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Air Freight Documentation

The document discusses the various documentation required for air freight shipping. This includes commercial invoices, consular invoices, certificates of origin, bills of lading, export packing lists, inspection certifications, destination control statements, and additional documents like dock receipts and insurance certificates. It emphasizes the importance of proper documentation, as errors or omissions can result in delayed or non-shipment of goods, storage fees, fines, and nonpayment from recipients. Customs clearance is also discussed, along with the Indian Customs EDI System (ICES) and associated Risk Management System (RMS) that facilitate electronic customs processing.

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Subhashis Modak
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1K views17 pages

Air Freight Documentation

The document discusses the various documentation required for air freight shipping. This includes commercial invoices, consular invoices, certificates of origin, bills of lading, export packing lists, inspection certifications, destination control statements, and additional documents like dock receipts and insurance certificates. It emphasizes the importance of proper documentation, as errors or omissions can result in delayed or non-shipment of goods, storage fees, fines, and nonpayment from recipients. Customs clearance is also discussed, along with the Indian Customs EDI System (ICES) and associated Risk Management System (RMS) that facilitate electronic customs processing.

Uploaded by

Subhashis Modak
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Air freight

Documentation
BBA SEM 4: Management of Air Cargo
UNIT 3
Subhashish Modak
Commercial Invoice

Consular Invoice

Certificate of Origin
Documents
required for Bill of Lading

Air Freight Export Packing List


Shipping: Inspection Certification

Destination Control Statement

Additional Documentation
Commercial Invoice
Commercial invoice includes a detailed line-by-line description of every item in
the shipment. It also lists the value of each item as well as the total value of the
shipment. Some countries may require the use of their own specialized invoices.

The commercial invoice also includes basic information about the transaction,
such as the name and address of the shipper and seller and the delivery and
payment terms.

The buyer can use the commercial invoice to prove ownership, and some
governments use this document to assess custom duties.
Consular Invoice

Certain nations require a consular invoice to control and


identify the imported goods.

The invoice must be purchased from the consulate of the


country to which the goods are being shipped and usually
must be prepared in the language of that country.
Certificate of Origin
The certificate of origin is used to declare which country the
shipment originated in.

This is very important for customs clearance purposes because every


international location carries distinct rules and regulations based on
where the goods originated.
The Certificate of Origin is usually certified by an authorized
semiofficial organization. The Certificate of Origin may be required
even if the commercial invoice contains the same information.
Bill of Lading

The Bill of Lading identifies the shipper, consignee, and


the types and quantity of the goods. The Bill of Lading is
essentially the contract between the owner of the goods
and the carrier.
In order to prove ownership and take possession of the
goods, the customer usually needs the original Bill of
Lading or a copy of it.
Export Packing List
An export packing list is usually more detailed than packing lists used for domestic shipments.
• Freight cost in US dollars (exchange rate on the day of shipment)
• Full name and address of shipper
• ID number of the company
• Full name and address of consignee
• Detailed specification of the goods
• Quantity of cargo
• Weight of the load
• Place of origin of goods
Inspection Certification

Some purchasers and countries require an


Inspection Certificate. This certificate attests to the
specification of the goods shipped.

The inspection is usually performed by a third party.


You will have to obtain an Inspection Certificate
from an independent testing organization.
Destination Control Statement

The Destination Control Statement usually appears


on the commercial invoices, airway Bill of Lading,
and Shipper’s Export Declaration (SED).

This statement notifies the carrier and all foreign


parties that the item may be exported only to
certain destinations.
Additional Documentation
Dock receipt

Warehouse receipt

Insurance certificate

Export license

Certificate of Handling (Fumigation Certificate)

Dangerous Goods Declaration

NAFTA Certificate of Origin (for shipment between Canada, United States, and Mexico)
While it may be cumbersome to ensure
the accuracy and completeness of your
freight documentation, it’s important to
get it done right.
Even small errors and omissions can result
in severe consequences, such as:
The Importance
• Delayed shipment of your goods
of Proper
• Non-shipment of your goods
Documentation
• Cost of extended storage (until
appropriate documentation is received)
• Fines for missing or incorrect
documentation
• Nonpayment from the recipient
Customs Act of 1962

• Customs duties form a significant source of revenue for


India. The principle statute under which they are imposed
is the Customs Act, 1962 (hereinafter Act). Charge of
Customs Duty: Duties of custom are levied under section 12
of the Act on goods imported into or exported from India.
Customs Act of 1962
Customs Clearance
All goods shipped internationally must pass through customs before
they are allowed to enter or exit a country. This includes anything
sent by sea, air, or land.
Once cleared, the shipper is provided with a document that confirms
that all customs duties have been paid and that the shipment of
goods may proceed.
A freight forwarder will usually handle the customs clearance
process, but you may also choose to hire a customs broker.
About ICES
• The Indian Customs EDI System (ICES) is now operational at 134 major
customs locations handling nearly 98% of India's International trade
in terms of import and export consignments. ICES has two aspects:
• Internal Automation of the Custom House for a comprehensive,
paperless, fully automated customs clearance system that makes the
functioning of Customs clearance transparent and efficient.
• Online, real-time electronic interface with the trade, transport,Banks
and regulatory agencies concerned with customs clearance of import
and export cargo through ICEGATE.
• ICES is designed to exchange/transact customs clearance related
information electronically using Electronic Data Interchange (EDI). A
large number of documents that trade, transport and regulatory
agencies (collectively called Trading Partners) are required to submit/
receive in the process of live customs clearance are now being
processed online.
Three Systems are major Components of
Indian Custom automation
The ICES running at 134 locations. ICES has to automatically receive and process all
incoming messages. ICES generate all outgoing messages automatically at the
appropriate stage of the clearance process.

ICEGATE is the interface of ICES with the external world for customs clearance
related messages and sharing of trade Statistics/Customs clearance data with
licencing and regulatory agencies such as DGFT, DGCI&S, Ministry of Steel,RBI etc.

RMS(Risk Management System) is the 3rd component which facilitates the


compliant trade segregating the transactions requiring deeper scrutiny by customs
officers.

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