AWB: Air Way Bill

French Translation : Lettre de Transport Aérien (LTA)

What is AWB transport?

The Air Waybill is the transport document for goods shipped by air. The Air Waybill acts as the transport contract of goods agreed upon between the transporter and shipper. The AWB is not a mandatory document, unless the companies are members of the IATA (International Air Transport Association).

Necessary for import and export of goods, the Air Waybill serves as all the following:

• Proof of transport contract made between the shipper and the transporter
• Confirmation of taking over or acceptance of goods by the transporter
• An invoice
• An insurance certificate
• Guidelines for handling of goods

The characteristics of an Air Waybill

The layout of the Air Waybill was standardized by the IATA via the CSC (Cargo Services Conference). The AWB must indicate the following obligatory information:

• The date and place the Air Waybill was established;
• The points of departure and destination;
• The planned stopovers (the transporter can modify transit if necessary);
• The planned date and time of departure and/or return
• Name and address of the expediter;
• The contact details of the forwarder at departure and destination;
• Contact details of the transporter;
• The contact details of the recipient;
• The contact details of the handling company at departure and destination;
• The nature of the goods;
• The number of packages, the mode of packaging, their markings and numbers;
• The quantity, volume, weight and dimensions of the goods;
• The visible state of the goods and packaging;
• The transport costs if stipulated, the date and place of payment, as well as the name of the payer;
• Tax and duties details;
• In the case of payment on delivery, the price of the goods and costs;
• The sum of value declared;
• The number of copies of the Air Waybill;
• The additional documents handed to the transporter together with the Air Waybill;
• Transport delivery time and brief description of the transit route if it has been established;
• Customs information and conformity with aviation security regulations according to the nature of the goods.

The IATA has created the e-Air Waybill in order to simplify the air freight procedures. The AWB in paper format will progressively be replaced by the digital version. This system will make procedures faster and more secure.

Examples and practical applications

The Air Waybill can be written by the recipient, the expediter or the transporter (airline company). In the case of a single unit shipment, the Air Waybill is written by the airline agent. For a grouped shipment, the consolidator establishes a House Air Waybill, signed by the airline company before loading of the goods, then handed over to the shipper. The shipper is responsible for the exactness of the information and declaration relative to the goods registered on the Air Waybill. The expediter can manage the transport of goods using one or many Air Waybills if there are several packages to be shipped.

In paper format, the Air waybill is produced in 3 copies:

• The first copy “for the transporter” is signed by the shipper;
• The second copy “for the recipient” is signed by the transporter and shipper;
• The third copy “for the expediter” is signed by the transporter. The transporter then returns the AWB to the expeditor on acceptance of the goods.

Regulatory basis

Convention for the standardization of certain regulations relative to international transport of goods by air or the Montreal Convention of 28 May 1999.

Convention for the standardization of certain regulations relative to international transport of goods by air or the Warsaw Convention of 12 October 1929, amended in 1955, 1961, 1971 and 1975. States that have not signed the Montreal Convention (destined to replace the Warsaw Convention) are subject to the regulations of the Warsaw Convention.

Abbreviation for Authorised Economic Operator (AEO)

What is an AEO certification?

The answer to this question is two-fold: what is an AEO? What are the certification conditions?

What is an AEO? The concept of AEO relies on two partners: customs and companies. It was initiated by the World Customs Organisation (WCO).

Who can be AEO-certified? Volunteer companies of all sizes, meeting strict criteria. They work alongside customs authorities to reach common security goals throughout the entire supply chain. As such, they benefit from advantages all over the EU. The European Union based its AEO concept on renowned international standards.

All economic operators established within the European Union’s customs territory, involved both in international logistics operations and customs operations, can ask for AEO certification. Importers, exporters, international transporters, international logisticians, airport companies in charge of conveying and temporarily storing goods, and lastly customs and transport commissioners are also eligible.

The relationship between customs and AEO applicants complies with all standard transparency rules, mutual respect and the law – thus leading to shared responsibility. The programme aims to strengthen international supply chain security. It makes legal trade easier, and is thus open to all supply chain stakeholders. The programme includes certified economic operators responsible for customs simplification (AEOC), and those in charge of safety and security (AEOS).

AEO certification is achieved based on criteria defined by Article 39 of the Union Customs Code (UCC). The AEO status is granted to any economic operator that meets the special common criteria demanded.

Specificities of AEO certification

There are two types of AEO certifications.

1. AEO-C1 AUTHORISATION: certified companies are entitled to simplified customs so long as they meet the following criteria:

• No history of customs or tax penalties, nor of criminal convictions;
• Rigorous management of customs records;
• Proven financial solvency;
• Internationally-renowned professional skills.

2. AEO-S2 AUTHORISATION: the “Security and Safety” label is achieved by companies meeting the same above-mentioned criteria, but that also comply with highly-demanding security and safety standards.

Certifications are granted once an application has been received and customs have done an audit. Audited sites are only those where customs activities are held: customs clearance, storing of goods awaiting export, etc.

The customs audit assesses the company’s internal organisation criteria, mostly with regard to customs clearance, security and safety procedures.

An audit date is granted within 9 to 12 months after the request is sent. Once the request has been made, the time before certification depends on the size of the audited structure. European legislation requires that European customs respect a lead time of 180 days after receiving the approved application.

Once granted, the AEO CERTIFICATION is permanent. The certified company must work in constant compliance with the audited and approved customs procedures:

• It must find palliative solutions to any malfunctions observed;
• It must accept inspection and monitoring audits (at least once every 3 years);
• It must inform the Regional Customs Service of any changes to the company;
• It must maintain a trusting relationship with the customs office.

AEO certification in figures

AEO programmes are continuing their development throughout the world. Currently, 83 programmes are operational, and 19 are pending.

Over 100 countries or groups of countries have adopted the AEO approach.

(Source: Kilean)

Regulatory cornerstones

The legal basis for this programme is included in the “security amendments” recorded in the Community Customs Code (EC 648/2005 regulation) and its application provisions.

What is an actor carrier?

Actor carriers (equivalent to transshipping) consist in transiting merchandise from an arrival dock to its place of exit. The freight never transits through a storage or warehousing area. The operation is conducted within very short deadlines, to optimize delivery lead times whilst reducing immobilization for the means of transport in question.

There are several types of actor carrier operations. It can be done between two ships, from a boat to a train (or road vehicle), or even between two forwarding docks. The latter is referred to as “Cross Docking”. It should be noted that the various sites dedicated to this type of maneuvers are free zones, to limit inspections and potential delivery delays.

Transshipment is essentially applied to sea freight operations. This solution is commonly used for multimodal and intermodal journeys, so freight can be transferred efficiently from one means of transport to the next. With a view to optimizing processes, this practice also means several batches of goods can be combined, so long as they have the same destination or journey. This is known as consolidation. Conversely, transshipment can lead to cargo being separated into batches heading to different destinations.

The 4 main specificities of an actor carrier operation

An actor carrier operation is qualified based on various criteria. They make its organization easier to manage:

• There are no storage areas. The goods are switched from their initial means of transport to the one journeying to their destination;

• Completion lead times are very short, to minimize immobilization costs;

• This type of operation considers all customs duties, and boasts clear advantages when it comes to implementing intermodal or multimodal flows;

• Several means of transport are authorized: ships, trains, trucks, etc.

Given the logistics rolled out, transshipment is generally found in international trade and global exchanges. It is particularly appreciated for container transit.

Examples and practical applications

Regardless of the amount of goods to be transited, the different actor carrier stages are similar from one cargo to another:

• The goods arrive at a dock;

• Freight zone personnel conduct the required unloading operations;

• The goods are transferred to a departure dock;

• Once loaded into their new means of transport, the freight pursues its journey to its next destination.

It should be noted that there are several types of transshipment:

• Transit through port terminals or zones: this is the most common form of transshipment, boasting high-performance solutions for international trade;

• At-sea transshipment: this practice is not particularly regulated, as it is carried out in international waters. Legally, it is mostly akin to deep-sea fishing;

• Secondary at-sea transshipment: this namely concerns waterway convoys, where cargo is transferred from one vessel to another in a transition area.

Actor carriers in figures

Actor carrier operations are one of the main factors for maritime traffic development, namely with regard to containers and TEUs (Twenty-foot Equivalent Units). They represent close to 80% of worldwide trade.

In France, over 7 million containers transit through major port areas, i.e. 3 in 4 shipments. Transshipment plays a key role in making sure these exchanges run smoothly.

(Source: https://www.e-tlf.com/dossiers-tlf/chiffres-cles/)

Regulatory cornerstones

• Customs regulations pertaining to sea freight and import-export

• Transport Code

• Laws on international trade

Customs AEO

Abbreviation for Authorized Economic Operator

What is a customs AEO?

A customs AEO (Authorized Economic Operator) is defined as a status or authorization granted by customs authorities. It secures international trade, and makes administrative formalities much easier. The time saved in procedural and verification work gives companies a notable commercial advantage on their competition.

The customs AEO status is available to all companies registered within the European Union. There are no eligibility criteria regarding the size of the company. However, the company’s activity must be affiliated with international trade. This also concerns stakeholders within the supply chain, such as transporters, importers-exporters and commissioners.

The customs AEO status can be seen as a trusting partnership between the company and customs authorities. Though the request can be made on a purely voluntary basis, the person needs to prove they are qualified for the post. Becoming an authorized economic operator means mutual recognition of the status with other countries such as Norway, Switzerland, Japan, China and the United States.

The principle behind a customs AEO: 2 main statuses

The customs AEO status is first and foremost aimed at professionals working in international business. In this case, the company can apply for AEO C pertaining to customs simplification. This entitles the company to the following advantages:

• Priority flow processing;

• Benefiting from the EU’s centralized clearance system;

• No financial guarantee required;

• Tailored support in completing the required formalities;

• Access to the UCC’s authorizations;

• Streamlined procedures and adjusted control rate.

Companies specialized in national or intra-Community trade are however entitled to request the AEO S status (security and safety) for freight aimed at international markets. This accreditation gives way to specific advantages:

• Simplified access to UCC authorizations;

• Reduced administrative formalities relating to controls and audits;

• Notifications sent for all freight controls;

• Benefiting from mutual recognition agreements.

Examples and practical applications

To claim the right to a customs AEO status, seven conditions must be met:

• No litigation pertaining to a tax- or customs-related dispute;

• Proof of the structure’s financial solvency;

• Administrative organization must be presented;

• Guaranteed professional qualifications;

• Trade partnerships must be described;

• Transit zone security must be ensured;

• Company must be aware of fraud risks.

Given that procedures are being made more secure, admission conditions may be revised. Assessment criteria may take into consideration the quality and protection of the company’s communication infrastructures, as well as supply chain proficiency.

In addition to the form to be filled in (paper or online), the following documents are also required:

• The self-assessment questionnaire;

• A K-bis extract (company registration certification) issued less than three months before;

• The form proving that an account on Pro.douane was created;

• A full organizational chart for managers: identities, functions, status, etc.

All applications require 9 to 12 months of processing on average. To make follow-up easier, a progress chart must be set up for each application.

Customs AEO in figures

Since its creation, over 20,000 customs AEO authorizations have been granted, with an effectiveness rate of 82%, i.e. 17,000 currently active.

Germany boasts the highest number of AEOs with close to 7,000 acceptances. France ranks second, with 1,600 AEOs, and the Netherlands come in third with 1,500 certified companies.

(Source: http://www.kilean.fr/la-certification-OEA-definition.html

https://www.acte-international.com/web/aw_12614/en/oea-statistiques-2017-des-operateurs-economiques-agrees

https://www.lantenne.com/SITL-2017-Qui-est-OEA-en-France_a36171.html

https://www.edouane.com/le-point-sur-la-certification-2/)

Regulatory cornerstones

• Article 39 of the Union Customs Code (UCC)

• Customs audit guide