iata e-freight implementation

1 INTERNATIONAL AIR TRANSPORT ASSOCIATION 2015

e-freight fundamentals


‘Building and implementing an end-to-end

paperless transportation process for the air cargo industry where paper documents are replaced with the exchange of electronic data’

Shipper

Export Customs/

Regulators Import

Customs/ Regulators

Origin Forwarder

Carrier Consignee

Destination Forwarder

Origin GHA

Destination GHA

Safe, Secure, Reliable, Efficient

e-freight Vision


e-freight fundamentals (1/3)

e-freight is about building a paper free air cargo supply chain

It includes a set of business processes and standards that allow to remove paper documents from the process of shipping air cargo from origin to destination

Documents are replaced with the exchange of electronic data



The e-freight initiative identifies the locations where those electronic standards can be used

The e-freight initiative drives adoption of those standards by industry participants via targeted change management initiatives


e-Doc standards used as part of e-freight rely on use of EDI (Cargo-IMP or XML) or scanned images (for some documents)

e-freight uses the existing air cargo industry messaging infrastructure. Participants must use in-house technology to connect to their partners or use tools provided by their partners or 3rd party providers



Shippers

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.CITES certificate*

7. Master Air Waybill 8. House Waybill 9. House Manifest 10. Export Goods Declaration 11. Customs Release Export

Destination Freight Forwarders

19. Import Goods Declaration 20. Customs Release Import

12. Flight Manifest 13. Transfer Manifest 14. Export Cargo Declaration 15. Import Cargo Declaration 16. Transit Declaration* 17. Security Declaration* 18. Freight Book List*

Origin GHA

Destination GHA

Scope: e-freight documents

Presenter

Presentation Notes


Cost: Eliminate paper handling, transporting and processing cost (eliminates data re-capture) Time: Reduced freight “wait time”

Quality: Unified Quality Management Standards

Visibility: Quality electronic messaging for tracking status of freight

Sustainability: Contribute to environment by reducing paper consumption

e-freight: Why do it?

9

IATA published the Cargo-XML Manual and Toolkit (1st Edition) containing the following 14 Cargo-XML Messages:

INTERNATIONAL AIR TRANSPORT ASSOCIATION 2015

Cargo-XML Standards for e-freight

Transport Messages Acronym XML Waybill XFWB

XML House Waybill XFZB

XML House Manifest XFHL

XML Flight Manifest XFFM

XML Freight Booked List XFBL

XML Status Message XFSU

XML Response Message XFNM

XML Booking Message XFFR

XML Custom Status Notification XCSN

Commercial Messages Acronym XML Shippers Declaration for Dangerous Goods XSDG

XML Invoice XINV

XML Packing List XPCL

XML Certificate of Origin XCOO

XML Shippers Letter of Instruction XSLI

Note: IATA also developed CITES permit and Transit Declaration in conjunction with respective organizations i.e. Convention on International Trade in Endangered Species (CITES) and World Customs Organization (WCO)

For further details about Cargo-XML standards please visit www.iata.org/cxmltf

10

2009 2010 2011 2012 2013 2015 2014 2006 2007 2008

Drive Roadmap towards 100% paperless

Project Kick -Off

Pilots in six locations (1)

First e-FOPs (2)

GACAG Roadmap

Develop missing standards

Build the route network (location Capability)


e-freight development life cycle 2016

11

In 2012 GACAG adopted a ‘ three-pillar’ Roadmap to achieve

paperless transportation


12

Three Pillars towards paperless

Shipper

Export Customs/

Regulators

Import Customs/

Regulators

Carrier Consignee Origin

GHA

Destination GHA

Pillar I – Establish Route Network (enabler) Engage regulators to create network where customs are electronic and regulatory environment supports paperless

Pillar II – Implement Paperless ‘airport-to-airport’ Digitize core transport docs: Air Waybill, House Manifest, Consignment Security Dec. (CSD), Flight Manifest Goal: Paperless acceptance and delivery of freight, airport to airport.

Pillar III – Implement Paperless ‘door-to-door ‘ Digitize core commercial docs (invoice/Packing list/HAWB) and Special cargo docs Goal: Removal of document pouches, shipper to consignee

Pillar I

Pillar II Pillar III

*Air Waybill, House Manifest, Flight Manifest, (Consignment Security Declaration is anticipated)

Origin Forwarder

Destination Forwarder



What is required for e-freight to work?

15

Key electronic customs requirements for e-freight

Customs should accept: Electronic as an alternative to paper-based requirements Goods & cargo declarations exchanged electronically Release & control notification exchanged electronically Supporting documents exchanged electronically Messages & supporting documents archived electronically Paper by exceptions e.g. for examination Paper printout of electronic records instead of paper originals – at least for invoice and

packing list, master air waybill and house air waybill (including for post-flight audits)


16

e-freight trade & transport messages should “feed”

Customs messages, reducing manual entries and increasing Quality


17

Flight Manifest

House Waybill

Master Air Waybill

House Manifest

House Waybill

Cargo Declaration

Goods Declaration

Invoice Invoice

Packing List Packing List

Air Waybill

Trad

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Cus

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Invoice

Packing List


18

Appendix e-freight: end-to-end data flow for General Cargo

e-freight: Principles

e-freight: find out more


19

In the paperless environment, data flows match the requirements of each party for information

The following diagram represents one possible data flow scenario

Other scenarios exist based on the location, the nature of the cargo, or the specific arrangement between the parties


e-freight end-to-end data flow for General Cargo

20

Export Customs

Flight Manifest Air Waybill House Manifest

Cargo Acceptance

Export Cargo Decl. / Customs Release Export

Import Customs

Air Waybill House Manifest

Invoice Packing List Air Waybill House Manifest House Waybill

Export Customs

Export Goods Decl. / Customs Release Export

Invoice Packing List

Invoice Packing List

Origin Freight Forwarders

Information flow EDI Freight flow

Carrier

Consignees

Shippers

Import Cargo Decl. / Customs Release Import

Import Customs

Import Goods Decl. / Customs Release Import

Destination Freight Forwarders

Information flow EDI or Scan

e-freight end-to-end data flow for General Cargo


21

In support of the vision to build and implement an end-to-end paperless process for the air cargo industry, GACAG members have identified the following principles.

The initiative shall: Aim to achieve data capture at source (to avoid re-keying) Adopt end-to-end supply chain vision: shipper to consignee (to enable single data

capture) Encompass customs, security and transportation and other relevant documents that

are part of the freight transportation process Include legal, regulatory, business and technology elements in the definition of

paperless processes Rely on e-Document standards and common business processes (defined in e-freight

Operating Procedures – e-FOP) that are aligned with international standard setting bodies (WCO, UNCEFACT, ICAO, etc.)

Allow paper to still be present by exception as required by local processes and based on electronic source data (print-on-demand)


e-freight: Principles (1/2)

22

In support of the vision to build and implement an end-to-end paperless process for the air cargo industry, GACAG members have identified the following principles : The initiative shall: Not rely on single industry technology platform: each participant remains responsible for

managing their own data Use existing industry EDI infrastructure where sufficient, but upgrade where relevant Drive emergence of solutions that facilitate adoption by all parts of the supply chain,

and all types of organizations (large and small) Identify workable migration paths from current paper based processes to paperless

processes Define a roadmap towards 100% paperless that splits the vision in manageable

components with specific deliverables over time


e-freight: Principles (2/2)


Tools provided by IATA to support you:

e-Cargo Matchmaker: who does e-freight where e-freight complete Case Studies e-freight Handbook: implementation guide e-freight self-assessment questionnaire e-freight Model EDI agreement (for e-AWB) Capability Matrix of IT Providers

www.iata.org/e-freight and www.iata.org/e-AWB

e-freight: Find out more