Air Cargo Agents Association of India

1. Air Cargo Agents Association of India Deepak Dadlani AIR CARGO DEVELOPMENT: FOCUS AND PERSPECTIVE

2. AIR CARGO DEVELOPMENT: FOCUS AND PERSPECTIVE AIR CARGO � PIONEER OF AVIATION IN INDIA APATHY, ADHOCISM, AMBIVALENCE LACK OF INFRASTRUCTURE, FACILATATION, INVESTMENT SEVERE CONGESTION AND DELAYS HIGH TRANSACTION COSTS. CARGO WORKING GROUP - EAC, MOCA

3. AIR CARGO DEVELOPMENT: FOCUS AND PERSPECTIVE Part A. Focus Areas for the Air Cargo Industry Role and performance parameters for custodians and airport operators Is a grey area and requires measurable clarity, benchmarked to international standards Set standardized and minimum parameters for deliverables by airport operators / custodians / handling agents. Parameters for operation of cargo services by every cargo-handling airline A Roadmap for future of air cargo operations in India

4. AIR CARGO DEVELOPMENT: FOCUS AND PERSPECTIVE Airport Facilitation a. Functional and responsive EDI system across all systems (regulator, operators, carriers) Non-functional and unresponsive EDI system is a major irritant today b. Efficient terminals and services Presently, these are friendlier to the operators than to the users

5. AIR CARGO DEVELOPMENT: FOCUS AND PERSPECTIVE Security is of paramount importance Effective and realistic regulations and procedures enforced at the air port terminals to ensure conclusive security before upliftment are of prime importance. Concepts such as Known Shipper, Regulated Agent etc. can only be treated as supplementary to the final screening.

6. AIR CARGO DEVELOPMENT: FOCUS AND PERSPECTIVE Agents Bonded Terminals To ease constraints of space in the main terminal, hasten the process of clearing and handling and allow some competition. e. Grievance platforms instituted at the airports More powers are required for early resolution of various issues in a time bound mandate.

7. AIR CARGO DEVELOPMENT: FOCUS AND PERSPECTIVE Airport costs and terminal charges Financial/cost efficiency in the operation of airport terminals and ground handling services should be effectively maintained and transparently manifested. Airline surcharges levied under various heads Cause confusion and opacity in rates, higher costs and distort competition. Need clarity and simplicity in freight rates. 5. AERA has very crucial oversight role to ensure equity and transparency in rates/costs.

8. AIR CARGO DEVELOPMENT: FOCUS AND PERSPECTIVE Part B. SIMPLIFICATION OF ROCEDURES/POLICY 1. Issues point wise Exports Data Transfer/Transmission between Exporter/ Forwarder and Customs/Custodian/Airlines Physical Handover procedure. Post Uplift processes (EGM/DBK/DEPB/E.P.Copy) Truck entry, docking and unloading

9. AIR CARGO DEVELOPMENT: FOCUS AND PERSPECTIVE Imports IGM Arrival / BOE Regulatory (Customs, Plant, Animal, Quarantine) Payment of Duty Short/Part Shipments

10. AIR CARGO DEVELOPMENT: FOCUS AND PERSPECTIVE Processes Absence of an e-Environment Data Authentication and Integrity Unique Location Deviations Paper Backups in spite of e -transfer Absence of Benchmarks. Time Stretch & Manpower Shortage

11. AIR CARGO DEVELOPMENT: FOCUS AND PERSPECTIVE 2. Airline Perspective Adopt Best Practices. EGM number should be available like IGM All amendments to be processed electronically Regularization of short / excess / over carried cargo should be part of normal EDI amendment Simplified part shipment procedure should be in place Shipper Built Units (SBU) in export to be promoted and clearance of SBU in Import to be introduced. Separate area for Trans-shipment cargo required Airlines and professional companies be considered for ground handling for competition and efficiency.

12. AIR CARGO DEVELOPMENT: FOCUS AND PERSPECTIVE Custodian/Regulator Perspective Dispensation of manual printing of customs SB/BOE LEO/out of charge must be conveyed real time from customs to expedite palletisation / deliveries Sec 48 of CA 1962 provisions to be strictly enforced Electronic confirmation of AWB Nos must be accepted and RMS (AEO) goods released without delays Assured truck docking and unloading performance. Unloading/loading in warehouse to be system driven

13. AIR CARGO DEVELOPMENT: FOCUS AND PERSPECTIVE Remove the current intrusive and physical verification processes and accept risk/intelligence based monitoring Integrated working hours of all regulators/ e-platform. Need a Single Community System and Off Airport cargo villages/common user terminals. Users developed platform UPLIFT to be considered. ICES / ICEGATE need to be very reliable, efficient and interactive, unlike now. Drawback may be processed on LEO of Customs.

14. AIR CARGO DEVELOPMENT: FOCUS AND PERSPECTIVE CURRENT PAIN POINTS Forwarder currently uses multiple systems for making AWB, S.B, Uploading, wasting time and effort causing manual errors. Increase efforts to capture inquiry in internal system through Emails, Fax etc No Real time alerts on status updates or missed performances Simultaneous multiple transmission of same data due to uncertainties Internal systems not tuned to paperless trading environment Physical visits are mandatory E-transmission still need signed paper submissions later.

15. AIR CARGO DEVELOPMENT: FOCUS AND PERSPECTIVE RECOMMENDATIONS & PRESCRIPTIONS AERA to benchmark performance Digital signature to ensure paperless transactions MOCI task force report (export) Draft AEO regulation E Freight (IATA) UPLIFT � a comprehensive systems solution

16. AIR CARGO DEVELOPMENT: FOCUS AND PERSPECTIVE THE FUTURE 1. Short Term CFS / ICS to handle air cargo and unitisation Ensure ICES system reliability and efficiency Permit data transmission through CCS Extend scope of ICES to other regulators 2. Medium Term Dedicated AFS to process all types of cargoes Agents bonded warehouses Paperless trade

17. AIR CARGO DEVELOPMENT: FOCUS AND PERSPECTIVE 3. Long Term Ministry/Department of Freight and Logistics Seamless intermodal connectivity Audit to replace physical control Ensure cost of non compliance is many times the cost of compliance

18. AIR CARGO DEVELOPMENT: FOCUS AND PERSPECTIVE THANK YOU