Spergeon Aaiclas Report
Spergeon Aaiclas Report
Spergeon Aaiclas Report
A INTERNSHIP REPORT
Submitted by
M. SPERGEON
(2021652062)
degree of
INTERNATIONAL BUSINESS
ALAGAPPA UNIVERSITY
TAMILNADU – 603130
2020-2023
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DECLARATION
I hereby declare that the internship work entitled “An Overall Study On
Airport Authority Of India Cargo Logistics And Allied Service
Company” is completed from 9th June 2022 to 22nd June 2022. I have
participated in an internship program of the requirement for the final year of
the International Business course. My study was done under the supervision
of J. NOBLE SOLOMON-SENIOR MANAGER (CARGO).I further
declare that information submitted by me is true and original to the best of my
knowledge.
Place : Chennai
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TABLE OF CONTENTS
1 INTRODUCTION 4
2 OBJECTIVE 7
3 EXPORT 11
4 IMPORT 18
5 COURIER 27
6 DISPOSAL 31
7 ICMS 33
8 AIRLINE CODE 33
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9 ABBREVIATION
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10 CONCLUSION
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INTRODUCTION
In this growing world logistic and supply chain management plays a vital role in
transportation of goods and services. The term logistics refers to how the resources are
acquired, stored and transported to final destination and the term supply chain refers to
flow of goods and services it also includes the movement and storage of materials,
work in process and inventory. Cargo refers to the goods that may be finished or semi-
finished or raw material. These Cargo are transported throughout the world in four
major ways. The four ways are airways, seaways, railways and roadways. Among the
four different ways the fastest way of transportation is airways.
Air Freight, also known as air cargo, is the mode of transport used to transport cargo
swiftly by air. Airfreight is the most valuable form of transport when shipping or
transporting goods in the fastest time around the globe. Air cargo is shipped through
the same gateway as the passenger or commercial airlines.
Air cargo has played an important role in the global economy, and has carved out a
niche in terms of transporting high-value, lightweight commodities. It only represents
roughly 1 percent of the overall freight movements by weight, and the demand for air
cargo is primarily constrained by the costs, as air cargo services can be up to five times
the cost of transporting the goods by road, and up to 16 times the cost of sea transport.
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ABOUT AAICLAS
The strong relationship between
growth in international trade and
logistics infrastructure is widely
acknowledged. As product life cycles
have shortened and demand of rapid
delivery has increased, the demand
of air cargo
transportation has grown significantly over the last few years. 35% of global
trends moves by air in terms of value of goods, which represents almost US 6.4
Trillion globally. Changing business environment where, speed to market is a
competitive imperative, movement of inventory is no longer viewed as
compartmentalized process.
the recent years. India is poised to take big leap in manufacturing sector with make
in India initiative, for which development of infrastructure and logistics play a vital
role. Since, Its inception Airports Authority of India has been pioneering the
development of International cargo operations in the country at various metro and
non-metro airports. AAI has capability of handling needs of express and general
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cargo with facilities for temperature sensitive cargo, perishable, pharmaceutical
and dangerous goods. Further to this Ministry of Civil Aviation is looking
forward for developing domestic air cargo in the country by setting up common
user domestic cargo terminals.
Keeping in mind the current economic boom, the importance of air cargo and its impact
on the overall economy of India, AAI proposed to demerge and corporatize the cargo
department into functionally and administratively independent organization, which is
professionally driven and responsive service enterprise. With a vision to become the
foremost integrated logistics network in India, AAI Cargo Logistics and Allied Services
Company Limited (AAICLAS) was incorporated on 11th August 2016. It will work as
multi modal interface linking air, surface & water transport. Thus becoming the largest
networked and fastest logistic solution provider company of India. AAICLAS will
promote, represent, organize, undertake, establish, conduct, handle, arrange, own,
operate, participate, facilitate, sponsor, encourage, and provide the business as Cargo
Terminal Operator, Free Trade Zone, Air Freight Station and Inland container depot for
cargo and passengers.
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OBJECTIVE OF THE STUDY
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GENERAL TERMS USED IN AIR CARGO
AIR CARGO:
CONSIGNOR:
When goods are sent by the manufacturer or the producer to the buyer,
the act is referred to as consignment where the owners of the goods send
the goods to their agents in another location. The goods that are sent in
this manner are referred to as consignment while the sender is called the
consignor.
CONSIGNEE:
A consignee is only a receiver and not the owner of the goods. The
ownership is transferred only when the consignee has paid the consignor,
in full, for the goods. In most cases, a consignee is only an agent
receiving the goods from the consignor. It is important to remember that
the person who receives the goods in a consignment is always a
consignee.
CONSIGNMENT:
CUSTODIAN:
AIRLINE AUTHORITY:
CUSTOMS:
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IATA:
AWB:
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EXPORT
Transport of cargos from own country to another country across the world is
called as export. Air transport plays a vital roll in transporting the cargos in
fastest and safest way. Airfreight is the most valuable form of transport. It
reaches the customer than the other way of transportation.
1. General cargo
2. Valuable cargo
General cargo:
This type of cargo is not harmful to anyone they comes under general
commodity and this type cargo is normally handled and does not cost
much. General cargos are electronic, automobile parts, clothes, leather,
etc.
Valuable cargo:
This type of cargo is harmful and comes under valuable commodity and
this types of cargo needs special care and it cost more than general cargo.
Valuable cargos are Gold, Jewels, Dangerous goods, etc.
Unloading of cargo
Weighment
Amendment
Examination
Truck dock
LEO
Bond close
Loading
Release
permit
EGM
Scanning
Unitization
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Export is dived into four working area, they are
TRUCK ENTRY:
Initially the truck entered in gate with cargo. The documents need for
entering are TSPC Challan (Terminal storage and processing charges),
Gate Pass, Arrival slot Token and Airway Bill. In the TSPC challan the
entry time and packages are noted and sealed by the security
The goods are unloaded in the dock area with the help of dock
workers. Dock workers use hydraulic trolley and manual trolley.
WEIGHMENT:
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AMENDMENT:
Extra charges that should be paid in order to the change the chargeable weight
L x B x H x No. of pieces In Cm
6000
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If there any changes in the weighment process the CHA should pay the
amendment in counter section.
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EXAMINE:
In this process the goods are transferred from truck dock area to
examination area. Customs officer will examine the goods and issue
the LEO ( Let Export Order) which means the cargo is ready to export.
SCANNING:
After bond closed from the examination area the goods are transferred to
bonded area through scanning machine. This is screening process to
check the exporter transports the right goods. This process is done by
AAI Officials.
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UNITZATION:
Three types:
1. Palletization
2. Containerization
3. Bulk.
Pallets Container
ETV is vertical storage device which stores all the pallet till it getting shipment.
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LOADING SHEET:
The scanned cargos are packet in the pallets or containers by the help
of custodian. These works are done under the supervision of the airline
representative and loading supervisor and loading sheet is prepared.
And after packing lashing and belting process takes place.
This is a request letter given by the airlines to take the goods which are
loaded in the aircraft to custodian.
All the shipping items and their details will be listed in the export
general manifest.
AIRCRAFT MANIFEST:
It’s the only document the captain will carry with him. It is used in the case
of emergency and to know what are goods he carrying with him.
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IMPORT
Cargos which are received from other part of the world to own country is called
as import. Importing of goods from other country is generally cost high. They
are also divided into two cargos
1. Valuable Goods
2. General Goods
3. Special Goods
VALUABLE GOODS:
The goods which are high valued and which should be transported with extra
care is called valuable goods. They are doubly charged
GENERAL GOODS:
The goods which has normal value and can be handled normally is called
general goods. For transporting these types of goods the cost is normal.
SPECIAL GOODS:
The goods which should be transported within a short time and they have
separate place to store is called as special goods.
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IMPORT PROCESS
Unloading
Receiving
Segregation
Customs
examination
OOC
Billing b/c
Gate pass
Import :
Import procedure means all the steps involved in purchase of goods from any
foreign country. The procedural steps involved in import trade differ from
country to country in respect of their import policy, statutory requirements. In
majority of the countries import trade is being controlled by the government.
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UNLOADING:
Flight reaches the runway. All the pallets are unloaded using a unit loading
device. With the help of GHA Ground Handling Agents.
RECEIVING:
Initially high priority goods and perishable goods are received and stored
according to their storage location. All the remaining goods are unpacked and
kept for declaration.
Custodian who receive the goods have a EDI (Electronuic data interchange)
copy of the import general manifest. He check the goods and make a plan
to segregate based on the nature of goods.
The goods which received are checked for damages. Types of damage found
in goods are
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During receiving the goods which does not comes in manifest are divided in
two types
1. EXCESS LANDED
Goods which are arrived more than the number of package mentioned in
manifest are called as excess landed and they are stored in a separate
excess landed shed.
2. SHORT LANDED
Goods which are arrived less than the number of package mentioned in
the manifest are called as short landed and they are stored in separate
shed.
1. Valuable goods
2. Live animals
3. Live fishes
4. Perishable items
5. Medicine
6. Expensive goods
7. Dangerous goods
8. Electronic goods.
SEGREGATION:
1. Shed storage
2. Cold storage
3. ASRS
4. DG storage
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SHED STORAGE:
In import there are nine number of shed according to the value and size
of the cargo. It starts from NS-1 to NS-9
COLD STORAGE:
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IMPORT WAREHOUSE BININING LOCATIONS
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ASRS:
ASRS is a vertical storing system. Bulk cargo which has same house are stored
in a bin this process is called binning. The bin are then transferred to ASRS.
The checker scans the BIN number and scan the AWB number and put the bin
in ASRS. The ASRS system find a empty location to place the bin and it stores
and gives the information where it is stored.
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DANGEROUS GOODS:
Goods which are harmful and toxic to other goods are called as dangerous
goods. They are handled with high care and kept under surveillance.
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EXAMINIATION AREA:
All the goods are examined by the custom officer and approved for delivery.
Customs give OOC (out of charge) to the goods which are not harmful and its
duty charges that has to be paid.
BANK CHALLAN
After OOC produced the billing operation takes place. All the required duties
such as storage, movement of goods, examination, repacking and demurrage
should be paid by the importer with the help of CHA through online.
GATE PASS:
Gate pass is given in counter after the full payment for the consignment. And
issued in the import counter. Finally the requested consignment is delivered
to the CHA.
TRANSHIPMENT:
It’s a process were the consignment which are send or received to nearby port
through roadways. The transhipment goods are checked under customs
knowledge and sealed. The sealed truck is further opened by customs in the
nearby port.
In this area the single consignment are stored in racks with the help of workers.
In this area the small size consignment are stored in racks with the help
of workers.
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RATIO ACTIVE CARGO:
The Radio Active elements which are harmful to other goods so they are
stored in separate shed. It is stored and handled with high care and kept under
high surveillance
Introduction:
Except for certain excluded categories, all goods are allowed to be imported
through the courier mode. The exclusion of certain categories of goods is based
upon the fact that these broadly require specific conditions to be fulfilled under
any act or rule or regulation such as testing of samples in reference to the
relevant authorities or experts before their clearance. In these cases, due to
additional compliance requirements, the assessment and clearance takes time.
These goods, therefore, do not fit into the scheme, which envisages Customs
clearance on a fast track basis. Further, air terminals and LCS are not equipped
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to handle certain goods. Thus, in general the following categories of goods are
not allowed import through the courier mode:
(c) Perishables
(f) Goods under Export Promotion Schemes including EOU scheme; (g)
Goods exceeding weight limit of 70 kgs. (individual packages) imported
through courier under manual mode. However, under the electronic mode, no
such restriction regarding weight has been provided. Clearance of goods under
the EOU scheme is permitted under the electronic mode.
As in the case of imports, all goods are allowed to be exported through courier
(c) Goods where the value of the consignment is above Rs.,25,000/ and
transaction in foreign exchange is involved.
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Procedure for clearance of import goods
C) Free gifts- any bonafide gifts of articles for personal use of a value not
exceeding rupees 25,000/- tor a consignment in case of exports and Rs.10,000/-
for imports which are not subject to any prohibition or restriction on their
import or export and which do not involve transfer of foreign exchange
(d) Low value dutiable or commercial goods - goods having a declared value
of up to Rs.1,00,000/-
(e) Dutiable or commercial goods- goods having a declared value otf more
than Rs.1,00,000/-
(a) 100% screening of import export consignments (documents and all types
of cargo) is required to be done through X-ray or other NII techniques.
Wherever possible the facility of X-ray machines available with Customs
could be used otherwise the airlines or AAI's screening facility may be
resorted to for such screening. Further, wherever feasible such screening by
multi-agencies could be combined to reduce the time taken and avoid
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duplicity
(b) Physical examination of export documents, gifts, samples and export goods
limited up to a maximum of 10% of the total courier consignments or
specified intelligence. The consignments so selected will be examined 100%
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DISPOSAL
Cargo is allowed till 30 days more than that the unclaimed cargo are taken for
disposal by the disposal unit.
These three department does the valuation of imported product which kept for
disposal.
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Procedure for Sale of Unclaimed/Uncleared Cargo:
For sale of such unclaimed/uncleared goods, the custodian first identifies
the goods which are lying uncleared for more than 30 days. He then
prepares an inventory of such goods and sends it to the Customs for their
'no objection'.
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ICMS
This new system encompasses various activities and solutions, such as e-freight
compliance and a web-based feedback system and includes a mobile
application. This new system facilitates exchange of data with the system of the
Customs for final clearance of export and import cargo. Each stage of the
export and import cargo handling processes is instantly done through the
system.
This software helps to document all the data that are needed for import and
export process.
AIRLINE CODE
AI – Air India
AK – Air Asia
G9 - Air Arabia
6E – Indigo
EK – Emirates
QR – Qatar
CX – Cathay Pacific
BA – British Airways
LH - Lufthansa
BZ – Blue Dart
UL - SriLankan Airline
EY - Ethihad Airways
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ET – Ethiopian Airlines
AF – Air France
9W – Jet Airways
WY – Oman Air
SQ – Singapore Airlines
GF – Gulf Air
HX – Hongkong Air
ABBREVIATIONS:
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SEZ – Special Economic Zones
UB – Unaccompanied Baggage
DG – Dangerous Goods
CS – Cold Storage
EL – Excess Landing
SL – Short Landing
OB – On Board
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CONCLUTION
The growth of Air Cargo in India has reduced drastically in the couple of years
for the following major reasons.
Hence I have learned about air cargo import, export, counter, ICMS, disposal
and finance as the result air cargo transportation is the one of the most
important, fastest and safest mode of transportation for cargos
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