Dive Brief:
- The International Air Transport Association (IATA) announced August 8 the U.S. Customs and Border Protection (CBP) would adopt its Cargo-XML messaging standards to collect data on U.S. export shipments. The regulator will begin to implement the standard in the coming months.
- U.S.-based exporters must file freight cargo data electronically through the automated system in one of various formats. The CBP is looking to reduce the number of supported filing formats, however, in order to facilitate data transmissions and expedite inspections.
- The IATA, a trade association representing 83% of global air traffic, developed Cargo-XML in compliance with the World Customs Organization standards, aiming to create a globally acceptable air freight messaging system.
Dive Insight:
The adoption of Cargo-XML by the U.S. trade regulator is a big win for the IATA and its 265 airline members. The U.S. CBP is one of the largest customs agencies worldwide, recording roughly $425 billion in air or air and truck exports as of 2013, according to a Department of Transportation report.
In addition, extensive customs inspections due to ill-categorized freight shipments can lead to unexpected time and monetary costs that may disrupt the supply chain and frustrate clients. In fact, many logistics providers offer "customs brokerage" as an additional service.
“Airlines, freight-forwarders, shippers and border agencies share the common goals of simplifying processes, enhancing efficiency and maximizing safety and security," said Nick Careen, IATA's senior vice president for airport, passenger, cargo and security. "The key to achieving this is industry collaboration and standardization on a global scale.”
The Cargo-XML system is not just applicable to air freight, however. The IATA designed the messaging system for multimodal and cross-border use in order to facilitate industry-wide adoption. The trade association regularly updates the system to adapt to new customs and security regulations.
