Air Cargo Division

The Air Cargo Division handles air cargo policy and infrastructure development matters, including implementation and monitoring of the Customs Cost Recovery Charges (CCRC) reimbursement scheme for Tier-II and Tier-III airports, matters relating to the Air Freight Station (AFS) Policy, and development of the National Air Cargo Community System (NACCS).

The Division is part of the Inter-Ministerial Committee (IMC) for granting approval to Inland Container Depots (ICDs), Container Freight Stations (CFSs), and Air Freight Stations (AFSs).

It also handles cargo security matters, including reforms in screening processes and the overall cargo security ecosystem, as well as logistics-related initiatives such as the Logistics Performance Index (LPI), Logistics Ease Across Different States (LEADS), and other trade facilitation initiatives.

The Division represents the Ministry of Civil Aviation in forums and committees constituted by the Department of Commerce, Department for Promotion of Industry and Internal Trade (DPIIT), and Central Board of Indirect Taxes and Customs (CBIC), Ministry of Finance.

It coordinates with the Agricultural and Processed Food Products Export Development Authority (APEDA) regarding air transportation of agricultural produce and with the Marine Products Export Development Authority (MPEDA) regarding marine products.

1. Air Cargo Infrastructure Development and Upgradation

Air cargo infrastructure development and upgradation involves the creation, expansion, and modernisation of air cargo terminals, warehousing facilities, and associated logistics infrastructure at airports to cater to the growing demand for domestic and international cargo.

This includes the development of dedicated warehousing facilities for air cargo, including high-value and perishable horticultural produce, and augmentation of cargo handling, storage, and processing capacity at airports.

The target is to augment India's air cargo handling capacity by an additional 5 million metric tonnes (MMT) by 2030, with planned infrastructure projects expected to contribute approximately 5.28 MMT in additional capacity.

The addition of new greenfield airport infrastructure, including Noida International Airport (Jewar), Bhogapuram Airport, and Navi Mumbai International Airport (NMIAL), is expected to strengthen India's air cargo handling capacity through dedicated cargo terminals and associated logistics facilities. These developments will support regional distribution of air cargo facilities and the growth of domestic and international trade.

2. Customs Cost Recovery Charges (CCRC) Reimbursement Scheme

The Customs Cost Recovery Charges (CCRC) Reimbursement Scheme relates to reimbursement of eligible Customs Cost Recovery Charges incurred for the deployment of Customs officers at Tier-II and Tier-III airports/terminals operated by the Airports Authority of India (AAI) and AAI Cargo Logistics and Allied Services Company Limited (AAICLAS).

The scheme aims to facilitate international air cargo operations at regional airports by addressing the cost burden associated with the deployment of Customs personnel, thereby supporting air cargo infrastructure development and promoting export-import (EXIM) activities.

3. Air Freight Station (AFS) Policy

An Air Freight Station (AFS) is an off-site air cargo facility established away from an airport to undertake activities such as cargo aggregation, consolidation, processing, documentation, and Customs clearance, as applicable, before cargo is transported to the designated airport for air carriage.

The AFS Policy provides a framework for establishing and operating such facilities to facilitate decentralised cargo handling, reduce congestion at airports, improve accessibility to air cargo services, and enhance the efficiency of the air cargo logistics chain. The policy also provides for consideration and approval of proposals for setting up AFSs through the prescribed institutional mechanism.

4. Revised Framework for Transshipment Cargo: Elimination of Re-screening at Transit Airports

Transshipment (TP) cargo refers to cargo handled at an intermediate airport for transfer to another flight for onward carriage to its intended destination, without being intended for processing at the transit airport. Such cargo may involve domestic or international movements, including International-to-International (I2I), International-to-Domestic (I2D), Domestic-to-International (D2I), and Domestic-to-Domestic (D2D) transfers.

Mandatory re-screening of transshipment cargo at transit airports previously resulted in additional handling, increased cargo dwell time, higher logistics costs, and congestion at cargo terminals.

To address these issues, the Bureau of Civil Aviation Security (BCAS), vide Addendum-II to AVSEC Circular No. 6/2024 dated 21.07.2025, introduced a revised framework permitting transshipment cargo secured at the origin airport to move through designated Transfer Cargo Security Hold Areas (TCSHAs) without re-screening, subject to prescribed security safeguards.

The framework provides for the establishment of TCSHAs, designation of Regulated Agents/Secured Handling Agents for their operation, and security-equivalence arrangements with partner countries. The reform aims to reduce cargo transit time, eliminate repetitive screening, and strengthen India's position as a regional air cargo transshipment hub.

TCSHAs are being established at Delhi, Chennai, Hyderabad, Bengaluru, and Kochi, while bilateral security-equivalence arrangements are being pursued with 12 identified countries. Regulated Agents and self-handling facilities for transshipment cargo operations have been notified by BCAS.

To validate operational readiness of the revised transshipment framework pending operationalisation of TCSHAs, a Proof of Concept (PoC) for Domestic-to-International (D2I) transshipment on the Chennai–Delhi–Frankfurt route commenced on 20.06.2026 at IGI Airport using DIAL's existing Transshipment Excellence Centre (TEC).

Four additional origin airports and two destination airports have subsequently been added. Capacity utilisation has increased from 75% to nearly 100%. More than 1,100 MT of transshipment cargo had been handled under the PoC across selected routes up to 16.10.2026, with average total travel time reducing from 78 hours to 26 hours, a reduction of approximately 66%.

5. Logistics and Trade Facilitation Initiatives, Including the National Committee on Trade Facilitation (NCTF)

The Air Cargo Division represents the Ministry of Civil Aviation in various inter-ministerial forums and committees, including those constituted under the National Committee on Trade Facilitation (NCTF), the Department of Commerce, the Department for Promotion of Industry and Internal Trade (DPIIT), and the Central Board of Indirect Taxes and Customs (CBIC), Ministry of Finance.

These forums aim to address issues affecting the efficiency of India's logistics and EXIM ecosystem by improving coordination among ministries, departments, regulatory agencies, and other stakeholders.

The work includes matters relating to the Logistics Performance Index (LPI), Logistics Ease Across Different States (LEADS), simplification of cargo clearance procedures, digitalisation of trade processes, and other initiatives aimed at reducing logistics costs, minimising cargo dwell time, and enhancing trade facilitation.

AAI Cargo Logistics and Allied Services Company Limited (AAICLAS) is a subsidiary of the Airports Authority of India (AAI).

Website: https://aaiclas.aero/

Matters related to AAICLAS are handled by the Air Cargo Division.

Telephone: 24618528

Email: ersec.moca@nic.in

Name: Ashwini Kumar

Email: ersec.moca@nic.in

Name: Sudipto Mondal, Deputy Director

Email: sudipto.mondal@gov.in