Module 2 - The Air Cargo Agency

Question 1

What are the four main requirements to become an appointed IATA Cargo Agent

Answer 1

The requirements are

1) Qualified and duly trained staff, particularly with regards to the acceptance and handling of dangerous goods
2) Sound financial standing
3) Suitable working premises and cargo handling and warehousing facilities
4) Ability to actively promote and sell international air cargo transportation

Question 2

Which of the following is not a service provided by an IATA Cargo Agent

(A) Fills out the carrier flight documentation (flight manifest, notification to captain,..) prior to air transportation
(B) Prepares airline documentation, i.e. completes Air Waybills including all charges
(C) Ensures that packaging certifications and eventual shipper’s declaration or certification are in compliance with government and IATA regulations
(D) Checks that export and import licenses are in order and comply fully with government regulations

Answer 2

(A) Fills out the carrier flight documentation (flight manifest, notification to captain,..) prior to air transportation

Question 3

List 5 services provided by an IATA Cargo Agent

Answer 3

1) Providing facilities for the acceptance or collection of export shipments from shippers
2) Preparing airline documentation
3) Checking of export and import license
4) Ensuring that packaging certifications and eventual shippers declaration of certification are in compliance with government and IATA regulations.
5) Arranging Insurance for customers
6) Arranging transportation of the goods, booking space with the airline and, scheduling delivery of goods at airport
7) Tracing the movement of the consignment
8) Assisting the shipping public in gathering all information required concerning import regulations of various countries
9) Coordinating with agent at destination for clearance and delivery (as requested)

Question 4

Which of the following stetements about the rights and obligations of IATA Cargo Agents are false>
(A) IATA Cargo Agents may receive a comission from IATA airlines on export cargo.
(B) IATA Cargo Agents must present shipmetns to the airlines “Ready for Carriage”
(C) IATA Cargo Agents may be denied air waybills and credit facilities from airlines
(D) IATA Cargo Airlines can lose their registration for repeated late payment of freight accounts

Answer 4

(C) IATA Cargo Agents may be denied air waybills and credit facilities from airlines

Question 5

What general criteria must be met to become an endorsed Freight Forwarder.

Answer 5

1) Appropriate business registration and valid license to trade as a forwarder, where required
2) Sound financial standing
3) Suitable working premises and cargo handling and warehousing facilities; and qualified personnel to be able to meet the requirements to prepare “Ready for Carriage” consignments.

there may be additional local requirements or specifications

Question 6

What is the relationship between airlines and Freight Forwarders under the new IATA-FIATA Air Cargo Program?

Answer 6

Principal to Principal

Question 7

Under the new IATA-FIATA Air Cargo Program, at what point does the carrier become liable for damaged to a shipment?

Answer 7

When the shipment has been tendered to and accepted bu the airline.

Question 8

What two roles does the Consolidator fullfill?

Answer 8

• That of a carrier whereby the consolidator is responsible to the shipper for the transportation of the goods
• That of PRINCIPAL in relation to the airline for the carriage of the whole consolidation

Question 9

What other services related to export and import of cargo does the consolidator offer?

Answer 9

Export:

• Undertaking the consolidation of the cargo
• Delivering the bulk cargo to airlines ready for carriage
• loading cargo into aircraft until load devices (ULDs) for delivery to airlines ready for carriage
• Following up on cargo shipments, including transshipment and onward carriage up to final delivery

Import:

• Arranging customs clearance and delivery (door to door)
• Arranging payment of import duties
• Undertaking domestic in-bond transfer to point of final clearance

Question 10

Airlines’ Tariff cover what charges/rates?

Answer 10

• basic minimum charge per shipment (applies to small consignments)
• a general cargo rate based on weight (GCR)
• a specific commodity rate (SCR) app;oed to specific categories in an IATA numbered list
• a class rate for certain classes of goods which provides a fixed percentage of surcharge or reduction on the general cargo rates for certain classes of goods

other: ULD charge

Question 11

What commodities must NOT be included in consolidation per TACT rules)

Answer 11

• valuable cargo, live animals, human remains, and diplomatic bags

Question 12

What does TACT stand for?

Answer 12

The AIR CARGO TARIFF - is a IATA publication containing rules and official airlines’ cargo tariff

Question 13

What Agent is in charge of breaking down the consolidation at destination?

Answer 13

The Break Bulk Agent

Question 14

How do MAWB differ for direct vs consolidated shipments

Answer 14

direct: list name and address of shipper and consignee
consolidated: list name and address of the Cargo Agent as the shipper and Break Bulk Agent as the consignee

Question 15

Which of the following functions apply to the IATA cargo agent?

(A) Charges the customer the published airline air freight rate
(B) Assumes responsibility beyond delivering the shipment to the airline
(C) Delivers direct shipments to the carrying airline
(D) Both a and c

Answer 15

(D) both a and c

Question 16

Which of the following functions apply to the consolidator?

(A) Charges the customer the published airline air freight rate
(B) Assumes responsibility beyond delivering the shipment to the airline
(C) Delivers direct shipments to the carrying airline
(D) Negotiates the sales contract between shipper and the consignee

Answer 16

(B) Assumes responsibility beyond delivering the shipment to the airline

Question 17

What is the name given to the practice of assembling a number of individual shipments and dispatching them as a single shipment on one airline Master Airway Bill?

Answer 17

Consolidation

Question 18

What is the main advantage a consolidator obtains from airlines compared to the shippers of individual freight?

Answer 18

He obtains lower rates from the airlines due to the higher weights of the shipment

Question 19

What is the document covering the transportation of the total consolidation ?

Answer 19

Master Airway Bill

Question 20

The agent who splits the shipment at destination is called?

Answer 20

Break Bulk Agent

Question 21

What IATA resolution applies to “Ready for Carriage”

Answer 21

IATA Resolution 833 applies to the preparation of a shipment to make it ready for carriage.

Question 22

Documents required PRIOR to the transportation by air

Answer 22

• Shippers letter of instruction (SLI)
• Commercial Invoices
• Customs clearance docs
• additional documents such as health cert, cert of origin, shippers declaration of DG, Shippers declaration of live animals
• various documents for payment purposes
• docs for security clearance if required

Question 23

Documents required FOR to the transportation by air

Answer 23

Airway Bill for direct and consolidated shipments

Question 24

Documents required subsequent to the transportation by air

Answer 24

• Commercial Invoices
• Documents required for customs clearance at destination
• additional documents such as health cert, cert of origin, shippers declaration of DG, Shippers declaration of live animals
• docs for security clearance if required

Question 25

Supporting docs ALWAYS required for air transportation

Answer 25

• Shippers letter of instruction
• commercial invoice
• and all other documents for customs clearance

Question 26

What document is required for Dangerous goods?

Answer 26

Shippers declaration for dangerous goods

Question 27

What document is required for Live animals

Answer 27

Shippers certification for Live animals
CITIES document
Health declaration

Question 28

Name of document provided to the captain to inform him about any special loads that are carried on board of the aircraft (human remains, DG, live animals)

Answer 28

NOTOC - Notification to captain

Question 29

What are the two documents sometimes required for payment?

Answer 29

Letter of credit - issued by the bank at request of the consignee. Guarantees payment to the shipper provided that certain conditions are fulfilled

Sight draft/ bill of exchange AKA cash against document
Issued by the bank and presented to buyer in exchange for payment and shipping documents

Question 30

Who are customs import agents hired by?
(A) importers/consignees
(B) exporters/ shippers

Answer 30

(A) importers/consignees

Question 31

Customs clearance consists of what 4 steps?

Answer 31

Collection of documents from the inbound carrier
Notification of arrival to the Importer
Preparation of customs entry
Presentation of customs entry and payment of duties

Question 32

These are the four types of packaging used :
Single packaging
Combination packaging
composite packaging
an overpack

Answer 32

correct.
Single packaging:
Combination packaging:
composite packaging:
an overpack:

Question 33

Term for freight forwarder or aircraft operator who who controls the movement of the goods from door to door (include hub services)

Answer 33

Integrators/ Integrated operators

Question 34

In order to receive a commission from the airline, the IATA cargo gent must present shipments ready for carriage. Briefly state the six requirements which must be fulfilled

Answer 34

(1) Air Waybill completed
(2) All necessary documents completed and/or checked
(3) All packages of each consignment marked
(4) Components of each consignment adequately packed
(5) Labels affixed to each package
(6) Shipper’s declaration for Dangerous goods or Shippers Certification for Live Animals provided, if required

Question 35

List 5 factors which must be determined in order to arrange transportation by truck

Answer 35

(1) Weight
(2) Dimensions
(3) Nature of goods
(4) Location of pickup and delivery
(5) Pickup or delivery time

Question 36

Which of the following statements describes a shipment in bond?
(A) A shipment that is ready for carriage
(B) A shipment that has been cleared through custom
(C) A shipment on which import duty has not yet been paid
(D) A shipment on which export duty has not yet been paid.

Answer 36

(C) A shipment on which import duty has not yet been paid

Question 37

What information is required from the charterer prior to placing an enquiry with the airline?

Answer 37

1) Charter’s name and address
2) Nature of goods
3) Number of packages
4) Weight and dims
5) Point of depature and destination
6) Date of availability and deadline for delivery
7) any special conditions which may affect carriage

Question 38

At what time are the charter costs payable to the airline
(A) Prior to departure
(B) At flight departure
(C) Following Air transport
(D) Once goods are delivered to consignee

Answer 38

(A) Prior to departure

Question 39

Name four of the conditions stipulated in the contract of carriage between the airline and charter party

Answer 39

1) Aircraft type
2) cubic capacity and maximum weight limitations
3) Time and date of operation
4) Airports between the aircraft will operate
5) price and other costs payable
6) Cancellation charge

Question 40

What is the full name for Incoterms

Answer 40

International Commercial terms

Question 41

Who collects Cash on Delivery (COD) amounts
(A) Airline
(B) Agent

Answer 41

(B) Agent

Question 42

List three ways that insurance may be arranged for an air cargo shipment

Answer 42

1) Through shipper
2) Through IATA/FIATA agent
3) Through carrier

Question 43

List the three key functions of a air freight forwarder to provide high quality services

Answer 43

1) staff education
2) up to date accounting processes
3) communication facilities

Question 44

List some of the training courses applicable to air cargo agency staff

Answer 44

foreign languages, geography, sales and marketing, customer service, dangerous goods regulations, live animal regulation, infectious substance guidelines, air cargo English

Question 45

What can an air cargo agent do to protect himself against the possibility of a client not paying for customs duties prepaid by agent?

Answer 45

Check financial credit standing of importer/consignee

Question 46

List three types of irregularities that can lead to claims for losses of or damage to the cargo

Answer 46

Total loss, damage delay

Question 47

Under the Montreal Convention (MC99) , what’s the carrier’s limit of liability

Answer 47

19SDR

Question 48

Which of the following statemetns about the regulated agent regime id false?
(A)The regulated Agent assumes responsibility for screening and securing the cargo
(B) Most security controls can be performed away from the airport
(C) The carrier’s responsibility for compliance with cargo security regulations is eliminated.
(D) Both the carrier adn regulated agent must ensure compliance with cargo security regulations

Answer 48

(C) The carrier’s responsibility for compliance with cargo security regulations is eliminated.

Question 49

Under which of the following conditions can an air cargo agent be held liable for lost or damaged goods?
(A) If the damage was caused by a flood not caused bu human interference
(B) If the damage was caused bu dangerous goods in the shipment about which the agent was uninformed
(C) If the goods were stolen due to a security breach before airport security breach
(D) If the goods were damaged due to the air carrier’s negligence in handling the goods

Answer 49

(C) If the goods were stolen due to a security breach before airport security breach

Question 50

What is the air cargo agent’s time limit for making a claim for damages against the carrier?

Answer 50

Two years.