A pilot programme is paving the way for smoother air cargo flows between China and the Netherlands. Down the road, faster clearance, better predictability and improved security beckon for a host of other trade lanes linking Asian and European countries.
Trials are under way for the air cargo part of the Safe and Secure Trade Lanes (SSTL) initiative, a bilateral programme between the European Union and China backed by the World Customs Organization (WCO) to reduce customs clearance times and improve security. It tests end-to-end supply chain security instruments and mechanisms in line with the WCO’s SAFE Framework of Standards.
It was initially launched in 2006 for marine cargo and more recently expanded to air freight, starting with eastbound shipments from Amsterdam Schiphol to Guangzhou. Westbound trials on the route kicked off last December, with a shipment carried by Air China Cargo to Amsterdam.
The first eastbound shipment in the programme, a consignment of cockpit instruments, was on its way to an aircraft manufacturing facility near Baiyun airport within 21 minutes of touching down and could immediately enter the production process.
Cutting down customs clearance is the strongest and most tangible benefit for operators involved in the project, as the electronic exchange of data between the customs agencies at both ends clear the way for a shipment’s passage ahead of its arrival at the destination airport.
“The time savings in China is enormous. Instead of hours it is now less than one hour to several minutes,” reported Gera van Weenum, a press officer of the Dutch Customs agency.
On top of faster clearance, participants also gain better predictability of the availability of their shipments for their customers.
“Time saving is just one of the benefits. The benefits for the SSTL Air Pilot are reduced clearance time, predictability and a better relationship with customs,” noted van Weenum.
For the customs agencies the chief objective is improved security through closer cooperation. They make use of each other’s inspection findings, share risk information and develop secure communication channels. A number of joint risk rule exercises have been conducted so far to improve collaboration in risk management.
“SSTL also contributed to a series of important security policy areas, notably as regards the technical comparison of AEO (Authorized Economic Operator) programmes in view of establishing EU-China AEO mutual recognition, the contribution to the WCO unique consignment reference numbers concept and addressing temporary admission issues for container security devices,” stated van Weenum.
At this point the volume of shipments in the pilot is relatively modest (the agencies do not publish numbers), but this should pick up with the broadening of its scope. To begin with, the range of cargo accepted has been extended from general freight to all types of cargo.
Moreover, both the number of trade lanes and the pool of participants are increasing. At this point, 16 enterprises are involved in trials on eight end-to-end trade lanes, and another 18 firms are preparing for participation in nine trade lanes. On the marine side the pilot currently involves 200 economic operators moving goods between 16 ports.
Being an end-to-end scheme, SSTL is open to consignors and consignees. “The main focus is on compliant enterprises. So not only AEO operators can join this pilot, but also non-AEO operators. Companies can participate if they are established in any of the participating jurisdictions and are transporting goods through participating ports and are willing to comply with the requirements,” explained van Weenum.
To date, Amsterdam Schiphol and London Heathrow are the only EU airports involved in the SSTL trials. Others will be able to come on board later. Under the joint administrative arrangement for the third phase of the SSTL pilot signed last summer, the customs organizations of China and Hong Kong joined up with eight EU member states (Belgium, France, Germany, Italy, Netherlands, Poland, Spain and UK), and seven additional EU states plus the WCO take part as observers.
Shippers welcome better data flow between national agencies and further alignment of their work. The Consistently Optimized Resilient Secure Global Supply Chains project, an initiative funded by the European Commission (EC) with 70 participants from Europe and the US, recently tabled a list of policy recommendations to the EC. They call for the extension of digitisation to all documents, the harmonisation of international transport conventions, and propose that the EU should create government channels to expedite trade.
By Ian Putzger
Air Freight Correspondent | Toronto
