either the procedure specified in Subpart B of Part 302, of this chapter, or the procedure prescribed in paragraphs (a), (b), and (c) of this section.

(a) Whenever the Board contemplates the institution of suspension proceedings, pursuant to this section, which involve alleged knowing and willful violations, it shall issue an order instituting a suspension proceeding. However, whenever the alleged violations are not knowing and wilful the Board shall, by letter, give the carrier the notice and warning specified in section 9 (b) of the Administrative Procedure Act. Such notice shall specifically recite the holder's failure to comply with any provisions of the act or any order, rule, or regulation issued under any such provision, or any term, condition or limitation of any authority issued under said act or regulation. Such notice shall also afford the holder a reasonable opportunity to demonstrate achieve compliance with such legal requirements within a specified period of time. At the expiration of such period, the Board may issue an order instituting a suspension proceeding.

or

(b) Each order instituting a suspension proceeding will specify a period of time within which the holder must file a written response with the Board. In such response, the holder may deny noncompliance or adduce such considerations as it desires to rely upon in order to justify or excuse noncompliance.

(c) In the event such a written response is filed, the Board may assign the proceeding for hearing or oral argument or, in appropriate cases, enter an order of suspension or an order dismissing the suspension proceeding.

(d) Such suspension may continue until the Board finds that such suspended forwarder has complied with the provisions of the act, or with such rules, regulations, orders, terms, conditions, or limitations or until the expiration of such a minimum suspension period, of fixed duration, as the Board may prescribe. The Board may also order a suspension, of indefinite duration, during the pendency of a docketed revocation proceeding brought under § 296.49.

(e) Failure to seek reinstatement of an Operating Authorization suspended pursuant to the provisions of this section within a period of 60 days after the effective date of such suspension or prior to the expiration of any prescribed sus

(a) Operating Authorizations shall be subject to revocation, after notice and hearing, for knowing and willful violation of any provision of the act or of any order, rule, or regulation issued under any such provision, or of any term, condition, or limitation of any authority issued under said act or regulations.

4

The

(b) An Operating Authorization shall be revoked without prejudice upon the filing by an air freight forwarder of a written notice with the Board indicating the discontinuance of common carrier activities, together with a tender of the Operating Authorization for cancellation: Provided, That the Board may refuse to accept such notice and to cancel the authorization if any proceedings or action is pending in which an air freight forwarder's authority may be subject to suspension or revocation action. failure of any carrier to perform interstate air transportation services for a period of two years or failure for two successive periods to file the periodic reports required by this chapter may, for the purpose of this part, be deemed by the Board to constitute the filing of written notice indicating the discontinuance of the common carrier activities, and in such case the tender of the Operating Authorization shall not be necessary.

It shall be an express condition upon the exercise of the privileges herein granted and the operating authorizations issued hereunder, that the forwarder concerned, in holding out to the public and in performing air transportation services, shall do so only in a name the use of which is authorized under the provisions of Part 215 of this chapter (Economic Regulations) or under § 296.47.

(Interpret or apply sec. 101(3), 72 Stat. 737; 49 U.S.C. 1301) [ER-390, 28 F.R. 9202, Aug. 21, 1963]

4 To the filing of a subsequent application for such authorization.

(a) Cargo. No air freight forwarder shall engage in air transportation pursuant to this part unless it shall have on file with the Board any one of the following: (1) A satisfactory certificate or certificates of insurance evidencing a properly endorsed policy of insurance (CAB Form 350); (2) evidence of qualifications as a self-insurer (a self-insurance fund or other qualifications approved by the Board); or (3) a surety bond. Any such guaranty shall be not less than the amount prescribed in paragraph (c) (1) of this section, and shall cover risks of loss of or damage to the property it handles as a freight forwarder pursuant to the provisions of this part.

(b) Public liability, property damage and personal injury. No air freight forwarder shall engage in the performance of transfer, collection or delivery services pursuant to this part unless it shall file with the Board a satisfactory certificate or certificates of insurance evidencing a properly endorsed policy of insurance (CAB Form 350),' qualifications as a self-insurer (a self-insurance fund or other qualifications approved by the Board) or surety bond in not less than the amounts prescribed in paragraph (c) (2) and (3) of this section, conditioned to pay within the amount of such insurance coverage any final judgment recovered against it on account of bodily injuries to or death of any person, or loss of or damage to property (other than property covered by paragraph (c) (1) of this section) resulting from the negligent operation, maintenance or use of motor vehicles operated by or under its direction and control.

(c) Minimum liability limits(1) Cargo insurance. For loss of or damage to property while carried on or resting in any one conveyance or premises; minimum $10,000 per conveyance or premises. Conveyance includes, but is not limited to, aircraft, motor vehicles, rail and watercraft;

(2) Public liability; property. For loss or damage to property occurring at any one time or place: minimum $5,000;

(3) Public liability; personal injury. Claims for bodily injury or death: minimum $10,000 for one person subject to that limit per person and $20,000 for all persons in any one accident.

Available from Publications Section.

Subpart G-Continuance of Operations Pending Issuance of Operating Authorizations Pursuant to This Part

§ 296.60 Existing operations may be continued pending issuance of Operating Authorizations under § 296.43 (b).

Notwithstanding the provisions of any other subpart of this part, any air freight forwarder presently authorized to operate under a letter of registration, issued by the Board, in accordance with the provisions of this part as in effect prior to this amendment may continue its operations thereunder and in accordance therewith for 30 days after the effective date of this part, and thereafter until such time as the Board shall finally dispose of its application for issuance of an operating authorization, pursuant to § 296.43 (b), if before the expiration of said 30 days such forwarder files such application.

Subpart H-Preparation and Retention of Records and Reporting Requirements: Air Freight Forwarders § 296.70 Preparation of airwaybills and

manifests.

(a) Each holder of an operating authorization as an air freight forwarder shall prepare an accurate airwaybill for each shipment consigned for transportation to a direct air carrier by such holder in the capacity of an air freight forwarder and a copy thereof shall be supplied to the consignor and to the consignee of each such shipment. Each such airwaybill shall contain:

(1) The following information:

(i) Name and address of consignor, consignee, and air freight forwarder. (ii) A limitation of liability statement.

(iii) Number of packages in shipment. (iv) Total weight (both actual and dimensional, where applicable).

(v) Description of commodities. (vi) Point of origin and destination of shipment.

(vii) Declared value of shipment. (viii) Date of airwaybill preparation. (ix) Name of employee or agent preparing airwaybill.

(2) The following charges, when applicable:

(1) Commodity rate applied.
(ii) Total weight-rate charge.
(iii) Pick-up and/or delivery.

(iv) Excess valuation.

(v) Charges advanced.

(vi) Assembly or distribution. (vii) Other accessorial charges (specify).

(viii) Insurance (liability).

(ix) C.O.D. fee.

(x) Total charges and an indication as to whether charges are prepaid or collect.

(b) Each holder of an operating authorization as an air freight forwarder shall prepare an accurate manifest showing every individual shipment included in each consolidated shipment consigned for transportation to a direct air carrier by such holder. There shall be set forth in each such manifest the following information:

(1) The number of the air freight forwarder's individual airwaybill for each individual shipment within a consolidated shipment.

(2) Name of the direct air carrier transporting the shipment and the number of the direct air carrier's airwaybill under which the shipment is transported. (3) Date of shipment.

(4) Weight of each individual shipment and the total weight of consolidated shipment.

(5) When a consolidated shipment consists of a combination of shipments to be transported to points in the United States and foreign points outside thereof, a clear statement that shipments with a foreign destination are included in the consolidated shipment.

(Interpret or apply secs. 407, 101(3), 72 Stat. 766, 737; 49 U.S.C. 1377, 1301) [ER-352, 27 F.R. 4355, May 8, 1962]

NOTE: Where a forwarder desires to conduct an operation which entails the use of documentation different from that required herein, it is the responsibility of such forwarder to secure from the Board in advance, permission to deviate from the requirements of this section.

§ 296.71 Record-retention requirements.

Each holder of an operating authorization as an air freight forwarder shall comply with the applicable record-retention provisions of Part 249 of this subchapter, as amended.

(Interpret or apply secs. 407, 101(3), 72 Stat. 766, 737; 49 U.S.C. 1377, 1301) [ER-352, 27 F.R. 4356, May 8, 1962]

§ 296.72 Reporting requirements.

Each holder of an operating authorization as an air freight forwarder shall

Subpart E-Reporting Requirements and Requirements for the Maintenance and Retention of Records

Sec.

297.50 Reporting requirements. 297.51 Records requirements.

AUTHORITY: The provisions of this Part 297 issued under sec. 204 (a), 72 Stat. 743; 49 U.S.C. 1324. Interpret or apply sections 101(3), 102, 403, 404, 407, 416, 72 Stat. 737, 740, 758, 760, 766, 771; 49 U.S.C. 1301, 1302, 1373, 1374, 1377, 1386, except as otherwise noted.

SOURCE: The provisions of this Part 297 contained in ER-288, 24 F.R. 9979, Dec. 10, 1959, except as otherwise noted.

§ 297.1

Subpart A-General
Definitions.

For the purposes of this part:

2

(a) "Indirect Air Carrier" means any citizen of the United States' which engages indirectly in overseas or foreign air transportation of property only, and which: (1) Does not engage directly in the operation of aircraft in air transportation, and (2) does not engage in air transportation pursuant to any Board order which has been issued for the purpose of authorizing air express services under a contract with a direct air carrier.

(b) "Direct Air Carrier" means any air carrier (other than an air taxi operator) or foreign air carrier directly engaged in the operation of aircraft pursuant to a certificate of public convenience and necessity or foreign air carrier permit issued by the Board, or under other authority conferred by any applicable regulation or order issued by the Board.

(c) "International Air Freight Forwarder" means an indirect air carrier coming within the classification established by § 297.2.

(d) "Joint Loading" means an agreement between two or more international air freight forwarders, which provides for the pooling of shipments and their delivery to a direct air carrier for transportation as one shipment in accordance with the filed tariff rules of such direct air carrier.

warder" in the ordinary and usual course of its undertaking, assembles and consolidates or provides for assembling and consolidating of property or performs or provides for the performance of breakbulk and distributing operations with respect to consolidated shipments, or both, is responsible for the transportation of such property from the point of receipt to point of destination, and utilizes for the whole or any part of such transportation the services of a direct air carrier.

§ 297.3 International air freight forwarder acting as agent of shipper or carrier.

(a) Any international air freight forwarder may, by complying with the requirements of this section, accept a particular shipment for transport by it as an international air freight forwarder on condition that it may exercise an expressly reserved option to deal therewith as the agent of the shipper thereof or as the agent of a direct air carrier which has authorized such agency, in the event that a volume of freight adequate to permit a consolidated shipment cannot be assembled.

(b) Any international air freight forwarder seeking to avail itself of this option must give notice that it reserves such right, in the case of every shipment accepted subject thereto, to handle the shipment as agent of the shipper or as agent of a direct air carrier, as the case may be. Such notice shall be given to the shipping public and to any person from whom any shipment is so accepted, and such notice shall be furnished such person in writing at the time the shipment is accepted. Such notice shall be given by means of:

(1) Notices with the heading "Notice to Shippers" conspicuously displayed at all premises operated by or under the control of the forwarder in connection with its air transportation activities so as to be clearly visible to the shipping public;

(2) A legible statement set forth on all letterhead stationery used by the forwarder in connection with its air transportation activities; and

(3) Reasonably prominent statements on all the airway bills of such forwarder and on such receipts or other documentation as may be furnished to the shippers at the time of acceptance of the shipment.

(c) Any international air freight forwarder exercising its option to act as

agent of either the shipper or the direct air carrier shall transmit to the shipper a copy of its charges for the accessorial and transportation services actually rendered with respect to all shipments billed to the consignee.

(d) In the event that it acts as agent of the direct air carrier, the international air freight forwarder shall not charge other than the airport-to-airport rate for air transportation specified in the applicable tariffs of the direct air carrier rendering the service and the applicable charges for accessorial and surface transportation services actually rendered, as specified in the tariffs filed with the Board by the international air freight forwarder pursuant to Part 221 of this chapter.

(e) In the event that it acts as agent of the shipper, the international air freight forwarder shall not charge any commission for its agency services and shall not charge other than the applicable charges for accessorial and surface transportation services actually rendered, as specified in the international air freight forwarder's own tariffs filed pursuant to Part 221 of this chapter.

§ 297.5 Separability.

If any provision of this part or the application thereof to any air transportation, person, class of persons, or circumstances is held invalid, the remainder of the part and the application of such provisions to other air transportation, persons, classes of persons, or circumstances shall not be affected thereby.

Subpart B-Exemptions

§ 297.11 Exemption of international air freight forwarders.

Subject to the other provisions of this part, international air freight forwarders are hereby relieved from the provisions of section 610 (a) (4) (Requirement of Air Carrier Operating Certificate) of Title VI of the Act, and from all provisions of Title IV of the Act, other than the following:

(a) Subsection 401(k) (3) (Compliance with Labor Legislation);

(b) Section 403 (Tariffs);

(c) Subsection 404(a) (Carrier's Duty to provide Service, etc.) insofar as said subsection requires air carriers to provide safe service, equipment and facilities in connection with air transportation, and to establish, observe, and enforce just and reasonable individual rates and

charges, and just and reasonable classifications, rules, regulations, and practices relating to air transportation;

(d) Subsection 404(b) (Discrimination);

(e) Subsection 407 (a) (Filing of Reports): Provided, That no provision of any rule, regulation, term, condition, or limitations prescribed pursuant to said subsection 407(a) shall be applicable to international air freight forwarders unless such rule, regulation, term, condition, or limitation expressly so provides; (f) Subsection 407(b) (Disclosure of Stock Ownership);

(g) Subsection 407(c) (Disclosure of Stock Ownership by Officers or Directors);

(h) Subsection 407 (d) (Form of accounts): Provided, That no provision of any rule, regulation, term, condition, or limitation prescribed pursuant to said subsection 407 (d) shall be applicable to international air freight forwarders unless such rule, regulation, term, condition, or limitation expressly so provides;

(i) Subsection 407 (e) (Inspection of Accounts and Property);

(j) Section 408 (Consolidation, Merger and Acquisition of Control);

(k) Section 409 (Prohibited Interests); (1) Section 410 (Loans and Financial Aid);

(m) Section 411 (Methods of Competition);

(n) Section 412 (Pooling and Other Agreements);

(o) Section 413 (Form of Control); (p) Section 414 (Legal Restraints); (q) Section 415 (Inquiry into Air Carrier Management); and

(r) Section 416 (Classification and Exemption of Carriers).

Provided, however, That the provisions of sections 403 and 404 shall not be applicable insofar as they would prohibit any international air freight forwarder from engaging in joint loading and shall not be applicable with respect to property inbound to any place within the United States from any place outside thereof. Provided, further, That the provisions of subsection 404(b) shall not be applicable insofar as they would otherwise prohibit the exercise, by any international air freight forwarder of its option to act as either an air freight forwarder or as agent of the direct air carrier or the ship

* As defined in section 101 (33) of the Act.