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MAJOR REGULATORY CHALLENGES Due to its presence in more than 200 countries around the world, the air express industry is tightly influenced by local regulatory environ-ments. Government policies, practices and regulations always effect the ability of air express companies to operate efficiently and can reduce the potential economic benefits These barriers will be discussed in light of the associated with air express services. The following are the major regulatory challenges: 1) Customs clearance 2) Air traffic rights 3) Labor law 4) Company ownership 5) Local postal regulation 6) Ground transportation researchers' definition of regulatory problems as well as an analysis of the tangible and intangible impacts to the industry. Possible resolutions to mitigate the anticipated damages are then raised. Customs Clearance Customs clearance is by far the biggest regulatory barrier impacting the efficient flow of cargo between countries. This barrier is now more obvious and severe after the terrorist attacks of Sept 11, 2001. There are many cus-toms laws and/or resolutions that can easily affect the flow of cargo in and out of countries. The following is a list of the most common customs regulations in many countries: * De minimis value--This is a measure of worth determined by customs. If the shipment value is lower or equal to this value, there will be no duty and tax levied on the importer. Although many countries have increased their de minimis values to an acceptable level that enables smooth move-ment of cargo importation, there are still a number of countries that either do not set any de minimis value (and tax virtually all imports) or the value is too low. This practice results in almost all shipments into that country being subject to tedious and costly clearance procedures as well as high import duties and taxes. Some relevant examples of countries with this barrier are the Philip-pines, Vietnam and India. * Licensing control--For controlled shipments such as telecommunication equipment, foods and drugs, magazines and video tapes, it is very common that the importers will have to obtain permits or licenses in order to clear these shipments. In some countries, such as Thailand, China, Vietnam, and the Philippines, the application for licenses and permits can take several weeks, often causing packages to be held at the airport customs warehouse for many days. * Shipment information submissions--Due to Apart from customs regulations, there are also the tightening of customs controls, many countries have started implementing pre-flight shipment information submission schemes, or as they are more commonly called, "Advanced Cargo Manifests." This regulation has a profound impact on the air express industry. The window between the cutoff time for package pickup to loading into the aircraft can often be very small, making it very difficult for air express companies to complete all of the required information before loading the aircraft. Many express carriers have already started developing contingency plans to minimize the potential risks of not being able to accept same day shipments due to the new requirements. * Original supporting documents--Customs laws in some developing countries still require original supporting documents (commercial invoice, power of attorney, packing list) to be furnished together with the customs entry form before shipments can be released. This requirement can result in long delays in the entire clearance process. The consignee will need to submit the original documents to the customs broker before the arrival of the shipment. * Pre-clearance--In order to ensure that all cargoes can be successfully delivered to customers the day after pickup, it is neces-sary to carry out pre-clearance procedures at the destination. One task of pre-clearance is to submit all necessary supporting docu-ments and entry forms to customs before flight arrival. …

Regulatory perspectives of the air express industry