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AAI plan to launch barcoding for export cargo may hit air pocket

Nina Varghese

The AAI is also considering "appropriate disincentive schemes'' against cargo brought to the cargo terminal without barcode labels after the appointed date.

Chennai , July 15

THE Airports Authority of India's move to introduce barcoding and Euro pallets (the standard pallet used in Europe) for export air cargo is likely to run into rough weather with the trade.

The authority proposes to introduce this system in the four metro airports, to begin with. The trial test is proposed to be at the Indira Gandhi International Airport on July 31 and in Mumbai, Chennai and Kolkata by August 15.

In the third phase of its electronic data interface (EDI), the Airports Authority of India (AAI) will introduce barcoding for automatic data capturing and online cargo tracking in cargo handling activities at the airport. (The first phase connected the AAI and Customs. In the second phase, AAI launched the web-based EDI system for transmission of messages electronically among trade partners like banks, airlines exporters, importers and agents.)

At a meeting held in April between Government officials and trade representatives, it was decided that to successfully implement the scheme, IATA standard barcode labels are to be adopted; all export packages should be brought to the cargo terminal by agents, exporters, airlines with barcode labels pasted on it; all handling equipment at storage location are to be barcoded; and Euro pallets to be used for export cargo.

The outcome of the deliberations was that AAI should establish service centres both in export and import terminals for generating barcode labels on a cost recovery basis. The outsourcing of service centres will also be explored by AAI.

All exporters and agents are to make their arrangements for generating barcode labels and ensure that all export packages are brought to the cargo terminal with them.

The AAI is also considering "appropriate disincentive schemes'' against cargo brought to the cargo terminal without barcode labels after the appointed date.

All exporters and cargo agents are to use the Euro pallets to wrap small packages to facilitate automation and mechanised handling of cargo. Finally, AAI should prepare a time-bound action plan for implementation of barcoding at other airports where AAI is maintaining cargo complexes.

A separate meeting with such airports will also be convened. "Implementation of the barcode system at private airports is also to be ensured. If this requires issuing suitable direction under the Aircraft Act, the same shall be considered," says minutes of the meeting. A letter has also been issued to Cochin International Airport Ltd (CIAL) to introduce the barcode system by June 30.

The industry has raised a number of objections to the barcode system starting with the increased transaction cost that the barcode labels and the Euro pallets would bring.

Industry sources also say that this system is being introduced to streamline AAI's internal inventory and is of no benefit to the trade or industry.

Another important point is that the barcode labels are likely to interfere with the barcode requirements of the buyers. Packaging requirements are also agreed upon between the buyer and the seller, they said.

They also point out that the other custodians of the warehouses in the airports, that is, Air India and Indian Airlines, have not come up with any such scheme. Airlines such as Singapore Airlines, British Airways and Lufthansa supply their own barcode labels.

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