  Convention 99 and/or Montreal Protocol 4
• Sign WCO Letter of Intent
• Implement an e-customs programme compliant with
  the WCO standards and aligned with e-freight

14
Thank you!
All the info you need http//www.iata.org/e-freig
ht