UNDERSTANDING THE AIR EXPORT PROCESS AT SMART LINK

Air export, also known as Air Cargo Export, is one of the most popular methods of transporting export goods today. So, how does the air export process work? Let’s explore the details with Smart Link in this article.

Overview of the Air Export Process

First, the manufacturer determines the shipping schedule to ensure timely delivery to foreign customers and seeks a freight forwarder to handle the goods. The exporter needs to provide the forwarder with detailed information about the shipment, such as the destination, point of origin, readiness date for booking flights, product name, and weight of the shipment.

For air cargo, it is essential to specify the dimensions and number of cartons or packages so the forwarder can accurately calculate the cost of the shipment. Additionally, the exporter must provide invoices, packing lists, and shipping instructions (SI) for the forwarder to prepare the House Airway Bill (HAWB). The goods are then transported to the forwarder’s or packing company’s warehouse, which is typically located near the airport.

How to Calculate Air Freight Charges

Air freight charges are usually not specified in standardized rate sheets. The International Air Transport Association (IATA) has established specific guidelines for calculating charges in the TACT Air Cargo Tariff.

The freight charge is calculated based on the greater value between actual weight (Actual Weight) and volumetric weight (Dimensional Weight). The volumetric weight is converted from the shipment’s volume using IATA’s formula:
Length x Width x Height x Number of Packages / 6000.

Steps in the Air Export Process

Step 1: Negotiate and Sign the Foreign Trade Contract

This is the first step in initiating the export process. Negotiations help both parties agree on shipment details, pricing, payment terms, delivery conditions, packaging, warranties, claims, etc. Once agreed upon, the foreign trade contract is signed.

Step 2: Obtain an Air Export Permit

Two scenarios apply:

General goods: No export permit is required.
Specially regulated goods: Items such as pharmaceuticals, seeds, wood, antiques, explosives, etc., require an export permit.

Step 3: Payment Confirmation

Payment is a critical aspect of import-export. The seller usually requires the buyer to make a deposit, typically 30% of the shipment’s value.

Step 4: Prepare Goods for Export

After receiving the deposit, the company inspects, packages the goods, and schedules transportation to the international airport.

Step 5: Arrange Freight with the Airline (Freight Forwarder)

This depends on delivery conditions. The exporter contacts the freight agent, selects the carrier and flight, and registers the shipment. The goods are handed over to the carrier, and a delivery receipt is signed.

Step 6: Package and Transport Goods to the Port

Once the booking note is received, the company packages the goods and transports them to the designated warehouse. The forwarder issues a Freight Certificate Receipt (FCR) or Forwarder’s Warehouse Receipt (FWR).

Step 7: Complete Customs Clearance for Air Exports

Prepare the necessary documentation for export customs clearance, including:

Export permit (if required)
Commercial invoice
Packing list
Manifest
Certificate of origin
Authorization letter

Submit the customs declaration to the airline for signature and customs supervision approval.

Step 8: Additional Steps in the Air Export Process

Arrange insurance, prepare certificates of origin (C/O), and other documents per customer requirements. Notify the buyer that the shipment has been dispatched and send a soft copy of the Airway Bill (AWB).

Step 9: Send Documents to the Foreign Buyer

Send the original document set and scanned copies to the buyer to facilitate their import process. Ensure payment is settled per the contract terms.

Conclusion

Above are the essential details about the air export process that Smart Link would like to share with you. We hope this article will be helpful for your import-export activities.

If you need legal support or assistance with customs procedures in import-export activities, please contact Smart Link Logistics for fast and efficient consultation. With over 14 years of experience in the transportation field, we are proud to accompany you throughout your journey.

Hotline: + 84 935 766 039 to know more about our services

If you require assistance with international import and export of goods, please contact our team at Smartlink Logistics. We are available to provide you with professional guidance on our services and the necessary customs procedures.

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