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AIR FREIGHT EXPORT PROCESS AT SMARTLINK
Exporting by air, also known as air freight export, is one of the most common methods of transporting export goods today. So, what is the process of air freight export? Let’s explore this with Smart Link in the following article!
Summary of the Air Freight Export Process
First, the manufacturer will determine the shipping schedule to ensure timely delivery to foreign customers and seek forwarder services to handle the goods. The exporter needs to provide forwarders with detailed information about the goods, such as the destination, origin, ready date for flight booking, item name, and weight of the goods.
Note that for air freight, specific dimensions and the number of cartons and packages must be provided so that the forwarder can accurately calculate the shipping cost for the shipment. Additionally, the exporter needs to provide the invoice, packing list, and SI for the forwarder to create the HAWB. The goods will then be transferred to the forwarder’s warehouse or a packing company. Typically, these warehouses are located near the airport.
How to Calculate Shipping Costs for Air Freight Exports
Shipping costs in air transport are generally not defined in standardized tariffs. The International Air Transport Association (IATA) has specified how to calculate freight rates in the TACT air tariff.
Freight rates are calculated based on the greater of actual weight (AW) and dimensional weight (DW). Dimensional weight is converted from the volume of the shipment based on IATA’s formula: length x width x height x number of packages / 6000.
Air Freight Export Process
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Step 1: Negotiate and Sign Foreign Trade Contract
This is the first step when starting to import goods. Negotiation helps both parties agree on shipment details, prices, payment, delivery, packaging, warranty, complaints, etc. After agreeing, the foreign trade contract will be signed.
Step 2: Apply for Air Export Permit
There are two cases:
- Regular goods do not require an export permit.
- Goods subject to special management such as medicine, seeds, wood, antiques, explosives, etc., require an export permit.
Step 3: Confirm Payment
Payment is a critical issue in import and export. The seller will require the buyer to make a deposit, usually 30% of the export shipment’s value.
Step 4: Prepare Goods for Export
After receiving the deposit, the company will inspect, pack the goods, and schedule transportation to the international airport.
Step 5: Arrange Space with Airlines (Freight Forwarder)
This depends on the delivery conditions and facilities. Contact the shipping agent, select the carrier, flight, and register the shipment. Deliver the goods to the carrier and sign the delivery note.
Step 6: Pack Goods and Transport to Port
After obtaining the Booking note, the company packs the goods and transports them to the designated warehouse. The forwarder will issue a Forwarder’s Certificate of Receipt (FCR) or a Warehouse Receipt (FWR).
Step 7: Complete Export Customs Procedures for Air Freight
Prepare the document set for export customs clearance: export permit (if required), commercial invoice, packing list, manifest, certificate of origin, letter of introduction. Submit the customs declaration to the airline for actual export verification with customs supervision.
Step 8: Other Tasks in the Air Freight Export Process
Purchase insurance, obtain C/O, and other documents as required by the customer. Notify the buyer of the shipped goods and send the AWB soft file.
Step 9: Send Documents to Foreign Buyer
Send the original document set to the buyer and a scanned file for them to prepare import steps. Ensure payment according to the contract terms.
These are the details about air freight export that Smart Link wants to share with you. We hope this article will be useful to you in your import-export activities. At Smart Link, we specialize in import consulting and handling goods in various markets with successful shipments. Here, we will provide you with services and solutions to help your goods reach global markets with dedication and commitment. We are proud to be a company with over 13 years of experience in the logistics field.
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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