090330 c

IATA e-freight

IATA e-freight handbook

v2

www.iata.org/stbsupportportal IATA Simplifying the Business

Document Status Versions Version Date IATA StB -

Authors Notes

0.1 23rd of July 2008

IATA e-freight team

Initial Version

0.2 14th of October 2008

IATA e-freight team

Completion of the document following comments from first internal and external review

1.0 3rd of November 2008

IATA e-freight team

Completion of the document following comments from second internal and external review

1.1 4th of November 2008

IATA e-freight team

Minor changes on the Business Case section

2.0 2nd of March 2009

IATA e-freight team

New in v2: IATA Methodology to identify valid transit

points (Appendix 3) IATA support model (Appendix 4) Updated / improved from v1: Chapter 1: delivery approach, scope of the

documents (from 13 to 16) and types of shipments (special cargo, )

Chapter 2: former chapter 6 has been dramatically improved to support stakeholders wanting to adopt e-freight where already live with a link to the new self-assessment questionnaire posted on the public website Chapter 3: former chapter 2 has been upgraded with new business rules relspecial cargo and the section freight forwarder carrier ground handling communication has been completely reviewed base

ated to

agent

d on the latest version of the

es ebsites of all our

hapters 4 & 5 are now appendices 1 and 2

specifications Chapter 4: former chapter 3 now providyou with the public wPreferred Partners Former c

www.iata.org/stbsupportportal IATA Simplifying the Business 2/132


Disclaimer

The information contained in this publication is subject to constant review in the light of changing government requirements and regulations. No reader should act on the basis of any such information without referring to applicable laws and regulations and/or without taking appropriate professional advice. Although every effort has been made to ensure accuracy, the International Air Transport Association shall not be held responsible for loss or damage caused by errors, omissions, misprints or misinterpretation of the contents hereof. Furthermore, the International Air Transport Association expressly disclaims all and any liability to any person, whether a purchaser of this publication or not, in respect of anything done or omitted, and the consequences of anything done or omitted, by any such person in reliance on the contents of this publication.

No part of the IATA e-freight handbook may be reproduced, recast, reformatted or transmitted in any form by any means, electronic or mechanical, including photocopying, recording or any information storage and retrieval system, without the prior written permission from:

Programme Director, Simplifying the Business

International Air Transport Association

33 Route de l'Aroport, P.O. Box 416

1215 Geneva, 15 Aroport, Switzerland



How this handbook is organised

This handbook provides information on what IATA e-freight is and how to implement it.

It provides explanations, guidelines, and best practices regarding the business process, standards, technology and implementation of IATA e-freight.

The intended audience for this guide is: Any industry stakeholder (airline, freight forwarder, shipper, ground

handler, customs broker) intending to adopt IATA e-freight in an airport where e-freight is already live: please refer specifically to chapter 2.

Any industry stakeholder (airline, freight forwarder, shipper, ground handler, customs broker) intending to participate in the initial implementation of IATA e-freight in the first airport of a given location (country or special administrative area): please refer specifically to appendix 2.

All other parties who are interested in IATA e-freight, the value to the industry, and the business processes, standards, technology and implementation methodologies supporting it. For these topics, please refer to the appropriate chapter(s) of the handbook as indicated below:

Chapter 1 Introduction to IATA e-freight: definition, scope,

benefits, stakeholders, governance Chapter 2 How individual stakeholders can adopt IATA e-freight

in a live airport Chapter 3 The business process and standards supporting IATA

e-freight Chapter 4 The technology supporting IATA e-freight

This is not a definitive or binding document - formal texts, defining IATA e-freight standards and recommended practices are contained in the appropriate Resolutions, Recommended Practices and Standards adopted by the IATA Cargo Services Conference and their references are to be found in The Combined Cargo Conference Manual (CCC) at the following link: www.iata.org/cargo-manual

Any comments, suggestions or proposals for enhancements are welcome and should be directed to: [email protected]



Special Thanks

This handbook is the result of several years of work by many organisations and individuals from the air cargo industry.

IATA would like to thank all the dedicated professionals who contributed to the initial definition and implementation of IATA e-freight, and who made the publication of this handbook possible.

In particular, special thanks are extended to the stakeholders who participated in: The IATA e-freight Central Action Group (eCAG) The launch of IATA e-freight in the six pilot locations (Canada,

Hong-Kong, Netherlands, Singapore, Sweden, United Kingdom) in 2007

Thos h ons since: e w o implemented IATA e-freight in other locatiG) o The e-freight Management Groups (eFM

o The Business Working Groups (BWG) G) o The Technical Working Groups (TW

o The Legal Working Groups (LWG) The Busine ards Task Forces: ss and Process Stand

o The e-AWB Task Force o The Invoice, Packing List and Certificate of Origin New

Standards Task Force o The Forwarder-Broker Communication Task Force

The IATA Cargo industry bodies who provided feedback on the new standards:

o The Cargo Procedures Conference Management Group (CPCMG)

o The Cargo Business Processes Panel (CBPP) o The IATA FIATA Consultative Council (IFCC)

Through their dedication to this project and their passion for the advancement of the air cargo industry, these groups made it possible to make IATA e-freight a reality.



Table of Contents

CHAPTER 1 INTRODUCTION TO IATA E-FREIGHT ............................................................................... 9 SECTION 1.1 ABOUT THE IATA SIMPLIFYING THE BUSINESS (STB) PROGRAMME .................................................... 9 SECTION 1.2 ABOUT THE IATA E-FREIGHT PROJECT ..........................................................................................11

CHAPTER 2 HOW TO ADOPT IATA E-FREIGHT ....................................................................................26 SECTION 2.1 ASSESS YOUR TECHNICAL READINESS AND IDENTIFY YOUR GAPS........................................................28 SECTION 2.2 DECIDE HOW YOU WILL CONDUCT IATA E-FREIGHT IN YOUR OPERATIONS AND WRITE YOUR INTERNAL E-FREIGHT OPERATIONAL PROCEDURES (E-FOP) ........................................................................................................29 SECTION 2.3 DECIDE WITH WHAT PARTNERS AND ON WHAT TRADE LANES YOU WANT TO START IATA E-FREIGHT.......31 SECTION 2.4 GET READY TO START .................................................................................................................32 SECTION 2.5 START YOUR FIRST IATA E-FREIGHT SHIPMENTS!............................................................................35

CHAPTER 3 BUSINESS PROCESS AND STANDARDS (BPS) SUPPORTING IATA E-FREIGHT.............36 SECTION 3.1 INTRODUCTION TO BUSINESS PROCESS & STANDARDS .....................................................................36 SECTION 3.2 WHERE DOES IATA E-FREIGHT FIT IN THE CARGO BUSINESS PROCESS? ...............................................39 SECTION 3.3 WHAT INFORMATION IS EXCHANGED IN IATA E-FREIGHT AND HOW? .................................................42 SECTION 3.4 WHAT ARE THE STANDARD ELECTRONIC MESSAGES FOR IATA E-FREIGHT? .........................................50 SECTION 3.5 WHAT ARE THE BUSINESS RULES RELATED TO IATA E-FREIGHT? .......................................................60

CHAPTER 4 TECHNOLOGY SUPPORTING IATA E-FREIGHT ..............................................................72 SECTION 4.1 SYSTEM INTEGRATION SCENARIOS.................................................................................................74 SECTION 4.2 AIR CARGO SUPPLY CHAIN STAKEHOLDER TECHNICAL REQUIREMENTS................................................80 SECTION 4.3 WHAT TO EXPECT FROM IT SOLUTION PROVIDERS? ..........................................................................88

APPENDIX 1 THE IATA METHODOLOGY TO ASSESS THE LOCATIONS READINESS.......................91 APPENDIX 2 THE IATA METHODOLOGY TO BUILD LOCATIONS CAPABILITY...............................95 APPENDIX 3 THE IATA METHODOLOGY TO ASSESS THE VALIDITY OF TRANSIT POINTS ..........125 APPENDIX 4 HOW IATA SUPPORTS STAKEHOLDERS INTERESTED IN E-FREIGHT (DURING ASSESSMENT, IMPLEMENTATION AND RAMP-UP PHASES) ....................................................................126 APPENDIX 5 GLOSSARY OF TERMS ......................................................................................................131



Table of useful guidelines

HOW TO CHECK THE STATUS OF A GIVEN LOCATION .............................................................................21 HOW TO USE IATA RESOURCES TO MAKE IT HAPPEN ..............................................................................27 HOW TO PROMOTE E-FREIGHT TO MY BUSINESS PARTNERS .................................................................28 HOW TO IMPLEMENT THE E-AWB ................................................................................................................29 HOW TO KNOW WHICH STAKEHOLDERS ARE ALREADY LIVE AND WHERE ........................................31 HOW TO SELECT THE TRADE LANES ON WHICH YOU WILL IMPLEMENT IATA E-FREIGHT..............31 HOW TO CHECK THE TRANSIT STATUS OF AN AIRPORT..........................................................................31 HOW TO PARTICIPATE IN MIP.......................................................................................................................33



Use of icons

A variety of icons are used in this handbook to make it easy to follow and to highlight key concepts:

What / Why? This icon is used to define a concept.

How to? This icon is used to describe how to do something (useful guidelines).

Inputs This icon is used to indicate the documents, templates that are useful.

Who? This icon is used to indicate the stakeholders involved and their roles and responsibilities.

Risks This icon is used to highlight potential risks.

Key success factors This icon is used to indicate key elements to successful IATA e-freight implementation.

Outputs This icon is used to highlight deliverables that need to be produced.

Communications This icon is used to indicate the communication deliverables that need to be produced.



CHAPTER 1 INTRODUCTION TO IATA E-FREIGHT

Section 1.1 About the IATA Simplifying the Business (StB) programme

1.1.1 What is StB?

IATA e-freight is one of the initiatives of the IATA Simplifying the Business Programme (StB).

Sponsored by the IATA Board of Governors, Simplifying the Business (StB) is an industry-wide programme that began in 2004. Its mission is to change the way the air transport industry operates resulting in better service for passengers and lower costs for the industry.

That mission is now more relevant than ever. The airline industry finds itself in the midst of yet another crisis. By working together, we will be able to produce long-lasting change that will allow the industry to succeed in todays environment. Our current programme can save the industry up to US$14 billion every year.

StB concentrates its efforts on four core projects: IATA e-freight Bar Coded Boarding Passes (BCBP) Fast Travel Baggage Improvement Programme (BIP)

1.1.2 StB Support Model

IATA supports the industry through a structured approach described below: 1.1.2.1 Mobilise

As a leader of change, IATA is promoting the implementation of StB pr tojec s as mandated by the IATA Board of Governors. Continuous engagement: Through a structured approach, IATA

maintains regular contact with stakeholders worldwide to find out progress made, identify challenges and help them overcome


eholders within a specified timeframe on a particular

set of issues. 1.1.2.2 Facilitate

. IATA utilises a number of mecha

provide

request deployment of BCBP on

Memoranda of Understanding

obstacles. Campaigns: Through campaigns, IATA mobilises its global network and directly engages stakeholders. Campaigns support a large number of stak

IATAs role is to bring the various stakeholders together, to match needs and solutions and to facilitate the overall process

nisms to drive its matchmaking activities. StB Preferred Partners: StB requires the involvement of all key stakeholders. Through the StB Preferred Partners Programme, IATA engages potential vendors and service providers thatapproved solutions for the implementation of StB projects. Matchmaking: Tools that allow participating stakeholders to make contact with each other to advance the implementation of StB projects. For example, the BCBP Matchmaker allows airlines to establish contact with airports and shared equipment.

9/132 IATA e-freight handbook

1.1.2.3 Support In order to support industry stakeholders with their implementation efforts, IATA provides key information through the following: Communications:

o IATA provides progress, technical information and industry news or each project.

o StB Newsletter: IATA keeps the industry up to date via monthly reports on progress and developments.

o StB Knowledgebase: An FAQ database designed to give stakeholders quick answers to questions on projects

StB workshops and events: o StB workshops: Workshops provide hands-on implementation

support and are held in each region to educate stakeholders and help them to successfully implement their StB projects.

o Events: IATA raises general awareness through participation at key industry events and or through its own conferences to

f the StB programme for the industry. promote the value o B inus ess intelligence:

o Airline customised reports: To enable our stakeholders to benchmark and measure key industry variables. For an overview of their own project status, industry stakeholders are provided with CEO Reports. These confidential reports are provided through the StB extranet: an online secure site for collaboration.

Consulting: In certain cases, IATA may be in the position to offer one-to-one on-site consultancy to stakeholders, which can take the form of support by subject matter experts.


fficient

ed and in-depth technical guides on

require a

d Practices that are rmally approved by the Cargo Services Conference.

1.1.2.4 Guide As a leader in the development and implementation of standards for air transport, IATA also provides guidance for the implementation of StB pr tojec s.

Standards: These are developed in a number of functional areas to ensure systems and procedures are in place to support eprocesses between stakeholders and their industry partners. Implementation guides: Detailhow to implement StB projects. Recommended Practice: Defined as: "A Recommended Practice sets forth procedures which will facilitate the interlining of traffic among Members where uniformity of the procedures is not considered essential." A Recommended Practice does notunanimous vote - a two-thirds affirmative vote is sufficient.

Note that this IATA e-freight handbook includes both the standards and the implementation guide and also refers to Recommendefo


Section 1.2 About the IATA e-freight project 1.2.1 Vision

Today, the air cargo industry still almost exclusively relies on paper-based processes to support the movement of freight. The average shipment generates more than 30 documents that are used and/or handled by the various parties involved: shippers, freight forwarders, ground handling agents, airlines, customs brokers, customs and other government authorities.

These paper-based processes are not cost-effective, nor do they serve the key requirements of air cargo: security and speed.

In December 2004, the Board of Governors mandated IATA to lead an industry-wide project whose aim is to take paper out of the air supply chain, and create the conditions to replace the existing processes with new ones where the industry and governments rely on the electronic exchange of information between the parties to facilitate the movement of freight.

The long-term vision for the industry is to eliminate the need to produce and transport all paper for all stakeholders paperless IATA e-freight.

1.2.2 Mandate

The Board mandate is to lead an industry wide campaign to build up the capability where feasible, so that the airfreight industry stakeholders may perform IATA e-freight transactions between themselves.

Although the vision is paperless, the mandate for 2010 is paper free. Achieving the vision will require sweeping changes in regulatory and legal environments. The Board decided that paper free is a more realistic approach and will deliver the majority of business benefits for industry stakeholders.

IATA e-freight is paper free, i.e., a paper free process whereby the airfreight supply chain does not transport paper documents. There may be a requirement by exception to produce the paper documents in original, copy or printed e-document form, but not for the purpose of customs clearance.

To achieve the mandate the project successfully tested concept of IATA e-freight in 2007 with its implementation in six locations: Canada, Hong Kong, Netherlands, Singapore, Sweden, and United Kingdom.

In order to build on the success of the pilots and enable the scalability of the product IATA developed a two-fold approach: Increase the number of IATA e-freight capable locations Increase the number of participants implementing IATA e-freight at

each location

This guide provides a step-by-step process for adopting IATA e-freight in your organisation throughout the various stages of implementation.

As the rollout of IATA e-freight increases, this handbook will be updated to reflect any changes in the approach to implementation and the business and technical process and standards.



1.2.3 Business Case 1.2.3.1 Overview on industry benefits

The IATA e-freight industry business case benefits are based upon the following key criteria:

Cost Savings: the decrease in document processing costs Speed: the ability to send shipment documentation before the

cargo itself can reduce the industry cycle time by an average of 24 hours

Quality and Reliability: Electronic documents auto population allowing one time

electronic data entry at point of origin reduces delays to shipments due to inaccurate or inconsistent data entry


ic documentation allows for online track and

e air cargo process will

to build any new e-customs

paper documents, the equivalent of 80 Boeing 747

freighters

1.2.3.2 Detailed ind

-freight is achieved for the documents in scope is

ipments versus the total number of shipments,

Key

ents in the e-freight

n of

5%, as measured by the Message

Electronic documents cannot be misplaced so shipments will no longer be delayed because of missing documentation

Visibility: electrontrace functionality

Simplicity: as all supply chain stakeholders follow the same e-freight process and messaging standards thbe globally uniform and simpler to execute

Regulatory advantage: the existence of an e-freight process already in use will encourage countriesrequirements around these standards

Environmental: IATA e-freight will eliminate more than 7,800 tonnes of

ustry benefits As a result the average net industry operating benefit after five years based on the documents in scope is US$1.3 billion. The total annual net benefit of the project once 100% eUS$4.9 billion.

The diagram on the following page illustrates the net benefits for the industry over an eight-year period, with Year 1 being 2009. The model covers this time period as the industry evolves from its current capability to the implementation of 100% e-freight capability and the increase in the percentage of e-freight shreferred to as penetration.

assumptions in the business case model:

It does not assume the removal of all documsupply chain but only the documents in scope

The technologies used for the exchange of messages and documents are integrated messaging using an XML standard, data entry onto web portals and e-mailing and scanning of documents. It is important to note that the model is based on the migratiothe Cargo IMP standard messages to XML standards

It assumes that the current messaging quality for the exchange of the master air waybill is 6Improvement Programme (MIP), and that quality will increase to a maximum of 75% by year 3



hese enabled airports) lags airport capability by two years. The penetration indicator therefore has the net effect of reducing the total savings until 98% capability and penetration is reached in year

As iden

fore the cargo itself can reduce the end-to-end

ation. By introducing e-

- as the industry migrates to

The penetration is calculated as a function of the estimated global capability of airports to implement e-freight. It is assumed that the top 100 airports accounting for approximately 85% of the total airfreight volume will be live by year 4. It is also assumed that the penetration of e-freight (i.e., the percentage of the total shipments at t

7.

Black Direct Input Integrated messaging %

30%

(amounts in US $ billion) Green Feed from other cell Web Portal % 50%Blue Calculation Scan % 20%

X User-input parameters

Annual deprec 33%

YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR TotalCOST SAVINGS 1 2 3 4 5 6 7 8Document Processing 1.18$ 1.27$ 1.37$ 1.44$ 1.51$ 1.58$ 1.66$ 1.73$ 11.74$ Delivery Time 0.63$ 0.66$ 0.69$ 0.72$ 0.76$ 0.80$ 0.83$ 0.87$ 5.97$ Inventory Savings 1.26$ 1.32$ 1.38$ 1.45$ 1.52$ 1.59$ 1.66$ 1.74$ 11.91$ Reduced Customs Penalties 0.02$ 0.02$ 0.02$ 0.02$ 0.02$ 0.02$ 0.02$ 0.02$ 0.16$ Market share increase over other modes of freight 1.00% 1.16$ 1.23$ 1.31$ 1.39$ 1.48$ 1.57$ 1.67$ 1.78$ 11.59$ Potential Savings Subtotal 4.24$ 4.50$ 4.77$ 5.02$ 5.28$ 5.56$ 5.85$ 6.16$ 41.38$ % international air freight volume e-freight enabled 38% 69% 78% 86% 98% 98% 98% 98%Average % penetration in enabled airports (2 year lag on enablement 1% 15% 32% 63% 72% 80% 98% 98%

Potential Savings Subtotal 0.02 0.47 1.19 2.72 3.73 4.36 5.62 5.91 24.00

EXPENSESNew technology expenses (0.5)$ (0.6)$ (1.0)$ (1.6)$ (2.0)$ (1.6)$ (1.3)$ (1.0)$ (9.6)$

NET BENEFIT (COST)Net Benefit (0.5)$ (0.2)$ 0.2$ 1.2$ 1.7$ 2.7$ 4.3$ 4.9$ 14.4$

Cumulative Net Benefit .4Savings / transaction 6

(0.5)$ (0.6)$ (0.4)$ 0.8$ 2.5$ 5.2$ 9.5$ 14$ (4.41)$ (1.58)$ 2.07$ 9.77$ 13.66$ 20.99$ 31.94$ 35.1$

XML software depreciatio

E-FREIGHT

FINANCIAL ANALYSIS

Forecast % of TransactionLegend

the financial analysis diagram shows there are five key savings tified:

Document processing - by migrating to a paper free process for the documents in scope, there are cost savings associated with less manpower to physically handle the document process and less data re-entry. This equates to savings of US$1.73 billion in year 8.

Delivery Time Shortening - the ability to send shipment documentation becycle time by an average of 24 hours. This results in a decrease in the cost of capital to finance goods in transit to the value of US$870 million by year 8.

Inventory Savings The value of inventory kept as buffer stock is 12% of the value of goods sold. A quarter of this buffer stock is held because of the unreliability of transportfreight, it is estimated that this will reduce this buffer stock level by 22% based on improvements in reliability. The resulting savings equal US$ 1.74 billion savings per annum.

Customs Penalties Reductionselectronic document and data submission, the data errors are



.

e the air cargo industry more competitive, resulting

heir systems to exchange XML, whilst other industry

and canning and the percentage of e-freight transactions are 30%, 50% and

1.2.3.3 Industry Stakeholder Value Proposition In or arders to assess their business case the proje

Thes

siness case. The model is built on feedback from key airlines in is

not an exhaustive list of drivers as each business will have its own document processing model, but it does provide a comprehensive guideline.

The model can be found at the following link: http://www.iata.org/e-freight

reduced and thus there is a 53% reduction in customs penalties due to incorrect data submission

Increased Market Share over other modes of freight - IATA e-freight will makin a conservative 1% market share increase over other modes of transportation, i.e. sea freight.

The financial analysis diagram also shows there are costs to the industry of migrating to e-freight.

The expenses incurred are based on the industry migrating to new technologies to deliver the benefits of e-freight. This means that some stakeholders that currently have a capability to exchange messages will have to upgrade tstakeholders will have to procure the capability to exchange messages.

The technology solutions include integrated messaging, web portal s20% respectively.

The model has a five-year investment period plus three years to fully realise the effects of depreciating the investment in XML messaging software.

der to help airlines and freight forwct has produced a number of models.

e models are for:

An airline that is self handled An airline that is handled by a ground handling agent A freight forwarder

The models include key cost and benefit criteria including manpower, the cost of messaging and archiving of electronic messages. It is recommended to read though the instructions and assumptions to help prepare a buand freight forwarders that have helped determine the business drivers document processing and electronic messaging. Please note that this


1.2.4 Delivery approach Proving feasibility

To prove that IATA e-freight is feasible, define the scope of documents and develop the foundation for the IATA e-freight operating procedures (IATA e-FOP), IATA brought together industry stakeholders to develop an agreed methodology.

In each of the six pilot locations the project mapped the As-Is business process and defined the To-Be (IATA e-freight) industry business process. As a result the IATA e-freight implementation in the six pilot locations was successfully achieved on November 5th, 2007. After this initial go-live, the pilot locations were used as a test bed to prove IATA e-freight feasibility as well as determining the further changes needed to the IATA e-freight product to make it scalable.

Building capability Now the project target is to build IATA e-freight capability in all feasible locations, i.e., those locations with the right legal, technical and business process environment to implement IATA e-freight.

At end of 2008, 18 locations had successfully implemented IATA e-freight: Australia, Canada, Denmark, Dubai, France, Germany, Hong Kong, Korea, Luxembourg, Mauritius, Netherlands, New Zealand, Norway, Singapore, Spain, Sweden, United Kingdom, and United States of America.

To determine the locations in scope, every location has now been assessed using a formal methodology involving IATA and industry stakeholders. The aim is to maximise the number of locations in scope to implement IATA e-freight by the end of 2010.

In parallel to implementing IATA e-freight in all feasible locations, IATA will work with key cargo markets to communicate the benefits and requirements to implement IATA e-freight so that they may develop the necessary legal, technical and business process environment

Pushing for adoption and penetration As capability increases across the world, e-freight shipment volumes will increase. In addition, the project plans continuous engagement to drive the industry to adopt and implement IATA e-freight, thus maximising the penetration of e-freight shipments.



1.2.5 Scope 1.2.5.1 List of documents in scope for IATA e-freight

The IATA e-freight project team considered the removal of documents across the supply chain that facilitate the movement of freight and are either supported or can be supported by an agreed international electronic messaging standard within the 2010 timescale. Currently there are 16 documents in scope of which 13 have electronic messaging standards defined as below.

An agreed international electronic message is one that has been approved by industry bodies or international standard setting bodies and is relevant to IATA e-freight.

As a result the documents in scope are: 1. Invoice 2. Packing List 3. Certificate of Origin 4. Letter of Instruction (electronic messaging standard to be defined in

2009) 5. Shippers Dangerous Good Declaration (electronic messaging

standard to be defined in 2009) 6. Export Goods Declaration 7. Customs Release Export 8. House Manifest 9. Master Air Waybill 10. House Waybill 11. Export Cargo Declaration 12. Flight Manifest 13. Transfer Manifest (electronic messaging standard to be defined in

2009) 14. Import Cargo Declaration 15. Import Goods Declaration 16. Customs Release Import (Further details of the documents in scope can be found in chapter 3)

The Certificate of Origin is implemented in all locations where feasible, i.e., there is the regulatory and legal environment that allows its replacement with an electronic document.

The documents within scope are estimated to account for 62% of the total volume of documents transported across the supply chain and are either carried in the airport-to-airport sector or allow the import and export release of goods.

The remaining documents identified in the original project scope do not have agreed international standards that can be implemented by 2010, but the project will support when possible the expansion of IATA e-freight to these other documents.

The exchange of electronic information in lieu of paper documents between parties in the supply chain may include a number of approaches according to the value proposition for the individual stakeholders. These approaches are documented in chapter 3 of this handbook.



1.2.5.2 Type of shipments in scope for IATA e-freight In addition to the scope of documents, it is important to define the types of shipments that can be implemented, as each shipment type will have a different process and supporting document.

Each shipment can be defined according to two dimensions:

Type of freight (commodity) Type of transaction

An in-scope shipment is a shipment where: The type of freight s in scope (i.e. allows removal of the 13 documents) And, the type of transaction is in scope (allows the removal of the 13

documents)

An out-of-scope shipment is a shipment where: The type of freight is not in scope (i.e. does not allow removal of all the

13 documents) n is not in scope (i.e. does not allow removal Or, the type of transactio

of all the 13 documents) r that type of shipment has NOT yet Or, the IATA e-freight feasibility fo

been investigated and concluded

ype of freight: general cargo and special cargo.

T

Special cargo is defined as when other government agencies (OGA), as well as customs administrations, are involved in the permission to import and export goods.

plementation. The local Business Working Group manages this process.

The scope of IATA e-freight includes both general and special cargo (specifically, dangerous goods, live animals, and perishables are included in scope). Prior to the implementation of special cargo in a particular location and on a particular trade lane, industry stakeholders need to ensure that there is no specific local regulation or practice preventing theim

Types of freight Definition In or out of

scope? General cargo f IATA

Any cargo where the clearance and release processes involves no OGA

In scope oe-freight

Special cargo: Dangerous Goods (except Radmaterials), Perishabl

ioactive

es, Live nimals

or the clearance and release of the goods

f IATA e-freight

A

Special cargo requires the involvement of OGA as well as customs f

In scope o

Special cargo: Dangerous Good(Radioactive materials),

s

Human Remains

or the clearance and release of the goods

IATA e-freight

Special cargo requires the involvement of OGA as well as customs f

Out of scope of



Type of transaction: direct, transit, transhipments, etc.

Types of transaction Definition In or out of

scope? Point-to-point shipments

Shipments which do not involve transit or transhipment (see definitions of transit and transhipment below)

In scope of IATA e-freight

Transit (FROB)

An en route stopping place where freight remains on board (FROB)


Transhipment through carrier gateway/hub (same airline)

The unloading of cargo from one flight and loading to another for onward carriage (flight from same airline)


Transhipment through carrier gateway/hub (different airline, i.e. interline)

The unloading of cargo from one flight and loading to another for onward carriage (flight from different airline)

In scope of IATA e-freight, but not described in this version of the handbook. Planned for v3.

Transhipment through freight forwarder gateway/hub

The unloading of cargo from one means of transport and loading to another means of transport for onward carriage through freight forwarder gateway/hub


Origin freight forwarder different from destination freight forwarder (OFF-DFF)

Shipments where the origin and destination freight forwarders do not share the same IT systems for the storage and transfer of electronic data, or for the receipt transfer, and archiving of electronic documents


Destination freight forwarder to broker handover/turnover shipments

Shipments where the destination freight forwarder is instructed by the buyer to hand-over the goods to a third party, and make documents available to that third party Commercial Invoices, Packing List, Certificate of Origin if relevant and any other document for clearance (or the third party may directly have received the documents from the origin freight forwarder or shipper), for that party to undertake the final clearance and delivery of the goods, where allowed for in the applying INCO term of sale


Direct shipments freight forwarder acts as booking agent

Shipments where the freight forwarder acts as a booking agent for the carrier


Letter of Credit shipments

Shipments where a Letter of Credit is involved in the transfer of title for the goods

Out of scope of IATA e-freight Targeted for next version of the IATA e-freight product.

Airline internal shipments (also called CoMat or

Shipments (usually catering or AOG) where the shipper is the airline itself and where they also are their own freight

Out of scope of IATA e-freight Targeted for next



referred to as service AWB)

forwarder at origin. At destination usually a regular freight forwarder is used. The flows are to the main (technical) hubs. The master AWB used is called service AWB (and is not used as a contract but operational document) which means there are no costs involved. Typically aircraft spare parts, or catering

version of the IATA e-freight product.

Non commercial shipments

Shipments not subject to a commercial transaction between the exporter and the importer (e.g. moving some personal effects, company material)

Out of scope of IATA e-freight Targeted for next version of the IATA e-freight product.

Domestic shipments

The place of departure and the place of destination are within the same customs territory, and the shipment is not subject to any customs controls


Direct shipments shipper books direct with the carrier

Shipment where shipper books direct with the carrier

Out of scope of IATA e-freight

Postal freight

Airmail shipments where a postal air waybill number has been associated with the mail delivery bills

Out of scope of IATA e-freight



1.2.5.3 Locations in scope for IATA e-freight

Location: a country, territory, special administrative region or any other signatory to the Warsaw convention as amended by the Montreal Protocol 4 or the Montreal Convention (MP4/MC99).

The IATA e-freight team is supporting all locations with cargo volumes.

However, only the locations where the government is willing, has the appropriate legal framework in place and is able to support the technical and business process requirements (i.e. all the locations that passed both the High Level Assessment and the Detailed Level Assessment) are in scope of the mandate given by the IATA Board of Governors refer to appendix 1 of this handbook.

Note:

In order for IATA e-freight to be feasible between an origin and destination, both should be parties to the same convention (MP4 or MC 99).

That will ensure a common set of rules, known to both parties, and limit any uncertainty as to the possible applicable laws and the assertion of the limits of liability, should a dispute arise from the contract of carriage of goods.

Note:

Shippers and carriers are nonetheless reminded that IATA e-freight is a discretionary programme, and it is up to shippers and carriers alike, based on their internal legal analysis, to determine how they should ship and document cargo to and from any endorsed IATA e-freight destination.

IATA provides recommended tools for accomplishing IATA e-freight transactions such as Cargo-IMP messaging and model EDI Agreements, and through its endorsement of particular destinations, confirms that the governments of such destinations will accept the use of these tools at their borders.

By ensuring that an endorsed location is a signatory to either MP4 or MC99, IATA can compel the acceptability of IATA e-freight tools. However, such endorsement does not affect in any way the pre-existing legal regime with regard to liability or the particular requirements that cargo insurance carriers may have when cargo is transported to and from those destinations. The determination how liability and insurance issues should be resolved continues to be the responsibility of the carriers and shippers.



How to check the status of a given location

Please use the IATA e-freight interactive map to find out the current

status of locations and their particularities: http://www.iata.org/e-freight

There are two possible scenarios when a location is not live (i.e. Green): The location has not passed yet the HLA (i.e. White) T lhe ocation has passed the HLA but is not yet live due to:

o DLA has not been performed yet or DLA has been completed but a LAP has been defined to enable the start of implementation phase (i.e. Blue)

o IATA e-freight is in the process of being implemented (i.e. Orange)

More information regarding the status of a location may be obtained by e-mailing: [email protected]




1.2.6 Stakeholders

All the key stakeholders of the air supply chain are in scope for the IATA e-

1.2.6.1 Shippers The shipper is the organisation whose name appears on the air waybill or in

1.2.6.2 Origin & destination freight forwarders y that arranges the carriage of goods and

1.2.6.3 Export & Imrt customs is the government service that is responsible for

documents or information in lieu of paper documents.

1.2.6.4 Ground handling agents (GHA) to act for or on behalf of the carrier for accepting,

g, transit, or dealing with cargo, passenger and

1.2.6.5 Origin & destination airlines The origin carrier is the participating airline over whose routes the first section of carriage is undertaken or performed.

freight project.

the shipment record as the party with the airline(s) for carriage of goods. The term is equivalent to the term consignor. They are the originator of three of the documents in scope: Invoice, Packing List and Certificate of Origin.

The freight forwarder is the partthe associated formalities on behalf of a shipper. The forwarder often acts as the clearing agent for the customs release of goods for both import and export.

port customs Export and impothe administration of customs law and the collection of duties and taxes and which also has the responsibility for the application of other laws and regulations relating to the importation, exportation, movement or storage of goods.

Customs business processes and technology allow the electronic exchange of

The GHA is authorisedhandling, loading/unloadinbaggage.

The GHA is the acceptance agent for both freight and documents in the supply chain.



ier is the participating airline over whose routes the last

oses of determining the

1.2.6.6 Customs agustoms

learing agent who deals directly with customs on behalf of the importer or

1.2.6.7 Consigneesgnee is the organisation whose name appears on the air waybill

r in the shipment record as the party to whom the cargo is to be delivered the airline or its agent.

1.2.6.8 Other stakehciations (FFA)

ocal FFAs are involved wherever possible in the implementation in new ensure the needs of the Small to Medium Enterprise (SME)

ns are involved wherever possible in the plementation in new locations to ensure the needs of the customs

re involved wherever possible in the plementation in new locations to ensure the needs of shippers are

roviders develop information management tools and provide ervices for supply chain stakeholders to automate, streamline and

ss processes. They provide computer software, rking solutions, consulting, maintenance and

ns used as a service.

The destination carrsection of carriage is undertaken or performed, or the airline which delivers the consignment to the consignee whether or not that airline has participated in the carriage (for the purpresponsibility for collecting charges and disbursement amounts)

The airlines are the key communication facilitator between freight forwarder, shipper, consignee and customs, and transport the documentation.

ents/brokers The customs broker is an agent or representative or a professional ccexporter.

The consioby

olders Freight Forwarders Asso

Llocations tofreight forwarders are considered.

Customs Brokers Associations

Local Customs Brokers Associatioimbrokers are considered.

Shippers Associations

Local Shippers Associations aimconsidered.

IT Solution Providers IT solution psintegrate their businehardware and netwoIT/process outsourcing services.

Software solutions include management systems to operate core business activities, middleware technology to integrate with other applications or partners, integration platforms to route and translate messages between partners and web-based applicatio

Supply chain stakeholders may procure IT services from external companies or from internal IT departments.



TA

he IATA e-freight project team is responsible for driving IATA e-freight by: Developing project strategy (project charter, business case) and the

global implementation plan (approach from assessments to implementation, planning, methodology, delivery of the pilot

wledge, support and training to local stakeholders

1.2.7 Governance IA e It is

erefore necessary to have a guiding coalition to implement IATA e-freight accordance with the mandate.

IA

T

locations) Defining standards, recommending solutions, developing tools,

engaging key industry actors, such as the solution providers, to ensure alignment and remove industry obstacles Providing kno

TA -freight is an initiative by the supply chain, for the supply chain.thin

The IATA e-freight governance was set up to include two key groups: the IATA e-freight Advisory Group (eAG) and the IATA e-freight Central Action Group (eCAG).

e-freight

Advisory Group(*)

e-freight Central Action Group(*)

IATA e-freight

Product

IATA e-freight

Delivery

e-freight Governance Structure

IATA

Cargo Executive

Summit(*)

Cargo Committee

Supply Chain

Advice

IATA Board of Governors and IATA

Annual General Meeting

Airline Simplifying the Business

Steering Group

e-freight

Product

e-freight Project Director

IATA e-freight

Advice

IATA

Governance

Cargo Services Conference

AdviceIATA StB

(*) Customers, Forwarders, Carriers

IATA Project Sponsors Programme Director StB

and Global Head of Cargo

e-freight specific

e-freight MIP Action Group (*)

e-freight Vendor Action Group



1.2.7.1 IATA e-freight Advisory Group (eAG) he objectives of this group are to:

TA e-freight beyond the current locations Cargo 2000, WCO and other industry

the delivery of IATA e-freight Message Improvement

Th upply hain and is chaired by the IATA e-freight Project Director.

1.2.7.2 IATA e-freight Central Action Group (eCAG)

ght implementation targets globally,

he p clude airlines and freight forwarders

T Advise on delivery of IA Advise on how to align with

initiatives Guide the project on how to overcome significant obstacles

Advise onProgramme (MIP)

Guide on effective industry wide IATA e-freight communication e participants of this group include senior executives from the s

c

The objectives of this group are to: Steer the delivery of IATA e-frei

especially delivery of new locations Provide key guidance and support in securing the IATA e-freight

product, including development of new standards and business processes Raise and address global issues relative to implementations and recommend the way forward

Ensure continued level of commitment and leadership from all IATA e-freight stakeholders

articipants of this group inTparticipating in e-freight and is chaired by the IATA e-freight Head of Implementation.


CHAPTER 2 HOW TO ADOPT IATA E-FREIGHT This section is intended for individual stakeholders (airlines, freight forwarders, shippers, ground handling agents, customs brokers) who want to adopt IATA e-freight in an airport already live.

The step-by-step methodology below should be followed to implement IATA e-freight in a live airport: Step 1: assess your technical readiness and identify your gaps Step 2: decide how you will conduct e-freight in your operations and

write your internal e-freight operational procedures (e-FOP) Step 3: decide with what partners and on what trade lanes you want


to start e-freight

dy to start Step 4: get rea Step 5: start!

This implementation process starts with the participants decision to implement IATA e-freight and ends when the participant has successfully performed its first live IATA e-freight shipment and is ready to ramp-up its e-freight volumes.

In order to make the decision to implement IATA e-freight, it is recommended for the stakeholder to understand: The business benefits (see chapter 1 of this handbook) ted location(s) and airport(s) here: The status of the targe

http://www.iata.org/e-freight The recommended business process and standards of IATA e-freight

(see chapter 3 of this handbook) tegration options and requirements (see chapter 4 of The technical in

this handbook)


How to use IATA resources to make it happen This implementation process is self-led by the stakeholder in collaboration with its partners that are already IATA e-freight live, using online resources provided by IATA: The IATA e-freight section of the StB extranet provides you and

your team with useful documents: o Live locations specific reference documents such as the

location To-Be business process, location e-FOPs and more o Minutes and supporting materials from eCAG meetings

To request your access, please fill in and submit the form at: http://www2.iata.org/registration/getemailpage.aspx?siteurl=stb_extranet

The IATA e-freight section of the IATA public website provides you

with online materials: o About IATA e-freight: fact sheet, vision and mandate, business

case, glossary o Supporting materials such as IATA Cargo To-Be business

process, generic e-FOP, specifications documents for e-AWB, XML messages, templates to be used during the implementation

o Scorecards o active map Intero MIP strategy and documentation

To access it, go to: http://www.iata.org/e-freight

The StB Newsletter and the Cargo Tracker provide regular updates

on StB projects and IATA Cargo initiatives.

To register to receive these newsletters, go to: www.iata.org/optin

The IATA e-freight team (Project team, Local Implementation Managers, Country Representatives) can provide you with some ad-hoc support (refer to the IATA support model in appendix).

To contact us, use the following e-mail address: [email protected]



Section 2.1 Assess your technical readiness and identify your gaps

2.1.1 Use the self-assessment questionnaire

IATA has created a self-explanatory questionnaire to assess your readiness and identify your gaps if any.

This self-assessment questionnaire: Is specific to the type of stakeholders (airlines, freight forwarders,

ground handlers, shippers) Encompasses the various ways to do IATA e-freight (full EDI, portal,

partial EDI complemented by scanning)

Please find the self-assessment questionnaire on the IATA public website: http://www.iata.org/e-freight

2.1.2 Make the go/no go decision regarding the implementation of IATA e-

freight Once you have conducted your readiness assessment, it is recommended to organise a go/no go meeting with the decision makers to confirm (or not) the willingness of your organisation to IATA implement e-freight.

Key success factors:

Once you have confirmed your interest in implementing IATA e-freight, IATA recommends that you set-up your project by: 1. S ce uring your Senior Management support and commitment: Check and confirm that IATA e-freight fits into your global supply

chain strategy When applicable, check if your involvement with IATA e-freight

requires an agreement from Head Office, Regional, or Country Management, and if so, check the status of the agreement process

2. get, time, people) Setting-up your project plan (bud Build your project team Estimate and secure the appropriate budget to conduct this project on to implement IATA e-Estimate the timeline for your organisati

freight and propose a target go-live date 3. Ensuring your trading partners are aware, committed and aligned Communicate your interest and decision to your current trading

partners and local customs and security authorities Formalise your plans and commitments with your partners

How to promote e-freight to my business partners

IAT t can help you promoting IATA e-A has created some materials thafreig t ht o your business partners and customers: The IATA e-freight Fact Sheet The IATA e-freight Marketing Brochure terial is available The IATA e-freight Benefits presentation (this ma

in powerpoint and has been designed to help you communicate to your customers on the benefits of IATA e-freight)

Those materials are available on the IATA public website: http://www.iata.org/e-freight



Section 2.2 Decide how you will conduct IATA e-freight in your operations and write your internal e-freight operational procedures (e-FOP)

2.2.1 Prepare your e-FOP based on the location e-FOP

Implementing IATA e-freight will require changes in your current business process.

The objective of the internal e-FOP is to define the operational procedures that will be put in place in the company to support IATA e-freight.

Those operational procedures need to be aligned with: The generic process and procedures defined by IATA (see the

generic IATA To-Be business process and e-FOP available on the IATA public website)

The specific process and procedures defined by the local stakeholders who launched IATA e-freight in live locations (see the location To-Be business process and e-FOP available on the StB extranet)

For stakeholders that are already participating in IATA e-freight in another location, please liaise with your Head Office to obtain the e-FOP defined for your company.

Stakeholders implementing IATA e-freight for the first time can use the already defined location To-Be business process and the location e-FOP that are available on the StB extranet to create their internal e-FOP.

How to implement the e-AWB The e-AWB is not mandatory, but is recommended as part of the IATA e-freight business process.

The e-AWB solution is described in details in chapter 3 of this handbook. We recommend that you read these specifications in detail.

When implementing the e-AWB, particular attention should be given to the following elements: Each airline and freight forwarder planning to implement the e-AWB

solution as part of their implementation must sign an EDI agreement. As part of the e-AWB specifications, IATA provides a model EDI agreement that you can use or modify on the basis of your bilateral discussions with your IATA e-freight partners. Stakeholders need to determine if they will sign a local agreement with a partner (applies only to one country or governmental area), or a corporate agreement (will apply to any future location where e-freight will be conducted). If partners are already participating in IATA e-freight elsewhere, it is possible that a corporate agreement is already in place. In that case, stakeholders need to check with their head quarters. If not, they need to plan ample time to be able to discuss the detailed terms with partners, as it can take time to agree on specific legal aspects.

Partners must agree on the specific aspects of business process related to the implementation of the e-AWB. In particular, an agreement is recommended on a contingency approach in case the e-AWB process was to fail (for example, if the FWB message has not been successfully received by the carrier at the time when the freight forwarder delivers the freight at the acceptance booth). The IATA e-AWB specifications propose a number of possible back up approaches in such scenario that can be discussed.



All stakeholders will then need to validate their internal e-FOP through the dry-run tests: Follow a shipment using the drafted internal e-FOP Check that the export and import processes at your own station, as

documented in your drafted internal e-FOP, are: o Practical and operationally feasible for your operational

staff o Supported by current operational IT systems. If not, identify

the technical gaps that need to be addressed o Supported by existing messaging capabilities. If not,

identify the messaging capability gaps o Compatible with the import and export processes of

stakeholders in other IATA e-freight locations with whom e-freight is to be bi-laterally implemented

o Check that your internal e-FOP meets the location(s) e-commerce

legal requirements

Compatible with partners e-FOPs

You can then finalise the internal e-FOP according to the results of the dry-run tests.

2.2.2 Identify the changes required in your business process

Now that the internal e-FOP has been drafted, changes required in the current business process can be identified using the dry-run test results.

Th oe m st common changes required in companies business processes: Document handling: currently, most stakeholders have a process

that relies at least partly on paper where paper documents are created, printed and handed from one party to another, mostly following the physical flow of the freight. In IATA e-freight, several (possibly all) of these steps are removed and replaced by electronic data exchange.

Exchange of messages and electronic data: currently, stakeholders may only partially rely on (or not at all) the electronic exchange of information to facilitate the transit of the freight. In IATA e-freight, this becomes the primary mode of exchange of information and stakeholders need to ensure they build the proper steps in their


t any local e-commerce

ed to ensure that they have a process that utilises electronic data.

internal process to be able to participate in IATA e-freight. Archiving of documents: in locations where IATA e-freight is live, it is not necessary to archive the documents in scope in paper (with the exception of the certificate of origin in a number of locations). Stakeholders may decide to take advantage of this to change the archiving process and migrate from paper to electronic archiving. In doing so, they need to ensure tharequirements on archiving are followed. Performing ancillary functions: the implementation of IATA e-freight focuses on the steps linked with the transportation of freight from origin to destination. Some of the documents used to facilitate transportation may also be used for other functions. For example, the paper air waybill may be used for the process of invoicing. If this is the case, stakeholders ne


Section 2.3 Decide with what partners and on what trade lanes you want to start IATA e-freight

Once you made the decision to change your current operational procedures and build your technical capability to implement IATA e-freight, it is key to decide on what trade lanes and with what partners you will actually operate IATA e-freight shipments.

To help you select the trade lanes and the business partners, IATA is producing supporting materials such as scorecards that list the live airlines and freight forwarders, the live locations and airports, and the valid transit points you can use.

How to know which stakeholders are already live and where

A list of stakeholders and live trade-lanes that have implemented IATA e-freight is available on the IATA public website: http://www.iata.org/e-freight

How to select the trade lanes on which you will implement IATA e-freight

The origin and destination locations of the trade lanes must both have the same treaties in place (i.e. either MC99 or MP4). If a location has ratified both MC99 and MP4, then it can implement

IATA e-freight with any other IATA e-freight location. If the location only has MC99, it can only implement e-freight with other

locations that also have ratified MC99. If it has only MP4, it can only implement e-freight with locations that

also have ratified MP4. Please check the location status on the IATA e-freight interactive map:

http://www.iata.org/e-freight

To identify valid IATA e-freight trade lanes, use the scorecard posted on the IATA public website: http://www.iata.org/e-freight

How to check the transit status of an airport If the trade lanes you have selected involve the use of one or several transit points (i.e. an en route stopping place where the freight remains on board (FROB), you need to ensure that those transit points you select are acceptable for IATA e-freight shipments. You can find a list of valid transit points on the IATA public website: http://www.iata.org/e-freight

Note that: The status is updated on a regular basis based on information received from local customs authorities. The transit airports assessed so far by IATA are the ones that have been identified by the pilot e-freight stakeholders as key in their current business activities. If you do not find a transit airport status you require then IATA encourages you to conduct and assessment of the locations suitability as a transit location by seeking the information from appropriate local customs through the Transit questionnaire (see appendix 3 of this handbook) and share outcomes with the IATA e-freight project team by e-mail: [email protected]



Section 2.4 Get ready to start

2.4.1 Close your technical gaps As an individual stakeholder, you might have identified technical gaps that need to be addressed in order to implement IATA e-freight.

Those gaps could be filled in one of three ways: Internal developments Outsourced developments with the help of IT solution providers

and/or IT consulting companies. Please find the list of the IATA Preferred Partners in chapter 4 of this handbook.

Acquisition of IT solutions

Key success factor: In case you are addressing your technical gaps by developing capability internally, IATA recommends that you follow the below methodology:

1. Design: Document the extraction and integration flows that will be required

in IATA e-freight and the system changes that will occur based on current capabilities and gap analysed in the previous step

Define the user acceptance test (UAT) scenarios that need to be successfully passed to consider systems ready for go-live by the user. These scenarios will be used to conduct the UAT after the technical build has been completed.

Define test entry and exit criteria. They describe what needs to be completed to start testing (technical tests sign-off, UAT sign-off, system availability, etc) and what needs to be achieved to complete the tests (test execution, no high severity open items, agreed plan to close open items, signed off tests).

2. onduct the technical build according to the design scope Build: C

defined. 3. Test: E uxec te the technical testing of your new or updated technical

interfaces for IATA e-freight: o Unit tests to control those messages extracted from the

senders system match the requirements and that files are properly integrated into the receivers system. No data exchanges are tested at that point.

o Integration tests to focus on the technical exchange of data between the senders system and the receivers system, through a hub or directly. Check that data are extracted, mapped, routed and delivered as described in the technical specifications.

o Non-regression tests to ensure the correct functioning of the existing system whenever a new build is deployed. They can be executed as part of the regular test cycle (assembly, integration) when any build gets delivered to the test environment. Therefore no exclusive plan needs to be created. The regression test scripts will be selected from the integration test repository.

Execute the functional tests: the user acceptance tests (UAT)



2.4.2 Ensure your data readiness For airlines and freight forwarders exchanging FWB and FHL messages

As a pre-requisite, each airline involved in a new IATA e-freight implementation must be an IATA e-freight Message Improvement Programme (MIP) participant.

The IATA e-freight Message Improvement Programme (MIP) is a programme by which airlines and freight forwarders monitor the penetration and accuracy of the FWB and FHL messages they exchange.

How to participate in MIP Read the MIP strategy document available on the IATA public website:

http://www.iata.org/e-freight Formally agree to it by sending an email to the IATA MIP contact

[email protected] Appoint an MIP contact in your organisation and share his name,

position, address, phone, fax and email for publication in the MIP contact list

Carriers: confirm the date when first MIP files will be submitted (the deadline for submission is the 15th of each month for previous month activity).

Freight forwarders: provide us with the list of your IATA agent numbers / names in all locations (for report consolidation)

When personalised MIP reports are distributed monthly (around the 20th of each month) start investigating and addressing frequent issues with partners (carriers, freight forwarders, IT solution providers, internal IT services...)

se messages with the right level of accuracy and data quality.

s required to support

employees are trained and ready to

that you use your internal e-FOP as a undation for the training materials.

For other messages besides FWBs and FHLs

The level of penetration and accuracy of other messages exchanged as part of stakeholders internal e-FOP is not tracked by the MIP programme. In this case, it will be up to each stakeholder to confirm with their partners that they have put in place processes and systems that allow them to properly extract and integrate the

2.4.3 Change your business process and train your operational personnel

accordingly Implementing IATA e-freight will mean changing the current operational procedures to be compliant with the new procedureIATA e-freight and described in your internal e-FOP.

As soon as your internal e-FOP is defined and validated through the dry-run tests and the necessary changes in your operational procedures are implemented, it is time to make surework with IATA e-freight shipments.

To train your staff, IATA recommendsfo




2.4.4 Performing w

i.e. as

Sealwhshipme

To per

exchangescanned), however, in the forwardto the forwardwhat reasons.

et-run tests Once the gaps are closed and users trained, ensure that the internal e-FOP is correct. IATA recommends that you do this through wet-run tests,coordinated trial on your selected trade lanes with all partners.

ing the documents and tracking if the forwarder envelope is opened, y and by whom, will test the location and internal e-FOPs on actual

nts.

form your wet-run tests, IATA recommends that stakeholders: Plan the tests with partners (identify the wet-run shipments, set dates for the wet-run tests) Execute the wet-run tests. During wet-run tests, the shipment is transported as described in the location e-FOP (e.g. paper flight manifest is removed from the flight and all the information is

d electronically between the parties, via EDI/Cargo-IMP or the paper documents are still transported sealed

er envelope. A tracking form (shown below) is attached er envelope to know if it was opened, by whom, and for

wet-run tests. Close the identified gaps if any al e-FOP if necessary.

Track the results ofand update the intern

Note that IATA provides a set of templates to perform wet-run tests on the IATA public website: http://www.iata.org/e-freight

ur contingency plan 2.4.5 Preparing yo

order to ensure a smooth transition from a paper process to the IATA e-d to manage any go-

Infreight process, a contingency plan should be preparelive issues.

Note that IATA provides a contingency plan template on the IATA public website: http://www.iata.org/e-freight

2.4.6 Making the go-live decision with your trading partners

nd solutions in

elected trade lanes.

Once everything is ready (i.e. gaps are closed, workarouplace when necessary, personnel trained and wet-run tests successful), you need to make the go-live decision and to agree on the go-live date in conjunction with partners on s



Section 2.5 Star oAtand ch

ey are successfully performed.

any) to ensure m.

t y ur first IATA e-freight shipments! end of step 4, you and your trading partners made the go-live decision

ose your go-live date.

On the agreed date: Perform the first IATA e-freight shipments according to the location

e-FOP and to internal e-FOPs. Monitor the first IATA e-freight shipments to confirm that th Track and discuss together the identified issues (if

they are addressed with an action plan to resolve the

Once you are operating IATA e-freight shipments, please inform IATA by contacting the implementation team at: [email protected]. This will help IATA to track the progress of IATA e-freight worldwide and keep updated records on organisations that have adopted IATA e-freight.

How IATA tracks and reports IATA e-freight shipments

In a global initiative such as IATA e-freight, it is critical to be able to report progress and success of implementation globally and by stakeholder. A key way to assess progress, and ultimately the key measure of success, is to track and report the number of e-freight shipments that are conducted using the e-freight business process, and measure the percentage they represent of the total number of air freight shipments done globally (the market penetration of IATA e-freight).

The IATA Message Improvement Programme is the tool that is used for IATA e-freight reporting. Via the EAW/EAP codes, airlines are able to track the number of IATA e-freight shipments and consignments done each month and these are part of the MIP report they submit each month to IATA. This allows IATA to report on IATA e-freight shipment growth and penetration.


CHAPTER 3 BUSINESS PROCESS AND STANDARDS (BPS) SUPPORTING IATA E-FREIGHT

Section 3.1 Introduction to Business Process & Standards

In order to replace paper with the use of electronic data it is necessary to have common and clear business processes and standards, which are the foundations of IATA e-freight as well as IATA e-freight Operational Procedures (e-FOP).

In this section of the IATA e-freight handbook you will find information on the: IATA Cargo To-Be business process which gives an overview of the

air cargo supply chain IATA e-FOP which describes the tasks to be followed by the

stakeholders involved in IATA e-freight IATA e-freight business rules which are the specifications of the new

process and standards Standard electronic messages to be used under an IATA e-freight

environment

3.1.1 What are Business Process and Standards Objectives?

The first objective is to create IATA e-FOP that allow the replacement of pa et the following criteria: per documents by electronic data and me


(WCO) as well as with other IATA initiatives such as

tion programmes that are being

ers in an IATA e-freight environment order to remove paper documents.

3.1.2 Why define B

d in order to maximize the benefits of stakeholders who in IATA e-freight:

with one business

have one common business process that supports both initiatives.

Fit into the cargo business process, Are aligned with international initiatives such as the World Customs Organisation Cargo 2000 Meet the e-customs modernisaimplemented in many countries.

The second objective is to define the standard electronic messages that will be exchanged between the stakeholdin

usiness Process and Standards?

The IATA e-freight business process and IATA e-FOP were developed with five principles in minjo

Simplicity Ensuring that the IATA e-freight project is alignedprocess will prevent duplication and complexity.

For example, stakeholders who have implemented or plan to implement IATA e-freight and Cargo 2000 will

IATA e-freight aims at removing paper from the air freight supply chain whereas the Cargo 2000 is an industry initiative aiming at implementing a quality management system for the air cargo industry.

S

eed and followed by the industry, facilitates IATA e-freight roll out.

calability

Creating one standard for IATA e-freight, agr


For example, stakeholders in various IATA e-freight locations must be aligned to one standard to be in a position to send and receive IATA e-freight shipments.

Efficiency

Exchanging standard electronic messages instead of paper documents facilitate data exchange between the stakeholders and reduce costs related to development and integration of messages.

For example freight forwarders who receive the standard electronic invoice from their shippers reduce integration costs, as only one agreed format would need to be integrated.

Quality

Replacing paper documents by standard electronic messages generated one time at source will increase the quality of the data transferred between stakeholders and communicated to customs.

For example, freight forwarders who receive the standard electronic invoice from their shippers will not have to manually key in data into their system, risking potential errors that will be transmitted to customs.

Reliability

The above-mentioned principles will result in consistent customer service.

Reminder: How do IATA e-freight business process and standards bring benefits?



3.1.3 How do we define Business Process and Standards? The business process, the operational procedures and the standard electronic messages have been developed with the participation of subject matter experts involved in task forces (including IATA and FFA), stakeholders from the IATA e-freight pilot locations, from other industry initiatives as well as from IT solution providers.

The business process, the operational procedures and the standard electronic messages have been reviewed and endorsed by eCAG and by industry bodies such as the IATA Cargo Services Conference (CSC).

They are published in this handbook to facilitate IATA e-freight implementation.



Section 3.2 Where does IATA e-freight fit in the cargo business process?

The IATA e-FOP must be an integral part of the overall cargo To-Be business process to ensure simplicity and scalability.

The IATA cargo To-Be business process gives an overview of the air cargo supply chain. Its intent is to describe the most frequent business scenario by presenting the process as a list of steps that must be performed in chronological order by the supply chain participants and the necessary standard electronic messages exchanged to replace paper documents.

As described in the section of this handbook related to implementation, the IATA cargo To-Be business process forms the basis of the To-Be business process for IATA e-freight locations.

The IATA cargo To-Be business process can be accessed using the following URL: http://www.iata.org/e-freight

3.2.1 Who is involved in the IATA cargo To-Be business process?

The IATA cargo To-Be business process describes the overall tasks performed by the following stakeholders: Original shipper or exporter Origin & destination freight forwarders Customs brokers Origin & destination carriers Ground handling agents Export & import customs Final consignee or importer

Notes: Customs brokers are in scope but not included in this business

process because in some circumstances the freight forwarders, the shippers or the consignee can perform brokerage activities. Information related to customs brokers is provided in the appropriate business rules section of this handbook.

Ground handling agents are in scope but not included in this business process because these activities are performed on behalf of the carrier and even sometimes performed by the carrier itself. Information related to ground handling agents is provided in the appropriate business rules section of this handbook.



3.2.2 What are the steps of the IATA cargo To-Be business process? The IATA cargo To-Be business process is a description of the end-to-end process (from shippers to consignees) of transporting cargo. It lists the process steps performed by the stakeholders and the standard electronic messages that may have to be exchanged.

The process steps are grouped into nine cycles: M01 Freight receipt from shipper M02 Truck load and depart for airport carriage shipment M03 Carrier receipt and ready for M04 Flight manifest and carriage


rder M08-09 Load and delivery to consignee

argo 2000 are referenced within the IATA cargo To-Be business process.

M05 Freight arrival at destination airport M06-07 Freight collection by freight forwa

The documents in scope for IATA e-freight as well as the milestones of C

Important: The various IATA initiatives (IATA e-freight, Cargo 2000 and Security) can be implemented in conjunction or independently. In this case only some of the electronic messages of the IATA To-Be business process should be implemented.

3.2.3 What are the

olved in IATA e-freight based

or more process steps listed in the IATA

e To-Be business process

P that each local takeholder involved in IATA e-freight will have to follow.

operational procedures to follow under IATA e-freight? The IATA e-freight Operational Procedures (e-FOP) describes in detail the tasks to be performed by the stakeholders invon the IATA cargo To-Be business process.

Each of the tasks relates to one Cargo To-Be business process.

As part of the detailed description of the task, a clear definition is provided as well as how this task is performed under IATA e-freight, and, if not yet available, the future application of the task. Thsteps are cross-referenced in the IATA e-FOP.

As described in the section of this handbook related to implementation the IATA e-FOP is the basis to create the local IATA e-FOs

Important: Acceptable local practices including local Customs requirements will be described in the local To-Be business process and local e-freight operational procedures.

essed at the following URL:

ttp://www.iata.org/e-freight

The IATA e-FOP can be acc

h

The relationship between the To-Be business process and the IATA e-FOP will be described in the implementation chapter of this handbook (chapter ). It can be illustrated as follows:

5


Section 3.3 What information is exchanged in IATA e-freight and how?

3.3.1 What are the documents removed in IATA e-freight? The intent of IATA e-freight as described in the first chapter of this handbook is to remove 16 paper documents from the airfreight supply chain. Electronic document standards for 13 of the 16 have been defined below, the remainder to be defined in 2009.

A shipment is considered an IATA e-freight shipment when: No paper documents accompany the shipment or; Paper documents accompany the shipment (e.g. veterinary

certificate) but they are not in scope of IATA e-freight.

The diagram below describes the relations between the main documents in scope.

The 13 documents in scope can be defined1 as follows:

3.3.1.1 Invoice Document required by customs in an importing country in which an exporter states the invoice or other price (e.g. selling price, price of identical goods), and specifies costs for freight, insurance and packing and terms of delivery and payment for the purpose of determining the customs value in the importing country of goods.

3.3.1.2 Packing List Document specifying the distribution of goods in individual packages.


1 UN/CEFACT United Nations Layout Key for trade Documents 2002, Appendix 1 Definition and descriptions of document names


3.3.1.3 Certificate of Origin (where feasible) Document identifying goods in which the authority or body authorised to issue it certifies expressly that the goods to which the certificate relates originate in a specific country. The word country may include a group of countries, a region or a part of a country. This certificate may also include a declaration by the manufacturer, producer, supplier, exporter or other competent person.

Important: The Certificate of Origin will only be removed were legally feasible, as some national administrations do not accept the electronic Certificate of Origin.

3.3.1.4 Export Goods Declaration

Document by which goods are declared for export customs clearance.

3.3.1.5 Customs Release Export Document whereby a customs authority releases goods under its control to be placed at the disposal of the party concerned (synonym customs delivery note).

3.3.1.6 House (Freight) Manifest Document containing the same information as a cargo manifest and additional details on freight amounts, etc.

3.3.1.7 (Master) Air Waybill Air waybill is a document made out by or on behalf of the shipper which specifies the contract between the shipper and carrier(s) for carriage of goods and which is identified by the airline prefix issuing the document plus a serial.

Master Air Waybill is a document made out by or on behalf of the agent / consolidator which specifies the contract between the agent/consolidator and carrier(s) for carriage of goods for a consignment consisting of goods originated by more than one shipper.

3.3.1.8 House Waybill Document made out by an agent / consolidator which specifies the contract between the shipper and the agent/consolidator for the arrangement of carriage of goods.

Important: The House Waybill is used for all modes of transport such as rail, sea, road and air.

3.3.1.9 Export Cargo Declaration (Departure)

Generic term, sometimes referred to as Freight Declaration, applied to the documents providing the p

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