Order 2012-11-9

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 9th day of November, 2012

Docket OST-2012-0100

Docket OST-2012-0103

ORDER

By applications filed on June 28, 2012, the International Air Transport Association (“IATA”) 

requests that the Department grant IATA and its member airlines an exemption from Condition 

#2, one of the existing conditions imposed upon its traffic conference system as part of the 

Department’s continued approval of its “Provisions for the Conduct of the IATA Traffic 

Conferences” (“bylaws”), for two recommended practices (RP’s) of the Cargo Services 

Conference (CSC).1 The condition requires that the U.S. air carrier members of IATA submit to 

the Department for appropriate action all recommended practices, agreements and resolutions 

adopted by IATA and each of its conferences and permanent conference committees.

 

Background

By Order 2012-4-18, served April 13, 2012, the Department granted an expanded exemption 

from condition #2, designed to facilitate prompt implementation of routine but essential standard 

setting and interline coordination agreements without antitrust immunity, while preserving public 

notice and regulatory options.

Order 2012-4-18 established a three-tiered system for the filing and implementation of IATA 

agreements. The first tier includes all traffic conference agreements except those included in 

tiers two and three. IATA may declare Tier 1 agreements effective 30 days after filing unless the 

Department extends the review period for another 60 days. The second tier consists of 

agreements in specific subject areas, listed in Order 2012-4-18, that the Department wishes to 

review on a case-by-case basis before implementation. After review the Department may 

approve, disapprove, or exempt each Tier 2 agreement. The third tier consists of recommended 

practices, agreements or resolutions that IATA still wishes to file with the Department for 

approval and antitrust immunity under sections 41308 and 41309 of 49 U.S.C. before 

implementation.

 1 The various traffic conferences are the means through which IATA’s member airlines have traditionally met, 

discussed and agreed upon resolutions and recommended practices to be followed. See Order 85-5-32 (May 6, 

1985). 

Application of the International Air

Transport Association for an exemption

under 49 U.S.C. 40109 from the 

conditions of CAB Order 68-7-55 

for Tier 2 Cargo Service Conference 

agreements
IATA’s Application

IATA’s applications request exemptions from Condition #2 for amendments to two RP’s of its 

Cargo Services Conference that we identified as Tier 2 agreements in Order 2012-4-18. The 

agreement in Docket OST-2012-0100 would make a number of changes to RP 1670 (Carriage of 

Cargo using Electronic Data Interchange (EDI)), to facilitate freight forwarders’ participation in 

paperless air cargo transactions. The amendments would make distinctions between shippers 

and forwarders where appropriate, and would establish a single EDI process regardless of 

whether shipments are covered by the Warsaw or Montreal Convention.

The agreement in Docket OST-2012-0103 amends RP 1630 (Cargo Security) to adopt a new 

definition for “Regulated Carrier,” to reflect the fact that regulatory authorities in many countries 

are requiring all carriers to have adequate cargo security programs in place.

Decision

We find that granting an exemption from filing these agreements for prior approval before 

implementation is warranted, and we will therefore grant IATA’s applications, which are 

consistent with the treatment of Tier 2 agreements that we established in Order 2012-4-18. The 

changes to RP 1670 and RP 1630 raise no competitive, consumer protection or other public 

interest concerns under U.S. aviation policy and regulations, and do not require Department 

approval or antitrust immunization for their implementation.

Pursuant to authority duly delegated under the Department’s regulations, 49 CFR 1.54(b)(1):

We find that Docket OST-2012-0100 and 2012-0103, as set forth in the attached Appendix, 

should be granted an exemption from filing with the Department for prior approval under 

condition #2 imposed on the IATA bylaws.

ACCORDINGLY,

1. We exempt the Cargo Services Conference recommended practices identified in the Appendix 

to this order from Condition #2, imposed on IATA’s Procedures for the Conduct of the IATA

Traffic Conferences, Agreement 1175, as amended by Order 68-7-55, to the extent that IATA 

need not file the recommended practices for review and approval by the Department prior to a 

declaration of effectiveness by IATA and implementation by IATA members. 

2. This exemption may be revoked in whole or in part at any time; and

3. This Order will be served on the International Air Transport Association.
Persons entitled to petition the Department for review of this order, under 14 CFR 385.30, may 

file petitions within seven days after the date of service of this order.

 

This order shall become effective and become the action of the Department of Transportation 

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

Director, Office of International Aviation

(SEAL)

An electronic version of this document is available on the World Wide Web at:

http:/www.regulations.gov/
APPENDIX

Page 1 of 1

Docket OST-2012-0100

IATA Title Expiry Date

Designation

CSC(MAIL S072) 1670 Carriage of Cargo Using Electronic Indefinite

Data Interchange (EDI)

(Amending)

Docket OST-2012-0130

IATA Title Expiry Date

Designation 

CSC(34) 1630 Cargo Security Indefinite

(Amending)