AIR FREIGHT EXPORT PROCESS AT SMART LINK

Air export, also known as air freight export, is a widely used shipping method for international trade. So, how does the air export process work? Let’s explore the details with Smart Link in this article!

Overview of the Air Freight Export Process

First, the manufacturer determines the shipping schedule to ensure timely delivery to international customers and looks for a freight forwarder to handle the shipment. The exporter needs to provide the forwarder with detailed information about the goods, including the destination, point of departure, ready date for booking, product name, and shipment weight.

For air freight shipments, it is essential to specify the dimensions and the number of cartons or packages so that the forwarder can accurately calculate shipping costs. Additionally, the exporter must provide an invoice, packing list, and Shipping Instructions (SI) for the forwarder to prepare the House Air Waybill (HAWB). The goods are then transported to the forwarder’s or packaging company’s warehouse, usually near the airport.

How Air Freight Rates Are Calculated

Air freight charges are not fixed under a unified tariff system. The International Air Transport Association (IATA) specifies how rates are calculated in the TACT air freight tariff.

The chargeable weight is based on either the actual weight (Actual Weight) or the volumetric weight (Dimensional Weight), whichever is higher. The volumetric weight is converted from the shipment’s dimensions using IATA’s formula:

(Length × Width × Height × Number of Packages) / 6000

Air Export Process

1. Negotiating and Signing the Sales Contract

This is the first step in the export process. Negotiations help both parties agree on key shipment details such as pricing, payment terms, delivery conditions, packaging, warranties, and dispute resolution. Once terms are agreed upon, the international sales contract is signed.

2. Applying for Export Licenses

There are two cases:

• Regular goods: No export license is required.
• Restricted goods: Items subject to special regulations, such as pharmaceuticals, seeds, timber, antiques, and explosives, require an export license.

3. Payment Confirmation

Payment is a crucial aspect of international trade. The seller typically requires the buyer to place a deposit, usually around 30% of the total shipment value.

4. Preparing the Goods for Export

Once the deposit is received, the exporter inspects, packages, and schedules the shipment for delivery to the international airport.

5. Booking Space with the Airline (via Freight Forwarder)

This step depends on the agreed delivery terms. The exporter works with a freight forwarder to book space with the airline, select a carrier, confirm flight schedules, and arrange for cargo drop-off. A cargo receipt report is issued upon handover.

6. Packing and Transporting the Goods to the Airport

After receiving the Booking Note, the exporter properly packages the goods and transports them to the designated warehouse. The forwarder issues a Forwarder’s Cargo Receipt (FCR) or Freight Warehouse Receipt (FWR) to confirm receipt.

7. Customs Clearance for Air Export

The exporter prepares the required documents for customs clearance, including:

• Export license (if applicable)
• Commercial invoice
• Packing list
• Manifest
• Certificate of origin
• Letter of introduction

The airline submits the export declaration to customs for approval before departure.

8. Additional Steps in the Air Export Process

Other necessary procedures may include purchasing insurance, obtaining a Certificate of Origin (C/O), and preparing other customer-required documents. The exporter also informs the buyer about the shipment and sends a soft copy of the Air Waybill (AWB).

9. Sending Documents to the Foreign Buyer

The original shipping documents are sent to the buyer, along with scanned copies to facilitate the import process. At the same time, payment is finalized according to the contract terms.

Conclusion

Above is a detailed guide to the air freight export process that Smart Link would like to share with you. We hope this article provides valuable insights to help you navigate your international shipping operations more efficiently!