Consolidation of Air Cargo

6B.4

Where air cargo is shipped under consolidation, the airline company's Master Airway Bill will be issued to the Consolidating Cargo Agent who will in turn issue his own House Airway

Bills (HAWBs) to individual shippers. Authorised dealers will negotiate HAWBs only if the relative letter of credit specifically provides for negotiation of these documents in lieu of Airway Bills issued by airline company. Authorised dealers will, however, accept freely HAWBs where documents are to be sent on collection basis. Exporters wishing to ship air cargoes through consolidators will be well advised to provide in the relative sale contracts with their overseas buyers for payment being made against either HAWBs or the customary Airline Company's Airway Bills. When, however, a letter of credit has been opened, it is the duty of the exporter to ensure that it provides for negotiation of HAWB before forwarding the consignment.

Remittance of Freight Prepaid on Inward
Consolidation of Cargo by Air/Sea

8B.6

(i)

While normally freight on goods imported as consolidated air/sea cargo is prepaid by overseas suppliers, in some cases overseas consolidators advance the freight abroad

to the airline/shipping company on behalf of the Indian importer and the break-bulk agent in India is required to collect freight amount from the Indian importer and remit the same to the overseas consolidator. In such cases, Indian agents of overseas cargo consolidators desirous of making remittance are required to submit their agency agreements to a designated branch of an authorised dealer. The designated branch may allow the remittance on the basis of the agreement and statement in form BBI giving full details of inward shipments on `charges to collect' basis and a Chartered Accountant's certificate to the effect that the amount of remittance applied for has been verified with reference to copy of prepaid Master Air-Way Bill (MAWB)/Master Bill of Lading (MBL) together with the original relative House Air-Way Bill (HAWB)/House Bill of Lading (HBL) as also cargo manifests and invoices from overseas consolidators and has been found correct. Declaration from importers in form DIC regarding payment of freight on import may also be called for.

(ii)

Authorised dealers may call for Chartered Accountant's certificate in form CAS to

determine outstanding receivables. In cases where the receivables from the same overseas consolidators outstanding for more than 6 months exceed US $ 2500 no remittance should be allowed without prior approval of Reserve Bank.

(iii)

Authorised dealers should maintain systematic record of the remittances allowed

together with documents called for and should be made available to their internal auditors/Reserve Bank officials as and when called for.