### BEFORE THE

DEPARTMENT OF TRANSPORTATION
WASHINGTON, DOC.

_________________ ______________

Agreements Adopted by the Traffic

Conferences of the Interna tional Docket OSTAir Transport Association

_________________ ______________

APPLICATION FOR APPRO VAL OF AGREEMENTS

BY THE

INTERNATIONAL AIR TRANSPORT ASSOCIATION

20 April 2011

Communications with respect to

this document should be sent to:

Douglas Lavin Regional Vice President – North America International Air Transport Association

1776 K St. N.W. #12 th 

### Floor Washington, D.C. 20006 (202)293-9292

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

Date: 20 April 2011 Filing fee/IATA Acct: $183 – CAR002CH01

US/UST involved?: yes Intended effective date: 1 July 2011 Meeting date/time: 33 rd 

### CSC held in Istanbul on 8 March 2011 Agreement/Minutes: CSC/33/Meet/008/2011 dated 19 April 2011 Expedited Finally Adopted Resolution 656 and Recommended

Practices 1630 and 1677

APPLICATION FOR APPR OVAL OF AGREEMENT

Pursuant to statements subm itted by Member airlines of th e International Air Transport Association (IATA), th e undersigned has been cons tituted to be their attorney -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 Secti ons 41308 and 41309 of Title 49 of the United States Code and Parts 303.03, 303.05 and 303.30(c) of Title 14 of the Code of Federal Regulations, I am filing with the Department this application for approval of an IATA

agreement.

This agreement and related f actual and explanatory material s and documentation required by 14 C.F.R. 303.31 and Department and Civ il Aeronautics Board (CAB) precedent are

contained in the IATA Traffic Conf erence documentation summarized above.

This agreement arises from the continui ng process of Services Conferences through

which IATA Member airlines establish standard ized facilitation arrangements intended to ease international air transportation and interline procedures. This agreement was developed in the context of prior Department and CAB ruling a ddressing related agreements which reflected regulatory and market conditions then in e ffect. The present agreement, which makes amendments to the framework agreements form ing the charter for ongoing facilitation programs or creates new agreements pursuant to that fr amework, should be viewed as part of a dynamic process of IATA Member airline adjustme nt to governmental and economic factors.

On previous occasions, the Departme nt and CAB have found these framework agreements to be consistent with the public inte rest. The present agreement does not impair the previous bases for approval and themselves are not adverse to the public interest. Moreover, approval of this agreement, which reflects compromises among the differing economic and social philosophies of the many nations whose airlines are parties, will advance the public interest in maintaining good aviation relations with other countries.

We request early approval by the Departme nt pursuant to 49 U.S.C. 41309 and the grant of full antritrust immunity pursuant to 49 U.S.C. 41308. The conferral of full antitrust immunity would be in the public interest and necessary for the transaction to proceed. This agreement is a

### product of the IATA Services Conferences whic h the Department found to be anticompetitive but nevertheless approved and im munized in Order 85-5-32 (May 6, 1985) on foreign policy and comity grounds.

The agreement embodies amendments to serv ices resolutions/recommended practices that have been previously approved and immuni zed or creates new resolutions/recommended practices pursuant to the framework forming the charter for ongoing facilitation programs. Therefore, consistent with the Department’s policy of immunizing amendments coextensively with the underlying agreement, the subj ect agreement should be granted immunity.

Respectfully submitted:

_____________________________ Douglas Lavin Regional Vice President – North America International Air Transport Association Attorney-in-fact

### CERTIFICATE OF SERVICE

A copy of this application or a summary notice th ereof has been served by first class or priority mail on the following persons:

US DEPARTMENT OF JUSTICE
450 5th St. NW, 8th floor Washington D.C. 20530 Att: Donna Kooperstein

Tel: 202 307 6349

_________________ _______________ Douglas Lavin

20 April 2011

Date ServedCSC/32 Agenda – Second Transmittal Page 1



## INTERNATIONAL AIR TRANSPORT ASSOCIATION



# FINALLY ADOPTED RESOLUTIONS

EXPEDITED FILING

33 rd 

## CARGO SERVICES CONFERENCE (CSC/33)

Istanbul, 8 March 2011MEMORANDUM

CSC/33/Meet/008/2011

TO: All Members of IATA Cargo Services Conference Accredited Representatives

CC: IATA Regional Directors/Cargo Managers Members, Cargo Procedures Conferences Management Group

IATA/FIATA Consultative Council Members, IATA Strategic Partners – Cargo Services

FROM: Secretary, Cargo Services Conference

DATE: 19 April 2011

SUBJECT: FINALLY ADOPTED RESOLUTIONS –

33 rd Cargo Services Conference (CSC/33) – 8 March 2011 Istanbul, Turkey

EXPEDITED RESOLUTION 656

EXPEDITED RECOMMENDED PRACTICES 1630 and 1677

Please find attached Resolution 656and Recommended Practices 1630 and 1677, as finally adopted at CSC/33 for expedited effectiveness.

The filing period runs from 20 April 2011 to 20 June 2011 , with an intended effective date of 1 July

2011 . The final effectiveness date will be comm unicated to Members by a Declaration of

Effectiveness Memorandum as soon as all r equired government approvals have been obtained.

Members are requested to file the Resolutions and Recommended Practices with their Government authorities where required, and to advise IATA Secretariat of their Government’s

action by 20 June 2011 , the end of the filing period. As usual, filing formalities with the U.S. Department of Transportation and the Canadian Transportation Agency will be handled by the

IATA Geneva office.

Please note that the Resolutions and Recommended Practices will be declared effective upon receipt of the required Government approvals, in accordance with Resolutions 001 and 006.

Frederic Leger Head Cargo Business Process and Standards, IATA

Attachments. CSC/33 Finally Adopted Resolutions Page 1

FINALLY ADOPTED RESOLUTIONS SUMMARY

The following Resolutions and Recommended Practices emanating from CSC/33 are requested for approval. The intended effective date is 1 July 2011

.

Resolution/ Recommended Practice Summary of Amendment

RESOLUTION 656

Automated Data Interchange with Customs

(Amending) Resolution 656, Attachment ‘A’ was updated to reflect the revised Memorandum of Understanding signed between IATA and the WCO incorporating “air cargo security” as an additional area of mutual interest that both organizations are cooperating on.

RECOMMENDED PRACTICE 1630

Cargo Security

(Amending) Recommended Practice 1630 was updated to incorporate the new consignment security declaration layout and procedures as well as completion guidelines from Cargo-IMP electronic message, including:

• Modification of definitions to align with ICAO amendment 12 (article 2)

• Modification of Regulated Agent (article 3.2)

• Modification of Known Consignor (article 3.3)

• Inclusion of the Account Consignor concept (article 3.4)

• Modification to the Security Declaration (article 3.12)

RECOMMENDED PRACTICE 1677

Framework for a Postal Service Agreement

(New) The new Recommended Practice 1677 contains the model framework developed jointly by IATA and the Universal Postal Union (UPU) which could be used by airlines and postal operators when initiating a service agreement.CSC/33 Finally Adopted Resolutions Page 2

RESOLUTION 656

AUTOMATED DATA INTERCHANGE WITH CUSTOMS

CSC( MAIL S068 33 ) 656 Expiry: Indefinite Type: B

RESOLVED that:

1. Data exchange between the automated system s of Members and those of customs administrations shall be gover ned by the principles contained in the joint Memorandum of Understanding (MoU) between IATA and the World Customs Organization (WCO), signed on 5 April 2011 and reproduced as Attachment ‘A’.

2. Information to facilitate the interface betw een the automated systems of Members and customs administrations in accordance with the principles of the attached MoU shall be included in the industry messages, as set forth in either the IATA/ATA Cargo Interchange Message Procedures (Cargo-IMP) Manual (Resolution 670, Attachment ‘A’), the IATA Cargo-FACT Message Manual (Recommended Practice 1672, Attachment ‘A’), or the Cargo-XML Message Manual set forth in Recommended Practice 1675, Attachment ‘A’.CSC/33 Finally Adopted Resolutions Page 3

RESOLUTION 656

Attachment ‘A’

MEMORANDUM OF UNDERSTANDING BETWEEN THE WORLD

CUSTOMS ORGANIZATION 1 AND THE INTERNATIONAL AIR

TRANSPORT ASSOCIATION

This Memorandum of Understanding is concluded between the WORLD CUSTOMS ORGANIZATION (hereinafter the “WCO”) and the INTERNATIONAL AIR TRANSPORT ASSOCIATION (hereinafter “IATA”).

The WCO and IATA may also be individually referred to as “Party”, or collectively as “Parties”.

HAVING REGARD to the Revised Kyoto Convention on the simplification and harmonization of Customs procedures which requires, inter alia, computer applications implemented by Customs administrations to use internationally accepted standards,

AWARE of the common interest that exists between Customs administrations and Airlines in the secure, efficient transportation and clearance of cargo,

RECOGNIZING the growing trend towards the reduction of paper and the benefits that a paperless trading environment can bring,

NOTING the ever increasing level of automation in the airline industry and the increasing number of Customs administrations that are introducing electronic systems,

BELIEVING it is necessary to have close cooperation to achieve simplification and harmonization between Airlines and Customs administrations,

CONSIDERING that close cooperation between the Parties is desirable for achieving these goals,

The Parties agree that such objectives can be pursued through:

ARTICLE I - COOPERATION

1.1. The WCO and IATA agree to strengthen mutual cooperation and endeavour to adopt mutually relevant guidelines on the development and operation of technical arrangements

and initiatives.

1.2. The Parties shall strive to endorse agreed upon standardized procedures on automated processing of electronic data related to transportation of cargo, in a manner to be defined by

the Parties.

1.3. The Parties shall endeavour to formalize, maintain and update such agreed upon standards in line with current or future procedures to be defined by the Parties.

1.4. The Parties shall also strive to promote, to the extent possible, the implementation and widespread use of the agreed upon standards and procedures.

1 Established in 1952 as the Customs Cooperation Council.CSC/33 Finally Adopted Resolutions Page 4

ARTICLE II – MUTUAL CONSULTATION AND ADMINISTRATIVE MATTERS

2.1. The Parties may consult each other, as needed, on matters of common interest for the purpose of achieving the aims set forth in this Memorandum of Understanding.

2.2. In particular, the Parties may decide to exchange information in fields and projects of mutual interest, in accordance with the aims and provisions of this Memorandum of Understanding

such as:

• The WCO SAFE Framework of Standards

• Customs in the 21 st Century

• WCO Data Model

• IATA e-freight

• IATA electronic Air Waybill

• Air cargo security

2.3. The Parties agree that, in order to safeguard confidentiality of any information to be mutually disclosed, the signature of a preliminary confidentiality agreement may be required.

2.4. The Parties further agree that all administrative matters linked to the execution or operational feasibility of this Memorandum of Understanding shall be decided and formalized in documents to be agreed upon later by the Parties, as the case may be.

This Memorandum of Understanding shall enter into force on the date of its signature by both

Parties.

This Memorandum of Understanding shall be reviewed upon the request of either the Secretary General of the WCO or the Director General of IATA and may be amended by mutual agreement in writing.

Either Party may terminate this Memorandum of Understanding at any time by giving the other Party

written notice of three months.

The Parties hereby agree that this Memorandum of Understanding shall fully replace and supersede the Memorandum of Understanding previously signed by the Parties on 20 June 1988, as well as any extensions or amendments thereof.

In witness whereof, the Parties have concluded the present Memorandum of Understanding in 2 (two) originals in each of the English and French languages and appended their signatures thereto.CSC/33 Finally Adopted Resolutions Page 5

RECOMMENDED PRACTICE 1630

CARGO SECURITY

CSC( 31 33 ) 1630 Expiry: Indefinite Type: A

RECOGNISING the action taken by Contracting Member States of the International Civil Aviation Organisation (ICAO) and recognising that ICAO has accorded the highest priority to aviation security in adopting and maintaining Annex 17 to reflect worldwide concern over acts of unlawful interference against aircraft;

RECOGNISING ALSO the importance placed on av iation security by the IATA Operations Committee and the resulting Recommended Security Practice; and

AS A RESULT OF these developments and action take n by the IATA Cargo Agency Conference in amending the Cargo Agency Rules to specifically require adherence to airline cargo security

measures.

RECOMMENDED that:

1. SCOPE OF RECOMMENDED

PRACTICE This cargo security Recommended Practice is intended to protect air carrier operations against acts of unlawful interference. All Members and IATA Cargo Agents should implement the cargo security

measures described in this Recommended Practi ce. All Members and IATA Cargo Agents should acknowledge and respect cargo security measures accepted or required by governments and those embodied in ICAO Annex 17. In increased threat situations, supplementary measures may be implemented. Guidance material to assist in the implementation of this Recommended Practice is available in the IATA Security Manual.

2. DEFINITIONS

The following definitions are adopted:

2.1 “ACCOUNT CONSIGNOR [I1] ”. 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 SHIPPER or KNOWN CONSIGNOR [I2] ”. A consignor who originates 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, The originator of property for transportation by air who

has established direct business with, and has been recognised by the appropriate government authority , a regulated agent, or an air carrier on the basis of agreed criteria.

2.4 “REGULATED AGENT [I3] ”. 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.CSC/33 Finally Adopted Resolutions Page 6

2.5 “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 “SECURITY”. Safeguarding civil aviation against acts of unlawful interference. This objective is achieved by a combination of measures and human and material resources.

2.7 “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 “SECURITY PROGRAM”. Measures adopted to sa feguard international civil aviation against

acts of unlawful interference.

3. GENERAL PRINCIPLES

3.1 General

All cargo intended to be carried on passenger or all-cargo aircraft should be subjected to security controls before being uplifted on the aircraft.

3.2 Regulated Agent

3.2.1 Each Regulated Agent should have a security programme approved by the appropriate authority in respect of the acceptance, storage and forwarding of cargo.

3.2.2 Each Regulated Agent should register with the appropriate authority and establish with the air carriers, that it conducts business with, its identity and address as well as the agents authorised to carry out deliveries on its behalf.

3.2. 2 3 The appropriate authority should conduct periodic inspections of the facilities to ensure that the security programme has been implemented and is maintained.

3.3 Known Shipper

– Known Consignor

3.3.1 Each Known Shipper/ Known Consignor should establish and register with the appropriate authority and establish with a the Regulated Agent s or air carrier s, that it conducts business with, its identity and address as well as the agents authorised to carry out deliveries on its behalf.

3.3.2 Known Shippers/ Known Consignors should declare in paper, electronic format, or any other means that may be allowed in the future its commitment that:

3.3.2.1 its consignments are prepared in secure premises; and

3.3.2.2 it employs reliable staff in preparing the consignments; and

3.3.2.3 it protects the consignments against unauthorized interference during preparation, storage and transportation.

3.3.3 Known Shippers/ Known Consignors should certify in paper, electronic format, or any other means that may be allowed in the future that the each consignment does not contain any explosi ves/ammunition/flammable liquids/corrosives or disabling or incapacitating items, which they are not licensed to ship unknown cargo or dangerous goods, or that dangerous goods in theCSC/33 Finally Adopted Resolutions Page 7

consignment have been prepared in accordance with IATA Dangerous Goods Regulations , or unknown cargo

.

3.3.4 Known Shippers/ Known Consignors accept that the package and contents of the consignment may be examined for security reasons.

3.4 Account Consignor

3.4.1 Each Account Consignor should establish and register with the Regulated Agents or air carriers, that it conducts business with, its identity and address as well as the agents authorised to carry out deliveries on its behalf.

3.4.2 Account Consignors should declare in paper, electronic format, or any other means that may

be allowed in the future its commitment that:

3.4.2.1 its consignments are prepared in secure premises; and

3.4.2.2 it employs reliable staff in preparing the consignments; and

3.4.2.3 it protects the consignments against unauthorised interference during preparation, storage and transportation.

3.4.3 Account Consignors should certify in paper, electronic format, or any other means that may be allowed in the future that each consignment does not contain any explosives/ammunition/flammable liquids/corr osives or disabling or incapacitating items, which they are not licensed to ship unknown cargo or dangerous goods, or that dangerous goods in the consignment have been prepared in accordance with IATA Dangerous Goods Regulations , or unknown cargo

.

3.4.4 Account Consignors accept that the package and contents of the consignment may be examined for security reasons.

3. 4 3.5 Security Controls

All personnel accepting or handling cargo should be subjected to background checks, possess all competencies required to perform their duties and be appropriately trained according to the requirements established by the appropriate authority.

3.5 3.6 Security Screening Personnel

Persons involved in security screening of cargo, should be subjected to background checks, possess all competencies required to perform their duties and be appropriately trained according to the requirements established by the appropriate authority. Persons carrying out screening operations should be certified according to the requirements of the national civil aviation security programme to ensure that performance standards are consistently and reliably achieved.

3. 6 3.7 All Aircraft Operational Security

3. 6 .1 3.7.1 All cargo should be subjected to security controls prior to being uplifted on an aircraft. Air carriers should not accept cargo for carriage onto an aircraft unless it has applied such controls itself or their application has been confirmed by a Regulated Agent, or if being uplifted on an all-cargo aircraft, an account consignor.CSC/33 Finally Adopted Resolutions Page 8

3. 6 .2 3.7.2 All consignments accepted from Known Shippers Consignors and/or Regulated Agents will be deemed to have met required security provisions only after proper checks have been completed.

3. 6 .3 3.7.3 All consignments accepted from persons other than Known Shippers Consignors or Regulated Agents must be physically searched, electronically screened or screened by other means. In addition, a person other than a Known Shipper Consignor or Regulated Agent must provide acceptable documentation as to his iden tity, the details of which shall be recorded.

3. 6 .4 3.7.4 Cargo cleared for all-cargo operations should be subjected to additional appropriate security controls if transferred onto an all passenger aircraft (either at origin or before uplift onto a passenger aircraft).

3. 7 3.8 Safe Custody

3. 7 .1 3.8.1 Air carriers must ensure that from the time of acceptance and until completion of air transportation, cargo consignments are protected from unauthorized interference.

3. 7 .2 3.8.2 All known cargo consignments that are not adequately protected from unauthorised interference after acceptance, as required by the National Civil Aviation Security Programme, shall

be screened.

3. 8 3.9 Right of Inspection and Refusal of Carriage

3.8 .1 3.9.1 Air carriers reserve the right to examine, or cause to be examined, the packaging and contents of all cargo consignments and to enquire into the correctness or sufficiency of information or documentation tendered in respect of any consignment.

3.8 .2 3.9.2 Air carriers reserve the right, without assuming any liability, to refuse, delay or return any cargo or mail consignments when circumstances so require or for security reasons.

3.9 3.10 Acceptance of Mail

3.9 .1 3.10.1 The responsibility for the security screening and sealing of mail is that of the postal

authorities.

3.9 .2 3.10.2 Air carriers must ensure that mail is received by their authorised personnel who will establish the identity of the person presenting the mail that the seals are intact and that the bags do not show signs of having been interfered with.

3.1 0 3.11 Security Screening Equipment

Any equipment used to screen cargo consignments mu st be approved by the appropriate authority as being suitable for the task and shall be maintained and serviced so as to meet manufacturers' specifications as well as local health, safety and regulatory requirements. Where practicable, in order to improve efficiency, modern screening or examination techniques and technologies should be used to facilitate the physical examination of goods to be exported.

3.1 1 3.12 Security Declaration

3.12.1 The appropriate authorities and/or air carriers may require for each shipment a security declaration to be provided in paper, electronic format, or any other means that may be allowed in the future. It is the responsibility of all Members and IATA Cargo Agents to be familiar and comply with any such security declaration requirements.CSC/33 Finally Adopted Resolutions Page 9

3.12.2 For paper security declarations, where not otherwise specified, it is recommended that the

form to be used is the standard “Consignment Security Declaration” form shown in Attachment ‘A’. A completed form is shown in Attachment B.

3.12.3 Support of the electronic format can be provided through IATA CIMP messages (or IATA XML messages). This information can also be reproduced on the standard “Consignment Security Declaration” form. As an example, an indication of which fields from the Air Waybill Data (FWB) message can populate the form is shown in Attachment C.

3.12.4 The storage of this completed “Consignment Security Declaration” form or the electronic message information also establishes an audit trail that can be accessed by the regulators if requested.

4. IATA CARGO AGENTS

4.1 IATA Cargo Agents should ensure that the security standards described in this Recommended Practice are followed. In increased threat situations, supplementary security measures may be required by air carriers or appropriate authorities.

4.2 The Cargo Agency Conference Resolutions, which embody the rules for accreditation of cargo agents, include text specifically relating to securi ty. This requires the agent to implement security controls as required by the appropriate authorities and which may be supplemented by Member air

carriers.

4.3 Cargo agents' security procedures should embody those in this Recommended Practice and include the following recommended provisions:

4.3.1 security requirements for the packing, storage, transportation and delivery of consignments to an approved agent or carrier;

4.3.2 established procedures for the identification and verification of persons other including than Account Consignors, Known Shippers Consignors or Regulated Agents and the recording of their details;

4.3.3 requirements for the physical protection and safe keeping of consignments held in their custody prior to delivery to the carrier;

4.3.4 criteria for the training and recurrent training of agents' staff involved with security screening, storage, transportation and delivery of consignments.

5. GUIDELINES

Guidelines for the practical implementation of cargo security procedures are described in the IATA Security Manual Security Manage

- ment System (SEMS) Cargo Security Addendum

.CSC/33 Finally Adopted Resolutions Page 10

RECOMMENDED PRACTICE 1630

Attachment ‘A’

Consignment Security Declaration

Regulated Agent Identifier
(of the regulated agent issuing the security status) Unique Consignment Identifier
(if AWB format is nnn-nnnnnnnn)

Content of Consignment

Consolidation

Reasons (that the security was issued) Security Status

Received from
(codes) Screening Method
(codes) Grounds for Exemption
(codes)

Specify Other Screening Method
(if applicable)

Security Status Issued by

Name of Person or Employee ID ................................... Security Status Issued on

Date (ddmmmyy) ....... Time (tttt) ....

Regulated Agent Identifier(s)
(of any regulated agent who has accepted the security st atus given to a consignment by another regulated agent)

Additional Security InformationCSC/33 Finally Adopted Resolutions Page 11

RECOMMENDED PRACTICE 1630

Attachment ‘B’



### Consignment Security Declaration

Regulated Agent Identifier GB/RA/001-011/0213
(of the regulated agent issuing the security status) Unique Consignment Identifier 777-12345675
(if AWB format is nnn-nnnnnnnn)

Content of Consignment

Consolidation

Reasons (that the security was issued) Security Status



### SPX Received from
(codes) Screening Method
(codes) Grounds for Exemption
(codes)

Specify Other Screening Method
(if applicable)

Security Status Issued by

Name of Person or Employee ID ................................... Security Status Issued on

Date (ddmmmyy) ....... Time (tttt) ....

Regulated Agent Identifier(s)
(of any regulated agent who has accepted the security st atus given to a consignment by another regulated agent)

Additional Security Information

This master air waybill contains no: 1. Freight from that country 2. Toner cartridge greater than 550g transferring this countryCSC/33 Finally Adopted Resolutions Page 12

RECOMMENDED PRACTICE 1630

Attachment ‘C’



### Consignment Security Declaration

Regulated Agent Identifier
(of the regulated agent issuing the security status) Unique Consignment Identifier
(if AWB format is nnn-nnnnnnnn)

Content of Consignment

Consolidation

Reasons (that the security was issued) Security Status

Received from
(codes) Screening Method
(codes) Grounds for Exemption
(codes)

Specify Other Screening Method
(if applicable)

Security Status Issued by

Name of Person or Employee ID ................................... Security Status Issued on

Date (ddmmmyy) ....... Time (tttt) ....

Regulated Agent Identifier(s)
(of any regulated agent who has accepted the security st atus given to a consignment by another regulated agent)

Additional Security InformationCSC/33 Finally Adopted Resolutions Page 13

Completion Instructions

1 Ref. 29 Other Customs, Security and Regulatory Control Info rmation in particular Ref. 29.3 ISO Country Code + Ref. 29.5
Information Identifier (ISS) + Ref. 29.7 Customs Information Identifier (RA and ED) + Ref. 29.9 Supplementary Customs

Information

ISS - the regulated agent is suing the security status
OCI/GB/ISS/RA/001-011
///ED/0213

2 Ref. 2.1 AWB Identification

3 Ref. 12.11 Goods Description or Ref. 12.12 Consolidation

4 Ref. 25. Special Handling Details

5 Ref. 29 Other Customs, Security and Re gulatory Control Information in particular Ref. 29.3 ISO Country Code + Ref.
29.5 Information Identifier (ISS) + Ref. 29. 7 Customs Information Identifier (KC + ED) + Ref. 29.9 Supplementary Customs

Information:

OCI/GB//KC/001-011
///ED/0213

6 Ref. 29 Other Customs, Security and Re gulatory Control Information in particular Ref. 29. 7 Customs Information
Identifier (SM) + Ref. 29.9 Suppl ementary Customs Information

///SM/RES
///SM/AOM-SPECIFY ANY OTHER MEANS

7 Ref. 29 Other Customs, Security and Re gulatory Control Information in particular Ref. 29. 7 Customs Information
Identifier (L) + Ref. 29.9 Suppl ementary Customs Information

///L/DIPL

8 Ref. 29 Other Customs, Security and Re gulatory Control Information in particular Ref. 29. 7 Customs Information
Identifier (SN) + Ref. 29.9 S upplementary Customs Information

///SN/JOHNNY WALKER

9 Ref. 29 Other Customs, Security and Re gulatory Control Information in particular Ref. 29. 7 Customs Information
Identifier (SD) + Ref. 29.9 S upplementary Customs Information

///SD/05031200

10 Ref. 29 Other Customs, Security and Regulatory Control In formation in particular Ref. 29.3 ISO Country Code + Ref. 29.5
Information Identifier (OSS) + Ref. 29.7 Customs Information Identifier (RA and ED) + Ref. 29.9 Supplementary Customs

Information

OSS - the regulated agent accepting the securi ty status given by another regulated agent
OCI/GB/ISS/RA/001-011
///ED/0213
/GB/OSS/RA/002-022
///ED/0213CSC/33 Finally Adopted Resolutions Page 14

11 Ref. 29 Other Customs, Security and Re gulatory Control Information in particular Ref. 29. 7 Customs Information
Identifier (ST)+ Ref. 29.9 Supp lementary Customs Information

///ST/THIS MASTER AIR WAYBILL CONTAINS NO
///ST/1. FREIGHT FROM THAT COUNTRY
///ST/2. TONER CARTRIDGE GREATER THAN 550
//ST/ GRAMS TRANSFERRING THIS COUNTRYCSC/33 Finally Adopted Resolutions Page 15

RECOMMENDED PRACTICE 1677

FRAMEWORK FOR A POSTAL SERVICE AGREEMENT (New)

CSC(33) 1677 Expiry: Indefinite Type: B

Recognizing that RESOLUTION 695 AIRMAIL PANEL indicates:

2.5 in conjunction with the Universal Postal Union and other organizations, to provide guidance and assistance to non-airline participants in the carriage of airmail* such that appropriate IATA standards are developed and implemented wherever needed.

Recognizing also that RESOLUTION 657, Atta chment ‘A’ MEMORANDUM OF UNDERSTANDING

BETWEEN THE UNIVERSAL POSTAL UNION AND THE INTERNATIONAL AIR TRANSPORT

ASSOCIATION

Indicates in the PREAMBLE that:

WHEREAS the Parties recognize their common interest in the rapid and reliable movement of mail, as well as in the consistent and accurate reporting of mail movement
status;

WHEREAS the Parties recognize their common interest in developing standard handling and reporting procedures for the movement of mail;

the IATA-UPU Contact Committee has developed and agreed a model ”Framework for a Service Agreement” which is Attachment A to this Recommended Practice and it is:

RECOMMENDED that:

Wherever practicable, Members shall use this framework when entering into a service agreement with a Designated Operator (DO) of postal services.

*Note: Members are reminded that the transportation of mail is accompanied by such documentation as specified by the UPU Acts or through UPU EDI messaging standards and not the IATA standard Air Waybill as set forth in Resolution 600a nor a Shipment Record

under Recommended Practice 1670.RECOMMENDED PRACTICE 1677

Attachment ‘A’UPU UNIVERSAL

POSTAL
UNION

Framework for a Service Agreement

between

_

____________________________________________, an air transport company incorporated under the laws of

_________________________________________, having its principal place of business in

____________________________________________, ("the Carrier"),

and

_____________________________________________, a Designated Operator (DO) of

______________________________________________ (country), incorporated under the laws of

______________________________________________ and having its principal place of business at

____________________________________________, (“the Principal”),

(Collectively hereafter referred to as “the Parties”)

The Service Agreement is applicable to the transportation of international mail

from (country of Designated Operator) ________________________________________________________

to destinations served by (Carrier) ________________________________________________________

( Hereafter “the A g reement” )2

Table of contents

Part A – General terms and conditions Page

I. Definitions 3

II. Objectives and scope of the Agreement 6

III. The Carrier's obligations 7

IV. The Principal’s obligations 10

V. Obligations common to both Parties 11

VI. Rates 12

VII. Terms of payment 12

VIII. Irregularities and liability 13

IX. Duration and termination of the Agreement 16

X. Disputes 16

XI. Final provisions 17

Part B – List of Appendices 19

Appendix 1 Routeing plan

Appendix 2 Rates

Appendix 3 Estimated volumes

Appendix 4 Performance success level and critical handover times

Appendix 5 Contact list of the Principal

Appendix 6 Contact list of the Carrier

Appendix 7 Specific measures and ta sks related to Dangerous Goods3

Preamble

WHEREAS the Principal wishes to contract with an ai r transport company to ensure the air conveyance of postal items;

WHEREAS the Carrier agrees to provide the conveyance of postal items to the Principal, under the terms and conditions specified in this Agreement;

The Parties agree:

Part A – General terms and conditions

I. Definitions

Article 1

Definitions

As used in this Agreement, the terms stat ed below are to be interpreted as follows:

Acceptance :

Point of time at which the Carrier formally accepts to provide the service in accordance with this Agreement, confirmed by the proof of acceptance provided by the Carrier to the Princi pal or the DO of origin/transit.

Agent :

– Representative of the Carrier, including the ground handler performing duty on behalf of the Carrier at the airport of destination and, if re levant, at the airport of transit.

– Representative of the Principal at the airport of destination, as indica ted by the Principal to the Carrier.

Airmail :

Any postal item conveyed in principle by air and with priority.

Airmail routeings :

All routes and schedules for the transportation of Mail by the Carrier. The Carrier may change these routes and schedules depending upon factors such as t he weather or flight cancellations.

Basic airmail conveyance rate (BACR) :

Rate applicable for the transportation of Mail by carri ers on behalf of DOs in the absence of any specific Agreement of the latter on a rate. The BACR is det ermined yearly by the UPU International Bureau and approved by the UPU Postal Operati ons Council. It is based on Internat ional Airline Financial Statistics prepared by the International Civil Aviation Organization.

CARDIT :

EDI message sent from a DO originating a consignment to any carrier (including an airline) that is going to transport that consignment. The CARDIT message is t he electronic equivalent of the CN 38, CN 41 or CN 47 delivery bill. It is a consignment-level mess age providing pre-advice of Mail to the Carrier.

Consignment :

The Mail of a single service level (either EMS, priori ty mail, surface airlifted mail, or empty bags being returned) and documents handed over by the Principal fo r the service from origin to destination in accordance with the routeing plan and as s pecified in the transportation documents.4

Contracted volumes :

The volume of Mail in a consignment handed over by the Principal in accordance with the estimated volumes and/or accepted by t he Carrier for the service.

Critical handover time :

The latest time at origin the Mail has to be handed over to the Carrier or the latest time at destination the Mail has to be handed over to the Principal.

Dangerous Goods

The articles covered by the "Recommendations on the Transport of Dangerous Goods" drawn up by the United Nations, with the exception of certain dangerous goods provided for in the existing UPU Regulations, and by the Technical Instructions of the International Civil Aviation Or ganization (ICAO) and International Air Transport Association (IATA) Dangerous Goods Regulations shall be cons idered as dangerous goods.

Days :

Full calendar days, including legal rest days and public holidays.

Delivery :

Handover of Mail at the destination, c onfirmed by the proof of delivery.

Designated Operator :

Any entity (governmental or private law entity) offi cially designated by the gov ernment of a UPU member country to operate postal services and to fulfil the obligations arising from the Acts of the UPU on its territory, in particular to ensure the acceptance, handli ng, conveyance and delivery of postal items.

Destination :

Location, normally inside the airport, where the Mail is handed over to the DO of destination by the Carrier.

DO :

Abbreviation of Designated Operator

.

Documents :

Documents, including bag tags and labels, issued by the DO according to the UPU provisions and regulations (such as the CN 38 delivery bill for prio rity and EMS products, or the CN 41 delivery bill for surface air lifted mail products with defe rred priority), which, prima facie, gi ve evidence of the contract for the performance of services between the DO and the Carrier . The documents serve, inter alia, as manual proof of acceptance and delivery, as proof of transportation, and as a basis for final billing.

Electronic data interchange (EDI) :

The exchange of information messages (e.g. CARDIT and RESD IT) as specified in the latest version of the UPU EDI Messaging Standards publication.

EMS:

Postal express service for document s and merchandise (collection, dis patch and delivery), provided on the basis of the EMS Standard Multilateral Agreement or by bilateral agreement in relations between DOs which have agreed to provide this service, EMS ta kes priority over other postal items.

Handover :

Acceptance of the Mail by the Carrier for transportation, which takes over its custody from the Principal or

DO of transit.

Delivery of the Mail transported by the Carrier to the DO of transit or of the country of destination.5

International Air Transport Association :

Global trade organization, whose mission is to represent, lead and serve the airline industry.

IATA :

Abbreviation of International Air Transport Association.

IATA season :

The IATA summer season starts on the last Sunday of March and ends on the last Saturday of October.

The IATA winter season starts on the last Sunday of October and ends on the last Saturday of March.

Mail :

All postal items as defined in the Universal Postal C onvention, to be carried on an aircraft, truck or any other vehicle or subject to other services as mentioned her ein. The Mail transported should be divided into priority mail or surface airlifted mail conveyed by air with reduced priority. Any articles lodged on the documents are classified as Mail. Cargo or goods which are re ferred to in the Chicago Convention 1944, Warsaw Convention 1929, Montreal Conventi on 1999 or any related Protocol or Convention, are excluded.

Non-priority item :

Item for which the sender has chosen a lowe r rate, implying a longer delivery time.

Origin :

The place of dispatch of the Mail, where the Carrier accepts the Mail from the Principal to provide the

Services.

Postal item :

Generic name referring to any item dispatched by a DO (letter post, parcel post, money orders, etc).

Priority item :

Item conveyed by the quickest route (a ir or surface) with priority.

Proof of acceptance ("POA") :

Means a positive check of all Mail received by the Carrier by positive data capturing of mail receptacle identifiers enclosed in the proper EDI messages generat ed by the Carrier, and/or by the signature of the documents, or by other agreed data ex change. Proof of acceptance is subj ect to the critical handover time specified by the Carrier for a specified volume of Mail.

Proof of Delivery ("POD") :

Means a positive check of all Mail received by the DO at destination or by its agent by positive data capturing of mail receptacle identifiers enclosed in the proper EDI messages generated by the Carrier, and/or by the signature of the document s, or by other agreed data exchange. Proof of delivery is subject to the critical handover time specified by the Carrier for a specified volume of mail, and to the local DO’s availability to sign or exchange a POD.

Rates :

Service fee as stated in Appendix 2 to this Agreement.

RESDIT :

A RESDIT message is the message sent by a carrier of a consignment (such as an airline) to the DO. A RESDIT message is normally sent in response to a CA RDIT. However if no CARDIT is received, a RESDIT message can also be sent if a suitable message standar d is used between a DO and a carrier. There can be several RESDIT messages for a single CARDIT as the receptacles in a consignment are transported along the supply chain from origin to destination.6

Routeing plan :

The list of airmail routeings that shall be used for the service as agreed between the Carrier and the Principal, as specified in Appendix 1.

S.A.L. (Surface Airlifted) item :

Any surface item conveyed by air with reduced priority.

Special Drawing Right (SDR) :

The SDR is an international reserve asset created by the International Monetary Fund (IMF) in 1969 as a supplement to existing reserve assets. Its value is bas ed on a basket of currencies whose weight is adjusted at regular intervals. The SDR is used by the UPU and several other international organizations as an accounting unit.

Services :

All services related to the transportation of mail, such as loading, unloading, ground handling, security, transportation, distribution and documentation.

Transportation :

Transportation means the actual transpor t and physical movement by air, sea or road, as the case may be.

Universal Postal Union :

Specialized agency of the United Nations, whose aim s hall be to secure the organization and improvement of the postal services and to promote the development of international collaboration in this sphere.

UPU :

Abbreviation of Universal Postal Union

Universal Postal Convention :

International treaty containing the rules applicabl e throughout the international postal service.

II. Objectives and scope of the Agreement

Article 2 Objectives and scope of the Agreement

2.1 This Agreement describes the conditions pursuant to which the Carrier shall provide the Services to the Principal from the point of origin to the point (s) of destination, or to the point of transit, in conformity with applicable rates, the routeing pl an and the estimated volumes as mentioned in the Appendices.

2.2 This Agreement applies to the provision of the Services relating to the following categories of Mail

mentioned in the Universal Postal Convention:

2.2.1 EMS.

2.2.2 Priority mail: Airmail (le tter post, parcel post, money orders).

2.2.3 Non-priority mail: S.A.L. items (letter post and parcel post).

2.2.4 Empty bags (SV).7

III. The Carrier's obligations

Article 3

Service

3.1 The Carrier shall provide the Services for t he Principal in accordance with this Agreement.

Article 4 Integrity of Mail

4.1 The Carrier shall handle the Mail as specified in this Agreement in accordance with the levels of performance detailed in Appendix 4.

4.2 The Carrier shall, to the best of its abilitie s and as far as may reasonably be expected, provide necessary protection for all Mail in its possession from weather, dust, damage, loss or theft while in its custody.

Article 5

Refusal of handover

5.1 The Carrier may refuse to accept handover of the Mail (handover failure), including the following circumstances as examples:

5.1.1 Mail placed in damaged bags or receptacles;

5.1.2 Mailbags or individual receptacles weighing more than the weight limit laid down in the UPU Acts, prior to delivery to the Carrier;

5.1.3 Loose parcels weighing more than the weight limit laid down in the UPU Acts and/or exceeding UPU–IATA standard dimensions or (_______________) metres for the sum of the length and greatest circumference measured in a dire ction other than that of the length;

5.1.4 Mail receptacles with unreadable or poorly attached labels;

5.1.5 Handover of the Mail after the agreed time and/ or at a location different from the one agreed, subject to article 11.1 of the Agreement;

5.1.6 Mail tendered in excess of the agreed allocati on, subject to article 23.1 of the Agreement.

5.2 The Carrier has the right to refuse the handover of Mail at origin or to handover the Mail at

destination and shall return such Mail at the Princi pal’s expense, or hold such Mail at any point, at its discretion, in the following cases:

5.2.1 The Carrier has objective and reasonable reasons to perceive its contents to be illegal, or of a dangerous nature or otherwise, and that its contents are likely, in the sole judgement of the Carrier, to damage or affect other Mail, goods or equipment belonging to the Carrier, its employees or third parties.

5.2.2 A visual inspection indicates that the Ma il to be uplifted appears to be improperly packed, wrapped or labelled or is in a condition indicating suspect ed damage, tampering or pilferage at the moment of handover and before proof of acceptance from the Carri er. In this case, the Carrier shall notify the Principal of the reasons for refusal. The Carrier shall provide the Principal with the opportunity to correct the defects when the handover and handling time allows.

5.2.3 The Principal fails to meet or is likely not to meet its financial obligations stipulated under this Agreement.

5.3 The Carrier should not refuse to handover Mail at destination because of an accounting dispute or any other type of dispute betw een the Principal and the Carrier.8

Article 6 Custody of the Mail

6.1 Mail shall be considered to be in the custody of the Carrier, from the proof of acceptance of the Mail until proof of delivery.

6.2 Without limitation, proof of acceptance and proof of delivery may be provided either in writing (by signing the documents) or by an electronic acknow ledgement of receipt. The availability of manual proof of acceptance or delivery is subject to local conditions that apply to the Carrier and/or the Principal. Where EDI messaging is used, the Pr incipal and the Carrier shall agree on the scope, timing and source location of such messages.

Article 7

Performance

7.1 The Carrier shall use its best efforts to upli ft Mail accepted for transportation to the destination without unnecessary delay.

7.2 If the transportation chain is interrupted through the fault of the Carrier, the Carrier shall be responsible for the return of the Mail to origin or for its storage until the transportation is resumed. If the transportation chain is interrupted through no faul t of the Carrier, the Carrier shall immediately contact the Principal for further instructions.

7.3 The Carrier shall provide the Services for t he Principal’s Mail for the agreed quantities set out in Appendix 3.

7.4 The Carrier shall ensure that the Servic es meet the following level of performance:

7.4.1 The Carrier shall achieve the agreed percent age performance success level specified for each Mail category in Appendix 4, and defined as the ratio of the contracted volumes for each consignment accepted by the Carrier at origin and handed over bef ore the critical handover time at destination, over a period of six months or whatever diffe rent time period is agreed between the Parties.

7.5 The Principal and the Carrier shall meet at agreed intervals to review and discuss all issues arising from the performance of this Agreement. Each party shall provide the other party with information/data concerning the carriage of Mail under this Agreement, as and when requested, to review each party's performance. U pon notification by one party to the other that it is not performing according to the agreed levels, the non-performing par ty will provide the other party with an action plan to remedy any performance defici ency within a specified timeframe.

Article 8

Subcontractors

8.1 The Carrier is authorized to use other carriers or non-carrier sub-contractors if necessary to provide the Services and guarantee the required performance success level under this Agreement. It is the Carrier's responsibility to inform the Principal and manage the performance of such sub-contractors to the performance levels st ipulated in this Agreement.

Article 9 Routeing

9.1 The Carrier shall provide to the Principal the new airmail routeings, including the specification of the restrictions of the mail load capacity per flight, at least one week before the start of the new IATA season so as to enable the latter to provide a rout eing plan and estimated volumes per flight to the Carrier in accordance with article 15 of the present Agreement.9

9.2 The Carrier shall notify the Principal, as s oon as possible and if possible a week before the implementation date, of any schedul e changes to its flights or any other known issues that are relevant to the smooth performanc e of the Services. When possible, revised flight schedules should be provided to the Principal 30 days before t he publication of the seasonal timetables.

Article 10

Critical handover times

10.1 The critical handover time at origin and at destination which the Parties have agreed shall be as shown in Appendix 4.

10.2 For performance measurement purposes, should the DO of destination be unable or unprepared to accept handover of the Principal’s Mail at the time when the Carrier arrives at the DO of destination’s facility and is prepared to perform the handover, the Carrier shall be entitled to record and report the delivery time of the Mail to be t he time the Carrier was prepared to effect the handover and without accounting for delays incurred resulting for any reason from the DO of destination being unable to accept the Mail at the time when the Carrier first attempted handover.

10.3 The Carrier's performance shall be m easured against the above service criteria.

Article 11

Handover failure

11.1 In the event of handover failu re by the Principal, the Carrier shall use reasonable endeavours to uplift, in whole or in part, the Mail on the planned f light, but cannot guarantee to transport it without delay. If Mail cannot be uplifted, the Carrier shall c ontact the DO as soon as practical for further

instructions.

Article 12 Access of the Principal to Carrier’s premises

12.1 Subject to the Carrier's policy and aviation secu rity requirements, the Carrier or its agent may provide the Principal with access to the Carrier’s premises and aircraft with a view to exercising control over the security of dispatches during their transport. The Carrier shall be informed in advance as soon as possible of the number and identit y of any of the DO's staff accessing airline premises and aircraft. The Principal’s staff may need to be accompanied by the Carrier's staff.

Article 13 Delivery failure and possible remedy

13.1 In the event that the Mail cannot be delivered to the agreed location at destination, it shall be stored, subject to local regulations, at the Carrier's mail handling unit and the DO of destination shall be

contacted for an alternative handover location. The Pr incipal shall be notified of the measures taken

thereon within 24 hours and shall bear the additional co sts incurred by the Carrier, except in the case of delivery failure attributable to the Carrier.

13.2 The Carrier shall notify the situation to the Pr incipal within 24 hours and comply with any reasonable instructions from the Principal , if the DO of destination:

13.2.1 refuses or fails to take possession of the Mail;

13.2.2 refuses or fails to deliver proof of delivery after its arrival at the place of delivery.

13.3 In the absence of instructions from the DO of destination or if such instructions cannot reasonably be complied with, the Carrier shall inform the Princi pal and have the right to return such Mail to the10

Principal at the Principal’s expense, after having notified such event to the Principal within ____ business days.

Article 14

Handover

14.1 Subject to Article 5, the Carrier shall a ccept for transportation any Mail whose contents are admissible for carriage under the UPU Acts and wh ich complies with the packaging and labelling requirements laid down therein.

14.2 The Carrier shall check Mail and documents at handov er. From the moment the Carrier accepts the consignment, the Mail shall be considered to be in the custody of the Carri er until its handover at destination or at the transit airport.

14.3 Where a Carrier has accepted Mail within the agr eed time limits, the Carrier shall check the Mail against the documents or the EDI message. Where ther e is a discrepancy, the staff of the Principal or the Carrier shall prepare documents and/or co rrect the EDI message to cover the discrepancy. The Parties shall agree and sign the new docum ents and/or confirm the updated EDI message.

14.4 The Carrier is authorized to examine (screen) the mail receptacles, without opening them, visually or using technology (e.g. X-ray, ETD) for the purposes of clearing the articles for uplift under aviation security regulations and if allo wed by national legislation.

14.5 After accepting the Mail and before forwarding it, the Carrier may, at its own expense, correct any packaging and labelling irregularities discovered at its premises. Otherwise, the Carrier shall inform the Principal as soon as practicable for instructions regarding the items.

14.6 Where the Carrier has elected to withhold Mail in case of suspected damage, pilferage or tampering,

the Carrier shall forward the remainder of t he consignment that is not affected and amend the documents accordingly. The Carrier shall inform the Principal as soon as practicable for instructions in regard to the item suspected of pilferage or tampering, and allow on request, inspection of the Mail at the premises of the Carrier. The Carrier shall make a record concerning affected Mail and give a copy of it to the Principal..

14.7 In the event that Mail is retur ned or held by the Carrier, the Carrier shall notify the Principal of the

details within 24 hours.

14.8 Subject to the above paragraphs of this article, Mail shall be held by the Carrier if the transport of such Mail constitutes a danger to other mail, goods or equipment belonging to the Carrier, its employees or third parties. The costs of such storage or subsequent disposal shall be borne by the Principal.. Alternatively, the Carrier sha ll hand over such Mail to the authorities.

IV. Obligations of the Principal

Article 15 Operational aspects

15.1 The Principal shall give an estimate by route, fli ght and day of the week, on t he volume of mail that it wishes to be transported by the Carrier. This esti mate shall be provided by the Principal no later than _____ days/weeks in advance of the needed schedule/capacity and agreed the Parties.

15.2 The Principal shall provide the Carrier with a mail routeing plan, not later than two weeks after the publication of the Carrier's new IATA season's ti metable applicable for cargo and mail, but in any case before the change of the current schedule.

15.3 The Principal shall ensure that all Mail is packed and labelled in accordance with the applicable provisions of the UPU Acts before it is handed over to the Carrier.11

15.4 The Principal shall sort the Mail by flight number for handover to the Carrier.

Article 16

Documentation

16.1 The handover of all Mail to the Carrier shall be accompanied by proper airmail documentation, as specified by the UPU Acts.

16.2 Priority mail shall always be shipped with a mi nimum of six (copies of the) CN 38 delivery bills. Priority mail receptacles shall carry the prescribed CN 35 airmail bag label and CP 84 label.

16.3 Non-priority mail shall always be shipped with a minimum of six (copies of the) CN 41 delivery bills. Non-priority mail receptacles shall carry the prescribed CN 36 and CP 83 air parcel label.

16.4 Empty mailbag consignments shall be covered by the CN 47 documents.

16.5 The writing on all documents and labels fu rnished by the Principal shall be readable and unambiguous, and in a language whose script is recognized internationally.

V. Obligations common to both parties

Article 17 Dangerous goods

17.1 The Parties shall comply with the limitations on the transport of dangerous goods.

17.2 The Services may only be provided in respect of mail permissible under the provisions of the International Air Transport Association (IATA), In ternational Civil Aviation Organization (ICAO) and

UPU.

17.3 With respect to 17.1 and 17.2 herein, the Partie s shall take all reasonable measures accordingly. They shall not subject their performance hereunder to safety and security measures other than those provided by local legislat ion, the requirements of the ci vil aviation authority and the UPU Acts. Specific measures and s pecific tasks related to the transport of dangerous goods that each Party is responsible for are specif ied in Appendix 7 to this Agreement.

Article 18 EDI messaging

18.1 In case of use of CARDIT/R ESDIT messaging between the Parties:

18.1.1 The Principal shall transmit a CARDIT message, in conformity with UPU EDI messaging standards, to the Carrier for every consignment handed over.

18.1.2 The Carrier shall transmit R ESDIT messages, in conformity wi th UPU EDI messaging standards, to the Principal.

18.1.3 The technical arrangements, as well as the ev ents and locations covered for CARDIT/RESDIT, shall be agreed between the Parties and shall be documented separately.12

VI. Rates

Article 19

Rates

19.1 The Principal shall pay for the Services a ccording to the rates which have been agreed between the Parties, and set out in Appendix 2 of this Agreement.

19.2 Rates are set on an origin–destination basis (f rom the agreed handover location at the airport of origin to the agreed handover location at the airpor t of destination). If a destination is not mentioned in Appendix 2, the applicable basic airmail convey ance rate, also described in Appendix 2, will be applied. The distance for the origin–destination pai r concerned shall be calculated according to the applicable procedure for calculating airmail distances contained in the List of Airmail Distances, published by the UPU International Bureau in collaborat ion with IATA or any ot her official publication

if the distance data is not covered in this List.

19.3 In the event that the Principal uses a flight segment for whic h the Carrier did not give prior confirmation of acceptance, the Carrier has no obli gation to carry the Mail. In case that Mail is uplifted, the Carrier reserves the right to charge the applicable basic airmail conveyance rate calculated on the applicable airmail distanc e or the rates defined in Appendix 2.

19.4 In the absence of a bilateral rate agreement bet ween the Carrier and a DO, and if in such event Mail is being boarded without the Carrier's prior written consent, the principle specified under 19.3 shall apply.

19.5 Rates are expressed and paid in a currency agreed between the Parties, on an origin–destination basis for the various categories of Mail involved.

19.6 If services of other carriers are used as explicitly laid out in t he airmail routeings, the rates include the charges of the services of those other carriers.

VII. Terms of payment

Article 20

Invoice

20.1 The Carrier shall invoice the Principal fo r the Services rendered under this Agreement on a (______________) basis.

20.2 All invoices shall be based on the applicable UPU airmail documents (or postal airway bill) submitted to the Carrier by the Principal upon acceptance of the Mail, and shall be submitted by the Carrier to the Principal in duplicate or in electronic format.

20.3 The Carrier shall have the following billing options:

1 On the physically captured document accompanying the mail consignment.

2 On the Carrier's own (substitute) documents, either obtained manually, or from positive data capturing of the mail receptacle ident ifiers enclosed in proper EDI messages.

Article 21 Payment

21.1 The payment as per invoice is due within ( _________) business days following the date of receipt of

the invoice.

21.2 In the event of a discrepancy, the Principal ma y withhold the payment of the disputed amount only.13

21.3 In such case, the Principal shall inform the Carrier within (_______) business days specifying which items it disputes, by returning the invoice to the Carrier accompanied by its attachments or any other

means to that effect.

21.4 The undisputed amount stated on the invoice is to be paid as stipulated in article 21.1.

Article 22 Billing dispute

22.1 By failure to comply with its obligation under ar ticle 21, the Principal waiv es its right to withhold
payment.

22.2 The Carrier may notify the Principal of its official reply concerning the acceptance or rejection of the discrepancy within (__________) business days following receipt of the disputed invoice.

22.3 In case the Carrier does not accept the discrepanc y, it shall send a supplementary invoice, including proof of carriage or service, which has to be settled within (_______) business days. The Carrier may present such undisputable proof of phy sical carriage or service by means of:

22.3.1 A substitute delivery bill established by the Ca rrier, with appropriate signature by the destination DO, containing the full details of a mail cons ignment as specified on CN documentation;

22.3.2 An EDI scanning track record established by the Carrier at the airport of destination containing the full details of a mail;

22.4 Both proof of carriage or service described in articles 22.3.1 and 22.3. 2,when presented together, will unconditionally overrule any third party carrier 's payment claim for the same mail consignment on the basis of the original documents only

22.5 In the circumstances provided for in articles 22.3.1 and 22.3.2, and consi dering article 22.4, the Principal shall settle the invoice with the Ca rrier delivering proof of carriage or service.

22.6 If payment has not been made within a ma ximum of (_____________) business days following the date of acceptance of the invoice, the Principal shall be obliged to pay the interest due on the amount, in accordance with the amount spec ified in Appendix 2 to this Agreement.

22.7 If payment has not been made within the period sti pulated in article 22.5, t he Carrier shall have the right to refuse and suspend all transportation of ma il, without being in breach of the Agreement, until all overdue debts are paid.

VIII. Irregularities and liability

Article 23 Irregularities

23.1 In case the volume of Mail exceeds (________) per cent of the estimated volume as set out in Appendix 3, the Principal shall contact the Carrier in the shortest possible time in advance in order to enable the Carrier to try to accommodate the transportation of such extra volume.

23.2 In the event that the volume by route, flight and day of the week does not meet the estimated volume by (__________) percent less than the estima ted volume, the Principal shall inform the
Carrier no later than _____hours in advance.

23.3 The Principal shall always notify the Carrier as soon as possible of any irregularities that could endanger the proper transportation of Mail under this Agreement.

23.4 At the point of origin, in the event of a failure to uplift Mail or in case of anticipated delays, the Carrier shall notify the Principal as soon possible befor e the scheduled flight departure so that further14

instructions may be given. Where the routeing plan already provides for alternative routes, they

should be used.

23.5 The Carrier shall always notify the Principal with in 24 hours of any irregularities, such as delay, loss or theft of, or damage to, Mail, discover ed during transportation under this Agreement.

23.6 In the event that the Mail c annot be delivered to the designated desti nation, the Carrier shall advise the Principal and request advice as to what action the Principal requires the Carrier to take. Subject to the reasons for non-delivery, the Parties will agree on the cost of rem edying the situation.

23.7 Each party shall send notice of irregularity to t he other party in writing, by mail, fax or e-mail, accompanied by available copies of the applicabl e mail documents and attachments, such as proof of damage or misrouting by the Principal. Such not ice shall be addressed to the Carrier's or the Principal’s responsible department (whose contact details in Appendices 5 and 6 respectively). No action is to be taken in the case of any irregularity regarding Mail unless a prior complaint is made to the Carrier or the DO, as applicable.

Article 24 Liability

24.1 The Carrier shall be liable for the delay, loss or theft of, or damage to, Mail which occurs during the Services provided under this Agreement.

24.2 Each party shall assume the same contractual liability towards the other for the acts of agents as for its own performance under this Agreement.

24.3 The Principal shall be liable for any actual dam age caused by Mail handed over to the Carrier by the Principal under this Agreement in accordance with the applicable national law, ICAO international

convention and the UPU Acts.

24.4 Subject to Articles 5 and 17, if the Carrier fa ils to uplift the Mail on the scheduled transportation the Principal shall have the right to use an alternativ e means of transportation or carrier. Except when the Carrier has notified the Principal of a flight cancellation or change of aircraft, it shall be liable for any additional costs incurred in dispatching Mail by alternative carriers. Supporting documentary evidence shall be produced if available.

24.5 The Principal shall be liable for all the expenses and costs resulting from failure by the DO of transit or of destination to take over delivery of the Ma il, provided that the Carri er has duly performed its obligations under this Agreement.

24.6 Subject to Articles 5 and 17, the Carrier shall be liable for reasonable storage costs if it fails to hand over or accept compliant Mail for tr ansportation at the time and place agreed.

24.7 In case of misrouting of any category of Mail, the Carrier shall refund the actual transportation costs claimed by the Principal concerned, provided that such misrouting is not caused by the Principal or any DO of transit.

24.8 When Mail cannot be delivered by the Carrier to the original designated destination, the Principal shall pay the Carrier only the Mail transportation rates for the section over which the Mail was originally to be transported according to t he CN 38 delivery bill. When the sum of the above transportation rates and the transit charges paid by t he Principal to any other airlines or to any designated operators for the subsequent transit of the Mail to the intended destination exceeds the cost of transportation payable for normal transportation of such Mail, the Carrier shall be responsible

for the difference.

24.9 In the case of damage to Mail, the Principal mu st complain to the Carrier forthwith after the discovery of the damage, and at the latest, with in fourteen days from the date of handover at15

destination. In the case of delay in the carriage of Mail, the Principal must complain to the Carrier forthwith, and at the latest, within twenty-one days from the date of handover at destination.

24.10 Every complaint must be made in writing.

24.11 If no complaint is made within the times set out in article 24.9, no action shall lie against the Carrier, save in the case of fraud on its part.

24.12 The Principal’s right to damages shall be extingui shed if an action is not brought within a period of two years, reckoned from the date of handover at destination or fr om the date on which the carriage stopped.

24.13 The method of calculating the period set out in article 24.12 shall be determined by the law of the

court seized of the case.

Article 25 Limitation of liability

25.1 Subject to article 25.2 below, the liability of the Parties towards each other shall be as follows:

25.1.1 The liability of the Carrier towards the Princi pal shall be limited to _____ monetary units but shall not exceed the Principal’s liability towards its customer, as specified in the UPU Acts;

25.1.2 The liability of the Principal towards the Carrier shall be limited to _____ monetary units.

25.2 The limitations of liability set out in articl es 25.1.1 and 25.1.2 shall not apply to loss or damages caused intentionally or by gross negligence of a party or its agents or to claims arising under article 24.3 and 24.4 above, liability for which shall be un limited unless otherwise specifically excluded or limited by applicable national law and then only to the extent of such ex clusion or limitation.

Article 26 Exemption of liability

26.1 In the event that the Princi pal/the DO at destination (or its nom inated agents) refuse or fail to hand over the Mail/take possession of the Mail and/or re fuse to sign for acceptance of the Mail, the Carrier shall not incur any liability for failure or delay if:

26.1.1 it has complied with the agreed handover procedur e as specified in the appendices, which includes handover at the agreed location at the stipulated processing times with the complete and proper documents, and/or EDI transmission; and

26.1.2 it has provided the Principal wi th proper notification, in the shortest possible lead time, including the date and time of attempted handover/delivery, w here applicable and supported if available by a

confirmation of the DO at destinati on, confirming refusal and/or providing reasons for refusal to take possession of the Mail.

26.2 In the circumstances described in article 26.1, the Principal s hall be liable for any additional costs incurred for the additional handling performed by t he Carrier according to article 11 of this Agreement. Supporting documentary evidenc e shall be provided if requested.

26.3 Neither party shall be liable towards the other party for any delays or failure in the performance of its obligations due to any reason beyond its control or t he control of its agents, so long as such party continues to be affected by such events of force majeure as defined in article 31.

26.4 A party seeking to rely on the provisions of this cl ause shall promptly give notice thereof to the other party, and shall endeavour to perform its obligations as soon as possible.16

26.5 If any event of force majeure prevents a party from fulfilling its obligations for a continuous period exceeding one month, the other par ty shall have the right to terminate this Agreement with immediate effect following receipt of wr itten notification by the other party. 26.6 The Carrier shall not be liable under any circumst ances for the delay, loss or theft of, or damage to, or destruction of, Mail or any other pr operty caused by, or resulting from:

26.6.1 inherent defect, quality or vice of its content;

26.6.2 defective packing of the Mail;

26.6.3 an act of war or armed conflict;

26.6.4 an act of public authority carried out in connecti on with the entry, exit or transit of the Mail.

IX. Duration and termination of the Agreement

Article 27 Entry into force and duration of the Agreement

27.1 This Agreement shall enter into force on (sta rting date) and shall expire on (ending date) unless terminated earlier pursuant to article 28 hereof. The Parties may agree on an extension of this Agreement at least (__________) day s before the date of expiry.

Article 28 Termination of the Agreement

28.1 The Agreement may be terminated, in whole or in part, by either party befor e the expiry date of the contract by giving written termination notice to the other party at least (______) days before such

termination takes effect.

28.2 If, for a specific destination, the Carrier does not meet the agreed performance level or has changed its schedule so that the Principal’s requirements are not fulfilled, the Agreement may be partially terminated for that specific destination.

28.3 If a party is in material breach of any of its obligations stated in the Agr eement and this breach is not remedied within (_________) days upon receipt of wr itten notification thereof, the non-breaching party may terminate this Agreement immediately by notifying the other party in writing, without observance of any notice period.

28.4 Without prejudice to the other provisions of this Agreement, eac h party is empowered to terminate this Agreement with immediate effect, without any further establishment of default in the event of

and at the time when:

28.4.1 the other party applies for suspension of payments;

28.4.2 the other party has filed fo r bankruptcy, insolvency or similar proceeding, or is declared bankrupt;

28.4.3 the other party is a body corporate and is dissolved.

X. Disputes

Article 29 Governing law and jurisdiction

29.1 This Agreement is governed and construed in accordance with the laws of _________, without regard to principles of conflict of laws.17

29.2 All disputes or disagreements arising from this Agreement should be negotiated and settled between

the Parties in a constructive and reasonable manner.

29.3 Any disputes or disagreements that cannot be settled amicably shall be referred to the competent tribunal in (country _____________) or, at the discret ion of the Parties, shall be settled by

arbitration.

XI. Final provisions

Article 30

Confidential information

30.1 The Parties shall recognize that this Agreement contains commercially s ensitive information, and shall agree to treat the entire contents of this Agreement, its appendixes and any information provided hereunder as strictly confident ial. They shall refrain from disclosing any such information to third parties, unless prior written consent is obtai ned from the other party. This shall be subject to the laws applicable in (country_____________).

Article 31 Force majeure

31.1 Neither party shall be liable towards the other party for any delays or defect in the performance of its obligations or duties due to any unforeseen reason, in cluding but not limited to acts of God, fires, floods, riots, epidemics, quarantine restrictions, government acts , political uprising, freight embargoes, or any other such causes beyond such party's control.

Article 32

Amendments

32.1 This Agreement represents the entire under standing between the Parties and may only be amended if such amendments are made in writing and signed by both Parties to the Agreement.

32.2 All appendices to this Agreement form an integral part thereof.

Article 33 Severability

33.1 Should any provision of this Agreement be held invalid, or prohibited, such provision shall be ineffective only to the extent of such invalidity or prohibition and shall not invalidate the remainder of such provision or the remaining provisions of this Agreement.

As agreed and signed in twofold on: ______________________________________________________

Carrier Principal

Name: __________________________________ Name: ________________________________

Title: __________________________________ Title: ________________________________

Details: __________________________________ Details: ________________________________1819

Part B – List of Appendices

Appendix 1 Routeing plan

Appendix 2 Rates

Appendix 3 Estimated volumes

Appendix 4 Performance success level and critical handover times

Appendix 5 Contact list of the Principal

Appendix 6 Contact list of the Carrier

Appendix 7 Specific measures and tasks related to Dangerous Goods20

Appendix 5 Contact list of the Principal

Principal airmail management:______________________________________________________________

Tel: ______________________________________________________________________________

Mobile: ______________________________________________________________________________

Fax: ______________________________________________________________________________

E-mail: ______________________________________________________________________________

Principal airmail customer service department: _________________________________________________

Tel: ______________________________________________________________________________

Mobile: ______________________________________________________________________________

Fax: ______________________________________________________________________________

E-mail: ______________________________________________________________________________

Principal's transportation services details:

_______________________________________

Appendix 6 Contact list of the Carrier

Carrier's airmail management: __________________________________________________________

Tel: ______________________________________________________________________________

Mobile: ______________________________________________________________________________

Fax: ______________________________________________________________________________

E-mail: ______________________________________________________________________________

Carrier's airmail customer service department: ____________________________________________

Tel: ______________________________________________________________________________

Mobile: ______________________________________________________________________________

Fax: ______________________________________________________________________________

E-mail: ______________________________________________________________________________

Carrier's transportation services details: _________________________________________________

### ii



## INTERNATIONAL AIR TRANSPORT ASSOCI ATION



# MINUTES

33 rd 

## Cargo Services Co nference (CSC/33 )

Istanbul, Turkey

8 March 2011

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

CSC/33/ Me et/006/2011

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

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

FROM: Secretary, Cargo Services Conference

DATE: 12 April 201 1

SUBJE C T: MINUT ES – 33 rd Cargo Services Conference (CSC/33) Istanbul, Tur key – 8 March 2011

Please find attached the Minutes of the 33 rd me eting of the Cargo Servi c es Confere n ce (CSC/33) he ld in Istanbu l, Turkey on 8 March 2011.

Sincerely,

Frederic Le ger Head of Cargo Business Process

Attachm ents. MINUT ES – Cargo Services Conference (CSC/33) Page 1 of 25

Table of Co nte n ts

ADMI N ISTRATIVE ITEMS Page No.

A/1 Opening of Meeting and Legal Context 3

A/2 Exa m ination of Credentials of Accre d ited Representatives 3

A

/ 3 A d o p t i o n of A g e n d a 5

A/4 Order of Bu siness 5

A/5 Approval of Minutes of CSC/32 5

A/6 Action Items from CSC/32 5

A/7 Effectiveness Status of Resolutions 6

A/8 Effectiveness Dates of Resolutions Adopted 6

A/9 Election of Members – Airmail Panel (AMP) 7

A/10 Election of Members – Cargo Business Processes Panel (CBPP) 8

A/11 Election of Members – Dangerous Goods Board (DGB) 9

A/12 Election of Members – Live Animal s and Perish ables Board (LAPB) 9

A/13 Election of Members – ULD Panel (ULDP) 10

A

/ 9 7 A n y Other B u s i n e s s 2 1

A/98 Date and Place of Next Conference 21

A/99 Close of Meeting 21

POLICY IT E M S

P/1 Time and Temperature Task Force (TTTF) structure 11

P / 2 U L D RFID S u r v e y 1 1

P/3 Advance Ca rgo Information EU Survey 12

P/4 Cargo Security Go vernance 14

P/5 2010 CSC Achievements and 2011 CSC Work Plan 15

P/6 Automation of CSC Mail Votes 15

VOTING IT EMS

V/1 Recommen ded Practice 1630 – Cargo Security 15

V/2 Resolution 6 81 – ULD Panel 17

V/3 Resolution 6 21 – IATA Live Animals and Perisha b les

Board 17

V/4 Recommen ded Practice 1677 – Framework for a Service Agreement 17

V/5 Resolution 6 56 – Automated Data Interchange with

Custom s 18

V/6 Recommen ded Practice 1665 – IATA Interline Cargo Claims Procedures Agreement – Principles an d Practices 18MINUT ES – Cargo Services Conference (CSC/33) Page 2 of 25

REP O RTS

CSC Repo r t s R/1 Airmail Panel (AMP) 19

R/2 Cargo Business Processes Panel (CBPP) 19

R/3 Cargo Data Interchange Task Force (CDITF) 19

R/4 Cargo X M L Task Force (CX M LTF) 19

R/5 Dangerous Goods Board (DGB) 19

R/6 Dangerous Goods Training Task For ce (DGTTF) 20

R/7 Live Animal s & Perishables Board ( L APB) and Time and Temperature Task Force (TTTF) 20

R/8 ULD Panel (ULDP) 20

R/9 ULD Operati onal Advisory Group (UL D OAG) 20

Other Repo rts

R / 1 0 C a r g o P u b l i c a t i o n s 2 0

R/11 Passenger Services Conference (PSC) 21

R/12 Strategic Partnership Program – Cargo 21

R/13 Airport Servi c es Committ ee (ASC) 21

R/14 IATA Groun d Handling Council (IGHC) 21MINUT ES – Cargo Services Conference (CSC/33) Page 3 of 25

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 33 rd Cargo Services Conference (CSC/33) at 13:05 hours local t i me on Tuesday, 8 March 2011 at the Hilton

Istanbul Hotel in Istanbu l, Turkey. The attendance record is in Attachment ‘A’ of these

Minutes. He thanked t he sponsor s Turkish Airlines and Turkish Airlines Carg o for hosting the meeting.

M/002 The meeting was convened by the Call of Meeting Memorandu m CSC/33/ Me et/001/2011 dated 24 Nove mber 2010. Agenda docu m entation was

circulated th ereafter.

M/003 Mr. Carlos Tornero (XB), IATA’s Senior Legal Counsel, introduced h i mself and then read the competition law compliance briefing state m ent, which is found in its entirety in Attachment ‘B’ of these Minutes. He added that if discussions were found inadvertently approaching any area outside the legal conte x t of the meeting, he would intervene and guide th e Conference according l y. He added that he h a s reviewed the Agenda and found it app ropriate for discussion b y the Cargo Services Conference.

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

M/004 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.

M/005 The Chairman requeste d everyone i n the room to briefly introduce themselves.

M/006 After the introductions were compl e ted, the Chairman welcomed the guest speaker, Mr. Des Verta nnes (X B), I A TA’s new Global Hea d of Cargo and invited him to

address the Conference:

Chairman:

Ladies and Gentle m en:

We have an im portant g uest with us this afternoo n.

I would like introduce to you a perso n whose cre d its com p rise a broad-based and most

im pressive 41-year car eer in the Air Cargo Industry:

• He started off with British Airways in 1970, holding several manage m e n t posts over a perio d of 14 year s, includ ing t hat of Cargo Manager, Gulf States an d

Saudi Arabia.

• In 1984, he establishe d and m anaged his own fo rwarding business

• Then joined Air Canada as General Manager of Cargo in 1991.MINUT ES – Cargo Services Conference (CSC/33) Page 4 of 25

• Following, was a m o ve t o

the ground handler Menzies Aviat i on, where he served
as Chief Executive of Air Menzies In ternational, as well as Managing Director of Menzies' world cargo act i vitie s

.

• Subsequently, he m o ved to Gulf Air's Cargo Division.

• And fro m th ere to Etihad Airways, a s Executive Vice-Presid ent of Cargo.

• Since our la st Conference m eeting, we were m o st fortunate t o

have him join the IATA organization in m i d-2010.

Ladies and Gentle m en, it is m y

great pleasure to present to you Mr. Des Vertannes,

IATA’ s

new Global Head of Cargo

M/007 Mr. Vertann es (X B) tha n ked the Ch airman for the warm we lcome and b r iefed the

Conference as follows:

• Congratulations to the Cargo Services Conference (CSC) f o r your active role in shaping, ch anging, and improving th e air cargo industry

• Your achievements f o r 2010 include development of X M L standards, enhancements to Cargo

- IMP, devel oping the st andards an d protocols t o support our very fun damental programs of e-freight, e-AWB, Secure Freight.

• I personally thank you on behalf of IATA for the great work done to move the industry forward.

• So where do we go f r om here? Developing standards a nd achieving these results pale into insignif i cance if we don’t get a doption and we don’t get broad industry use of these sta ndards.

• Do we see the benefits of increasin gly impro v ed standards across every field of activity? We need to find ways to measure the implement ation and proliferation of the standards and bring that back to you so that you are encouraged t o continue act i ve participa tion.

• Security has become the topical issu e, challeng ing us right a c ross the bo ard. We

have to make sure we are in the fo refront with the regulato r y bodies, t o try and

contribute. We need t o listen to their concerns, provide support a nd more importantly provide solutions.

• As we go fo rward we’ll develop the principle s a nd procedur es and st an dards that

will cont inue to sup port t he Secure F r eight ini t iati ve, which is fundamental to th e countries w here the sup p ly chain inf r astructure is not in pla c e.

• On e-freight, it is a shame that we are still debat i ng about ele c tronic tradi ng in the

21 st century when our children and grandchildre n are tradin g and purch asing on

the internet electronica lly. We should be self-critical, but we should also be selfmotivated. We have to overcome t he obstacle s ahead of us. You should take a leap forward within your own domain, whatever you c o me and contribute to future, in your discu ssio n s that as we tackle e- freight this year and scale up t o 10% penetration on the live trade lin es.

• There are a i rlines, espe cially in the US, who a r e very electronically minded in terms of technology use, but the customs authorities are no t going to allow the m to trade ele c tronically for quite so me time. Th at’s outsid e of their influ ence. But what I would ask you t o do is to enc ourage your overse as office s a nd your alliance part ners to work with you on the inbound. If the collective groups focused

on the inbo unds, the v o lumes that could be g enerated in terms of e-freight from the big hub s of Frankf u rt, Paris, London, Milan, Madrid, Amsterdam would be

immense. So it’s do-ab le, we have t o go out the r e and enco u rage it.

• We want to continue to grow our XML compete n cy. X M L is growing in use in the

transfer of d a ta.MINUT ES – Cargo Services Conference (CSC/33) Page 5 of 25

• The Cargo Services Conference does not seem to get the recognition it

deserves. Please make sure the w o rk that you are doing is being re cognized

even within your own ai rline. We will make sure that message is heard by the

Heads of Cargo at the Cargo Committee th at the success of th is group is paramount to the succe ss of our ind u stry.

M/008 The Chairman thanked Mr. Vertannes (X B) for his p r esence an d for th e encouraging words.

Agenda Item A/3: Ado p tion of Agenda

M/009 The Agenda of the CSC/ 33 was adopted.

Agenda Item A/4: Ord e r of Business

M/010 Conference support was obtained for the order of business.

Agenda Item A/5: App r oval of Mi nutes of CSC/32

M/011 The Conference unanimously approved t he Minutes of CSC/32 with no changes

to the draft.

Agenda Item A/6: Acti on Items from CSC/32

M/012 Mr. Ben Be hanan (X B) confirmed that all the action items from CSC/ 32 have been completed as summarized in the agenda it em.

M/013 A Me mber asked for clarification fr om IATA Le gal whether the "Old Resolution 600b" AWB stock pr inte d before 30 December 2009 may still be tendere d after 30 June

2011.

M/014 Mr. Tornero (X B) menti oned that Me mbers wishing to exhaust existing AWB

stock with a n y of the previous versions of Reso lution 600b have time u n til 31 Dece mber 2011 to do so, subject t o the condition that they amend their Conditions of Carriage for Cargo or tariffs to in cor porate the " c urrently effective" Resolution 600 b Condition s of Contract, and they send a notice of the terms and condition s of the "cur rently effective"

Resolution 6 00b to their shipper and forwarder clients.

M/015 Mr. Leger (XB) suggested that a communication be circulated to the industry reminding them of the end of the t r ansition p e r iod to switch to the currently effective

version of the AWB Con d itions of Co ntract.

M/016 A Me mber mentioned t hat given it t a kes some time for airlines to process through their air waybill stocks, it would be u s eful to have a stat ement from IATA on the ge neral consequence of an o l d AWB being used after t he transition period and the effect it might have on a claim, etc.MINUT ES – Cargo Services Conference (CSC/33) Page 6 of 25

M/017 Mr. Tornero (XB) mentio ned that it is important to recognize that Resolution 600a and 600b are mandatory among IAT A airlines for purposes of multilateral interlining.

M/018 A Me mber asked whether the “old” AWB Con d itions of Contract with 17 SDRs liability limit could be used after 31 December 2 011.

M/019 Mr. Tornero (X B) ment ioned that the currently effective AWB conditions of

contract sho u ld be u s ed . He added that a clarif ying notice would be sent to Members

after Conference as sug gested by th e Secret ary, and if there are any sp ecific questions after, he would be happ y to address them.

ACTION: I A TA Legal

Secretary Note: A clar ifying no tice on Resolution 600b wa s cir c ulated to CSC m e mbers and industry stakeholder s on 21 March 2011.

N o t i c e

_ R e s o l ut i o n6 0

0b

_M a r ch 2011. p d f

M/020 The Chairman cautione d that Me mbers should keep a watch on their AWB stock

as there is a possib ility for the revision of the MC99 liabilit y limits every 5 years due t o the inflatio n adjustment clause in th e Convention. He added that perhap s it is one m o re reason for Members to accelerate the mo ve to wards e-freight and eliminate the paper AWB.

Agenda Item A/7: Effe ctiveness Status of Resolutions

M/021 The Chairman mentioned that all Resolutions and Recommended Practices adopted at CSC/32 ha ve been given governme n t approval status and d e clared effe ctive.

He reminded Members to ensure to file t he Re solutions an d Recomme nded Practices adopted by Conference with their respective government authorities.

M/022 Mr. Behan an (X B) mentioned th at amendments to Re solutions 6 00i and

Recommen ded Practice 1601 and 1670 adopt ed by the Conference t h rough CSC Ma i l Votes S069, S070, and S071, resp ectively, to align with t he liability limits in the new Resolution 600b were approved b y the US DoT and h a ve been d e clared effe ctive

thereinafter.

M/023 The effectiveness statu s of resolut i ons was not ed.

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

M/024 The Conference endorse d the effectiveness dates.

M/025 The Conference agreed t hat the effectiveness dat e for each o f the voting items be

determined when the item was discussed.MINUT ES – Cargo Services Conference (CSC/33) Page 7 of 25

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

M/026 The Chairman congratulated the re-elected and the newly ele c ted AMP

members. He added that there were some remaining vacancies and requested

Secretariat t o provide an update.

M/027 Mr. Behanan (X B) me ntioned that a new vacancy was listed in th e second transmittal due to the departure of the member and subsequ ent to the second transmittal there was an additional vacancy due to the de parture of a nother; therefore there were two remaining vacancies on the AMP. He add ed that three nominations were received from BA, DL , and 5X res pectively.

M/028 The Chairman asked if t here were any additional nominations from the floor.

M/029 There were no additio nal nominations. It wa s agreed t hat voting would be

conducted after Conference for th e two remaining vacancies and that Secretariat will

circulate a Voting Ballot t o Members along with t he details of the nominees.

ACTION: I A TA Secretariat

M/030 The new AMP membership was en dorsed by Conference.

Secretary Note: Voting was cond ucted after CSC/33. Ba sed on the votes rece ived, the following ind i viduals were declared e l ected for th e term s shown:

John Chisho lm (BA) 3 years New

Nick Whale n (DL) 2 years New

The new AMP membership is a s follows:

No. Member Term of Office

1 Barbara Johnston (AC) 2011 2 0 1 2 2 0 1 3 2 0 1 4

2 Michael Thomasen (SK) 2011 2 0 1 2 2 0 1 3 2 0 1 4

3 Eric Pouille (AF) 2011 2 0 1 2 2 0 1 3 2 0 1 4

4 Mark Gilbert (AA) CH AI R 2011 2 0 1 2 2 0 1 3

5 David Thompson (QF) 2011 2 0 1 2 2 0 1 3

6 John Chisho lm (BA) 2011 2 0 1 2 2 0 1 3

7 Nick Whale n (DL) 2011 2012

8 Bob Uttmark (UA) 2011 2012

9 Ron D. Stevens (FX ) 2011 2012

10 Bernd Foerster (LX ) 2011

11 Martina Goe r gen (LH) 2011

12 Junichi Mich ael Sylvester Nonoya m a (JL) 2011MINUT ES – Cargo Services Conference (CSC/33) Page 8 of 25

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

M/031 The Chairman congratulated the re- e lected CBPP me mber . He added that there were some remaining va cancies and requested Secretariat t o provide an update.

M/032 Mr. Behana n (XB) mentioned that there were three remaining vacancies on the

CBPP as listed in the second transmittal. He added that one nomination was received

from DL.

M/033 The Chairman asked if t here were any additional nominations from the floor.

M/034 There were no additiona l nomination s . The DL n o minee was declared e l ected to the CBPP and it was agreed that f o r the two r e maining vacancies, Members would be provided 10 days after Conference to submit nominations to t he Secretariat.

Miffy Wiggs (DL) 4 years New

ACTION: CSC/ IATA Secretariat

M/035 The CBPP Chairman ( M r. Jean Dunaux, AF) mentioned that it is an important group and requested Members to c onsider participation in t he group as an expression of

confidence that Conference has in the grou p because the CBPP makes a lot of

decision s th at impact trade.

M/036 Mr. Leger (XB) who is also the Secretary of th e CBPP me ntioned that the CBPP

was involved in the dev elopment of the e-AWB standards and it is cur r ently working on Cargo Security, XML standards and Custom s aspect s . The CBPP also liaises with

forwarders on different procedures. He mentioned that it is a key ind u stry group and urged Members to consider particip a tion in the group.

M/037 The Chairman also expressed h i s support f o r the reque st from the CBPP

Chairman a nd the Secretary.

M/038 The new CBPP me mbership was en dorsed by Conference.

Secretary Note: Me mbers were requested to sub m it nom inations b y

23 March 2011.

One no m i nation was received fr o m BA. There was n o voting a s the num ber of

no m i nations was fewer than the nu m ber of vacancie s. Accordingly, the following

individua l was declared elected for t he term shown:



### Malcolm Fowler (BA) 4 years New

The new CBPP me mbership is a s follows:

No. Member Term of Office

1 Lisette Sch w eiger (AC) 2011 2012 2013 2014

2 Miffy Wiggs (DL) 2011 2 0 1 2 2 0 1 3 2014

3 Malcolm Fowler (BA) 2011 2 0 1 2 2 0 1 3 2014

4 Dick Dougherty (AA) 2011 2012 2013MINUT ES – Cargo Services Conference (CSC/33) Page 9 of 25

5 Nazim Ros (SQ) 2011 2012 2013

6 Leung Sai Ho Simon (CX ) 2011 2012 2013

7 Jean Dunaux (AF) C HAI R 2011 2012

8 Todd Frazie r (FX ) 2011 2012

9 Franco Nanna (CV) 2011 2012

10 Axel Klein (LH) 2011

11 Vacant 2011

12 Ola Atteya I b rahim Shawer (MS) 2011

Agenda Item A/11: Election of Members – Dangerous Goods Board (DGB)

M/039 The Chairman congratulated the re-elected and newly elected DGB members.

M/040 The new DGB membership was en dorsed by Conference.

No. Member Term of Office

1 Richard Blenkush 

### (DL) 2011 2 0 1 2 2 0 1 3 2014

2 Peter Liang LIU (CI) 2011 2 0 1 2 2 0 1 3 2014

3 Yannawit Sangsook (T G) 2011 2 0 1 2 2 0 1 3 2014

4 P. Balasubramanian (EK) 2011 2 0 1 2 2 0 1 3

5 Trevor Howard (AC) 2011 2 0 1 2 2 0 1 3

6 Mohamed Nasir Abdul Hanif (MH) 2011 2 0 1 2 2 0 1 3

7 Laurence W illoughby (QF) 2011 2 0 1 2

8 Alex McCull och (5X ) 2011 2 0 1 2

9 Dennis Kampman (KL) 2011 2 0 1 2

10 Patrick N. Oppenheimer (FX ) CHAI R 2011

11 François Ja cquemont (AF) 2011

12 Gajandran Sokayan (SQ) 2011

Agenda Item A/12: Election of Members – Live Animals and Perishables Board (LAPB)

M/041 The Chairman congratulated the re- e lected LAP B members. He added t hat there was one remaining vacancy and requested Secretariat to pr ovide an update.

M/042 Mr. Behana n (XB) ment ioned that f u rther to the second tr ansmittal th ere was a new vacancy due to the recent dep arture of a member. He added that two nominations

were received from AC and TA respectively.

M/043 The Chairman asked if t here were any additional nominations from the floor.

M/044 There were no additio nal nominations. It wa s agreed t hat voting would be

conducted a fter Conference for the r e maining vacancy and t hat Secretar iat will circul ate a Voting Ballot to Memb ers, along w i th the details of the nominees.

ACTION: I A TA SecretariatMINUT ES – Cargo Services Conference (CSC/33) Page 10 of 25

M/045 The new LAPB me mber ship was endorsed by Conference.

Secretary Note: Voting was cond ucted after CSC/33. Ba sed on the votes rece ived, the following ind i vidual was declared ele c ted for the t e rm shown:

Stephanie Kirkham (AC) 3 years New

The new LAPB me mber ship is as follows:

No. Member Term of Office

1 Mériem Toui si-Saadi (AF) 2011 2012 2013 2014

2 Bruce Clemmons (F X ) CHAI R 2011 2 0 1 2 2 0 1 3 2014

3 Rath Pukkoh (TG) 2011 2 0 1 2 2 0 1 3 2014

4 Cyndi Brown (DL) 2011 2 0 1 2 2 0 1 3

5 Stephanie Kirkham (AC) 2011 2 0 1 2 2 0 1 3

6 Joyce Fung (CX ) 2011 2 0 1 2 2 0 1 3

7 Nicolaus W a lzik (LH) 2011 2012

8 Gajandran Sokayan (SQ) 2011 2 0 1 2

9 Thomas Williams (CO) 2011 2012

10 Aynur Rasul o va (EK) 2011

11 M. Walaa M. Yousri (MS) 2011

12 Ibrahim Moh a med Salleh (MH) 2011

Agenda Item A/13: Election of Members – ULD Panel (ULDP)

M/046 The Chairman congratulated the re- e lected ULDP members. He added t hat there were some remaining va cancies and requested Secretariat t o provide an update.

M/047 Mr. Behana n (X B) men t ioned that further to the second transmittal there were

two new va cancies due to the rece nt departure of two members. He added that one nomination was received from AF.

M/048 The Membe r from GF (Mr. Khalid F aqih) volunteered to nominate himself to the

ULDP.

M/049 The Chairman asked if t here were any additional nominations from the floor.

M/050 The new ULDP me mbership was en dorsed by Conference.

Secretary Note: Votin g was conducted after CSC/33 to determ i ne the term of office of

the two no m i nees. Ba sed on the votes re ceived, the fo llo wing are th e term s of the two

no m i nees:

Kareen Lionnet-Zadros ( A F) 3 years New

Khalid Mustafa Faqih (GF) 2 years NewMINUT ES – Cargo Services Conference (CSC/33) Page 11 of 25

The new ULDP me mbership is a s follows:

No. Member Term of Office

1 Marcus Doyl e (FX ) 2011 2012 2013 2014

2 Willem Roukens Frits (KL) 2011 2012 2013 2014

3 Ruilin Li (CA) 2011 2012 2013 2014

4 Kareen Lionnet-Zadros ( A F) 2011 2 0 1 2 2 0 1 3

5 Carl Frey (AA) 2011 2 0 1 2 2 0 1 3

6 Mandour A. Karim Mand our (MS) 2011 2 0 1 2 2 0 1 3

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

8 Khalid Mustafa Faqih (GF) 2011 2012

9 Richard O’Marra (5X ) 2011 2012

10 Zeljko Vukicevic (LH) 2011

11 David Duboi s (CV) 2011

12 Toru Nakano (JL) 2011

POLICY IT EM S

Agenda Item P/1: Time and Temperature Task Force (TTTF) Structu r e

M/051 The Chairman introduced the item and mentioned that the TTTF was originally

formed as a temporary g r oup under the Live Animals and Perishables Board (LAPB) and

due to the i m portant na ture of the work done, it was propo sed to mak e it a perma nent body under the LAPB. He added that the membership struct ure was redrafted with input

from the Cargo Procedures Conferenc es Management Group (CPCMG) and is now being prese n ted to Conference for e ndorsement.

M/052 Mr. Leger (XB) added th at it is an important grou p and that, in addition t o airline s

, the group also comprise d of other supply chain stakeholder s such a s fo rwarders, ground handlers, ph armaceutical industry representatives, etc. He mentioned tha t the group ha s provided recommendati ons to amend Chapter 17 of the P e rishable C a rgo Regulations (PCR), and they are developing a roadmap for the transportation of time a nd temperature sensitive sh ipments.

M/053 The revised TTTF Terms of Reference were endorsed by Conference.

Agenda Item P/2: ULD RFID Surv e y

M/054 Mr. Zhi Yon g LIAO (XB), the Secretary of the ULD Panel (ULDP) brie fed the Conference about the survey on t he use of RFID to identify ULDs an d presented the

results o f th e survey. He added tha t although Recommen ded Practice 1640 (RP1640) was delegated to the Cargo Business Processes Panel (CBPP), neither the CBPP nor the ULDP appeared t o have the expertise on RFID technology a nd suggest ed the formation of an industry working group comprised of experts from airlines and R F ID

manufacturers to review RP 1640.MINUT ES – Cargo Services Conference (CSC/33) Page 12 of 25

M/055 The Membe r from AF mentioned th at RP 1640 needs to be reviewed, as it wa s drafted 14 years ago an d there app ear to be b i g gaps in te chnology to day (For example,

RP1640 recommends u s e of the same technology for ground service equipment and ULDs. However, it should not be the case as ground service equipment can use active

RFID where a s ULDs ne ed to have passive RFID as they are carried in aircraft. RP1640

recommend s the use o f a single t ag per ULD. When using passive RFID this would require insta llation of multiple sensor s to be a b le to read it correctly. Inst ead, by having two tags pe r ULD, the t ags cou l d b e read irre spective of t he posit ion of the ULD ) . He

added that AF has bee n working o n the use of RFID on ULDs for several years a nd has

now extend ed it to an industry group. The technology recommended i n RP 1640 needs to be an open technolog y to be accepted by everyone for interlining purpo ses. He furt her

added that AF would highly recommend the formation of an IATA indu stry working group where people can share their experiences with RFID so that RP1640 can be amende d to

be better ad apted to the needs of tod a y’s industry.

M/056 The Chairman mentioned that there appeared to be a need f o r an indust r y group on RFID. Under the Conferences structur e, the Cargo Procedures Conferences Managemen t Group (CPCMG) has t he authority to estab lish task forces. The Chair m an recommend ed that a proposal be submitted to the CPCMG to consider the creatio n of the group. The Terms of Reference of the group would be developed by CPCMG in conjunctio n with the ULDP.

M/057 A Me mber suggested t hat the group report to both CBPP and ULDP as the

ULDP has t he ULD exp e rts and CBPP can check to ensur e that what is suggest e d is wide enough to suit ind u stry needs.

M/058 A Me mber mentioned that while for m alizing the proposed RFID industry working group, it must be ensu r ed that people with the right exp e rtise are included, su ch as engineers, a i rcraft manufacturers, etc.

M/059 A Me mber mentioned that ULD thi r d party log i stics providers should also be

considered.

M/060 The Chairman suggest ed that the Terms of Reference be developed by the

CPCMG in corporating the mentioned reco mmendation s and it could be m odified subsequently if necessa ry.

ACTION: I A TA Secretariat/CPCMG

M/061 The Conference endorse d the formation of a new RFID industry working group.

Agenda Item P/3: Advance Cargo Information EU Surve y

M/062 Ms. Linda Ristagno (X B), the Area 2 coordinator of the Customs Advisory Grou p (CUSAG), b r iefed the Conference on the EU ICS surve y an d its results. It appeared that

most of the airlines an d freight for w arders were ready for implementation, but some

Member States and some Services Providers were not.

M/063 Mr. Leger (XB) added that IATA has been a ske d to be the interface bet ween the European Commission and IATA Me mber airlines. Th erefore, any questions orMINUT ES – Cargo Services Conference (CSC/33) Page 13 of 25

comments should be se nt to IATA w ho will pre s e n t them to t he EU helpd esk. As soo n as a reply is received it will be commun i cated to the Member.

M/064 Mr. Leger (XB) also mentioned that IATA had organized an industry awareness session in June 2010 to provide informati on on t he new EU ICS/ECS re quirements and the changes that were made to sta ndards to m eet the new requirements. Addition ally, representatives from th e Commission were in vited to provi de feedback and to an swer questions. Mr. Leger asked for the Conference’s feedback on whether there was a need

for a similar event to understand th e situation a fter the go-live, and to identify rema ining

concerns or if Members felt that t hey hav e al l the requir ed information and that it is working perfectly fine.

M/065 The Chairman requested for a sho w of hands regarding the organization of an industry session as sug gested by Secretariat.

M/066 The majority of the Me mbers indicated that they would like IATA to o r ganize an industry session.

M/067 A Me mber suggested ho lding the se ssion throug h a webinar.

M/068 Another Me mber suggested holding the session after the en d of the grace period.

M/069 A Member s uggested th at perhaps t he session should be h e ld before t he end of the grace pe riod to help Members to prepare.

M/070 Mr. Leger (XB) mentioned that he would coordin a te with the CPCMG to agree on a proposed date.

ACTION: I A TA Secretariat/CPCMG

M/071 A Member asked if the r e was any harmonizat i on for the penalties a m ong the

Member States during th e grace period.

M/072 Ms. Ristagno (X B) confi r med that there was no standardizat i on for pena lties an d

each EU Member State will apply its own rules, but there was a harmonization for the grace period as the EU will inform th e Member States on when the grace period wil l end. She added that a request had been sent to EU for guid ance and a clear state m ent regarding th e grace period and applicable penalt i es, as such a direct ive appeared to be missing curr ently.

M/073 A Me mber mentioned that a communi cation recently received from Spanish Customs, that they were anticipat ing the end of t he grace pe riod and asked if IATA could clarify with the Commission whethe r they would notify IATA regarding the end of the grace period

.

M/074 A Member mentioned that there n eeds to be uniformity for the grace period among the EU Me mber States.

M/075 A Me mber mentioned that the grace period is a maxi mum o f six months which is extended on a bi-monthly basis. If there is a difference between the grace period

between Me mber States it should be reported to the EU.MINUT ES – Cargo Services Conference (CSC/33) Page 14 of 25

M/076 A Me mber mentioned t hat they ha ve been wo rking very well with th e Customs

authorities b u t the main problem they faced was the lack of FHL data from the Freight

Forwarders and asked if IATA could help to communicate this matter to forwarders through FIATA.

M/077 Mr. Leger (XB) mentioned that a communication would be sent to FIATA wit h

concern fro m the airlin es regardin g the lack o f data from freight forwarders. The y will

also be invit ed to the ind u stry sessio n so that the matter can be discu sse d.

ACTION: I A TA Secretariat/CPCMG

Agenda Item P/4: Carg o Security Governanc e

M/078 Mr. Leger (XB) mentio ned that cu rrently in IATA, there is a lack of a specific working group on cargo and mail security. When IATA is asked by ICAO, WCO, natio nal or regional r egulators to provide comments and feedback o n cargo security, it is dif f icult to do so without having the back up from the industry and without a strong industry position on cargo and mail se curity. He mentioned that the proposed so lution is to create a Cargo Se curity Task Force that would help to develop a strong industry position, to lobby regula t ors, to communicate to the industry regarding important changes to re view and to provide feedback on IATA material on ca rgo security including th e IATA Security manual, training programs and also on non-IATA material, such as I C AO Annex 17, which is imp l emented in the national regulations.

C S T F

- p r e s e nt a t i o n. p
df

M/079 The Chairman asked if this group was the sa me as the one mentioned in the

Second Transmittal as t he name appeared to be mentioned differently.

M/080 Mr. Leger (XB) confirmed that it wa s the same group and that since it was still in

the initia l st ages of def ining the gro up, after discussion with the IATA Safety Operat ions

and Infrastr ucture Depa rtment, the name of the group was proposed to be changed from “Cargo & Mail Security Forum” to “Cargo Se curity Task Force”. The membership was changed fro m 20 me mbers to 12 members, e t c. He adde d that the objective of the proposal is t o seek Conference endorsement on the approach and the need for such a

group.

M/081 A Me mber asked if the g r oup would be under the Conferences structure.

M/082 Mr. Tornero (X B) mentioned th at in IATA there wer e several standing

Committees under the I A TA Board of Go vernors such as the Legal Committee, Audit Committee, Cargo Co mmittee, Operations Committee, etc. These Committees have sub committees and subgrou ps and in this case, the Cargo Security Task Force was seen as a subgroup of the Se curity Exec utive Gr ou p (SEG) u nder the IATA Opera t ions

Committee. He added that a l thou gh the grou p was unfo r tunately named as a Task Force, it is not a Confe r ence body. It would be an advisory group that would pro v ide

recommend ations to the Cargo Committee and the Operations Committ ee.

M/083 A Member c o mmented t hat security issues are u s ually dealt with at a co rporate level and not by cargo, so the approach seemed to be right.MINUT ES – Cargo Services Conference (CSC/33) Page 15 of 25

M/084 The Conference endorse d the formation of the ne w Cargo Se curity Task Force.

Agenda Item P/5: 2010 CSC Achie vements and 2011 CSC Work Plan

M/085 Mr. Leger (XB) presented the 2010 Achieveme n ts and tha n ked the Conference for their sup port and work done during the year. He also presented the 2011 Plans and added that if there were any specific updat es to be recommende d, Members are requested to send them to Secretaria t.

M/086 The Conference endorse d the 2011 CSC Plans.

Agenda Item P/6: Automation of CSC Mail Votes

M/087 The Chairman mentioned that the proposal w a s to u s e a n automated tool to

facilitate the Mail Vote process.

M/088 The Conference endorse d the proposed automation of the CSC Mail Vote s.

VOTING IT EM S

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

M/089 Mr. Leger (XB) briefed Members on the approach, the developmen t of the

standard co nsignment security de claratio n la yout, and t he propose d amendme n t to

Recommen ded Practice 1630.

M/090 The Chairman added t hat the security declaration is not just for the European

Union but it is in tende d as a sta ndard template that co uld be use d for any of the regulators who are requesting to provide securi ty informatio n by paper or by electronic messaging.

M/091 Mr. Leger (XB) mentio ned that having an industry standard will hel p to lobby regulators in countries th at are yet to implement security regulations, so that when they implement new regulatio ns, these w ould hopeful ly follow clo s ely the existing stand a r ds provided by ICAO and I A TA and already imple m ented by t he industry.

M/092 A Me mber asked if it was possible to have a single carg o security declaratio n agreement with a Regulated Agent that all car go coming f r om them would be secure, similar to th e condition s of contract in the EDI agreement for e-AWBs.

M/093 Mr. Leger (XB) mentioned that car go from regulated agen ts are considered as secure, ho wever the regulators w ant a per shipment notification tha t the Regulated Agent has ascertained t hat the cargo is secure, and this notification ha s to be provided in paper or electronic fo rm. He added that since some regulators are willi ng to accept the electronic security declaration, per haps the inclusion of a security infor m ation state m ent into the e-AWB agreement could be an approach to be considered for th e future.

M/094 The Chairman added that when the EC put forward the Import a nd Export regulations and then they added the security requirements, the existing messaging could

not accommodate those security ele m ents and t hat is why some of the new codes wereMINUT ES – Cargo Services Conference (CSC/33) Page 16 of 25

created and adopted th rough the CBPP, to b e able to pr ovide that i n formation. But following th e recent security events, it bec ame ever more n e cessary to have a standard

format.

M/095 A Me mber asked if IATA could lobby reg u lators to accept the proposed consignment security d e claration a s there we re many security directives being issued, especially by the United States.

M/096 Mr. Leger (XB) mentioned that IATA is in dialogue with the various regulators

around the world and some of the regulators w e re also par t of the Ele c tronic Securit y Declaration Advisory Group such as EC, UK DfT, Netherla nd, etc. IATA has prese n ted the propose d security declaration to a large group of regulators at several meetings at ICAO, WCO, etc. Regulators have p r ovided posit ive acknowledgement that it is the r i ght approach. H o wever, it is very difficult to get a for m al endorse ment from the regulator s as they were h e sitant to en dorse any one standard

. He further added that I A TA is working on the revision of ICAO Annex 17 with regulat ors from Canada, Austr a lia, US, EC, et c and will try to incorporate the consi gnment security declaration into ICAO Annex 17. Hopefully, that will provide the necessary traction for global i m plementati on.

M/097 Mr. Da ve Brennan (XB), Secretary of the IATA Dange rous Goods Board,

mentioned that sect ions 3.3.3 and 3

. 4.3 of the p r oposed RP1630 contains reference to the consign o r being licensed to ship in acco rdance with IATA Dan gerous Goods Regulations. He added that, although national regulation s may requ ire licensing for shipping cer t ain danger ous goods, there is no general lice nsing requir e ment stipulated by the IAT A Dangerou s Goods Regulations. He proposed an amen dment to s e ction

3.3.3 and 3. 4.3 to includ e a generic compliance statement as follows:

3.3.3 Known Consignors should cert ify in paper, electronic fo rm at, or any other m ean s that m a y be allowed in th e future that each consign m ent does not contain any explosives/a mmunition/fla m m able liquids/corrosive s or disab ling or incap a citating ite m s, which they a r e not licen sed to ship unknown car go or dangerous goods, or that dangerous g oods in the consignm en t have been prepared in accordance with IATA Dangerous Goods Regulations , or unknown ca rgo

.

3.4.3 Accou n t Consigno rs should ce rtify in paper , electronic f o rm at, or any other m e a n s that m a y be allowed in th e future that each consign m ent does not contain any explosives/a mmunition/fla m m able liquids/corrosives or disab ling or incap a citating ite m s, which they a r e

not licen sed to ship unknown car go or dangerous goods, or that dangerous g oods in the consignm en t have been prepared in accordance with IATA Dangerous Goods Regulations , or unknown ca rgo

.

R P 1630-D G -p rop o sa l

. pdf

M/098 The Conference una nimously adopted t he proposed amendment t o Recommen ded Practice 1630 (including the a m endment t o section s 3

. 3.3 and 3.4

. 3) for Expedited effectiveness.MINUT ES – Cargo Services Conference (CSC/33) Page 17 of 25

Agenda Item V/2: Resolution 681 – ULD Pane l

M/099 Mr. Liao (XB) introduce d the item a nd mentioned that the current ULD ‘Technica l Advisory Pa nel (TAP)’ is proposed to be renamed ‘Techn ical Advisory Group (TAG)’ in order to alig n with the Conference g o vernance procedures.

M/100 The Conference unanimously adopted t he pr oposed amendment to Resolution

681 for Normal effectiveness.

Agenda Item V/3: Resolution 621 – IATA Live Animals and Perishables Board

M/101 Mr. Leger (XB) introduced the item and men t ioned that the “LAPB Advisory Panel” is proposed to re-named th e “LAPB Ad visory Grou p” to align with the Conf erence governance procedures.

M/102 The Conference unanimously adopted t he pr oposed amendment to Resolution

681 for Normal effectiveness.

Agenda Item V/4: Re commended Practice 1677 – Framew ork for a Serv ice Agreement

M / 103 The Chairm an introduce d the item a nd propose d to re-nam e the Reco m m ended

Practice to “ F ramework f o r a Postal Service Agreement” to clarify the purpose.

M/104 Mr. Michael Gill (X B), IATA’s Senior Legal Counsel, con c urred with the change suggested b y the Chairman and mentioned th at he would confirm agreement with the

UPU at the f o rthcoming IATA-UPU Contact Committee meeting.

ACTION: I A TA Legal

M/105 Mr. Gill (X B) mentioned t hat IATA has been i n di scussion wit h the UPU for nearly three years regarding the framework agreement and that it h a s been reviewed in detail by the IATA Airmail Panel and a l so the UPU Contact Committee. There were de tailed negotiations between the Legal representatives of IATA an d UPU. He mentioned that the reason why it is necessary to have a di fferent type of service agreement is because the carriage of mail by a i r is subject to a different legal regime than that of regular cargo, as there is a separate international convention and therefore separate liabilitie s which apply to delay, loss or d a mage to mail carried b y air. He added that IAT A and UPU had

detailed d i scussion s re garding the liability of th e air carr ier and came t o a compro mise solution which is found in the provisions of the proposed model agreement in Article 24, 25, and 26. He further added that each individu al carrier, in its discu ssion with individual postal autho rities, should look at the agreement i n further detail and consider if they want to negotiate a different l i ability regime; but as a f r amework agreement IATA believes that

it is a satisfa c tory solutio n for all.

M/106 A Me mber asked if article 25.2 wo uld mean that the liabilit y of the carrier would

be unlimited for mail.

M/107 Mr. Gill (XB) clarified that general ly the liabili ty of the carrier is lim ited to a specific monetary a m ount which is a negotiated between t he carrier and postal authorityMINUT ES – Cargo Services Conference (CSC/33) Page 18 of 25

concerned. However th e liability of the carrier would be u n limited in case of intentional misconduct or gross negligence by the carrier, unless there was a sp ecific agree ment with the po stal authorit y to exclude it or the n a tional law which applies to the co ntract

states other wise. He added that the r e is scope in the carrier ’s discussio n with the p o stal authority to cap the liab i lity so that it is limited even for gross n egligence.

M/108 The Conference una nimously adopted t he proposed amendment t o Recommen ded Practice 1677 for Expedited effe ctiveness.

Agenda Item V/5: Resolution 656 – Automated Data Interchange w i t h Customs

M/109 Mr. Leger (XB) mention ed that follo wing the recent security issues, it wa s agreed by both the WCO and I A TA to re vise the Me mo randum of Understanding (MoU) signed previously b e tween the parties to include “A ir Cargo Security” (under article 2.2) an

additional ar ea of mutual interest for both organizations. Additionally, it was proposed to change “IATA e-freight” to “e-freight” and “IATA e-Air Waybill” to “e-Air Waybill” as th ese are industry initiat i ves. He added that the revised MoU would be sig ned by IATA and

WCO soon and that Conference en dorsement is sought for the revised MoU. He fu rther

added that the MoU de monstrating WCO’s support for IATA’s security initiatives would

be a useful t ool for lobbying the various customs authorities a r ound the world.

M/110 The Chairman asked if there was a possib ility that the dr aft being vo ted upon could possib l y be changed prior to signature.

M/111 Mr. Leger (XB) added that the text was reviewed and agree d by both WCO and IATA and that change s were unlikely; however, in case there were any last minute changes, it would be referred back to the CPCMG to d e termine if the change s are substantia l f r om that adopted by Co nference.

M/112 The Chairman requeste d that discu ssions tha t would take place betwe en IATA

Secretariat and the WCO be fairly transparent so that Con f erence has an idea on the

essence of t he discu ssio n s.

M/113 The Conference unanimously adopted the propose d amendme n t to Resolution 656 for Exp edited effect iveness.

Secretary Note: The revised MoU between IATA and WCO was signed by I A TA's

Director General and C E O, Mr Gio v anni Bisign ani, and WCO's Secretary General, Mr. Kunio Mikuriya.

M o U

_ I A T A _W C O _f i n

a l _a p r i l 2011. p d f

Agenda Item V/6: Recommended Practice 1665 – IATA Interline Cargo Claims

Procedures Agreement – Principles and Practices

M/114 Mr. Liao (XB) mentioned that at the 6 th IATA Cargo Claims and Loss P r evention Conference (CCLP), the airline p a rticipants were surveyed whether they are using

Recommen ded Practice 1665 as a tool. The re sult of the survey was t hat the majority ofMINUT ES – Cargo Services Conference (CSC/33) Page 19 of 25

the airline s f eel it is an a ppropriate t ool to pro c e ss the interline claims b u t the text might

need to be updated to r e flect curren t practice. H e added that after the C C LP, an info rmal working group was formed consist i n g of volunteers from the CCLP airlin e participant s to

review Recommended Practice 1 665 to see k pot ential impro v ements. Suggestions f r o m the group w e re reviewed by IATA Secretariat to gether with I A TA Legal. The result is that

the content as a whole r e mains valid and there is ju st a clarification t o section 3.1.3. 2 a s mentioned in the proposal.

M/115 The Conference una nimously adopted t he proposed amendment t o Recommen ded Practice 1665 for Normal effectiveness.

REP O RT IT E

M

S

Agenda Item R/1: Airmail Panel (AMP)

M/116 Mr. Leger (XB) mention ed that guid e lines for th e use of the Postal AWB number were endorsed by the UPU and h e encourag ed Members to test tr ia l the Postal AWB and report back to IATA if any enhancements need to be made.

M/117 The report was noted.

Agenda Item R/2: Cargo Business Processes Panel (CBPP)

M/118 The Chairman stated that CBPP is one of the important industry working groups

that has be en delegate d authority by Conferen ce to condu ct work and make decisions

outside of Conference. These de cision s are then passed to Conf erence, including changes to messages or business processes t hat are recommended, and if there is a problem or disagreement, Memb ers are req uested to contact IAT A Secretariat to determine the appropriate course of action. As these gro ups make decision s tha t affect the entire industry, exp e rts who are voted to j o in these groups must be committ ed to doing the work that is re quested of t hem during the year.

M/119 The report was noted.

Agenda Item R/3: Cargo Data Interchange Task Force (CDITF)

M/120 The report was noted.

Agenda Item R/4: Cargo-XML Ta sk Force (CXMLTF)

M/121 Mr. Leger (XB) provide d an update on the prog ress of the CX MLTF in cluding the

XML messages developed to date a nd the plans for 2011.

M/122 The report was noted.

Agenda Item R/5: Dan gerous Go ods Board (DGB)

M/123 The report was noted.MINUT ES – Cargo Services Conference (CSC/33) Page 20 of 25

Agenda Item R/6: Dan gerous Go ods Training Task Force (DGTTF)

M/124 The report was noted.

Agenda Item R/7: Live Animals & Perish ables Board (LAPB) and Time and Temperature Task Force (TTTF)



### M/125 Mr. Leger (XB) mentioned that t he LAPB has endorsed the new label for time and temperature sensitive products and the new label should be us ed by shippers and forwarders to identify time and temperature sensitive healthcare products if there is a servic e level agreement in place.

M/126 The report was noted.

Agenda Item R/8: ULD Panel (ULDP)

M/127 Mr. Liao (XB) mentioned that the n e xt UL DP meeting will be in April 20 11 in New Orleans, USA and the fo llowing one in October 2 011 in Pittsburgh, USA a s they are h e ld in conjunction with the SAE meetings. He men t ioned that the ULD Pa nel together with

IATA Secretariat drafte d the ULD Scorecard with the Key Performance Indicators. Currently, th e ULDP is fine tuning the KPI survey questions. After the ULD Scorecard is finalized, th e survey will be cir c ulate d to CSC members for i nput. It i s pl anned to co nduct

the ULD Scorecards su rvey on an annual basis. Mr. Liao added that various initiative s were launch ed as per th e 2010-201 2 ULD Roadmap to increase the pr ofile of ULD s , to improve ope rational safe ty and efficiency, et c. The purpose of conductin g the surveys is to monitor the progress of the in du stry and he requested the support of Members by participating in these sur v eys.

M/128 The Chairman reminded that for fa ce-to-face meetings of all p anels a nd boards, requests must be sub m itted to the Cargo Procedures Co nferences Managemen t group (CPCMG) in a timely fashion.

M/129 The report was noted.

Agenda Item R/9: ULD Operationa l Advisory Group (UL D OAG)

M/130 Mr. Liao (XB) provided an update on the ULDOAG.

M/131 The report was noted.

Agenda Item R/10: Cargo Publications

M/132 The report was noted.MINUT ES – Cargo Services Conference (CSC/33) Page 21 of 25

Agenda Item R/11: Passenger Services Conference (PSC)

M/133 The report was noted.

Agenda Item R/12: Strategic Partnership Pro g ram – Cargo

M/134 The report was noted.

Agenda Item R/13: Airport Servic es Committee (ASC)

M/135 The report was noted.

Agenda Item R/14: IATA Ground Handling Council (IGHC)

M/136 The report was noted.

Agenda Item A/97: Any Other Bu siness

M/137 There were no matters raised under this agenda item.

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

M/138 The Chairman informed the Conference that the date an d place of the next meeting wo uld be ann ounced at t he IATA World Cargo Symposium (WCS) Clo s ing Plenary.

Secretary Note: It was announced at the WCS Closing Plenary that t he next eve n t will

be held in Kuala Lum pu r, Malaysia in March 2012. The 34 th Cargo Services Confer ence (CSC/34) is scheduled t o

be held in conjunctio n with the WCS 2012.

Agenda Item A/99: Close of Meeting

M/139 The Chairman thanked all the members present for their par ticipation

.

M/140 The Chairman closed th e meeting at approximat ely 16:50 hours local t i me.

* *** *** *** ***MINUT ES – Cargo Services Conference (CSC/33) Page 22 of 25

Attach m e nt ‘A’

ATT E N D A N C E L I ST

CSC/33 - 8 Ma rch 2011

Airline Delegate Name

Air Canada Karen Jones

Air France Jean Dunaux
All Nippon Airways Shinji Sugiyama

American Airlines Richard Burkhardt
British Airways Malcolm Fowler Cargolux S. A. Franceso Nanna Cathay Pacific Francis Yue n Cathay Pacific Simon Leung Copa Airlines Jaime Alvarez

Delta Airline s James Whitelaw

Delta Airline s Sinead O’Neal
Egyptair Bassima El Sissy

E t i h a d C h r i s N o t t e r

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

I b e r i a J u a n A i j o n Japan Airlin es Toru Nokano

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

Korean Air In Seok Oh
Kuwait Airways Moyad Al Dulaimi

LAN Airlines Marcela Figueroa

LOT Polish Barbara Jakobiak Lufthansa Cargo Florian Weh
Malaysia Airlines Ibrahim M. Salleh
Malayasia Airlines Noor Zaida Nippon Cargo Airlines Iwahiko Uehara

Q a n t a s B r i a n H o g a n
Saudi Airlin es Raafat Abduljabbar

S W I S S U r s S t u l z TAP Portug al Rita Costa Silva
Thai Airways Suvimol Bu alerd
Thai Airways Yannawit Sangsook
Thai Airways Natapol Chaiyalapho

Turkish Airlines Mehmet Gurkan

Turkish Airlines Nur Saygise v er Karabek

United Airlin es** Rod Zimmerman

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

*CSC Chairman

**CSC Vice ChairmanMINUT ES – Cargo Services Conference (CSC/33) Page 23 of 25

IATA Secre t ariat

Compan y Name

IATA – Gen e va *** Frederic Le ger
IATA – Gen e va Zhi Yong Liao

IATA – Mont real Carlos Tornero

IATA – Gen e va Ben Behanan

IATA – Gen e va Glyn Hughe s
IATA – Gen e va Michael Gill

IATA – Mont real Dave Brenn an

***C SC Sec r etaryMINUT ES – Cargo Services Conference (CSC/33) Page 24 of 25

Attachment ‘B’

COM P E T I T ION LA W G U I D E L I N E S FOR

PASSENGER AND C ARGO TAR I FF, AG ENC Y

A N D SER VICES CO NFER ENCE MEETIN GS



### Trade association activities of the Inte rnational Air Transport Association (“IATA”) include passenger and cargo tariff, agenc y and services conference meetings (“IATA Confer ences”). IATA is publishing the s e Competition La w Guidelines to ensure that these events are conducted in compliance w i th all appli cable competitio n la ws.

Statement of Polic y

The purpose of IATA Conferences is to promote the smooth transfer of passengers and cargo pursuant to interline services, and to ope rate settlement services that efficiently

settle accou n ts among airlines and their agents and customers. It is I A TA’s intent that

the confere n ces sha ll b e conducte d in full co mpliance with the Unite d States an titrust laws, the competition rules of the Treaty of Rome, and t he competition laws of other jurisdictions, taking into account an y applicable exemptions or immuniti es from those competition laws.

Procedural Guidelines

IATA Confe r ence meetings shall be conducted pursuant to the followin g procedure s in order to ensure compliance with all r e levant competition laws:

1. Conference meetings shall be co nducted at regularly scheduled se ssions, at special meetings initiat ed pursuant to procedures set forth in IATA’s internal governance rules, or t h rough the activities of duly de signated co mmittees

. Informal sessions of delegates t o take final action on agenda items are prohibited. All discussions or co nversations among co nference participants, including d u ring breaks and sch eduled or non-scheduled social activities

connected with the Co nference meetings or committee meetings, must follow

these Guidelines.

2. Conference meetings sh all be condu cted in acco rdance with written agen das that

are reviewe d in advance by IAT A c ounsel familiar with the competition laws of the United States, the European Communit y a nd other relevant jurisdictions t o assure that t he agenda items are in compliance with these law s . Agendas will be

distributed in advance of the confere n ce meetings.

3. Minutes of conference meetings sh all be kept, including ind i cations of a Memb e r airline or a Partnership Program me mber absenting him/herself from the Meeting for a particular agenda item. T hose minutes shall be reviewed by IATA’s competition compliance attorney prior to circula t ion to attend ees.MINUT ES – Cargo Services Conference (CSC/33) Page 25 of 25

Prohibited Agreements and Activities



### 1. Unless attendees of conference meeti ngs are advised to the contrary by competition counsel, the following ty pes of agreements, whether expres s or implied, are STRICTLY PROHIBITED:

a. Any collective agreeme n t concerning prices t o be charged for airlin e

serv ices;

b. Any collective agreement allocating markets, territories, customers, suppliers or agents;

c. Any collective agreeme n t relating t o price s to be paid to suppliers, a nd any other agreement that is intend ed to, or th at in operat ion is like l y to, harm non-participants, including without limitation any agreement that is intended to, or in opera t ion is likely to, exclude a non-participants fro m any market; and

d. Any agreement that is intended to, or in op eration is likely to indu ce airlines or th eir supplier s or agents t o engage in collective anticompetitive behavior, or to colle ctively punish a n y business enterprise f o r its exercise of independ ent business judgment.

2. Recognising that the existence of a n unlawful agreement or concerte d practice may be inferred from circumstances, incl uding the exchange of information b y competitors, discussion s or disclosur es of the following types of information, are

also PROHI B ITED, exc ept when such information has ot herwise been made public or IATA competit ion counsel advis es that such discussion s are legally permissible:

a. Individual airline fares, r a tes, charge s or surchar ges;

b. Individual airline cost s;

c. An individual airline ’ s intentions regarding increasing

, reducing or reallocating aircraft capa city (includin g entering o r exiting routes);

d. Information on individual airlines cust omers; and

e. Any other sensitive commercial or propriet a ry informa t ion that t h e

company would not disclose in the absence of an expres s or implied agreement to exchange such infor m ation for the purpose of reducing or restricting competition in the airline industry.