**PART 297 -- FOREIGN AIR FREIGHT FORWARDERS**

**AND FOREIGN COOPERATIVE SHIPPERS ASSOCIATIONS**

**Subpart A--General**

Sec.

1.  Purpose.

2.  Applicability

3.  Definitions.

4.  Joint loading.

5.  Foreign air freight forwarder as agent.

6.  Foreign cooperative shippers association as agent.

**Subpart B---Exemption for Foreign Indirect**

**Air Transportation of Property**

10. Exemption from the Statute.

11. Disclaimer of jurisdiction.

12. General requirements.

**Subpart C---Registration for Foreign Air**

**Freight Forwarders and Foreign Coop-**

**erative Shippers Association**

20. Filing for registration.

21. Objections to registration application.

22. Procedure on receipt of registration application.

23. Waiver of sovereign immunity.

24. Notification to the Department of change of operations.

25. Cancellation or conditioning of registration.

**Subpart D---General Rules for Foreign**

**Indirect Carriers**

30. Public disclosure of cargo liability insurance.

31. Preparation of airwaybills and manifests.

**Subpart E---\[Reserved\]**

**Subpart F---Violations**

50. Enforcement.

> AUTHORITY: 49 U.S.C. Chapters 401, 417.
>
> SOURCE: ER-1159, 44 FR 69635, Dec. 4, 1979,

unless otherwise noted.

**Subpart A---General**

**§ 297.1 Purpose.**

This part establishes registration procedures and operating rules for
foreign air carriers that engage indirectly in interstate or foreign air
transportation of property. It relieves these carriers from certain
provisions of Subtitle VII of Title 49 of the United States Code
(Transportation), and establishes simplified reports for them.

\[ER-1294 49 FR 19684, May 7, 1982, as amended at 60 FR 43527, Aug. 22,
1995\]

**§ 297.2 Applicability.**

This part applies to interstate air transportation of property and to
foreign air transportation of property and to foreign air transportation
of property outbound from the United States by foreign indirect air
carriers. It also applies to applications for registration as a foreign
indirect air carrier of property.

**§297.3 Definitions.**

For purpose of this part:

(a) *Foreign air freight forwarder* means a foreign indirect air carrier
    that is responsible for the transportation of property from the
    point of receipt to point of destination, and utilizes for the whole
    or any part of such transportation the services of a direct air
    carrier or its agent, of another foreign indirect cargo air carrier
    as defined in part 296 of this chapter.

(b) *Foreign cooperative shippers association* means a bona fide
    association of shippers operating as a foreign indirect air carrier
    on a nonprofit basis that undertakes to ship property by air for the
    account of such association or its members, and utilizes for the
    whole or any part of such transportation the services of a direct
    air carrier or its agent, of a foreign indirect cargo air carrier as
    defined in part 296 of this chapter.

(c) *Direct air carrier* means an air carrier or foreign air carrier
    directly engaged in the operation of aircraft under a certificate,
    regulation, order, or permit issued by the Department of
    Transportation of the Civil Aeronautics Board.

(d) *Foreign indirect air carrier* means any person, not a citizen of
    the United States, who undertakes indirectly to engage in the air
    transportation of property.

\[ER-1159, 49 FR 69635, Dec. 4, 1979, as amended by ER-1294, 47 FR
19684, May 7, 1092; Docket No. 47939, 57 FR 40103, Sept. 2, 1992\]

**§297.4 Joint loading.**

Nothing in this part shall preclude joint loading, meaning the pooling
of shipments and their delivery to a direct air carrier for
transportation as one shipment, under an agreement between two or more
indirect air carriers or foreign indirect air carriers.

**§297.5 Foreign air freight forwarder as agent.**

A foreign air freight forwarder may act as agent of a shipper, or of a
direct air carrier that has authorized such agency, if it expressly
reserves the option to do so when the shipment is accepted. A foreign
air freight forwarder shall not act as the agent of any direct air
carrier with respect to shipments accepted for forwarding.

**§297.6 Foreign cooperative shippers associated as agent.**

A foreign cooperative shippers association may act as agent of a
shipper, or a direct air carrier that has authorized such agency, if it
expressly reserves the option to do so when the shipment is accepted. A
cooperative shippers association shall not act as an agent of any direct
air carrier with respect to shipments accepted in its capacity as an
indirect air carrier.

\[ER-1235, 46 FR 38496, July 28, 1981\]

**Subpart B---Exemption for Foreign**

**Indirect Air Transportation of**

**Property**

**§297.10 Exemption from the Statute.**

(a) Foreign indirect air carriers with an effective registration under
    this part are exempted from the following provisions of the Statute
    only if and so long as they comply with the provisions of this part
    and the conditions imposed herein, and to the extent necessary to
    permit them to arrange their air freight shipments:

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(1) Section 41302 (Permits);

(2) Section 41504 and 41510(a) (Tariffs);

(3) Section 41510(b) (Solicitation of rebates) to the extent necessary
    to permit them to solicit, accept, or receive fees from direct air
    carriers;

(4) Section 41501 (Carrier's duty to establish just and reasonable
    rates, etc.); and

(5) If awarded interstate air transportation operating rights, any other
    provision of the Statute that would otherwise prohibit them from
    engaging in the interstate indirect air transportation of property.

(6) Section 41310 (nondiscrimination) with respect to interstate and
    overseas air transportation.

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(b) Direct air carriers are exempted from Chapter 415 of the Statute to
    the extent necessary to permit them to pay, directly or indirectly,
    fees to foreign air freight forwarders and foreign cooperative
    shippers associations on consolidated shipments.

\[ER-1336, 48 FR 22705, May 20, 1983, as amended by ER-1382, 49 FR
25226, June 20, 1984; Docket No. 47939, 57 FR 40103, Sept. 2, 1992, 60
FR 43527, Aug. 22, 1995\]

**§297.11 Disclaimer of jurisdiction.**

The Department declines to exercise its jurisdiction over foreign
indirect air carriers of property with respect to shipments that
originate in a foreign country. The Department reserves the right to
exercise its jurisdiction over any foreign indirect air carrier of
property at any time it finds that such action is in the public
interest.

**§297.12 General requirements.**

(a) The direct air transportation provided must be performed by direct
    air carriers that hold authority under section 41102, 41103, 41302,
    or 41701 of the Statute or are operating under part 298 of this
    chapter;

(b) Only U.S. citizen direct air carriers may provide direct air
    transportation operations in interstate air transportation.

(c) Foreign indirect air carriers that hold authority to engage in
    foreign air transportation must apply additionally for permission to
    consolidate foreign in interstate air transportation.

\[ER -1294, 47 FR 19684, May 7, 1982, as amended at 60 FR 43527, Aug.
22, 1995\]

**Subpart C---Registration for Foreign**

**Air Freight Forwarders**

**And Foreign Cooperative**

**Shippers Associations**

**§297.20 Filing for registration.**

(a) Not later than 60 days before the stat of operations as a foreign
    indirect air carrier, every foreign air freight forwarder and
    foreign cooperative shippers association shall apply for
    registration with the Department, unless upon a showing of good
    cause, the Director, Office of Aviation Analysis, allows application
    at a later time.

(b) Application shall consist of filing with the Department's Office of
    Aviation Analysis, Special Authorities Division, two copies of
    completed OST Form 4506, which may be obtained from the Department
    of Transportation, Special Authorities. Division.

\[ER-1159, 44 FR 69635, Dec. 4, 1979, as amended by ER-1265, 49 FR
56602, Nov. 18, 19981; Docket No. 47939, 57 FR 40103, Sept. 2, 1992, 60
FR 43527, Aug. 22, 1995\]

**§297.21 Objections to registration application.**

Persons objecting to registration by a foreign air freight forwarder or
foreign cooperative shippers association shall file their objections
with the Office of Aviation Analysis, Special Authorities Division,
within 28 days of the filing date of the registration forms. The
Department will list the names and nationality of all persons applying
for registration in its Weekly Summary of Filings.

\[ER-1159, 44 FR 69635, Dec. 4, 1979, as amended by Docket No. 47939, 57
FR 40103, Sept. 2, 1992, 60 FR 43527, Aug. 22, 1995\]

**§297.22 Procedure on receipt of registration application.**

After review of a registration form filed under §297.20, the Department
will take one or more of the following actions:

\(a\) Indicate by stamp on OST Form 4506 the effective date of
registration, and return to the carrier the duplicate copy of OST Form
4506 as evidence of registration with the Department under this part;

\(b\) Reject an application for registration for failure to comply with
this part, for reasons relating to the failure of effective reciprocity,
or if the Department finds that it is in the public interest to do so.

\(c\) Request additional information from the applicant;

\(d\) Issue an order subjecting a carrier's exercise of authority under
this part to such terms, conditions, or limitations as may be required
by the public interest, or

\(e\) Institute a proceeding under section 41302 of the Statute.

\[E.R.-1159, 44 FR 69635, Dec. 4, 1979, as amended by ER-1294. 47 FR
19685, May 7, 1982; Docket No. 47939, 57 FR 410103, Sept. 2, 1992; 60 FR
43527, Aug. 22, 1995\]

**§297.23 Waiver of sovereign immunity.**

By accepting an approval registration form under this part, a carrier
waives any right it may possess to assert any defense of sovereign
immunity from suit in any action or proceeding instituted against the
carrier in any court or any tribunal in the United States based upon any
claim arising out of operations by the carrier under this part.

**§297.24 Notification to the Department of change of operations.**

a.  No later than 30 days before any change in its name or address or
    any temporary or permanent cessation of operations, each foreign
    indirect air carrier shall notify the Department's Office of
    Aviation Analysis, Special Authorities Division, of the change by
    resubmitting OST Form 4506.

b.  The registrant shall apply for an amendment of its registration not
    later than 30 days after any person listed on its existing
    registration as owning or holding beneficial ownership of 10 percent
    or more of the registrant's stock no longer has an interest of 10
    percent or more, or after any person not so listed becomes an owner
    or holder of 10 percent or more. Application for amendment shall be
    made by resubmitting OST Form 4506, but the existing registration
    shall remain valid pending Department action on the amendment.

\[ER-1159, 44 FR 69635, Dec. 4, 1979, as amended by Docket No. 47939, 57
FR 40103, September 2, 1992; 60 FR 43527, Aug. 22, 1995\]

**§297.25 Cancellation or conditions of registration.**

The registration of a foreign indirect air carrier may be canceled or
subjected to additional terms, conditions or limitations if:

(a) It files with the Department a written notice that it is
    discontinuing foreign indirect air carrier activities;

(b) It fails to perform air transportation services as authorized;

(c) It fails to file the report required by this part;

(d) A substantial ownership or control interest is acquired by persons
    who are not citizens of the country or citizenship of the
    registrant;

(e) There is a failure of effective reciprocity; or

(f) The Department finds it is in the public interest to do so.

\[ER-1159, 44 FR 69635, Dec. 4, 1979, as amended by ER-1294, 47 FR 1985,
May 7, 1982\]

**Subpart D---General Rules for**

**Foreign Indirect Air Carriers**

**§297.30 Public disclosure of cargo liability insurance.**

Every foreign air freight forwarder shall give notice in writing to the
shipper, when any shipment is accepted, or the limits of its cargo
liability insurance, or of the absence of such insurance, and the limits
of its liability, if any. The notice shall be included clearly and
conspicuously on all of its rate sheets and airwaybills, and on any
other documentation that is given to a shipper at the time of acceptance
of the shipment.

**§297.31 Preparation of airwaybills and manifests.**

(a) Each registered foreign indirect air carrier shall prepare an
    accurate airwaybill describing completely all services rendered to
    or on behalf of the shipper, including the conditions under which
    the contract will be completed, in its capacity as a foreign
    indirect air carrier. A copy of the airwaybill shall be given to the
    consignor and to the consignee.

(b) Each registered foreign indirect air carrier shall prepare an
    accurate manifest showing every individual shipment included in each
    shipment consigned for transportation to a direct air carrier.

(c) A waiver of paragraph (a) of this section may be granted by the
    Department upon a written application by the foreign indirect air
    carrier not less than 30 days before the shipment to which it
    relates is transported, if the waiver is in the public interest, and
    is warranted by special or unusual circumstances.

**Subpart E \[Reserved\]**

**Subpart F---Violations**

**§297.50 Enforcement**

In case of any violation of any of the provisions of the Statute, or
this part, or any other rule, regulation or order issued under the
Statute, the violator may be subject to a proceeding under section 46101
of the Statute before the Department, or sections 46106 through 46108 of
the Statute before a U.S. District Court, as the case may be, to compel
to compliance; or to civil penalties under the provisions of section
46301 of the Statute; or in the case of willful violation, to criminal
penalties under the provisions of section 46316 of the Statute; or other
lawful sanctions including cancellation of registration.

\[ER-1159, 44 FR 69635, Dec. 4, 1979, as amended at 60 FR 43527, Aug.
22, 1995\]