Acts as custodian of import cargo under section 45 of Customs Act 1962. The terminals are developed as a Common User facility to avoid duplication. All agencies such as Customs, Airlines, Agents and regulatory and facilitating agencies under one roof and provides 3-tier services viz.

(I)  Custodian of Import cargo appointed u/s 45 of Customs Act 1962.

(II) Ground Handling Agent (through SGHA appointed) on behalf of the Airlines in accordance with the Govt. of India Gazette Notification No.4272/GI/2007 Dated 18thOctober 2007.

(III) Facilitator  

Functions

1. Discharge corporate functions
2. Framing corporate policies on cargo handling at international as well as domestic airports
3. Implementation of IATA rules, ICAO recommendations, Implementation of BCAS, CBEC objectives and regulations, pertaining to cargo handling
4. Liaison at apex level with the regulatory Ministries, and other bodies, as well as user agencies such as Central Board of Excise and Customs, DGCA, Ministry of Commerce
5. Tapping hitherto untapped areas of operation for harnessing additional revenue from cargo handling, including Express and Courier Operations
6. Overseeing cargo operations at the two metro airports and other domestic airports
7. Representing  in the various trade bodies like SCOPE-Air, sectoral meeting on EC/EDI Taskforce Meeting, Conventions and high level meetings arranged by BARIndia (Cargo), CII, Federation of Freight Forwarder's Association of India (FFFAI), Air Cargo Agents Association of India (ACAAI), Federation of Indian Exporter's Organization (FIEO), Chambers of Commerce, etc.
8. Setting up of cargo terminals and managing them by providing services comparable to international standards
9. Modernization of cargo handling system, re-engineering systems and procedures for hassle free terminal operations resulting reduction in dwell time
10. Make proposals on various policy and operating matter to the AAI board; implementation of the policy decisions taken by the Board/Government of India

2.1       Business Objectives

1. To promote, represent, organize, undertake, establish, conduct, handle, arrange, own, operate, participate, facilitate, sponsor, encourage and provide the business as Cargo Terminal Operators, Free Trade Zone, Air Freight Station and Inland Container Depot for Cargo and Passenger.
2. To provide services related to passenger handling, ramp handling, cargo handling, palletisation, customs clearances, document handling, storage and warehousing of cargo including bonded storage for all types of cargo therein.
3. To provide transport services/logistics for carriage of bonded and non bonded cargo from and to the Freight Station/Inland Container Depot and Airports/Seaports including door-to-door delivery/courier goods.
4. To provide security services for securing of Cargo including Screening of Cargo/pax baggage by X-ray or physical examination and escort of cargo.
5. And to provide such facilities, by whatsoever means, in all parts of the world including India and to make incidental or necessary arrangements for the accomplishment of above objects including design and built cargo terminals, free trade zone, freight stations and or Inland container depots.
6. Any other aviation related activities/operations and allied services including movement of cargo/courier goods through multi-model avenues.

2.2       Scope of Services to be undertaken and provided

1. To provide Air Cargo handling and warehousing service to airlines and freight forwarders at all airports under the control to include but not limited to

1. Physical Handling

1.  Acceptance of export/ outbound domestic cargo on behalf of the airlinesand carry ready for carriage process
2. Ensure that export cargo is placed before customs for examination
3. To carry out security examination of export/outbound domestic cargo interms of BCAS/ICAO guideline
4. To process, palletize, store, hold export/outbound cargo until ready fordeparture
5. Breakdown import cargo/inbound domestic cargo and make it available for custom examination in case of import cargo and make it ready for deliveryin case of domestic cargo

1. Document handling and Supervisory services

1. To provide document handling, data entry and other supervisory services toairlines
2. To provide EDI connectivity to transfer and receive messages and databetween various trade partners and more particularly customs and airline
3. Maintain and store records pertaining to cargo handling on behalf of airlinesand customs and make them available as and when needed

1. Custodian services

1. To act in all respect as Custodian of international cargo for customsAdministration and felicitation service:
2. Provide storage and examination facility for custom to carry out theiractivities and\
3. To provide facilities for customs in terms of office and other requirement tofacilitate their activities under the Custom’s Act

1. Administrative and facilities services

1. To provide facilities for handling of different types of cargo including temperature control storage, dangerous goods storage, live animal storageetc
2. To design and develop air cargo terminals at various airports for handling of international and domestic air cargo in line with best international practices for all types of cargo including but not limited to temperature sensitive and perishable cargo, dangerous goods, live animal, office for airlines, customs,trade participants etc
3. To design and install IT system to provide EDI connectivity to trade partners
4. To install X-ray machines and bomb detectors and other security devices at all terminals in accordance with the guidelines of BCAS/ICAO

1. To provide value added services to airlines, shipper/consignees such at temperaturecontrolled Reefer dolly services at airports with extreme climatic conditions; roadfeeder services to inland manufacturing clusters; bonded trucking services etc
2. To design and develop Free Trade Zone including Free Trade warehousing zonewherever feasible
3. To provide ground handling services including ramp and passenger handling toforeign and domestic carriers at various airports
4. To develop and operate Air Freight stations and provide cargo handling servicetherein and related bonded trucking services.

• Users of the cargo terminals are requested to follow prescribed procedures and where required may seek guidance from the    Duty Manager/other officials.
• Cargo terminals are restricted to bonafide users only. PIC/Entry Pass issued, allows entry in designated areas only. Daily Entry Pass should be preserved till leaving the terminal. Entry Pass is to be shown to security personnel on demand.
• Permanent photo identification card holders must display their passes for identifications while in the cargo terminals premises.
• Unauthorized persons gaining entry into the terminal shall be treated as trespassers and dealt with accordingly. Trespassers can be fined up to Rs.500.00 including prosecution.
• Persons carrying brief cases etc. are required to keep the same with them only. No briefcases should be left unattended. Unidentified briefcases shall be removed by the security personnel and shall be handed over to Police/ concerned authorities.
• No dutiable item or any other material should be brought into the cargo terminal either in person or in vehicles without specific permission in writing from authorized    officials.
• Passengers/importers/agents shall personally supervise opening and re-packing of their consignments and will ensure proper locking/repacking etc., to be undertaken by packers in their presence.
  (a) Importers/Exporters should not remove any item from their cargo until physical delivery of consignments is done.
  (b) Voluntary distribution of contents from package during examination or within cargo terminal is unauthorized and prohibited.
• Vehicles should be parked in the parking areas only. Vehicles parked in other than parking area shall be towed away. 
• Passengers/importers/exporters who wish to entrust the work of clearance of their cargo to an agent should ensure that the agent is licensed customs house agent. They may check the photo identity card issued by customs agents. Only customs approved clearing agents are allowed to transact business in the cargo terminal apart from importers, exporters and passengers.
• In case of any damage caused to    property due to negligence of importers/exporters/agents. The cost of loss/damage may be recovered apart from imposing penalty.
• Demanding/paying of speed money or tips is an offence and users are advised to refrain from such activities. Individuals found involved in such activities shall be dealt with sternly.
• Smoking/spitting in the cargo terminal premises is strictly prohibited. Any violation shall be sternly dealt with including imposition of fine/penalty.
• Users are requested to deposit/inform about lost and found articles to the    Duty Manager/Security Manager.
• The users are requested to bring to the notice of supervisor/Senior Officers any irregularity or harassment faced while transacting business at the cargo terminal.
• Visitors/users of the terminal desirous of seeking assistant/giving any suggestion may use Help Desk/Suggestion Box.

In deserving cases, on merits, demurrage charges may be waived by AAI as per the AAI’s Waiver Policy approved by the Board. The application for waiver in such cases must be submitted to the General Manager-Cargo/Dy. General Manager-Cargo, AAI of the respective airport, within 15 days from the date of ‘passed out-of-charge’ by the customs quoting the reasons for delayed clearance of consignment along with the following supporting documents Xerox copies:

• Air Waybill/House Airway Bill

• Delivery Order 
• Bill of Entry/Baggage Declaration form reflecting Customs remarks and stamp and date of ‘passed out-of-charges’ both the sides, in case of export shipping bill showing ‘let export order’.
• Documentary proof to substantiate delay in clearance viz. Detention Certificate/Medical Certificate in original/Customs duty exemption certificate etc. as the case may be.

• Demurrage charges receipt in case delivery has been taken.

• Application for waiver of demurrage charges is made by the importer/passenger, at their own risk and responsibilities in as much as that if waiver is not found admissible, demurrage charges is levied for the entire period.
• In case the waiver is granted by AAI, the period from the date of submission of waiver application, til the decision is communicated, will be considered as processing period and condoned. If the decision is communicated by post, additional 3 days actually taken in post whichever is less shall be considered in processing period.
• An appeal against the decision of rejection of the application for waiver can be made to the next higher authority than the deciding authority. The appeal shall be filed within a period of 15 days of communications of such decision. The decision of the appellate authority, however, will be treated as final.

In terms of Section 48 of the Customs Act, 1962, goods imported into India which are not cleared for home consumption or warehoused or transshipped within 30 days of their landing or within such further time as Assistant Commissioner of Customs may allow or if the title to any imported goods is relinquished, such goods may, after notice to the importer and with the permission of the proper officer be sold by the person having custody thereof.