Order 20 10

- 3

- 2

Served: March 8, 2010

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Action on IATA Agreement Issued by the Department of Transportation

on the 3 rd day of March , 20 10

ORDER

The International Air Transport Association (IATA) has filed an agreement with the Department under section 41308 and 41309 of Title 49 of the United States Code (the Code) and Part 303 of the Department’s regulations. The agreement was adopted at the 31st IATA Cargo Service Conference (CSC/31) held in Bangkok, March 5, 2009, and by

mail vote. 1

The agreement consists of amendments to Recommended Practice (RP) 1670 (Carriage of Cargo using Electronic Data Interchange (EDI)), related amendments to several existing resolutions involving cargo documentation, and a new Resolution 600i (Carriage

Concluded and Eviden ced by Electronic Means

– Conditions of Contract). 2

The agreement is a core component of IATA’s “e

- freight”program, intended to replace paper documents with electronic transmissions, including an electronic shipment record that will

record the contract o f carriage and substitute for the paper air waybill.

RP 1670 sets forth a Model Agreement for Electronic Data Interchange between the shipper and carrier, and has been amended to include additional definitions, new provisions to cover

the transition from paper, and three new technical annexes.

New Resolution 600i is virtually identical to Resolution 600b (Air Waybill Conditions of Contract), with the exception of recent changes to Resolution 600b that were adopted to reflect changes in the liability limit s for loss of, damage or delay to cargo under Montreal

1 IATA memorand um CSC/ 2009/FAR/002 , filed with the Department on October 23, 2009.

2 The reso lutions and recommended practice are listed in the attached Appendix. Agreement among member c arriers of the International Air Transport Association concerning cargo services

matters Docket OST

- 2009

- 02692

Protocol No. 4 and under the Montreal Convention. 3 We approved the changes to 600b by Notice on December 17, 2009 (Docket OST

- 2009

- 0339).

By facilitating a transition from paper documentation to elec tronic interchange of required data, the agreement will increase efficiency, reduce costs for both carriers and shippers, and ease the flow of commerce. We will approve the agreement, subject to the condition that Resolution 600i, and Annex B of RP 1670 w hich contains similar language, are modified to conform to the relevant provisions of Resolution 600b concerning carrier liability.

We find that, as conditioned, the resolutions incorporated in the above docket are not adverse to the public interest, in violation of the Code, or likely to lessen competition substantially. Furthermore, we conclude that the resolutions should be granted immunity from the operation of the antitrust laws to the extent necessary to permit their implementation. In general, t hey amend existing provisions already approved and immunized by the Department. Where new provisions are created, they perform facilitation functions similar to other resolutions that have been immunized and approved. As a result, none raises immunity

is sues not previously considered, and the conferral of immunity upon them is consistent with our policy of conferring immunity on amendments coextensively with the underlying

agreements.

Pursuant to the authority duly assigned under the Department’s Regulat ions, 14 CFR 385.13:

We do not find that the resolutions and recommended practice in the agreement in Docket

OST

- 2009

- 0269, as set forth in the attached Appendix, are adverse to the public interest, in violation of the Act, or likely to lessen competitio n substantially, provided that approval is subject to conditions imposed herein.

ACCORDINGLY,

We approve and grant antitrust immunity to the agreement in Docket OST

- 2009

- 0269, as listed in the attached Appendix, subject to conditions imposed herein.

Pe rsons entitled to petition the Department for review of this order, under 14 CFR 385.30, may file such petitions within seven days after the date of service of this order.

3 For example, Article 24 of the Convention provides for the periodic review by the International Civil Aviation Organization of the Convention’s liability limits in order to reflect inflation. The revised limits under the first such review became effective December 30, 2009, and in the case of cargo rose from 17 to 19 SDRs per kilogram.3

The order shall be effective and become the action of the Department of Transpo rtation upon expiration of the above period, unless within such period a petition for review is filed or the Assistant Secretary for Aviation and International Affairs gives notice that

she will review this order on her own motion.

By:

Paul L. Gretch

Di rector, Office of International Aviation

(SEAL)

An electronic version of this document is available on the World Wide Web at: http://www.regulations.gov/APPENDIX

IATA Expiry Designation Title Date

CSC(31)600a Completion, Distribution and Transmission of the Air Waybill (amending) Indefinite

CSC(31)600f Form and Use of the Shipment Record (amending) Indefinite

CSC(31)600g Form and Use of the Receipt for the Cargo (also known as the Cargo Receipt) (amending) Indefinite

CSC(31)600h Consent of the Shipper to the Substitution of the Air Waybill by Electronic Means (amending) Indefinite

CSC(31)600i Carriage Concluded and Evidenced by

Electronic Means

-- Conditions of Co ntract (new)

Provided that provisions concerning the

carrier’ s liability conform to tho se contained in

resolution 600b as set forth in Docket OST

2009

- 0339 Indefinite

CSC(Mail S066)1670 Carriage of Cargo using Electronic Data Interchange (EDI) (amendin g)

Provided that provisions concerning the carrier’s liability conform to those contained in

resolution 600b as set forth in Docket OST

2009

- 0339 Indefinite