Order 2014

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UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Action on IATA Agreement

Issued by the Department of Transportation

on the 17 th day of January 17, 2014

Docket OST

- 201 3

- 0 218

ORDER

By application filed on December 1 8

, 2013 , the International Air Transport Association

(“IATA”) requests that the Department grant IATA and its member airlines an exemption from

Condition #2, one of the existing conditions imposed upon it s traffic conference system as part of

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

Conferences” (“bylaws”) . The condition requires that the U.S. air carrier members of IATA

submit to the Department for appropr iate action all recommended practices, agreements and

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

IATA is seeking an exemption f or a recommended practice (RP) of the Cargo Services

Conference (CSC). 1

Back ground

By Order 2012

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

from C ondition #2, designed to facilitate prompt implementation of routine but essential

standard

- setting and interline coordination agreements without antitrus t immunity, while

preserving public notice and regulatory options.

Order 2012

- 4

- 18 established a three

- tiered system for the filing and implementation of IATA

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

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

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

a greements in specific subject areas, listed in Order 201 2

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- 18 , in Appendix B

, that the

Department wishes to review on a case

- by

- case basis before implementation. After review the

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

discussed and agreed upon resolutions and recommended pract ices to be followed by the airlines under grants of antitrust

immunity. Separate conferences are held for passenger and cargo transportation. See Order 85

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- 32 (May 6, 1985)

. Application of the International Air

Transp ort Association for an exemption

under 49 U.S.C. 40109 from the

conditions of CAB Order 68

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- 55

For Cargo Service Conference ActionDepartment may approve, disapprove, or exempt each Tier 2 agreement. The t hird tier consists

of recommended p ractices , agreements or resolutions that IATA still wishes to file with the

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

All such third tier filings would have to await Depart ment ’s review and appropriate action before

implementation.

IATA’s Application

The application requests exemption from Condition #2 for amendments to an RP of its Cargo

Services Conference that we have identified as a Tier 2 agreement in Order 2012

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- 18. The

agreement in Docket OST

- 2013

- 0 218 would make a number of clerical c hanges to RP 1630

(Cargo Security) to align it with the latest version of the Consignment Security Declaration

layout form and Technical Instructions adopted by the International Civil Aviation Organization

(ICAO)

.

Decision

We find that granting an exemption from filing th is agreement for prior approval before

implementation is warranted, and we will therefore grant IATA’s application, which is consistent

with the treatment of Tier 2 agreements that we established in Order 2012

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- 18.

The changes to RP 1630 raise no competitive, consumer protection or other public interest

concerns under U.S. aviation policy and regulations and do not require D epartment approval or

antitrust immunization for their implementation.

Pursuant to authority duly delegated under the Department’s regulations, 49 CFR 385.13(a )( 4) :

We find that the agreement in Docket OST

- 2013

- 0 218 , as set forth in the attached Appendix

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

condition #2 imposed on the IATA bylaws.

ACCORDINGLY,

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

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

Traffic Conferences, Agreement 1175, as amended by Order 68

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- 55, to the extent that IATA

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

de claration of effectiveness by IATA and implementation by IATA members.

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

3. This Order will be served on the International Air Transport Association.

Persons entitled to petition the Department for review of this order, under 14 CFR 385.30, may

file petitions within seven days after the date of service of this order.This order shall become effective and become the action of the Department of Transportation

upon expiration of th e above period, unless within such period a petition for review is filed or the

Assistant Secretary for Aviation and International Affairs gives notice that she will review this

order on her own motion.

By:

Paul L. Gretch

Director, Office of International Aviation

for Aviation and International Affairs

(SEAL)

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

http:/www. regulations.gov/APPENDIX

Page 1 of 1

Docket OST

- 2013

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IATA Title Expiry Date

Designation

CSC Mail Vote (S076) 1630 Cargo Security Indefinite

(Amending)