Simplifying the Business International Air Transport Association 2009

IATA e-freight
DG TREN
Conference on e-Freight
Frederic LEGER
Head of Business Process
February 17th, 2009
Brussels
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Simplifying the Business International Air Transport Association 2009
Background
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Simplifying the Business International Air Transport Association 2009
IATA: About IATA
Founded in 1945, the International Air
Transport Association (IATA) is the
industrys global trade association
With 230 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 a successful air transport
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Simplifying the Business International Air Transport Association 2009
IATA: About Cargo
Simplifying the
Business of Air Cargo
Air Cargo Supply Chain Process
Process SIMPLICITY & EFFICIENCY
Process QUALITY, TRACK & TRACE
Cargo Security
Process CONDITIONS
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Simplifying the Business International Air Transport Association 2009
IATA e-freight Overview
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Simplifying the Business International Air Transport Association 2009
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
Why?
US$ 4.9 billion in air cargo supply chain cost savings
When?
By end 2008, IATA e-freight implemented in 18 locations
In 2009, implement in an additional 5 locations
In 2010, 100% IATA e-freight where feasible
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Simplifying the Business International Air Transport Association 2009
IATA e-freight: Approach
Implement
IATA e-freight
Detailed Level
Assessment
(DLA)
High Level
Assessment
(HLA)
The IATA e-freight three steps approach
1. HLA: Identify locations that potentially have the legal and technical
environment for e-freight
2. DLA: Confirm the locations are ready for e-freight including technical,
regulatory, business process and willingness
3. Implementation: Implement IATA e-freight locally according to
standards
To Date: 52 21 18
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Simplifying the Business International Air Transport Association 2009
IATA e-freight: Live Locations
UK
Singapore
Hong Kong
Netherlands
Canada
Sweden
South Korea
18 locations live in 2008
Germany
Australia
USA (JFK/ORD)
New Zealand
Mauritius
Dubai
Denmark
Spain
Norway
Luxembourg
France
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Simplifying the Business International Air Transport Association 2009
IATA e-freight Adoption Status (Dec. 08)
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Simplifying the Business International Air Transport Association 2009
IATA e-freight: Scope of Document
Export
Customs
Import
Customs
Origin
Freight Forwarders
Carrier
Consignees
1. Invoice
2. Packing List
3. Certificate of Origin
4. Letter of Instruction
5. Dangerous Goods Declaration
6.Air Waybill
7. House Waybill
8. House Manifest
9. Export Goods Declaration
10. Customs Release Export
Destination
Freight Forwarders
15.Import Goods Declaration
16.Customs Release Import
16 Documents in scope in 2009 16 Documents in scope in 2009
62% of the paper in volume 62% of the paper in volume
11. Flight Manifest
12. Transfer Manifest
13. Export Cargo Declaration
14. Import Cargo Declaration
Shippers
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Simplifying the Business International Air Transport Association 2009
IATA e-freight: Standards Recommended
Trade documents: UN/CEFACT XML
Transportation documents: IATA Cargo-IMP
Customs documents: WCO EDIFACT
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Simplifying the Business International Air Transport Association 2009
Findings & Challenges
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Simplifying the Business International Air Transport Association 2009
IATA e-freight Findings Partial e-freight Issues
Total e-freight shipment:
A shipment with none of the
in-scope paper documents
Partial e-freight shipment:
A shipment with none of the
in-scope paper documents
but some others (e.g. CITES
Certificates)
LHR
MNC
Non e-freight Shipment
Partial e-freight Shipment
e-freight Shipment
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Simplifying the Business International Air Transport Association 2009
IATA e-freight Findings Compliance Issues
Some countries have not signed International Conventions
and/or appropriate legislations are not in place
Some countries still rely on paper even if an e-customs
platform is in place
Some countries implement new regulations where
additional information is requested on paper documents
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Simplifying the Business International Air Transport Association 2009
IATA e-freight Findings Documents Issues
Export
Customs
Import
Customs
Origin
Freight Forwarders
Carrier
Consignees
Destination
Freight Forwarders
Certificate of Origin is still
required in original paper
format (e.g. GSP)
Some countries ask for
customs declarations &
supporting documents in
paper format (e.g. AWB)
Shippers
The Export Accompanying
Document is required in
paper format (EU-ECS)
Many countries ask for
the Security Declaration
in paper format
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Simplifying the Business International Air Transport Association 2009
IATA e-freight Findings Standards Issues
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 in different
formats (EDIFACT, XML, TXT)
In the absence of a Single Window environment traders
have to submit similar data via multiple channels
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Simplifying the Business International Air Transport Association 2009
IATA e-freight Findings Adoption Challenge
200
Potential Airlines
20 000
Potential forwarders
Challenge for widespread adoption
2 000 000
Potential shippers
-
+
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Simplifying the Business International Air Transport Association 2009
IATA e-freight Next Steps
Implement IATA e-freight in new locations and airports
Increase adoption with international Shippers Councils and
Forwarder Associations via local industry workshops
On-going discussions with Authorities to remove the paper
and comply with regulations (e.g. CUSAG, IFCWG)
Continue to work with IT service providers to provide viable
electronic solutions for all parties (e.g. SMEs)
Promote the use of international standards and increase
the scope of documents
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Simplifying the Business International Air Transport Association 2009
Thank You: For more information
Read the IATA e-freight handbook:
http://www.iata.org/efreight
Visit the website:
http://www.iata.org/stbsupportportal/efreight/
Contact IATA e-freight at:
IATAe-freight@iata.org