### BEFORE THE

DEPARTMENT OF TRANSPORTATION
WASHINGTON, DOC.

Agreements Adopted by the Traffic

Conferences of th e International Air Transport Association Docket OST-2012-

APPLICATION FOR EXEM PTION FROM FILING

AND APPROVAL OF AN AGREEMENT BY THE

INTERNATIONAL AIR TRANSPORT ASSOCIATION

28 June 2012

Communications with respect to

this document should be sent to:

Douglas Lavin Regional Vice President – North America International Air Transport Association
1201 F Street, NW, Suite 650 Washington, D.C. 20004
(202) 628-929213455799.1 

### Summary DOCKET: OST-2012 DOT ORDER: pending

Date: 28 June 2012 Filing fee/IATA Acct: $61 – CAR003CH01

US/UST involved?: yes Intended effective date: 1 July 2012 Meeting date/time: 34th Cargo Services Conf erence (CSC/34) – 12 March 2012 Agreement/Minutes: CSC/34/Meet/004/2012 dated 24 April 2012 Expedited Recommended Practice 1630

APPLICATION FOR EXEMPTION FR OM FILING AND APPROVAL (TIER 2 AGREEMENT FILING)

Pursuant to statements submitted by Member ai rlines of the Intern ational Air Transport

Association (IATA), th e undersigned has been constituted to be their attorn ey-in-fact for filing with

the Department of Transportation copies of agreem ents adopted by the IATA Traffic Conferences.

On their behalf, and pursuant to the procedures specified in Order 2012-4-18

(13 April 2012), I am filling with the Department this application, the subject agreement and

supporting documentation. This agreement is a Tier 2 agreement, as specified in Appendix B to

Order 2012-4-18. The intended effective date of the agreement was 1 July 2012.

The subject agreement amends or establishe s Resolutions and/or Recommended Practices

that are amongst subject areas which the Department has indicated it still chooses to review on a

case-by case basis.

The present Application requests an exemp tion from Condition #2 to the Department’s

approval of the Provisions for the Conduct of the IATA Traffic Conferences, which condition

requires that an agreement be filed for review and appropriate action by the Department prior to

an agreement’s being implemented.13455799.1 

### The text of the agreement and other conferen ce documentation sent to airline Members of

IATA accompany this Notice. There is also a summary document that explains the amendment

or agreement regarding its nature and purpose.

In that context, granting th e requested exemption would serve the public interest, and,

thus, meets the 49 USC §40109(c) standards for exemption from filing and approval

requirements.

Respectfully submitted:

_________________________________ Douglas Lavin Regional Vice President – North America International Air Transport Association Attorney-in-fact13455799.1 

### CERTIFICATE OF SERVICE

A copy of this application has been served this day by first class or priority mail on the

following persons:

Chief, Transportation, Ener gy & Agriculture Section

Antitrust Division Department of Justice Washington, DC 20530

A copy of this application has be en sent this day by email to John Kiser (JohnKiser@dot.gov) and to Della Davis (Della.Davis@dot.gov) of the Department of Transportation.

/s/ Douglas Lavin Douglas Lavin

Date Served

28 June 2012CSC/32 Ag enda – Second Transmittal Page 1



## INTERNATIONAL AIR TRANSPORT ASSOCI ATION



# FINALLY ADOPTED RESOLUTIONS

EXPEDITED FILING

34 th 

## CARGO SERVICES CONFERENCE (CSC/34)

Kuala Lumpur, 12 March 2012M E MOR ANDUM

CSC/34/ Meet/005/2012

TO: All Members of IATA Cargo Servi c es Confere n ce Accredit ed Representatives

CC: IATA Regional Director s/Cargo Ma nagers Members, Cargo Procedures Conferences Management Gro up Members, I A TA/FIATA Consultative Council
Members, I A TA Strateg i c Partners – Cargo Services

FROM: Secretary, Cargo Services Conference

DATE: 25 April 201 2

SUBJECT: FINALLY ADOPT E D RESOL U TIONS –

34 th Cargo Services Conference (CSC/34) – 1 2 March 20 12 Kuala Lumpur, Mala y s ia

EXPE DITE D RECOMMENDE D PRACTICE 16 30

Please find attached Recommende d Practice 1630 as fin a lly adopte d at CSC/34 for exped ited

effectiveness.

The filing period runs from 1 Ma y 20 12 to 30 Ju ne 2012 , wit h an intended effective date of 1 Ju l y 2012 . The final effectiveness da te will be comm unicated to Members by a Declaratio n of

Effectiveness Memorand um as soon as all r equir ed government approvals have been obtained.

Members are requested to f ile the Resolutions and Recomme nded Pract i ces with t heir

Govern men t authoritie s where required, and t o advise IA TA Secretariat of the i r Govern men t ’s

action by 3 0 June 201 2 , the end of the filing period. As usual, filing formalities with the U. S. Department of Transpo rtation and the Canadian Transpo rtation Agency will be handled by the

IATA Gene va office.

Please not e that the Resolutions and Recommended Practices will be declared effective u p on receipt of th e required Govern men t approvals, in accorda n ce with Resolutions 0 01 and 006.

Frederic Le ger Head Cargo Business P r ocess and Standards, IATA

Attachm ents. FINALLY ADOPTED RESOLUTIONS SUMMARY

The following Recommended Practice emanating fr om CSC/34 is requested for approval. The

intended effective date is 1 July 2011

.

Resolution/ Recommended Practice Summary of Amendment

RECOMMENDED PRACTICE 1630

Cargo Security

(Amending) Added a new definition for “Regulated Carrier” similar to Regulated Agent, Known Consignor, Account Consignor, etc, as the concept of ‘regulated’ carrier is starting to be implemented in

various countries.RECOMMENDED PRACTICE 1630

CARGO SECURITY

CSC( 34) 1630 Expiry: Indefinite Type: A

...

2. DEFINITIONS

The following definitions are adopted:

2.1 “ACCOUNT CONSIGNOR”. A consignor who originates cargo or mail for its own account and whose procedures meet common security rules and st andards sufficient to allow carriage of that cargo on all-cargo aircraft or mail on all-mail aircraft.

2.2 “AIR SIDE”. The movement area of an airport, adjacent terrain and buildings or portions thereof,

access to which is controlled.

2.3 “KNOWN CONSIGNOR”. A consignor who originat es cargo or mail for its own account and whose procedures meet common security rules and standards sufficient to allow carriage of cargo or mail on any aircraft,

2.4 “REGULATED AGENT”. An agent, freight forwarder or any other entity who conducts business with an air carrier and provides security controls that are accepted or required by the appropriate authority in respect of cargo or mail.

2.5 “REGULATED CARRIER”. Air Cargo or Mail Carrier, approved by an appropriate authority, operating into a destination Country from a departing Country Airport.

2.5 2.6 “SCREENING”. The application of technical or other means which are intended to identify and/or detect weapons, explosives or other dangerous devices, articles or substances which may be

used to commit an act of unlawful interference.

2.6 2.7 “SECURITY”. Safeguarding civil aviation against ac ts of unlawful interference. This objective is achieved by a combination of measures and human and material resources.

2.7 2.8 “SECURITY CONTROL”. A means by which the in troduction of weapons, explosives or other dangerous devices, articles or substances which may be used to commit an act of unlawful interference can be prevented.

2.8 2.9 “SECURITY PROGRAM”. Measures adopted to safeguard international civil aviation against acts of unlawful interference.

...

### ii



## INTERNATIONAL AIR TRANSPORT ASSOCI ATION



# MINUTES

34 th 

## Cargo Services Co nference (CSC/34 )

Kuala Lumpur

12 March 2012

800 Place Victoria, P.O.Box 113, Montre al, Quebe c, Canad a H4Z 1 M 1MEMORANDUM

CSC/34/Meet/004/2012

TO: All Members of IATA Cargo Services Conference Accredited Representatives

CC: IATA Regional Directors/ IATA Cargo Managers Members, Cargo Procedures Conferences Management Group Members, IATA/FIATA Consultative Council Members, IATA Strategic Partners – Cargo Services

FROM: Secretary, Cargo Services Conference

DATE: 24 April 2012

SUBJECT: MINUTES – 34 th Cargo Services Conference (CSC/34) Kuala Lumpur, Malaysia – 12 March 2012

Please find attached the Minutes of the 34 th meeting of the Cargo Services Conference (CSC/34) held in Kuala Lumpur, Malaysia on 12 March 2012.

Sincerely,

Frederic Leger Head of Cargo Business Process & Standards

Attachments MINUT ES – Cargo Services Conference (CSC/34) Page 1 of 42

C S C / 34 Age nda Ou tlin e

ADMI N ISTRATIVE ITEMS Submitted b y A/1 Opening of Meeting and Legal Context - A/2 Exa m ination of Credentials of Accre d ited Representatives Secretariat

A

/ 3 A d o p t i o n of A g e n d a

- A/4 Order of Bu siness - A/5 Approval of Minutes of CSC/33 Secretariat

A/6 Action Items from CSC/33 Secretariat

A/7 Effectiveness Status of Resolutions Secretariat

A/8 Effectiveness Dates of Resolutions Adopted Secretariat

A/9 Election of Members – Airmail Panel (AMP) Secretariat

A/10 Election of Members – Cargo Business Processes Panel (CBPP) Secretariat

A/11 Election of Members – Cargo Data Interchange Task Force (CDITF) Secretariat

A/12 Election of Members – Dangerous Goods Board (DGB) Secretariat

A/13 Election of Members – Live Animal s and Perish ables Board (LAPB) Secretariat

A/14 Election of Members – ULD Panel (ULDP) Secretariat

A/15 Election of CSC Vice Chairman Secretariat

A/16 Election of Members – Cargo Procedures Conferences Managemen t Group (CPCMG) Secretariat

A/17 Election of Members – I A TA/FIATA Consultative Council (IFCC) Secretariat

A

/ 9 7 A n y Other B u s i n e s s

- A/98 Date and Place of Next Conference - A/99 Close of Meeting -

POLICY IT E M S

P / 1 I A T A

- U P U Relationship S e c r e t a r i a t

P/2 Loss of the exemptions for the post Secretariat

P/3 Upcoming standards for mail Secretariat

P/4 Lithium Battery in mail Secretariat

P/5 Validation S t rategy ACC3 and EC Regulation 85 9/2011 Secretariat

P/6 IATA Position Paper on Advance Electronic Info rmation Secretariat

P/7 Global roll o u t of the Standard Consignment Security

Declaration Secretariat

P/8 Cargo-IMP Data quality issues Secretariat

P/9 Cargo EDI Strategy Secretariat

P/10 Moving towards 100% e-AWB Secretariat

P/11 e-AWB Multi l ateral Agre ement Secretariat

P/12 Live Animal Regulations (LAR) Training Secretariat

P/13 Communication of the mandatory Time and T e mperature Sensitive Label requirements SecretariatMINUT ES – Cargo Services Conference (CSC/34) Page 2 of 42

P/14 Enhancement of the Perishables Car go Regulations (PCR) Secretariat

P/15 Transformation of ULD Technical M anual to ULD Regulations Secretariat

P/16 IATA ULD Roadmap Secretariat

P/17 IATA ULD Operational S c orecard Secretariat

P/18 Global Air Cargo Advisory Group (GACAG) Upd a te Secretariat

P/19 Scheduling of Annual Conferences Secretariat

P / 2 0 Election of Chairman and Vice Chairman of CSC Subgroups Secretariat

P/21 e-freight / e- AWB – Moni toring & Reporting 2012 Lufthansa

P/22 Nominations for IFCC Va cancies FIATA-AFI

VOTING IT EMS

V/1 Recommen ded Practice 1630 – Cargo Security Secretariat

V/2 Recommen ded Practice 1670 – Carriage of Cargo Using Electronic Data Interchange (EDI) Secretariat

REP O RTS

CSC Repo r t s
R/1 2011 CSC Achievements Secretariat

R/2 Cargo Procedures Conferences Management Group (CPCMG) Secretariat

R/3 Airmail Panel (AMP) Secretariat

R/4 Cargo Business Processes Panel (CBPP) Secretariat

R/5 Cargo Data Interchange Task Force (CDITF) Secretariat

R/6 Cargo X M L Task Force (CX M LTF) Secretariat

R/7 Dangerous Goods Board (DGB) Secretariat

R/8 Dangerous Goods Training Task For ce (DGTTF) Secretariat

R/9 Live Animal s & Perishables Board ( L APB) and Time and Temperature Task Force (TTTF) Secretariat

R/10 ULD Panel (ULDP) Secretariat

R/11 Cargo RFID Working Group Secretariat

R/12 2012 CSC Plans Secretariat

Other Repo rts

R/13 IATA Global Head of Cargo – Annual Report Secretariat

R/14 IATA-FIATA Consultative Council (I FCC) Secretariat

R/15 IATA/FIATA Customs Working Group (IFCWG) Secretariat

R/16 Customs Advisory Grou p (CUSAG) Secretariat

R/17 Cargo Security Task For ce (CSTF) Secretariat

R/18 Cargo Operations Advisory Group (COAG) Secretariat

R/19 Cargo 2000 Secretariat

R/20 e

- f r e i g h t S e c r e t a r i a t

R/21 Secure Freight Secretariat

R/22 Cargo Tariff Coordinating Conference (CTC) SecretariatMINUT ES – Cargo Services Conference (CSC/34) Page 3 of 42

R/23 CASS Polic y Group (CPG) Secretariat

R / 2 4 C a r g o S a f e t y S e c r e t a r i a t

R/25 Cargo Publications Secretariat

R/26 Strategic Partnership Program – Cargo Secretariat

R/27 IATA Training & Develop m ent Institute (ITDI) Secretariat

R/28 Passenger Services Conference (PSC) Secretariat

R/29 Airport Servi c es Committ ee (ASC) Secretariat

R/30 IATA Groun d Handling Council (IGHC) SecretariatMINUT ES – Cargo Services Conference (CSC/34) Page 4 of 42

ADM I NISTRATIVE ITE M

S

Agenda Item A/1: Ope n ing of Meeting and Legal Context

M/001 The CSC Chairman, Mr. Todd Frazier (FX ) , op ened the 3 4 th Cargo S e rvices Conference (CSC/34) at 08:15 ho urs local time on Mon day, 12 Ma rch 2012 at the Shangri-La Hotel in Kuala Lumpur, Malaysia. The attenda nce record is in Attachment

‘A’ of these Minutes. The Chairma n welcomed the delegat es to Malaysia and tha n ked the sponsor s Malaysia Airlines and MASkargo and Mala ysia Airports for hosting the meeting.

M/002 The meeting was convened by the Call of Meeting Memorandu m CSC/34/ Me et/001/2014 dated 8 De cember 2011. Agenda documentation was circulated

thereafter.

M/003 Mr. Carlos Tornero (XB), IATA’s Senior Legal Counsel, briefed Conference on the competition law co mpliance an d read the briefing stat ement, which is found in its entirety in Attachment ‘B’ of these Minutes. He stated that if any d i scussions were found inadvertently approaching an area outsid e the legal context of the meeting, he would intervene and guide the Conference a ccordingly. He confirmed that he had reviewed the CSC/34 Agenda and found it appropriate for discu ssion by the Cargo

Services Conference.

M/004 The Chairman requeste d everyone i n the room to briefly introduce themselves.

M/005 After the introductions were completed, the Chairman welcomed the first guest speaker, Mr. Aleksand er Popovich (X B), IATA’s Senio r Vice Pre s ident, Ind u stry

Distribution and Financial Services, and invited him to address the Conf erence.

M/006 Mr. Popo vich (XB) thanked the Chairman and Malaysia Airlines and a ddressed

the Conference:

• He mention ed that Carg o standards is key for th e industry a nd the CSC being the engine driving an array of cargo sta ndards, plays a critical r o le.

• He highlight ed the key achievemen ts of the C S C in 2011 and outline d the key objectives fo r the CSC in 2012.

• He added t hat leadership from the CSC is cr it ical in settin g the stand ards and also adoptin g those stan dards.

• He stressed that e-AWB is an indust r y priority. As demonstrated by some of the

CSC memb ers, it is po ssible to implement 100% e-AWB in their home markets

, which requir ed tremendous amount of leadership and commitment.

• He stated th at the CSC has a demanding set of targets for 2012, but th at he is

confident th at the CSC can meet and exceed these goals.

• In conclusio n , he thanked all the delegates for their participation and for leading the development and implementati on of an ex citing array of standards for the air cargo indust r y.

M/007 The Chairman thanked Mr. Popo vich for his pr esence and encouragin g words.

He then welcomed the second gue st spea ker, Mr. Des Vertannes (X B), IATA’s Glo bal Head of Cargo and invited him to address the C onference.MINUT ES – Cargo Services Conference (CSC/34) Page 5 of 42

M/008 Mr. Vertann es (XB) welcomed the d e legates to Malaysia an d to the World Cargo Symposium.

• He acknowledged the efforts of the CSC Chairman and applauded his

commitment to the industry especially demonstrated during t he recent m eeting of the IATA/FIATA Consultative Council (IFCC) when he could not join th e meeting in person due a medical condition, but ne vertheless joined the group by

teleconferen ce for the entire duration of the meeti ngs, to represent the airlines for this important industry meeting.

• He mentioned that a s t he industry evolved, a more colla borative approach is required with the stakeh olders, espe cially with th e freight for w arder partners. He requested that in everything that comes to Co nference, to consider how it will

affect the re lationship with agents, a nd on matters that affe ct FIATA, to debate

those items with due consideratio n. He stressed that if there are areas of disagreement, to challe nge IATA to come back with counter proposals that can

be consider ed by Confe r ence.

• He reiterated that it is critica l to a c hieve the evolution to wards a world of ebusiness an d secure supply chains. He added that IATA is represe n ting the airline industry through t he establish m ent of the Global Air Cargo Adviso ry Group (GACAG) in conjunction with FIATA, GSF and TI ACA to aggressively pursue the path to achieve the key targets outlined by the industry.

• In conclu sio n , he thanke d the CSC f o r the excellent work done for the in dustry.

M/009 The Chairman thanked Mr. Vertannes (X B) for his p r esence, a nd for his

commitment and leadership to the evolution of th e air cargo industry.

Agenda Item A/2: Examination of Credentials of Accredited Representatives

M/010 The Credentials of the Accredited Representatives in atten dance at th e meeting

were exami ned and fo und to be in order. It was confir med that the quorum was

achieved.

Agenda Item A/3: Ado p tion of Agenda

M/011 The Agenda of CSC/34 was adopted.

Agenda Item A/4: Ord e r of Business

M/012 Conference support was obtained for the order of business.

Agenda Item A/5: App r oval of Mi nutes of CSC/33

M/013 The Conference unanimously approved the Min u tes of CSC/33 with no changes.MINUT ES – Cargo Services Conference (CSC/34) Page 6 of 42

Agenda Item A/6: Acti on Items from CSC/33

M/014 IATA Secre t ariat confir med that al l the action items from CSC/33 h a ve been completed and provided a brief summary of the actions ta ke n.

Agenda Item A/7: Effe ctiveness Status of Resolutions

M/015 The Chairman stated that the Resolutions and Recommen ded Practices adopted

at CSC/33 have obtained the re quired government approvals and were declared effective on 21 February 2012.

M/016 The effectiveness statu s of resolut i ons was not ed.

Agenda Item A/8: Effe ctiveness Dates of Resolutions Adopted

M/017 The Conference endorse d the effectiveness dates.

M/018 The Conference agree d that the effectiveness date for each voting item be

determined when the item was discussed.

Agenda Item A/9: Election of Me mbers – Airmail Panel (AMP)

M/019 The Chairman congratulated the re-elected and the newly ele c ted AMP

members

.

Martina Goe r gen (LH) 4 years Re-elected

Junichi Non o yama (JL) 4 years Re-elected

Dan Conrad (5X ) 4 years New

M.Walaa M. Yousri (MS) 3 years New

M/020 The new AMP membership was en dorsed by Conference.

No. Member Term of Office

1 Martina Goe r gen (LH) 2012 2 0 1 3 2 0 1 4 2 0 1 5

2 Junichi Non o yama (JL) 2012 2 0 1 3 2 0 1 4 2 0 1 5

3 Dan Conrad (5X ) 2012 2 0 1 3 2 0 1 4 2 0 1 5

4 Barbara Jo hnston (AC) 2012 2013 2014

5 M.Walaa M. Yousri (MS) 2012 2 0 1 3 2 0 1 4

6 Eric Pouille (AF) 2012 2 0 1 3 2 0 1 4

7 Mark Gilbert (AA) CH AI R 2012 2 0 1 3

8 David Thompson (QF) 2012 2 0 1 3

9 John Chisho lm (BA) 2012 2 0 1 3

10 Nick Whale n (DL) 2012

11 Bob Uttmark (UA) 2012

12 Ron D. Stevens (FX ) 2012MINUT ES – Cargo Services Conference (CSC/34) Page 7 of 42

Secretary Note: Subsequent to C onference, it was notif ied of a ne w vacancy due to recent departure of a m e mber, i ndicated above in bold italics and grey highlight.

Nom i nations will be invit ed for this p o sition durin g the CSC m i d-year election proce s s.

Agenda Item A/10: Election of Members – Cargo Business Process Panel (CBPP)

M/021 The Chairman congratulated the new and re-elected CBPP members.

Axel Klein (LH) 4 years Re-elected

Christine Barden (LX ) 4 years New

Khaled Youssef Mohamed Mostafa (MS) 4 years New

M/022 IATA Secretariat mentioned that the r e were two remaining vacancies, in cluding a new vacancy due to the recent depa rture of a member.

M/023 The Chairman asked if t here were any nominations from the floor.

M/024 One nomin ation was received from Mala ysia Airlines no minating Mr. Ibrahim

Mohamed Salleh to the CBPP. Ther e were no additional nominations and the nominee

was declar ed elected to the CBPP. It was agreed that for the remaining vacancy,

Members would be given time till 23 March 2012 to submit nomi nations to I A TA

Secretariat.

Ibrahim Moh a med Salleh (MH) 3 years New

M/025 The new CBPP me mbership was en dorsed by Conference.

No. Member Term of Office

1 Axel Klein (LH) 2012 2 0 1 3 2 0 1 4 2015

2 Christine Barden (LX ) 2012 2 0 1 3 2 0 1 4 2015

3 Khaled Youssef Mohamed Mostafa (MS) 2012 2 0 1 3 2 0 1 4 2015

4 Ibrahim Moh a med Salleh (MH) 2012 2 0 1 3 2 0 1 4

5 Miffy Wiggs (DL) 2012 2 0 1 3 2 0 1 4

6 Malcolm Fowler (BA) 2012 2 0 1 3 2 0 1 4

7 Dick Dougherty (AA) 2012 2013

8 Nazim Ros (SQ) 2012 2013

9 Leung Sai Ho Simon (CX ) 2012 2013

10 Jean Dunaux (AF) C HAI R 2012

11 Todd Frazie r (FX ) 2012

12 Franco Nanna (CV) 2012 Secretary Note: No ad ditional nom inations wer e

received, so there re mains one vacant position a s indicated ab ove in bold italics with gr ey shaded b a ckground.MINUT ES – Cargo Services Conference (CSC/34) Page 8 of 42

Agenda Item A/11: El ection of Members – Cargo Data Interchange Task Forc e (CDITF)

M/026 The Chairman mentioned that there were three (3) vac ancies for which no

nominations were received. He aske d if there were any nomi nations from the floor.

M/027 There were no addition al nominatio ns. It was agreed that members would be given time till 23 March 2012 to submit nominatio ns to IATA Secretariat.

M/028 The current CDITF me mbership was noted as follows:

No. Members Term of Office

1 Lisette Schweiger (AC) Indefinite

2 Dick Dougherty (AA) CHAIR M AN Indefinite

3 Keith Davis (BA) Indefinite

4 William D Wacht (FX ) Indefinite

5 Axel Klein (LH) Indefinite

6 Brian Toms (DL) Indefinite

7 Michael Pröbsting (LX ) Indefinite

8 Tsutomu Nakashima (JL) Indefinite

9 Magdy Sale h (MS) Indefinite

10 Fabien Balo uzet (AF) Indefinite

11 Mark Shunick (UA) Indefinite

12 Bernard Heuzeveldt (KL) Indefinite

Secretary Note: No additional nom in ations were received, so there rem a i n

three (3) vacant positions as ind i cated above in bold italics with grey shaded background.

Agenda Item A/12: Election of Members – Dangerous Goods Board (DGB)

M/029 The Chairman congratulated the re-elected DGB me mbers.

François Ja cquemont (AF) 4 years Re-elected

Patrick Oppenheimer (FX ) 4 years Re-elected

Gajandran Sokayan (SQ) 4 years Re-elected

M/030 The new DGB membership was en dorsed by Conference.MINUT ES – Cargo Services Conference (CSC/34) Page 9 of 42

No. Member Term of Office

1 François Ja cquemont (AF) 2012 2 0 1 3 2 0 1 4 2015

2 Patrick N. Oppenheimer (FX ) CHAI R 2012 2 0 1 3 2 0 1 4 2015

3 Gajandran Sokayan (SQ) 2012 2 0 1 3 2 0 1 4 2015

4 Richard Blenkush (DL) 2012 2 0 1 3 2 0 1 4

5 Peter Liang LIU (CI) 2012 2 0 1 3 2 0 1 4

6 Yannawit Sangsook (T G) 2012 2 0 1 3 2 0 1 4

7 P. Balasubramanian (EK) 2012 2 0 1 3

8 Trevor Howard (AC) 2012 2 0 1 3

9 Mohamed Nasir Abdul Hanif (MH) 2012 2 0 1 3

10 Trevor Amo s (QF) 2012

11 Alex McCull och (5X ) 2012

12 Dennis Kampman (KL) 2012

Agenda Item A/13: Election of Members – Live Animals and Perishables Board (LAPB)

M/031 The Chairman congratulated the new and re-elected LAPB members.

Aynur Rasul o va-Rzepa (EK) 4 years Re-elected

Peter Liang LIU (CI) 4 years New

Muhamad KHAIRUL Bin Mohd Noor (MH) 4 years New

M/032 The new LAPB me mber ship was endorsed by Conference.

No. Member Term of Office

1 Aynur Rasul o va (EK) 2012 2013 2014 2015

2 Peter Liang LIU (CI) 2012 2013 2014 2015

3 Muhamad KHAIRUL Bin Mohd Noor (MH) 2012 2013 2014 2015

4 Mériem Toui si-Saadi (AF) 2012 2013 2014

5 Bruce Clemmons (F X ) CHAI R 2012 2 0 1 3 2 0 1 4

6 Raymond Tilburg (KL) 2012 2 0 1 3 2 0 1 4

7 Cyndi Brown (DL) 2012 2 0 1 3

8 Stephanie Kirkham (AC) 2012 2 0 1 3

9 Joyce Fung (CX ) 2012 2 0 1 3

10 Nicolaus W a lzik (LH) 2012

11 Gajandran Sokayan (SQ) 2012

12 Marc Roveri (CV) 2012

Agenda Item A/14: Election of Members – ULD Panel (ULDP)

M/033 The Chairman congratulated the re-elected ULDP me mbers.MINUT ES – Cargo Services Conference (CSC/34) Page 10 of 42

Zeljko Vukicevic (LH) 4 years Re-elected

David Duboi s (CV) 4 years Re-elected

M/034 The Chairman asked if there wer e any nominations fro m the floor for the remaining vacancies.

M/035 There were no addition al nominatio ns. It was agreed that members would be given time till 23 March 2012 to submit nominatio ns to IATA Secretariat.

M/036 The new ULDP me mbership was en dorsed by Conference.

No. Member Term of Office

1 Zeljko Vukicevic (LH) 2012 2013 2014 2015

2 David Duboi s (CV) 2012 2013 2014 2015

3 Toru Nakano (JL) 2012 2013 2014 2015

4 Marcus Doyl e (FX ) 2012 2013 2014

5 Willem Roukens Frits (KL) 2012 2013 2014

6 Ruilin Li (CA) 2012 2013 2014

7 Kareen Lionnet-Zadros ( A F) 2012 2 0 1 3

8 Carl Frey (AA) 2012 2013

9 Mandour A. Karim Mand our (MS) 2012 2 0 1 3

10 Urs Wiesen danger (AC) CHAIR 2 0 1 2

11 Khalid Mustafa Faqih (GF) 2012

12 Richard O’Marra (5X ) 2012
Secretary Note: No additional nom in ations were received, so there rem a i n

two (2) vacant positions as ind i cated above in bold italics with grey shaded background.

Agenda Item A/15: Election of CSC Vice Chai rman

M/037 The Conference unanimously end orsed t he election of Mr. Dan Sheeh an (5X ) as the new CSC Vice Chairman for the next two Co nferences, CSC/35 and CSC/36.

M/038 The Chairman thanked t he incumbent CS C Vice Chairman, Mr. Rod Zimmerma n (UA) for his contribution and welcomed Mr. Shee han as the n e w CSC Vice Chairman.

M/039 It was noted that the ele c tion of the CSC Chairman is also due for the next two

Conferences.

M/040 Nominations were in vited from the f l oor and Mr. Jean Dun aux (AF) no minated Mr. Todd Frazier (FX ) a s the CSC Chairman.

M/041 The nomination was accepted and the Conference unanimously re-ele cted Mr.

Todd Frazie r (FX ) as the CSC Chairman for th e next two Conferences, CSC/35 and

CSC/36.MINUT ES – Cargo Services Conference (CSC/34) Page 11 of 42

Agenda Item A/16: Election of Members – Cargo Procedures Conferences Manageme n t Group (CPCMG)

M/042 The Chairman congratulated the ne w and re-elected CPCMG me mbers.

Ibrahim Moh a med Salleh (MH) – CSC 4 years New

Jan-Wilhelm Breithaupt (LH) – CSC 4 years New

M/043 The Chairman asked if there were any nominat ions from the floor as there were

two more CSC vacancies.

M/044 One nomina t ion was received from Thai Airways nominatin g Mr. Pitak Nakabhat

to the CPCMG. There were no additional nominations and the nominee was decla red

elected to t he CPCMG. It was agreed that for the remaining CSC va cancy, Members would be provided till 23 March 2012 to submit nominations t o Secretaria t.

Pitak Nakabhat (TG) – CSC 3 years New

M/045 Subsequently one no mination was received from Eg ypta ir nominating Mr.

M.Walaa M. Yousri (MS) to the CPCMG. The no mination was accepted by Conferen ce.

M.Walaa M. Yousri (MS) – CSC 1 year New

M/046 It was noted that the CSC vacancies on the CPCMG were now complete and that

nominations for the CAC vacancies would be so ught at CAC/40.

M/047 The new CPCMG me mb ership was endorsed by Conference.

No. Members Term of Office

1 Ibrahim Moh a med Salleh (MH) – CSC 2012 2013 2014 2015

2 Jan-Wilhelm Breithaupt (LH) – CSC 2012 2013 2014 2015

3 Vacant – CAC 2012 2013 2014 2015

4 Pitak Nakab hat (TG) – CSC 2012 2013 2014

5 Dan Sheehan (5X ) – CAC 2012 2013 2014

6 T.G. Venug opal (EK) – CAC 2012 2013

7 Malcolm Fowler (BA) – CSC 2012 2013

8 Jean Dunaux (AF) – CAC 2012

9 M.Walaa M. Yousri (MS) – CSC 2012

10 Vacant – CAC 2012

11 CSC Chairman – Todd Frazier (FX) CHAIR

12 CAC Chairman – Roy HurleyMINUT ES – Cargo Services Conference (CSC/34) Page 12 of 42

Secretary Note: After CAC/40, it was inform ed t hat no additional nom ina t ions were

received fro m CAC, so there re m a in three (3) va cant posit io ns on the CAC side, as

indicated ab ove in bold italics with gr ey shaded b a ckground.

Agenda Item A/17: Election of Members – IATA/FIATA Consultative Council (IFCC)

M/048 The Chairman congratulated the ne w and re-elected IFCC members.

Todd C. Frazier (FX ) – CSC 2 years Re-elected

Jan Vreeburg (KL) – CSC 2 years Re-elected

Franco Nanna (CV) – CSC 2 years Re-elected

Jean Dunaux (AF) – CAC 2 years Re-elected

Stefan Ama nn (LH) – CAC 2 years New

Dan Sheehan (5X ) – CAC 2 years Re-elected

M/049 The Conference noted th e new IFCC membership as follows:

No. Member Term of Office

1 Todd Frazie r (FX ) – CSC representative 2 0 1 2 2 0 1 3

2 Jan Vreeburg (KL) – CSC representative 2 0 1 2 2 0 1 3

3 Franco Nanna (CV) – CSC representative 2 0 1 2 2 0 1 3

4 Jean Dunaux (AF) - CAC representative 2 0 1 2 2 0 1 3

5 Stefan Ama nn (LH) - CAC representative 2 0 1 2 2 0 1 3

6 Dan Sheehan (5X ) – CAC representative 2 0 1 2 2 0 1 3

POLICY IT EM S

Agenda Item P/1: IATA-UPU Rela tionship

M/050 The item was noted by Conference.

Agenda Item P/2: Loss of the exemptions for the post

M/051 The proposed actions w e re support ed by Confe r ence.

Agenda Item P/3: Upcoming standards for mail

M/052 A Me mber asked abou t how the Consignment Security Declaration could be

used for Mail.

M/053 The Secretary, Mr. Fred eric Leger (XB), IAT A ’s Head of Cargo Business Process and Standards, respond ed as follow s :MINUT ES – Cargo Services Conference (CSC/34) Page 13 of 42

• In the cargo world, the Regulated Agent can deliver cargo “ready for carriage” b y producing the consign m ent security declaration, which ascertains that the cargo

has been se cured and th at no further screening is required b y the airline.

• The postal operators would play a role similar to the Regul ated agent. Instead of producing a consignment security declaration f o r each pie c e of mail, the Postal Operators could potentially generate a single security declaration for a mail bag
or a recepta c le.

• It has not b een implemented yet, but in discussions with t he Universal Postal Union (UPU), it appears to be a concept that could be adopte d

.

M/054 The item was noted by Conference.

Agenda Item P/4: Lithium Battery in mail

M/055 The Chairman introduced the item and asked Members to be aware of the developmen ts as it may require addit i onal reporting to be set up internally to mitigate the

risks.

M/056 A Me mber mentioned that there have been several incid ents recently involving

lithium batteries in mail and so it is of much concern for their airline. He added that it may be the current practice but the solution is n o t to authorize the wrong procedure

.

M/057 Several Me mbers stated that they were not ha ppy with th e proposal to permit transportatio n of lithium batteries in mail.

M/058 A Me mber stated that it is a safety issue and needs more visibility on the industry groups such as the Cargo Committee, CPCMG, etc.

M/059 The Chairman mentioned that the item had been discu sse d at the CPCMG and CBPP earlier and some special h andling cod e s were also develope d, but due t o the recent developments perhaps it would be good to have the i t em again f o r discussio n on the agenda of the CPCMG and CBPP.

ACTION: I A TA Secretariat to include item on lithium battery in m a il on the agenda

for CPCMG and CBPP

M/060 A Member mentioned that it might help if the r e is an e m phasis on internal

education programs within the airlines for awareness about lithium batteries, for example, what are lithiu m batteries, what are the types and quantities per mitted, etc.

M/061 The Chairman suggest ed that an event be organized b y IATA to promote

awareness on lithium b a tteries to th e airlines an d elevate the significance of it to the m

.

M/062 A Member mentioned that the airlin e position n eeds to be b e tter represented and

asked if IAT A can play a bigger role at the ICAO and UPU meetings to lobby ag ainst

decision s th at are not in the interest of airlines.MINUT ES – Cargo Services Conference (CSC/34) Page 14 of 42

M/063 The Secretary mentione d that IATA understands the concer ns being raised an d

that IATA’s representative on those groups, Mr. David Brennan, the S e cretary of the IATA Dange rous Goods Board, is pu shing for the appropriate training req u irements.

M/064 Mr. Da ve Brennan (X B) briefed the Conference as follows:

• The UPU Convention had allowed only very specific types of dangerous goods in the mail.

• The UPU was requeste d by a number of their member org anizations t o amend the Convention such that lit hium batteries containe d in equipm ent

be also allo wed in inter national mail.

• So the UPU made the changes to t heir Convention and req uested ICAO

to reflect the same in the ICAO Tech n ical Instructions.

• But the ICAO Dangerous Goods P anel could not agree t o the propo sal

and so a joint ICAO-UPU wo rking grou p (which included IA TA representation), was set up to explore what would satisfy ICAO to all o w lithium batte ries in mail.

• It was event ually agreed at the ICAO Dangerou s Goods Pa nel meeting in February 2012 that lit hiu m batteries could be pe rmitted in mail sub j ect t o certain cond itions:

o The lithium battery has to be co ntained wit h in a prod uct, for example mo bile phone, laptop computer etc.

o Specific ap proval is ne eded from CAA of the State of the postal
operator.

o The Posts have to con v ince their CAA that th ey ha ve ad equate training, pro c edures, an d incident re porting and other measures in place.

o It will not be allowed bef ore January 2013.

• The Civil Aviation Autho r ities (CAA) have been aware of the problem of dangerous goods in mail. However, there has b een a lack o f consultat i o n between the Posts and the CAA because th ey report th rough different organization s and so the r e has been almost no in teraction.

• The big cha nge now is that CAAs will have direct oversigh t of the Posts

and that will be clearly st ated in the I C AO Technical Instru cti ons.

• The UPU had requested ICAO f o r the cha nges to be adopted with

immediate e ffect throug h an addendum, but the ICAO Dan gerous Goods Panel did not agree to do so. So, it will provide additional ti me for airlines to be prepared.

• There will b e specifi c tr aining requir e ments for Posts for

a. front-line sta ff facing cu stomers

b. persons wh o have inte raction at commercial level for account

customers a nd

c. anyone who handles mail that will go on an airpla ne.

• Some posts are well placed and have very robust systems in place a n d are in a position to have the approval immediately, and some might never get the appr oval.

M/065 A Me mber asked what would be the t r aining requirements for Posts.

M/066 Mr. Brennan (XB) responded as follows:MINUT ES – Cargo Services Conference (CSC/34) Page 15 of 42

• The training would be for staff inside a mail sorting cent re, people who are handling ma il that would be loade d on to an air p lane, or pe ople who ar e loading

mail into ULDs.

• It is basically equivalent to same training requ ired for staf f working in cargo terminals. They need to have an awareness of p a ckage markings, hazar d labels, UN numbers, etc, to b e able to identify items that might contain d angerous goods.

• For the people who are accepting mail, it wou l d be equivalent to somewhere between passenger che ck-in and ca rgo accepta n ce.

• The UPU wil l provide a framework for the various Postal administrations.

M/067 A Me mber mentioned that there is a need to raise more awareness in the industry about this matter. He added that it is critica l for airlines and IATA to get the information out to the pe ople who are shipping d angerous go ods.

M/068 Mr. Brennan (XB) responded as follows:

• The big manufacturers are aware, but many of the co nsumer electronics manufacturers have no knowledge of transport re gulations.

• This is a ch allenge for t he regulators, for the lit hium battery industry and also for

IATA and its Member a i rlines, to g e t information to the shippers, to make them aware of the regulations and to comply with those.

• To promote awareness in the industry, IATA had conducted a workshop in Shanghai in 2011 sp anning 2-d a ys addressing the tr ansportation of lithium

batteries in cargo and mail.

• There will be a similar event in 2012 likely in Houston in Nove mber. IATA is engaging the Rechargeable Battery Association (PRBA) an d through PRBA their members, which include s companies such as Dell, Apple and HP. Regulators will also be encouraged to conduct outre ach and oversight.

M/069 A Me mber mentioned that if the mentioned oversight by the CAA is l i mited to

lithium batt e ries (versu s dangerou s goods in general), it would ne ed to be clearl y indicated to the UPU. Ot herwise they could raise the conce r n that a blanket approval is given to airlines, why co uld not the same be given to the Po sts, and would argue that it

would be restrictive to t heir business.

M/070 Mr. Brennan (XB) responded as follows:

• It is not ju st about lithiu m batteries but dangerous goods as a whole.

• The postal mail busine ss is chang ing with fe wer letters being sent and more focus being on the exp anding inter net businesses, which are using th e Post as

the distribut ion channel.

• So they wa nt to be ab le to send items such as aerosols, perfumes, laptops,

lithium batte ries, etc, by Post, similar to the express carrier s.

• But to be a b le to do so , the Posts need to step up their training. Thanks to new screening r equirements, airlines ar e detecting lots of dangerous goods in the mail that were not suppo sed to be th ere.

• So the CAAs need to play an active role in working with the Posts to ad dress this

issue.

• They also need to be more active in condu cting outrea c h and oversight of shippers/manufacturers of lithium batteries to improve regulatory complianceMINUT ES – Cargo Services Conference (CSC/34) Page 16 of 42

and, where applicable, also to take appropriate enforcement action to address non-compliance.

M/071 The Chairman stated t hat there w a s a clear need to ele v ate the awareness among not just the te ch nical expert s , but throu g hout the ind u stry at all levels, and a l so to

the other sta k eholders such as the UPU, the Po sts and sh ip pers.

M/072 It was note d that Conf erence is concerned a bout the move to allo w lithium batteries in mail and ag reed that there is a need to elevat e the aware ness among all parties involved in the supply chain.

Agenda Item P/5: Validation Strateg y ACC3 a nd EC Reg u lation 859/2011

M/073 The Secretary introduced the item and mentioned as follows;

• EU Regulation 185 describes the rules for cargo to be exported out of Europe.

• In 2011, the European Co mmission issued a new Regulation 859/2011 that

describes th e rules for cargo incoming into Europe.

• The Regulation states t hat as of 1 February 2 012, airline s have to submit a

notification t hat they ha ve a robust car go secu rity program, otherwise they are not in a position to bring cargo into E u rope.

• The next ph ase is by 1 July 2014, when all airline stations that are flying cargo into Europe must be audited by an independent validator.

• The EU Commission has also cat egorized th e countrie s into three lists: green

, white and re d. The stations in the g r een list countries do not need to be audited.

The stations in the white and red list countries ne ed to be aud ited.

• Apart from t he airline st ation audits, the concept of the secure supply chain in

third countries is be ing looked at. It would mean that at some point the Regulated Agents (frei ght forwarders, ground h andlers, et c) and Known Consignors will al so have to be audited by independent validators recognized by the EC.

• So the Cargo Security T a sk Force a sked IATA t o investigat e the feasibility of an industry solution like IOSA that could be implemented to improve the efficiency of

such audit s

.

M/074 Mr. Hans Ni lsson (X B), IATA’s Head of Cargo Business D e velopment, provided an overview of the prop osal:

IA T A A C C 3

V

a lid a t io n S t r a t e g y. p d

• There are 6000 ACC3 stations filed that need to be audited a s of July 20 14

• Additionally, there are a pproximatly 10, 000 to 1 5 ,000 freigh t forwarders, groun d

handlers an d shippers t o be audited

.

• It is the responsibility of the ACC3 (airline) to ensure that Regulated Agents and

Known Co nsignors fr om whom they accept cargo are also ind e pendently

validated in accordance with the EU checklist.

• The ACC3 also needs to maintai n the database of the validated Regulated Agents and Known Con s ignors.

• So the atte mpt is to fin d a scalable solution using a progra m such as t he IATA Operations and Safety Audit (IOSA), which is doing the audits at head office levelMINUT ES – Cargo Services Conference (CSC/34) Page 17 of 42

today. There is an ong oing exercise to map the number of station s a udited by

IOSA and c o mparing it with the list of ACC3 sta t ions to evaluate how to minimize

costs and f i nd an efficie n t solution f o r the indust r y.

• The standards for the audits need to be develo ped. It is not clear at the EC le vel

on what the standards will be. There will also be a validation of the Program itself by the Commission at t he end of 20 12.

• Another added complexi ty is that the audit is repeated only e v ery 5 years. For the auditing co mpanies it is a challenge in terms of resource utilization, if th ey cannot spread out t he audits.

• IATA is well positioned to utilize the current programs and fin d scalable solution s and will be meeting with the EC in 2 weeks to f u rther discu ss the matter.

M/075 The Chairman mentioned that this item was d i scussed at the IFCC, and there

was concer n on FIATA’s part on IA TA being the sole valida t or for freigh t forwarders.

M/076 Mr. Nilsson (XB) stated that it is cle a r for the EC that there is no sing le entity that can cope wit h the enormous task, so surely there will be multi p le indepen dent validators.

M/077 A Member mentioned that the grou nd handler aspect shou ld also be considered as they are handling the cargo for th e airline.

M/078 A Me mber commented that ground handing age nts will nee d to be validated and it has a benefit. In many countries the ground handlers are using the sa me facilities for

different airlines. It mea n s that if they are validated for on e airline, all airlines being handled by the same ground handling agents at the same location a t the same time

could be co nsidered as audited by the validator. The EC d oes seem to agree with this concept where a single audit is car r ied out for different airlines that are using the same

facilit ies at t he same location at the same time.

M/079 A Member stated that t hey would support such an approa ch as it would make things simpler and much more efficie n t.

M/080 A Member mentioned that as per t he instruct io ns of the A CC3 validation, they need to maintain a database of Regulated Agents and Known Consignors. The Member added that in their country they do not have a s e cure supply chain program and so they do not have Regulated Agents and Known Con s ignors. The re is a lack of clarity on how the Regulation would ap ply. The EC was contacted to reque st for clarification, but th ere has been no response re ceived so fa r.

M/081 The Secretary mentioned that IATA will follow up with the EU on beha lf of the airline to try to get a resp onse.

ACTION: I A TA Secretariat to seek clarification from EU on the Know n Consig nor database

M/082 A Me mber mentioned that they have their own database a nd asked w hat would

be the benef it of having an IATA database.

M/083 Mr. Nilsson (XB) mentioned that wh en there are multiple airlines operating fro m one location and there are several Regulated Agents and Known Co nsignors, th en itMINUT ES – Cargo Services Conference (CSC/34) Page 18 of 42

would be u s eful to have a con s olidated datab ase that all airline s ca n use to ge t the information on validated Regulated Agents and Known Con s ignors.

M/084 The Me mbe r asked whether this information would not be available in the EC

database.

M/085 Mr. Nilsson (XB) mentio ned that the database r equirement is for stat ion s in th ird countries, so it would n o t be available in the E C database.

M/086 The Chairman asked whether EC a pproval was required for moving the proposal

forward.

M/087 The Secretary responde d that the first step is to seek endorsement fro m the EC

for IATA to be an independent validator. In the meantime

, IATA is working with the Cargo Security Task F o rce (CSTF) for guidan ce on what IATA shou ld provide as a solution and will go into more details of the datab ase, etc.

M/088 The proposed strategy for ACC3 validation was endorsed by Conference.

Agenda Item P/6: IATA Position Paper on Advance Electronic Information

M/089 The Secretary pro v ided an update to Conference including t he backgrou nd of the

WCO SAFE Frame w ork of Standard s , the challe nges faced today b y airlines and IAT A

, and the dev elopment of the IATA p o sition pape r on advance electron ic information for general carg o, to lobby customs authorities.

Po s i t i o n o n A E I

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M/090 The Chairman mentioned that ea ch time a ne w requirement is imple m ented, it would require adjustments to the IT systems, especially if th e reporting r equirements ar e different, so it is importa nt to have the im plement ations as st andardized as possible. The work done by IATA and Customs Advisory Grou p (CUSAG) i s critical in t hat regard also.

M/091 A Me mber commented that there are more than 110 countries pla nning to implement a d vance electronic infor m ation in the near future and there is a need for a standardize d approach otherwise it will be a nig h tmare.

M/092 A Member s uggested th at there nee d to be mor e lobbying e fforts with th e World Customs Organization ( W CO) to en sure that the Me mber States have a standardized implementat ion.

M/093 The Chairman mentioned that WCO ad vises Member St ates but they cannot

dictate to th em. So IATA can develop the stan dards and make recommendations to the WCO, as strongly as possible, t o e m phasize th e industry position.

M/094 A Member mentioned that they ha ve started d i scussions with the US authoritie s on advance electronic in formation and one of the items that h a s been discussed is ab out

what needs to be done in case of “ D o Not Load (DNL)” situations. Cle a r guideline s onMINUT ES – Cargo Services Conference (CSC/34) Page 19 of 42

DNL proced ures are required, particularly for ground handling agent s. For exa m ple, does the whole cargo need to be offloaded, or does the individual item need to be offloaded, et c.

M/095 A Me mber mentioned that they are lobbying with the authorities that D N L should

not be issue d for fisca l r easons but be used only for securit y reasons.

M/096 The Secretary stated that ideally the freight forwarders or shipper s should

receive the DNL messa ge, but the airline ca n a l so receive t he DNL me ssage at the last

minute. So it needs to be clarif ied with the Re gulators to provide clea r procedure s for

DNL situatio ns. He adde d that the ground handl e r s have not been sufficiently involve d in the discussions, and that the Carg o Operations Advisory Group is about to be forme d

with airline s and ground handling ag ents and so me of the ite m s would be filtered tho ugh that group t o ensure tha t they are part of the discussions.

ACTION: I A TA Secretariat to lobb y Regulators to provide clear guidelines on “Do

Not Load” situations

M/097 The positio n paper o n Advance Electronic Informatio n and the proposed approach was endorsed by Confere n ce.

Agenda Item P/7: Global roll out of t he Standard Consignment Securit y Declaration

M/098 The Secretary pro v ided an update to Conference on the development of the

standard co nsignment security declaration, the status in 20 11 and approach for 201 2.

C o ns i g nm e n t

s e cur i t y de cl a r a t i o n u

M/099 The Chairman suggest ed that Me mbers check within their respective airlines if they might b e interested to participat e in the Proof of Concept and to revert back to IAT A by the end of March. He added that as fa r as use o f the consignment security

declaration is concerne d it is an effort to sta ndardize an d facilitate the process of providing the security information to the regulators. There are some legal aspect s on when the in formation can be prese n ted, so it might need further discussion with in the

airline when they are ready to do so.

ACTION: CSC Membe r s to check w i th their airlines for interest to participate in the Proof of Concept of the Consignment Security Declaration and to revert back

to IATA Se cretariat b y end of March 2012

M/100 A Me mber expressed that they wo uld be inter e sted to do a pilot in th eir country

and asked if the experiences and re sults of t he pilots in Netherlands an d the UK could

be made a v ailable so that they could draw from the e x perience. T he Me mber also suggested t hat the existing messages be enhanced to also include the required security

information instead of de veloping new messages.MINUT ES – Cargo Services Conference (CSC/34) Page 20 of 42

M/101 The Chairman mentioned that the CBPP and t he CDITF h a ve already identified the security elements to be provide d in the exi s ting messa ging and notification s fo r the

CSC me mb ers had a l re ady been circulated. He added that the elemen ts are op tio nal and provide d for in the latest Cargo-IMP messaging such as FWB vers ion 16 etc. He

further added that if carriers are not using the latest version of the Carg o-IMP or Ca rgoXML messages, they will need to upgrade their messaging capabilitie s to be able to provide this information and to be ab le to particip a te in the Proof of Concept.

M/102 Mr. Jean Dunaux (AF) mentioned that his airlin e had volunteered to part of the Proof of Concept in the UK. He add ed that once the Proof of Concept is complete, IATA

would circulate the results for all me mbers of the CSC.

ACTION: I A TA to sha re results of the UK Proof of Concept with CSC Members

M/103 The Conference endorsed the con t inued promotion and roll out of the Standard Consignment Security Declaration in the industr y.

Agenda Item P/8: Carg o-IMP Data Quality Iss ues

M/104 IATA Secretariat provided an update to Conference on the current me ssaging data quality, the issues faced, and how the MIP initiatives aim to improve the data quality.

201 2 C S C

P r e s e n ta ti o n - M I P

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M/105 The Chairman asked Members to n o te that imp r oving mess aging data quality is

critica l as the industry mo ves to wards e-freight and e-AWB and also to ensure compliance with the advance electr onic information requir e ments. He requested IAT A Secretariat to provide information to Members on how they can join and participate in the

MIP.

ACTION: I A TA Secretariat to provide information to CSCMembers on joining MIP

M/106 The MIP action plan for 2012 was endorsed by Conference.

Agenda Item P/9: Carg o EDI Strateg y

M/107 The Secretary provide d an update to Conference includ ing the XML message developmen ts in 2011, the results of the car go messaging surveys conducted with

airlines and ground handlers, the plans for 2012 and moving towards the sunset of Cargo-IMP by end of 2014.

Ca r g o

E D I

S t ra t e g y v e r0 4. p d fMINUT ES – Cargo Services Conference (CSC/34) Page 21 of 42

M/108 The Chairman mentioned as follows:

• The industr y is in a tra n sition betw een two maj o r messaging standards, mo ving from Cargo-IMP messaging that h a s been ar ound for 30 years to Cargo-XML

which is bra nd new to many airlines.

• During the t r ansition pe riod, the IT systems wi ll need to handle both types of messaging or use service providers for mapping purposes.

• In the current messages, many of t he new data elements are optional. However,

if these d a ta elements become mandatory due to regulatory or other requirements, airlines will be required to upgra de to the n e w messagi ng to be able to provide that infor m ation.

• As Cargo-IMP will not be supporte d after 2014 , airline s wil l need to u s e CargoXML messaging to be a b le to comply with the new requirements.

• The implementation of major chang es to IT syst ems takes time, so Members are

advised to e n sure that t heir IT depa rtments are aware of the transition and have the impleme n tation plan s ready.

M/109 The Chairman added th at in the re cent messa ging survey conducted by IATA, only 36 airlines had responded while there are 200+ airline s within IATA. So there are a number of a i rlines who may not be aware and Members would be advised to ensure that their partner s and other stakeholder s are also a w are and ready.

M/110 A Me mber e nquired about the lobbying efforts being undertaken with Customs to

transition to XML.

M/111 The Secretary mentioned that man y of the Cu stoms administrators ar ound the world are already using XML. The y are asking f o r the X M L version of the messages for

advance electronic infor m ation repo rting. IATA i s lobbying the Customs administrations to use World Customs Organization (WCO) XML stand ards when they are using Customs messages an d to use I A TA Ca rgo-XML standards when they are u s ing industry me ssages. IAT A has also been approached by ASYCUDA, a UN body that ha s developed a Customs solution that is used in ab out 80 countries. They have asked IAT A to provide them the specificat ions of Cargo-XML messages so tha t a s part of t h e new version of th eir tool, they will be able to accept t he Cargo-XML messages. So there is a clear move from all parties towards XML.

M/112 The Cargo EDI strategy was endorsed by Confe r ence.

Agenda Item P/10: Mo ving to w a rds 100 % e-AWB

M/113 The Secretary introduced the item and reminded Members t hat the implementat ion of e-A W B is critical for the industry. He provided an upda te to Conference including t h e backgroun d of the e-AWB and the plans for 20 12.

100 % e

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M/114 The Secretary remind ed Membe r s that th e CSC h ad agreed to the implementat ion of the 10 0% e-AWB where feasible by 2014 so it was important for IATAMINUT ES – Cargo Services Conference (CSC/34) Page 22 of 42

to understa nd the level of engage ment of Member airline s in progressing toward s that goal.

M/115 The Chairman requeste d Members to check with in their resp ective airline s on t h e current e-AWB implementation stat us and futur e implementation plans and to let I A TA know by end of April 20 12 so that th ey can understand if the targets can be achieved.

ACTION: CSC Membe r s to check the e-AWB i m plementation plans w i th in their

airline and inform IATA Secretariat

M/116 A Me mber mentioned that 10% e-AWB would be possible for 2012, but 70% for 2013 would be very difficult.

M/117 The Me mber from Eg yp tair mentioned that they recently l aunched the e-AWB implementat ion project in their airlin e and they faced the following challe nges:

• Need to translate RP1670 into loca l language as per local La w

• The loca l F r eight Forw a rder asso ciation appe ars to be re luctant to sign the eAWB Agree m ent

He requested support fr om IATA for the followin g :

• to provide an official tra n slation of R P 1670

• to request F I ATA to push the local F F associa t io n to sign the e-AWB Agreement

M/118 The Chairman mentioned that the e-AWB Agreement was endorsed by FIATA and they had agreed to move forward with it. So if there is a n y reluctance from local FF

associat ions, it needs to be brought t o their attent ion through t he IFCC.

Secretary Note : Plea se find below the FI ATA circular urging their Me m bers to

im ple m ent t he e-AWB.

F I AT A Ci r d u l a r o n

e- A W B

ACTION: I F CC to be notified about the need to promote again the e-AWB w i th in

their Memb ership

M/119 The Secretary mentioned that FIATA is support i ve of the e-AWB and th at he will request the m to resend the e-AWB communiqu é to their Members.

M/120 IATA Legal stated that I A TA has moved away from the practice of tra n slating

Resolutions and Reco mmended Practices in to foreign languages. The transla tions

would have to be don e by the airlines as re quired to comply with their loca l legal requirements. If IATA h ad to endor se the tran slation, it w ould have t o be broug ht to

Conference and the tran slated version would have to be adopted by Con f erence.MINUTES – Cargo Services Conference (CSC/34) Page 23 of 42

M/121 A Member asked IATA Legal that while signing e-AWB Agreements with multinational forwarders, whether they need to check for the requirement of translating those agreements into the local languages.

M/122 IATA Legal explained that there are two aspects to the e-AWB Agreement:

• First it is the technical part that specifies how the parties are going to transmit electronic messages, how the messages are going to be stored, etc. There is a choice of law provision and if there are any disputes, they would be brought pursuant to the terms of the agreement to a local court also chosen by the parties, so there could be a foreign language requirement but the parties would have presumably contemplated this possibility upon signing.

• Second is the contract for the transportation where the parties agree to the Conditions of Contract set forth. Any cargo claim that would arise out of that agreement would be brought in a count ry by the claimant based on the Convention that applies or local law. There would exist the same issues that shippers face today when they sign a paper air waybill, and the implications if the local law stipulates that the conditions need to be provided in local language, so the parties would presumably bring the suit in one of the venues allowed by the Conventions or local law that does not have the foreign language requirement.

He added that he was not aware of any claims arising out of the agreement to date, however it is a potential issue that could come up in the future.

M/123 A Member provided the following feedback based on their bilateral discussions with freight forwarders:

• It is difficult for forwarders to maintain dual processes (paper and electronic) depending on the route.

• It is not clear about the benefits to forwarders for implementing e-AWB.

• There is a need for transparency on cargo messaging data quality from forwarders. (Suggest developing rankings for forwarder messaging quality).

• The IATA e-AWB online training course should be made available without cost

.

M/124 The Secretary responded as follows:

• Regarding the dual process required by forwarders, some airlines are offering a single process, which has been included in the CSC/34 agenda as a proposed amendment to RP1670 (Voting Item V/2) where the airline can print and sign the air waybill on behalf of freight forwarders.

• Regarding the business case for forwarders, IATA is developing a document that highlights benefits of e-AWB for airlines. A similar one could developed for forwarders if they are willing to participate in the analysis.

• Regarding the free e-AWB training, it will be communicated to the IATA training department for consideration.

ACTION: IATA Secretariat to check with IATA Training department on the possibility of having a free e-AWB online trainingMINUT ES – Cargo Services Conference (CSC/34) Page 24 of 42

M/125 The Chairman stated th at the issue of forwarder messaging data quality needs to

be raised with the IFCC.

ACTION: I A TA Secretariat to raise the issue of forw arde r messaging data quality

w i th the IFCC

M/126 A Member mentioned that as they progress wit h the e-AWB implemen tation, the large freight forwarders are on bo ard and are willing to sign the e-AWB Agree m ent. However, s m all and medium sized forwarders do not see m to be aware of the e-AWB

initiative an d are not necessarily represented by FIATA. He added that the bila tera l discussions are happe ning with t he forwarders but it is taking time for havin g the agreements signed.

M/127 The Secretary encouraged CSC me mbers to start engagin g on the e-AWB. He

mentioned as follows:

• e-AWB impl ementation has been so far mainly driven by t he Cargo Committee

members a nd the e-CAG me mbers (with some Cargo Committee members reaching 80 % e-AWB in their home markets).

• It is t i me to go beyond those two groups and so it is imp o rtant for th e CSC to start engaging.

• It is encour aging to see carriers like Egyptair trying their best to start the implementat ion.

• In Asia Pacif i c, we need to have Japanese carrie r s to engag e on the e-AWB.

• In the US, we need th e US carrie r s to push for e-AWB. Delta Air Lines is

committed and is start i n g to roll out e-AWB.

• In Europe, KLM has al ready shown it is possible and hopefully the other big players such as Air Fra n ce, Lufthan sa and British Airways wi ll also fo llow suit.

• In Latin America, LAN h a ve already beaten their targets and demonstrated that it is possible t o do e-AWB despite the perceived customs challenges.

M/128 The target of 15% e-AWB by 2012 and the move to 100% e-AWB by 2 014 were endorsed by Conference.

Agenda Item P/11: e-AWB Multilateral Agree m ent

M/129 The Secretary provided an update t o Conference on the development o f the eAWB multilateral agree ment.

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• From the beginning of th e e-AWB development, airlines hav e indicated t he need

for a multilat e ral agreement.

• It was recommended by IAT A Le gal to start with bilateral agreement as a

recommend ed practice to see if th e industry is going to use e-AWB and if it is going to brin g benefit to t he industry.

• After a ye ar of successfully implementing e-AWB a nd using t he bilateral agreement, it was recognized that a multilateral agreement is needed t o furtherMINUT ES – Cargo Services Conference (CSC/34) Page 25 of 42

increase th e e-AWB adoption in the indust r y. So IAT A had some initial

discussions with the airlines and freight forwarders as part of the e-AWB Advisory Group.

• The basi c pr inciple agre ed was that the bilatera l agreement will remain. If parties wish to have bilateral agr eement, they should still have this possibility.

• The multilat e ral agreement would b e in place with a Resolu tion where t he IATA members would agree on the term s of the e-A W B and the technical aspects and

an agreeme n t would be signed by the forward e rs agreeing to the terms and

technical elements. IATA would maintain a list of parties who have decided to join the mult ilateral agre e ment.

• The obvious benefit is the fact that airlines a nd forwarders can sign a single agreement and avoi d the cost and burd en of signing multiple bilateral
agreements.

• When it was presented t o the IFCC, FIATA me mbers expressed some concerns on the multilateral agree ment.

• It was surpr i sing beca u s e when discussed in dividually with the forwarders, the y are in favor of the multilateral agree ment.

• The points r a ised by FIATA are that:

a. Being an IATA Resolution, they will have no say in the agree ment itself.

b. They want t o maintain the benefit of the bilateral discussions.

c. They stated it could be a conflict with competition laws.

• Nevertheless, they agreed to have further discu ssions once a draft is r eady. So hopefully IATA can still engage discussions with them.

M/130 IATA Legal mentioned as follows:

• The concep t of the multilateral a g reement is to have a n agreeme n t signed between IATA and the forwarders, on behalf of t he airline members that wish to.

• So IATA would be the a gent for the airline, very similar to the approach for the Cargo Agency Agreeme n t.

• During discussions wit h FIATA, it was expressed that t hey had conceptual

concerns wit h the agreement; also they had concerns that th ey were not involve d

in the init ial drafting of th e agreement.

• It was impre ssed upon F I ATA that th e draft of th e agreement was curren t ly being worked on, and they wo uld have a chance to review it once it was ready.

• He added that FIATA has usually come up wi th valuable comments, as in the

case with t he EDI agreement, so there is confidence t hat once t hey have something t angible to review, the implementation of th e e-AWB multilateral agreement would not be quite as challenging a s it appears currently.

M/131 The Chairman added th at IATA is p l anning to co ntinue to en gage in d i scussions

with FIATA t o move this forward as it is in t he be st intere st of the ind u stry to be able t o have the e-AWB multilateral agree ment in place.

M/132 A Me mber a sked if the e

- AWB multil ateral agreement could be in place between IATA and FIATA, instead of IATA signing with in dividual forwarders.

M/133 IATA Legal mentioned it would be difficult as FIATA is an a ssociation o f

associat ions and its members are not freight forwarders but the freight forwarding

associat ions.MINUT ES – Cargo Services Conference (CSC/34) Page 26 of 42

M/134 Members e x pressed their strong support for the multilateral agreement and highlighted t hat it was ur gently needed by the in dustry to promote the global adoptio n of

the e-AWB.

M/135 The e-AWB Multilateral agreement approach was endorsed by Confere n ce.

Agenda Item P/12: Live Animal Regulations (LAR) Train i ng

M/136 The Chairman introduce d the item a nd mentioned that it is a non-specialist type of training fo r front line st aff and it is not a regulat ory approach.

M/137 The approach for developing LAR minimu m training require ments was endorsed by Conferen ce.

Agenda Item P/13: Communication of the mandatory Time and Temperature Sensitive Label requirements

M/138 Ms. Andrea Gruber ( X B) , Secretary of the LAPB, introduced the item as follows:

Ti m e a n d

T e m p e ra t u re S e n t i v e

• The time and temperature label cam e into force in 2010 and was promoted as a

recommend ation.

• At the last CSC meeting in 2011, it was agreed by Conferenc e to make t he label mandatory f o r time and temperature healthcare shipments st arting 1 July 2012.

• The work b y the L APB was to ens ure that the regulations address all the ne w requirements.

• The IATA Perishable Cargo Regulations will be updated with all the requirements

and details on how the label should be used.

• It is important that the airlines are p r epared. There will be some transition period after 1 July 2012, but these are aspects being discussed at t he LAPB.

• IATA is working with th e healthcare community as they are the shippers, as well as forwarders, ground h andlers and other partie s in the sup p ly chain to ensure that the required proce ss will be i n place to handle ship ments that have such label. The ultimate aim is to maintain the integrity of the products throug hout the supply chain

.

M/139 A Member a sked wheth e r the shipp e r would be responsible for affixing the label

or whether it would be the airline’s re sponsibility.

M/140 Ms. Gruber (XB) mentioned that the shipper is ultimately responsible fo r affixing

the label. T here can be a bilateral a g reement b e tween the freight forwarder and shipper

on who will affix the label when the shipme nt is tender ed. But ultimately it is the responsibilit y of the shipper, as they have the kno w ledge of the temperature requirements during the transportatio n process a nd they nee d to specify the tempera t ure range on the label.MINUT ES – Cargo Services Conference (CSC/34) Page 27 of 42

M/141 The proposal was endo rsed by Conference.

Agenda Item P/14: Enhancement of the Perishables Cargo Regulations (PCR)

M/142 Ms. Gruber (XB) introduced the item as follows:

• All require ments relat ed to the time and t e mperature sensitive healthcare products are currently embedded in the PCR as Chapter 17.

• The healthcare industry wants IATA to extract Chapter 17 from the PCR to make it a stand-alone healthcare regulatio ns manual.

• The LAPB is currently considering dif f erent options such as:

o Extracting Chapter 17 from the PCR as a stand- alone regula t ions manual

o Having Chapter 17 as a subset of the PCR, similar to the Infectiou s Substances manual, which is a subset of the IATA Da ngerous Goods Regulations manual.

o Combining Chapter 17 with the Infe ctious Subst ances manual to create a new manual

.

M/143 The approach of modifying the PCR with regard to Chapter 17 was end orsed by

Conference.

Agenda Item P/15: Transformation of ULD T echnical Manual to ULD Regulations

M/144 The Secretary of the UL D Panel, Mr. Zhi Yong L i ao (XB), provided an u pdate to Conference. He was accompanied by the Chairman o f the ULD Panel, Mr. Urs Wiesendang er (AC) and the Facilitat or of the ULD Operation a l Advisory Group, Mr. Bob Rogers (Nordisk).

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P r e s e n ta ti o n - I A T A 2

M/145 The Chairman mentioned as follows:

• Although there is refer ence to sho r t term costs there are no solid e c onomics

mentioned.

• Regarding t he reference to mandating UL D training, he asked what would be th e

cost est i mated of ULD training to the industry.

• He noted that though the propo sal state s t hat training will be re quired for forwarders, ground handlers etc, it has not been discussed in any detail through FIATA or any of the other groups.

• If it become s a Regulation, he aske d how is it planned to mandate the training

and how will it impact th e industry, a s it c ould be a fair ly sign ificant imposition on all parties in cluding the carriers, for w arders, ground handler s, etc.

M/146 Mr. Liao (XB) responded as follows:MINUT ES – Cargo Services Conference (CSC/34) Page 28 of 42

• The proposed requirements were agreed u pon by airl ines and non-airlin e stakeholder s participa ting in the ULD Operational Advisory Group.

• Similar to dangerous goods regulations which are considered as minimu m industry standards, the attempt is to have mi nimum acc eptable sta ndards for

ULDs.

• Regarding the costs, th e exact dollar figures were not calculated, but it is clea r those who operate ULDs need to be trained.

• As per the FAA Advi sory Circular 120-85 (AC 120-85 ), it is the airlines’ responsibilit y to provide sufficient tr aining to an y cargo operational sta f f handling ULDs, inclu d ing vendors and groun d handling p r oviders.

Secretary Note: The FAA AC 120-85 is atta ch ed herewith for reference. Regarding the FAA training require m e n t s for cargo handling personnel, Members are requested to refer

to the PREF ACE (Page i )

, A-98-47 (Page 1), and Section 8 Training (Page 31).

F A A A C 12 0-85

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M/147 The Chairman mentioned that there has been a lot of discussion within t he IFCC

about the role of the f o rwarding communit y a nd seeking their input for items aff e ctin g them. There has been a lot of discussion abo ut training, particularly in regard to the Dangerous Goods training. So this would be de velopment of a new tra i ning progra m , in

addition to the existing ones, and it has not been discussed with FIATA and other industry associations.

M/148 Mr. Rogers mentioned as follows:

• The primary force that is driving all the regulat ory and compliance issues for

ULDs stems back to the Fine Air cra s h in 1997, where a DC-8 crashed u pon take

off and the NTSB findings were cle a r that it wa s due to im proper carg o loading procedures.

• Ever since t he FAA has identified a num ber of areas of improvement including training of cargo loading personnel.

• In the FAA AC120-85, t here is a very clear re quirement incumbent on all US airlines to p r ovide training in cargo related loading practices, not only for their own staff but for any subcontracted staff.

• Others regulators have also taken n o te, such a s the Australia and UK CAA. The Chinese CAAC is also planning to issue a simila r directive in the near fut u re.

• Almost eve r y sector of the aviation industry requires tr aining. Even forklif t operators n eed a licen se. But a pie c e of ULD equipment can be picked up and put on an aircraft, where it has a direct impact on the safety of the aircraft, without any training. So there is a gigantic gap.

• IATA has d e veloped classroom and online training for UL Ds. The online training

can be completed in a f e w hours, it is heavily pictorial, and it could be tr anslate d

into other la nguages as well.

M/149 The Chairman asked th at if the trai ning was mandated, whether IATA would be the only rec ognized training provider, or if there could be other groups that can provideMINUT ES – Cargo Services Conference (CSC/34) Page 29 of 42

the training. He asked how it would be regula t ed as an approved program for ULD training.

M/150 Mr. Liao (X B) clarified th at the proposal is not to mandate IATA training but rather

to mandate the basic U L D training requirements. It is to ide n tify the categories of cargo personnel a nd what typ e of training they would require.

M/151 The Chairman asked if the airlines and forwarders could h a ve their own training program internally.

M/152 Mr. Liao (XB) responded in the affirmative and stated that the only req u irement

would be to evaluate that the airlin e or forwarder training meets the basic require ments specified in t he ULD regulations.

M/153 A Member mentioned that for t heir airline they are f a ced with huge ULD maintenance costs. He added that the training for staff handling ULDs is very important and he fully supported th e proposal.

M/154 A Member a sked what t i meframe wa s being looked at while mandating the ULD training requ irement.

M/155 Mr. Liao (XB) mentione d that it is aligned with the Dange rous Goods training requirements; staff would need to be trained every two years.

M/156 The Membe r questioned whether the ULD aware ness train i n g requirement needs to be equivalent to that o f the danger ous goods a cceptance tr aining.

M/157 Mr. Rogers mentioned that the reco mmendation of the ULDOAG was to have the people retra i ned every t w o years. It does not h a ve to be full-day training. It should b e compact enough that it can be do ne without a vast amo unt of cost or time. There are developmen ts in t he ind u stry and af ter two y ears the tra i nin g itself cou l d have cha nged

and the train i ng itself might need to b e upgraded and content enhanced.

M/158 Mr. Liao (XB) mentioned that the o b ject ive is n o t just to align with the dangerous goods regulations and t hat ULD operations cou l d be more critical than d angerous g oods

or live animals becau se they directl y will impact on flight saf e ty.

M/159 A Me mber mentioned as follows:

• It would not be accurate to draw a parallel betwe en dangerous goods an d ULDs.

• For dangero u s goods, th e carrier ne eds to be co nvinced that all the part i es along the supply chain are fu lly aware, b e cause at t he end of t he chain th ey cannot

look into ev ery single shipment and they can only do certain checks.

• But it is diff erent for U L Ds, as th e r e are seve ral checkpoints before t he UL D

touches the aircraft; for example, at the forwarder, at accep t ance, befor e loading

etc.

• So it might be slight ly over-engineered to say that similar r u les need to apply for dangerous g oods and ULDs.

• Regarding the renewal of training e v ery two ye ars, not very man y developments have been implemented for ULDs in the p a st years, but there h a ve been numerous changes in dangerous good regulations (DGR). So the re newal of training for DGR for e v e r y two years make sense but not for ULDs.MINUT ES – Cargo Services Conference (CSC/34) Page 30 of 42

• Also, there is a cascad e in the need for training for ULDs, starting f r om the

forwarder to the loadin g staff at t he aircraft. The loading staff must be most aware of ULD damage and how to handle it. The forwarders also n eed to be

aware as th ere are damages report ed at their e nd also, but the train i ng required

is not at the same level.

• So it would be strongly recommend ed that any proposal needs to be reviewed

and endorse d by the CSC.

M/160 Mr. Wiesendanger (AC) mentioned that the ULD is a flying asset that is highly regulated. T here are huge costs incurred to airlines due to improper UL D handling. It is not only safety but also the cost involved when i m proper ha ndling result s in damaging an

aircraft. Other than the costs for re pairing damaged ULD, there are also consider able

costs due t o result ing f light de lays. The obje c tive is not to mirror the d angerous g oods training, but to use it as a model f o r developing the modul ar training requirements for

ULDs.

M/161 A Me mber mentioned that there needs to be a clear und erstanding of the cost involved of mandating ULD training for the indu stry.

M/162 IATA Legal stated that it might not b e appropriate for the UL D Panel to establish training req u irements for IOSA and ISAGO as it would no t be approp riate for the ULD

Panel to est ablish st and ards outside of the Resolutions pro c ess.

M/163 The Conference endor sed in prin ciple the crea tion of IATA ULD Regul ations to replace the ULD Technical Manual. Regarding the propose d amendme n ts and imp a ct,
the Conference noted that more details were required. The ULDP was therefore requested to submit the detailed pro posals throu gh CPCMG.

ACTION: ULDP to submit detailed proposal to the CPCMG fo r consideration

Agenda Item P/16: IATA ULD Roa d map

M/164 The 2012-2014 ULD Ro admap was endorsed by Conference.

Agenda Item P/17: IATA ULD Ope r ational Scorecard

M/165 The item was noted by Conference.

Agenda Item P/18: Glo bal Air Cargo Advisory Group (GACAG) Upd a te

M/166 The Secretary introduced the item and mentioned as follows:

• The GACAG is comprised of TIACA (The Int e rnational Air Cargo Association), GSF (Global Shippers’ F o rum), FIAT A and IATA.

• The objective of the gro up is to have a strong and unified voice in dealing with regulatory authorities w o rldwide.

• It has established 4 four task forces on Security, e-Co mmerc e, Trade Fa cilitat ion,

and Sustain ability.MINUT ES – Cargo Services Conference (CSC/34) Page 31 of 42

• The Task F o rces have commenced work.

• The Security Task Force has developed the vision of GACAG on carg o security and a posit ion paper o n the con s ignment security declar a tion. The group is working on two more po sition paper s, one on advance electronic information and

one on supp ly chain security.

• The other groups are also similarly developing the GACAG p o sition pape rs.

M/167 Conference acknowledg ed the work done by GACAG during 2011 and the item

was noted.

Agenda Item P/19: Scheduling of Annual Conferences

M/168 The Chairman introduced the item and mentio ned that the CPCMG wanted to

have the feedback of the Conference on the sche duling of fut u re Conferences.

M/169 A Me mber mentioned that there is value in ha ving the Co nferences along with the World Cargo Symposium (WCS), howe v er a solutio n needs to be found for the scheduling of Conferences.

M/170 A Member mentioned that there sh ould not be a conflict b e tween Conferences and industry meetings and the WCS tracks. He suggested t o have a full week with the

WCS to be held from Tuesday to Thursday and the ind u stry meetings be he ld on Monday and Friday.

M/171 A Me mber stated that it would not be useful to have some meeting s at the beginning of the week a nd others at the end of the week, e s pecially for those who are not attendin g the WCS.

M/172 A Me mber stated that Conferences and industry meetings should not b e held on the weekends as it would result in p oor attendance.

M/173 A Member suggested t o have Conferences and industry meetings fir s t a nd then followed by the WCS.

M/174 A Member suggested t hat there b e a clear separation between WCS and Conferences, with the WCS to be held in March and the Conferences t o be held in July.

M/175 A Member mentioned that if there is a sp lit, the Conferences would be held at th e IATA offices in either Geneva or Mon t real.

M/176 A Member mentioned that there is benefit in keeping the Conferences with the WCS and suggested to split the age nda of the C onferences into two, such that there are two Confere n ces in the year. Perha p s to includ e the Report items during the WCS to

have a feed back on what’s happen ed during the year and the Voting and Policy items during the other meetin g. To have just half a day for the CAC, when it t ook two full days to discuss the same items at the IFCC, is not enough time fo r Conference to take in what

has been discussed an d if it needs to vote, to vote with good quality inf o rmation.

M/177 A Member suggested split ting between the Conferences and the industry meetings, to have either the Conferences duri ng WCS or to h a ve only ind u stry meetin gs during WCS.MINUT ES – Cargo Services Conference (CSC/34) Page 32 of 42

M/178 A Me mber suggested t hat the various options be discu ssed by the CPCMG in

consideratio n of the fe edback received and working with IATA Secretariat as the Conference might not be able to decide on a sing le option.

M/179 Ms Celine Lavinay-Ho u rcade (X B), the Proj ect Manager for WCS, briefed

Conference as follows:

• In previous editions of t he WCS, the Conferences and Ind u stry meetings were

scheduled i n parallel to the WCS tracks

• There was feedback received from delegates th at they were not happy with it as they could not attend the WCS tracks

• So this year the attempt was to sch edule the m eetings to a v oid conflict s with the WCS tracks, as m u ch as possible

.

• In doing so, the meetings had to b e scheduled for the wee k ends, durat ions had

to be shorte ned, etc.

• However, it could be ch anged for next year, if it is not sat i sf actory.

• There will b e a survey conducted aft e r the event, so feedback can be pro v ided

• One of the four options could be loo k ed at:

9 Conference + Industry meetings held in parallel w i th WCS

9 Conference + Industry meetings held separate fr om WCS

9 Conference + WCS held together an d Industry meetings sep a rate

9 Industry me etings + WCS held toget her and Conferences se parate

• The survey will be designed so that the feedback can be provided in the above

manner.

• Members re quested to note that no t all prefere n ces and re quirements could be

accommoda ted.

M/180 A Me mber asked if during the CPCMG discussions on t he organization of the

next meetings, to also consider the kind of gove r nance that gives the maximu m spe ed in implementing changes, as th ere can be an improve m ent in speed of implementing changes. If there is a clear governance followe d by a clear structure of meetings, t hen things cou l d be done faster as an ind u stry association.

M/181 The Chairman mentioned that, if preferred, Members could also send their

comments t o IATA Secretariat after the Conference so that it can be included during the

CPCMG dis c ussion s.

M/182 It was agreed that the item be brou ght to the CPCMG for f u rther discu ssion and guidance.

Agenda Item P/20: Election of Chairman and Vice Chairman of CSC Subgrou ps

M/183 The Chairman introduce d the item and mentioned that the objective was to have a standardized procedure for the election of the Chairma n and Vice Chairman f o r the

various CSC Boards and Panels an d subgroups.

M/184 The proposal was endorsed by Conference and the CPCMG was asked to develop the required a m endments to the Ter ms of refer ence of the CSC Boards and

Panels and subgroups.MINUT ES – Cargo Services Conference (CSC/34) Page 33 of 42

ACTION: CPCMG to m ake required changes to terms of reference of CSC Boa r d s and Panels and subgroups to incorporate sta ndardized procedures for election of

Chairman and Vice Chairman

Agenda Item P/21: e-freight / e-AWB – Monitoring & Re porting 2012

M/185 Mr. Thilo Schaefer (LH) mentioned that after t he submission of the pr oposal it was learned that most of the pro posals wer e already adopted. The only remaining

clarification required was regarding the basis of the airline ra nking, so th ere was not hing

more to add.

M/186 IATA Secretariat provided an update to Conference.

Agenda Item P/22: Nominations for IFCC Va cancies

M/187 The Chairman mentioned that the item was sub m itted by FI ATA-AFI. W hen there are vacancies for IFCC, they would like this to b e taken very seriously. They have noted that IATA/airline membership is not o f the equivalent level of experience as that from the

FIATA-AFI. When Conference votes on memb ership of IF CC, they would like it noted that they want membe r s from IATA to be re cognized within the ind u stry as ha ving experience and be quali f ied so tha t they can discuss on a r e latively intelligent level with the FIATA representatives.

M/188 The item was noted by Conference for future IFCC me mbership election s.

VOTING IT EM S

Agenda Item V/1: Recommended Practice 1630 – Cargo Security

M/189 The Secretary provided t he backgrou nd of the ite m :

• As part of new EC Reg u lation 859/ 2011, carrie r s will have to obtain t he ACC3

certificat ion from the EC

• Following th e identifi c ati on as an ACC3 carrier, an identifi c ation number will be provided to the carrier

• This number may ha ve t o be exchanged between the parties in the supply chain It is propose d to introduce the new definition in RP1630 for “Regulated Carrier”

• A new code has been developed in Cargo-IMP so that the ACC3 carrier numbe r can be allo cated and exchanged bet ween the parties.

M/190 A Me mber stated that the definition of Regulated Carrier is restrictive and onl y concerns ACC3 and the EU. A bro ader definition might be needed tha t would suit other regulatory requirements as well. The following t e xt was pro posed: A Regulated Carrier is

an air carrier authorize d to operate carriage of cargo and m a il in respect wit h

all regulatory a nd legal req u irem ents of a national secure freight progra m

.MINUT ES – Cargo Services Conference (CSC/34) Page 34 of 42

M/191 A Me mber mentioned that getting mutual recognition of security programs b y countries is a huge challenge and so it might be better to start with the originally proposed d e finition which is aligne d with the EU ACC3 a nd use it a s a pre c ede nt in

discussions with other security agencies.

M/192 The Secreta r y stated th at RP1630 would proba bly need to evolve in the next 6- 12 months, looking at all the changes that are coming into play aroun d cargo security, especially looking at the transit situa t ions . So there would be likely further amend ments
to RP1630 for the next CSC meeting.

M/193 A Member a sked if IATA also n eeds to take the d e finition back to the EU to make

sure that the EC recognize the term in their Legislation.

ACTION: IATA to confirm if the term Regulated Carrier w ould be recognized by the European Commission

M/194 The Chairman question ed whether there is a ne ed to move f o rward on the item if

it is not auth o rized yet by the EC.

M/195 The Secretary mentio ned that the regulated carrier concept is already

establishe d by the EC Regulations and it is ref e rred to as t he ACC3. T he proposal was

to use the same definit ion of ACC3 but to use the term Regulated Carrier instead of ACC3, to h a ve a generic term that can cover potential fut u re requirements from othe r regulators also.

M/196 A Me mber mentioned t hat the code RC was created in Cargo-IMP as per the requirement of the EU to transmit the number between the parties.

M/197 The propo sed amendment was adopted by Conference with expedited

effectiveness.

Agenda Item V/2: Re commended Practice 1670 – Carriage o f Cargo Using

Electronic Data Interc hange (EDI)

M/198 The Secretary introduced the item as follows:

R e v i se d R P 16 70

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• In 2009 an d 2010 IAT A and FIATA succe ssfu lly worked t ogether to develop a “model agreement for electronic dat a interchan ge (EDI)” as a sub s titu te for the traditional p aper air waybill which was adopted by the Carg o Service Conference as Recommended Practice 1670 (R P1670).

• Twelve mon t hs after the signature o f the fir s t e- AWB agreements between the pilots’ part i cipants IATA collected some agree ments and highlighted the main changes.MINUT ES – Cargo Services Conference (CSC/34) Page 35 of 42

• Two main changes have been iden tified, bring i ng benefits t o the airline s and the freight forwarders as it fu rther simplifies the busin ess:

• The possibility on Wars aw routes for an airline to print and sign the paper AWB on behalf the shipper/freigh t forwarder based on electronic data submitted by the shipper/freight forwarder for the Warsaw routes.

• The ability to conclude cargo contracts on behalf of the freight forwarders shipper clie nts (also kn own as dire ct shipment s).

• For the first change, th e benefit fo r freight for w arders is t hat they will have a single proce ss irrespecti ve of the ro ute and they will no longer need to produce, handle, and archive th e paper A W Bs. On the airline side, it improves the

customer service of t he airline and it in cr eases the efficiency, as all the

information will be transmitted electroni cally and for each and every shipment you will receive an electr onic messa ge.

• For the second change, the benefit is that it reflects the cur r ent forwarder-carrier

business m odel where the forwarder is also playing the role in t he direct shipment scenario. It is also a simpler process as the forwarder and carrier do not need to sign a multitude of ag reements with the dire ct shippers. Also, it provides th e carrier th e assuran c e that the direct sh ipp e r has agre ed to the

conditions o f contract an d given consent to use t he electronic messagin g

.

• The amend ments were discussed with the e-AWB Ad visory Group , CBPP, CPCMG, an d then with the IFCC. At the IFCC meeting, FIATA clearly endorsed the proposed changes related to Warsaw where the airline is printing on their behalf, but they raised some concerns on th e direct shipment scenario. The

FIATA feedback was th at:

• there is no legal require ment to include direct shipments in RP1670

• it is not nee ded as per Conventions

• the propose d wording is confusing

• At the end of the IFCC, it was agreed that IATA Legal will work with the designated FIATA repre s entatives and try to co me up with a mutually a cceptable wording before Conference. Accord ingly, following discu ssions with th e FIATA representatives, IATA Legal made some revisions which were sent t o FIATA for

their review and feedback.

M/199 IATA Legal confirmed that further fe edback was not yet received from FI ATA.

M/200 The Chairman suggest ed waiting for the response from FIATA and to conduct the voting t hough a Ma il Vote after Conference, in order t o obtain an agreement wit h

which to move forward.

M/201 A Me mber s t ated that the proposed amendment s are beneficial for the industry,

so Conference should m o ve ahead with it.MINUT ES – Cargo Services Conference (CSC/34) Page 36 of 42

M/202 A Member suggested that altho ugh the pr oposed cha nges would help the adoption of the e-AWB i n the industry, given the current relationship bet ween IATA and FIATA, it might be bette r not to take any steps that might complicate the situation.

M/203 A Member asked what response t hey would provide to their freight forwarder

customers who have b een asking f o r these amendments.

M/204 A Me mber mentioned that they have had several meetings where large forwarders have been present and fo warders have been asking for these changes.

M/205 A Me mber suggested t hat a note b e sent to FI ATA that Conference is eager to

move this fo rward and many of the large freight forwarders have been asking for t hese changes, a nd so we would like t o have a r e sponse fro m FIATA on this as soon as possible.

M/206 IATA Legal mentioned that during discussions with FIATA, it was clarif ied that the proposal was not to change the current process, but rather to accommo date the same in the electronic process. The objective was only to simplify the process to eliminate the

need for the forwarder to ask the sh ipper to sign the e-AWB Agreement with the carr ier.

M/207 The Chairman asked if the Conference should review the revised text that has been proposed to FIATA and see if Conference is ready to vote on it.

M/208 IATA Legal mentioned that the text has not been agreed with FIATA and they might come back wit h substant ial changes. So it might not be appropriate for Conference to review something that could pot entially be changed. T here is a v o ting item on the agenda with the langua ge that Conference members have had a chan ce to

review and ready to vot e on. He su ggested that if there is a vote, it be based on that language an d not on the one under review with F I ATA.

M/209 A Member mentioned that the a i m is to provide a sin g le proce s s for the forwarders and asked if they can i m plement t he process prior to Con f erence adopting

the amendments to RP1670.

M/210 IATA Legal mentioned that IATA ca n recomme nd only one practice, t h a t which is agreed at C onference b y the carrie r s. There h a ve been deviations by some carriers, which was notified by those carriers to IATA, an d that is what prompted the submission

of a revised version of t he recommended pract i ce to Confe r ence. But u n til that version gets adopte d at Conference, IATA can only promote the currently adopted version.

M/211 The Me mbe r responded that it puts them in the p o sition that t hey ha ve to go back

to their larg est freight f o rwarder customers and let them kn ow that FIA T A is reluct ant to agree to so me of the changes that t hey had requested.

M/212 A Me mber mentioned that it is a Recommende d Practice and not a Re solution, so it gives th e carriers th e option to modify it as they see fit f o r their airlin e.

M/213 IATA Legal stated that being a Recommended Practice, ca rriers have t he ability

to make cha nges, but IATA cannot promote it as a “recommended” practice, unless that version was adopted by Conference. Members can modify it as required, but it ha s to be

a unilateral decision based on their own carrier’s de cision or t h rough bilateral negotiations with the other party.MINUT ES – Cargo Services Conference (CSC/34) Page 37 of 42

M/214 The Chairman suggested that the item be handled as a Mail Vote after

Conference and that a n o te be sent to FIATA requesting the i r response prior to a Mail

Vote and to let them k now that th e delay to i m plement t he changes is preventing the

carriers and their freight f o rwarder customers to have an efficient process in place.

M/215 A show of h ands was co nducted and it was agre ed by the majority that t he voting on the prop osed amend ments to RP1670 be deferred to a Mail Vote in May 2012. It was also agree d that IATA Secretariat should notify FIATA that Conference will be conducting t he Mail Vote in May and if FIATA would like to propose any revisions, t hese should be submitted prior to the en d of April 20 12.

ACTION: Voting on the proposed amendments to RP1670 to be held b y Mail Vote

in Ma y 201 2

ACTION: I A TA Secretariat to request FIATA to come back w i th proposed changes

latest b y en d of April 2012

M/216 A Member stated that it is cr itica l to record in th e CSC minutes that Conference was ready to take a c tio n on the am endments, but it was delayed because feedback was anticipated f r om FIATA.

REP O RT IT E

M

S

Agenda Items R/1 to R30

M/217 All the repor t items were noted by Conference.

M/218 For R/2 (CPCMG repo rt) it was n o ted that th ere were two additional CPCMG meetings held during 20 12.

M/219 The Chairman asked th at the 2011 CSC Achievements and 2012 CSC Plans be

attached to t he CSC/34 Minutes.

Secretary Note: The 2011 CSC Ach i evem ents and 2012 CSC Plans are attached.

C S C 2 011

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M/220 The Chairman asked to note UPU recognition and support of the con s ignment security declaration as a potential instrument for postal consignments. Also to note the

amendment s to the C-IMP Mail Label Data (ML D ) message that can potentially elevate it to an EDI standard that can be exchanged between airline s and groun d handlers and

facilitate event reporting to the Postal Operators.

Agenda Item A/97: Any Other Bu sinessMINUT ES – Cargo Services Conference (CSC/34) Page 38 of 42

M/221 There were no matters raised under this agenda item.

Agenda Item A/98: Date and Place of Next Conference

M/222 The Chairman informed the Conference that the date an d place of the next

Conference will be communicate d subsequ ently, when determined by the IATA

Secretariat.

Agenda Item A/99: Close of Meeting

M/223 The Chairman thanked all present f o r their participation.

M/224 The Chairman closed th e meeting at approximat ely 15:40 hours local t i me.

* *** *** *** ***MINUT ES – Cargo Services Conference (CSC/34) Page 39 of 42

Attach m e nt ‘A’

ATT E N D A N C E L I ST

CSC/ 34 - 12 Ma r c h 201 1

Airline Delegate Name

Air Canada Michael Morey

Air France Jean Dunaux
All Nippon Airways Teruo Miyah a ra All Nippon Airways Kosei Kitag a mi
All Nippon Airways Atsuya Mori no British Airways Malcolm Fowler Cathay Pacific Simon Leung

China Southern Airlines Laijun Luo
Egyptair M. Walaa M. Yousri

E t i h a d S a m Okpro

F e d E x * T o d d Frazie r

F i n n a i r M i k k o Kilpin e n
Gulf Air Khalid Mustafa Faqih
Japan Airlin es Toru Nokano

K L M J a n V r e e b u r g

Korean Air Donghun Kim Lufthansa Cargo Thilo Schaef er Malaysia Airlines Ibrahim M. Salleh
Malaysia Airlines Noor Zaida Nippon Cargo Airlines Yosuke Hara Nippon Cargo Airlines Kanoko Yamaguchi

P I A S h a b b i r A h m e d Qantas Airways Brian Hogan

S W I S S U r s S t u l z
S W I S S C h r i s t i n e B a r d e n Thai Airways Pitak Nakab hat
Thai Airways Soodkanueng Mapaisansin
Thai Airways Dumrongch a i Sawangchareon
Thai Airways Yannawit Sangsook

Turkish Airlines Hakan Lokman Yuksel

United Airlin es Angel Ramirez

U P S D a n S h e e h a n

*CSC ChairmanMINUT ES – Cargo Services Conference (CSC/34) Page 40 of 42

IATA Secre t ariat

Compan y Name

IATA – Gen e va *** Frederic Le ger

IATA – Mont real Carlos Tornero

IATA – Gen e va Ben Behanan

IATA – Gen e va Dave Brenn an
IATA – Gen e va Zhi Yong Liao

IATA – Gen e va Tahir Hasnain

IATA – Gen e va Hans Nilsso n
IATA – Gen e va Andrea Gru ber

***C SC Sec r etary

### MINUTES – Cargo Services Co nference (CSC/34) Page 41 of 42



## Attachment ‘B’

BRIEFING

MEMBERS ARE REMINDED THAT TH IS MEETING IS BEING HELD

PURUSANT TO THE PROVISIONS FOR THE CONDUCT OF THE

IATA TRAFFIC CONFERENCES. THE PROVISIONS PLACE

LIMITS ON WHAT THE CONF ERENCES CAN AND CANNOT

DISCUSS. WITHIN THE BOUNDARIES OF THE PERMITTED DISCUSSION AREAS, THE CO NFERENCE BENEFITS FROM

LIMITED ANTITRUST IMMUNITY IN SOME JURISDICTIONS.

ACCORDING TO THE PROVISIONS IN RESPECT OF THE CARGO SERVICES CONFERENCE, THE AUTHORIZED AREAS OF DISCUSSION ARE AS FOLLOWS, AND I QUOTE:

THE CARGO SERVICES CONFERENCE SHALL TAKE ACTION ON

MATTERS WHICH FACILITATE AND IMPROVE THE PROCESSING OF AIR CARGO THROUGH STANDARDIZATION OF PROCEDURES, DATA

EXCHANGES AND SYSTEMS WHILE MAXIMIZING BENEFITS TO CUSOMERS, PARTICIPATING CARRIERS, INDUSTRY AND ASSOCIATED

PARTNERS.



## THIS MEETING HAS NO AUTHOR ITY TO DISCUSS OR REACH

AGREEMENT ON MATTERS RELATI NG TO TARIFFS OR RATES

OR PRICING MATTERS.

NOR DOES IT HAVE AUTHOR ITY TO DISCUSS OR REACH

AGREEMENT ON THE ALLOCA TION OF MARKETS, THE

DIVISION OR SHARING OF TR AFFIC OR REVENUES, OR THE

NUMBER OF FLIGHTS OR CAPACITY THAT MAY BE OFFERED IN

ANY MARKET.

DELEGATES ARE WARNED THAT ANY DISCUSSION

REGARDING SUCH MATTERS OR CONCERNING ANY OTHER

COMPETITIVELY SENSITIVE TOPI CS OUTSIDE THE SCOPE OF THE AGENDA, EITHER ON OR OFF THE FLOOR ARE STRICTLY

PROHIBITED.

### MINUTES – Cargo Services Co nference (CSC/34) Page 42 of 42



## SHOULD A MEMBER ATTEMPT TO INTRODUCE SUCH TOPICS

THEY WILL BE CAUTIONED. SH OULD THEY PERSIST THEY

WILL BE ASKED TO LEAVE THE MEETING.