KCS joins hands with Korean Air for Air Cargo Clearance

The Korea Customs Service (KCS) signed an MOU with Korean Air on July 17 for successful establishment of an RFID-based air cargo clearance system.

The RFID-based importing air cargo clearance system is a state-of-the-art system designed to automate carry-in/out reporting for the bonded area and bonded transportation by attaching an RFID tag onto import air cargo for speedier and more accurate bonded cargo handling.

KCS confirmed the reliability of the RFID-based system last year through a pilot project with Asiana Air and has reduced the cargo processing time from arrival to carry-in reporting by 30%.

KCS is now trying to expand the system to cover all imported air cargo, and by the end of this year when the project is completed, the coverage by the system is expected to grow up to 91%.

Behind the MOU signing between KCS and Korean Air are the recognition that the project will be essential to improving national competitiveness in logistics and the consensus that close customs-business cooperation is a key factor in the success of the project.

Under the MOU, Korean Air will work to develop infrastructure for air cargo management based on RFID, upgrade the air cargo handing process at home and abroad and run the system in a stable way.

Meanwhile, KCS will work out relevant laws and regulations, improve its bonded cargo management system and provide a standard for linkage of information systems.

Both sides will also launch a working level body for customs-business consultation to carry out the project more efficiently.

According to KCS, the RFID-based import air cargo clearance system, when completed, is expected to generate USD 112 million worth of economic benefits annually through reduced logistics time at home, better bonded cargo management, and global logistics information services.

Korean Air expects a drastic improvement in customer service through time saving at the air cargo terminal, paperless customs declarations, simplification of cargo delivery procedures, and other streamlining advances.
<Korea Shipping Gazette>