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 9 th day of November, 2012

Docket OST

- 2012

- 01 00

Docket OST

- 2012

- 01 03

ORDER

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

requests that the Department grant IATA and its member airlines a n exemption f ro m Condition

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

Department’s continued approval of its “Provis i on s for the Conduct of the IATA Traffic

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

Co nference (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 c ommittees.

Background

By Order 2012

- 4

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

f rom 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

- tier ed 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 s pecific 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 consist s of recomme nded

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

Transp ort 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

agreementsIATA’s Application

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

Cargo Service s Conference that we identified as Tier 2 agr eements 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 Elect ronic D ata 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

w hether 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

a re 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 t reatment of Tier 2 agreements that we established in Orde r 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 th e i r implementati on.

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 pri or approval under

condition #2 imposed on the IATA bylaws.

ACCORDINGLY,

1 . We exempt the Cargo Services Conference recommend ed 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 p etitions 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 I nternational 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

- 2 012

- 0100

IATA Title E xpiry Date

Designation

CSC(MAIL S 072) 1670 Carriage of Cargo Using Electronic Indefinite

Data Interchange (EDI)

(Amending)

Docket OST

- 2012

- 01 30

IATA Title Expiry Date

Designation

CSC(34) 1630 Cargo Security Indefinite

(Amending)