How to move goods by air
How to comply with requirements for customs and the key documents you'll need to transport goods by air.
The airfreight industry consists of a number of interdependent commercial organisations, including airlines, express carriers, freight forwarders and customs brokers.
This guide provides some basic information about how the airfreight industry operates, and outlines the requirements and regulations that you - as an importer or exporter - must comply with. Included are notes on customs regulations, packaging, insurance, aviation security screening, freight rate and surcharge costs.
The guide also explains what paperwork should accompany your air cargo shipments. After reading this you'll be in a better position to decide if airfreight is the right mode of transport for your business.
Airfreight rates
An overview of the basic costs of airfreight, your VAT obligations and other additional expenses.
It is perhaps not surprising that airfreight is generally more expensive than other modes of international transport. However, the upside is that door-to-door transit times can be minimised and, where consignment sizes are small, it is frequently more cost-effective than other modes.
Airlines offer different freight rates so, in conjunction with guidance provided by your freight forwarder, you can choose which cost, route, service levels and particular airline options best suit your business needs.
The basic cost of airfreight
Airfreight is charged per kilogram - weight or volume, whichever is the greater - known as the chargeable weight.
Usually, airfreight is carried by scheduled passenger aircraft as well as by cargo-only airlines.
The air cargo market has undergone a lot of deregulation over recent years. As a result, freight rates aren't marketed in a single airline industry tariff. Forwarders tend to negotiate rates with airlines on an individual basis. Unless otherwise requested, rates only apply for movements from the airport of origin to the airport of destination. Pre-departure and post-arrival expenses are additional to the airfreight cost.
Other airfreight expenses
In addition to the freight costs quoted by your freight forwarder, you have to consider other expenses. For export goods, these typically include airline terminal handling fees, fuel and risk surcharges, including obligatory customs data-entry requirements, and physical consignment security screening. For import goods, you need to consider duty and VAT. All of these fees are additional to the forwarder's or broker's service fees.
As with any other transport mode, it's essential to ensure that you receive a written quotation from your forwarder and that you fully understand which services you're paying for and what isn't included in the price.
VAT liability for airfreight transport and related services
Your freight transporter or supplier of related freight services can also advise you if you have any VAT obligation arising from their services. They should be able to determine who is liable for VAT by taking into account their customers' status, the place of supply of their services, and the VAT liability of that supply. You can .
Passenger airlines and airfreight
An overview of an airline's obligations in relation to your air cargo and how your cargo is processed.
Most international air cargo is carried to its destination in the holds of passenger aircraft. The amount of cargo uplifted on any aircraft is subject to the passenger and baggage load, the type of aircraft itself and the distance of the flight sector involved. Dedicated cargo flights also operate on key global routes.
Airlines accept airfreight limited to an airport-to-airport contract in accordance with the Warsaw and Montreal Conventions. These define the legal, contractual and liability (for loss and damage) obligations of the airlines as well as those of the shipper.
Once cargo is pre-processed - known as being ready for carriage - by the freight forwarder, it's delivered to the airline's cargo terminal at the airport of departure. The cargo terminal operator's primary responsibility is to the airline - ensuring that all cargo for a given flight is transported to the aircraft's side at the appropriate time, ready for loading.
With few exceptions, the airline's cargo terminal operations are sub-contracted out to third-party operators contracted to the airline(s). The airlines themselves pre-plan their fuel, passenger, baggage and cargo loadings well in advance of departure. In the event of last-minute, unforeseen circumstances, cargo is sometimes offloaded and held for a later flight.
Although airlines do allocate flight details in advance for cargo movements, under their Conditions of Carriage they can't be bound to them and held responsible for delays in consignments arriving at their destination.
Airfreight logistics
How your business can arrange to have your goods airfreighted to an overseas destination through a courier or forwarder.
Buying airfreight and organising other requirements can be a complex process. If you prefer not to organise an airfreight shipment yourself, you can use a freight forwarder.
Airfreight and freight forwarders
Usually, the most economical way of shipping small- to medium-sized consignments is through a consolidation service. Freight forwarders buy and pre-book airline capacity in bulk, in advance, and sell this to exporters who want to ship consignments to the same airport of destination on the same day.
Make sure you know in advance the type of services you want, and choose a freight forwarder who suits your needs. To help you choose, ask the following questions:
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Are they experienced in transporting your type of goods?
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Are they experienced in shipping to the countries you're targeting?
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Are they a member of a freight service industry body? Often members of such bodies are covered by limited liability insurance and apply standard trading conditions and best-practice procedures while non-members may not.
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If applicable, are they confident using several different transport methods for a shipment?
For more information on forwarders, see our guide on using brokers and forwarders.
International courier and express parcel delivery services
Courier and express operators usually offer a complete door-to-door pick-up and delivery service at an all-inclusive price, excluding duties and taxes applicable in the country of destination. Although some operators have expanded their portfolio and are now offering similar services for larger consignments, eg 30 kilograms or more, they mostly market their services for smaller consignments.
In recent years, international airlines have recognised the need for such services, developing similar door-to-door-type products that are available through freight forwarders. Exporters should make enquiries and, based on service requirements, cost, and the type and weight of product being exported, decide which of these options suits their needs.
See the page in this guide on airfreight rates.
Airfreight and perishable goods
Airfreight is often used to transport perishable items, eg food. You can .
How to package goods for airfreight
Guidelines to ensure your air cargo consignments reach their destination in good condition.
If you send freight by air, it will need to be protected from various handling processes that happen en route. It has been estimated that a package can be loaded, re-loaded and stowed up to 60 times during an international transit. This makes good quality packaging for air cargo essential.
How to prepare goods for air transport
When planning to package your airfreight goods, you should consider the following:
- Make sure that your outer packaging is appropriate, strong and secure - will your product withstand damage if other, heavier packages are stacked on top of yours?
- Stabilise your goods within the packaging - use a filling material, such as expanded polystyrene beads or bubble wrap.
- Try to gather your smaller air cargo into a larger package or pallet - this reduces stress on individual items and reduced the risk of smaller packages getting lost in transit.
- Check that your destination country hasn't banned the use of certain packaging materials - eg many countries require .
When packing goods for air cargo, you should also bear in mind that they will be moved by road between premises and airports, and often held in storage en route.
Road transportation has a particular set of packaging, paperwork, insurance and safety considerations - see moving goods by road.
To make sure you have covered all eventualities for regular and dangerous goods, see our section on transporting your goods.
Security for airfreight
How to comply with government-regulated security regulations for your airfreight shipments and where to get 91香蕉黄色视频.
Air cargo originating in the United Kingdom must be subject to security checks to ensure that it does not contain prohibited articles such as explosives or anything capable of causing fire. The cargo can be screened using a number of different techniques by a regulated agent or by a known shipper.
You should ask your freight forwarder how much extra time to factor into your delivery promises to allow for security procedures at airports.
To become a known shipper your business needs to be accredited by an inspector approved by the DfT. Once accredited, your consignments (subject to controls) can be treated as known cargo and not ordinarily subject to other security vetting before being loaded onto the aircraft. The known shipper regime isn't mandatory.
Alternatively, you can remain an unknown shipper. Your cargo must be treated as unknown and will be screened either by a regulated agent (freight forwarder) or the airline in question before being loaded.
Find .
The DfT issues a consignment security certificate to .
Airfreight industry regulations
How to decide if you need to apply for a licence to import or export when moving goods by air freight.
You can import and export most products to and from the United Kingdom without a licence. However, certain goods are restricted, so you need to be aware of which industry regulations you comply with. Commonly sensitive products, such as armaments, drugs, products originating from endangered animal species and certain high-tech computer products, require a licence before they can be exported.
You should also be aware of the Export Control Joint Unit.
Certain countries have specific regulations - for example if you import food into the USA, you must provide prior notification to the US Food and Drug Administration of each shipment of food.
Airfreight and dangerous goods
If you intend to move dangerous goods by air, you must ensure that your goods are packaged, labelled and certificated in compliance with the International Air 91香蕉黄色视频 Association Dangerous Goods Regulations. Consignments of dangerous goods moving to or from an airport also need to comply with the regulations for the transport of dangerous goods by road.
You can read our guide on documentation when moving dangerous goods.
Airfreight documentation
An overview of some of the common paperwork required when you're sending airfreight consignments.
For customs clearance and delivery at destination - and to fulfil HM Revenue & Customs tax requirements before export - freight forwarders should have a commercial invoice detailing the description, quantity and value of the goods being sold. This is attached to the air waybill and forwarded to the destination airport.
Air waybills
Blank air waybills are issued by individual airlines to freight forwarders appointed as agents by the airline. The completed air waybill acts as a document of carriage. It provides evidence of a contract for carriage between exporter and airline, and proof of receipt by the airline of goods for shipment. It also acts as a freight bill. When suitably endorsed, the air waybill can provide acceptable documentary proof that the goods have been exported.
Unlike the ocean Bill of Lading, the air waybill isn't, when in your possession, a document of title to the goods. Nevertheless, it can be significant when used alongside, for example, an international Letter of Credit (LoC). Often the original copy is used as proof that goods covered by the LoC have been transported under its terms. The air waybill sets out the contract between you, your agent and the airline.
Other airfreight paperwork
You need to be aware of the following:
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Export Cargo Shipping Instruction (ECSI) -
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Certificate of Origin - may be required for certain types of imports
Selling terms
When goods are sold, the seller and buyer should agree on who will cover airfreight transportation and other costs incurred in the overall movement.
Incoterms (internationally recognised terms) are a set of rules for interpreting the most commonly used international trade terms - see International Commercial Contracts - Incoterms.
It's important to be aware of the paperwork needed for airfreight shipments so you comply with all relevant formalities. Consult your freight forwarder for specific advice.
Airfreight insurance
How to protect your airfreight consignments with insurance cover in the event of loss or damage.
Airlines, freight forwarders and other supply-chain parties operate under limited liability conditions. This means you're unlikely to receive compensation equal to the actual value of your goods if they're lost or damaged. The full replacement value for consignments and any applicable freight costs should therefore be protected by adequate insurance cover.
However, insurance cover doesn't normally extend to protecting consequential loss. An example of this is where a consignment is delayed en route so that, on arrival at the destination, a financial loss is incurred due to the delay. Check with insurers before goods are shipped to see if you need this type of cover.
Make sure your consignments are adequately insured. Consider if they are subject to risks and choose insurance to cover these. It's advisable to consult a broker or freight forwarder for guidance. Unlike other modes of transport, airfreight insurance is with the freight forwarder, not the carrier.
Consult a broker or freight forwarder for advice - see our guide on transport insurance.
The Financial Services Authority (FSA) regulates businesses and brokers - including freight forwarders - providing insurance brokerage services. It does this through the Insurance Mediation Directive. Not all freight forwarders are FSA registered so may be unable to provide insurance services.
The Warsaw and Montreal Conventions
These conventions govern the international carriage of goods by air. They cover:
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the carrier's responsibilities
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basis of carrier liability
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financial liability limits
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carrier's responsibility for sub-contractors
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documentary requirements
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consignor's liabilities
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special provision regarding dangerous goods
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claim time limits and limitation periods
Conventions apply to the issuing of the air waybill (the legal evidence of your contract agreement with the airline). Under the Convention you or your agent must complete an air waybill for each airfreight shipment.