Effective date.

The retention requirements prescribed in this subpart shall be applicable to all records which were in the custody of any air carrier, subject to its provisions, on June 10, 1961, as well as to all records subsequently acquired. With respect to individual records, each retention period herein prescribed shall commence upon the date when the records are created or otherwise come into the possession of the air carrier.

[ER-440, 30 F.R. 9580, July 31, 1965]

NOTE: The record-retention requirements contained herein have been approved by the Bureau of the Budget in acocrdance with the Federal Reports Act of 1942.

Subpart B-Air Freight Forwarders

and International Air Freight Forwarders

SOURCE: The provisions of this Subpart B contained in ER-440, 30 F.R. 9580, July 31, 1965.

§ 249.20 Applicability.

Except as otherwise provided in this subpart or other parts of this subchapter, the provisions of this subpart shall apply to each air freight forwarder and each international air freight forwarder as defined in Parts 296 and 297 of this subchapter.

in this subpart shall be construed to excuse noncompliance with requirements of any other governmental body, Federal or State, prescribing longer retention periods for any category of records. § 249.22 Authority to destroy records.

Freight forwarders subject to this subpart may destroy records or documents named or described in this subpart after they have been preserved for the periods of time herein prescribed. § 249.23 Photographic copies.

(a) All records and documents must be preserved in their original form for the periods specified in the "Schedule of Records" unless the records and documents are suitably photographed and the microfilm is retained in lieu of the original record for the required retention period, subject to the limitations indicated below. A "Microfilm indicator" has been added to the "Schedule of Records" to show when microfilms may be substituted for retention of the original record. In the absence of an indicator, microfilms may not be substituted for the original records unless a waiver is granted pursuant to § 249.28.

(b) An explanation of the symbols used as the microfilm indicators follows: "M" (for Microfilm) indicates that microfilms may be substituted for retention of the original records at any time.

"M-1", "M-2", etc., indicates that microfilms may be substituted for retention of the original records only after the original records have been retained in their original form for the number of years corresponding to the numeral.

"ME" (for Microfilm and for Expiration) indicates that microfilms may be substituted for retention of the original records only for the period subsequent to the expiration, can

cellation, supersedure, or other condition shown in the column for "Retention periods" in the "Schedule of Records." Thus, for item A-3(b) microfilms are not acceptable as a substitute for the contracts until they have expired or have been canceled. At that time microfilms may be substituted for the original contracts for the required 3 years after the expiration or cancellation.

(c) To be acceptable in lieu of original records, photographic copies of records must meet the following minimum requirements:

(1) Photographic copies shall be no less readily accessible than the original record or document as normally filed or preserved would be, and suitable means or facilities shall be available to locate, identify, read or reproduce such photographic copies.

(2) Any significant

characteristic,

feature, or other attribute of the original record or document, which photography in black and white will not preserve, shall be clearly indicated before the photograph is made.

(3) The reverse side of printed forms need not be copied if nothing has been added to the printed matter common to all such forms, but an identified specimen of such form shall be on the film for reference.

(4) Film used for photographing copies shall be of permanent record type meeting in all respects the minimum specifications of the National Bureau of Standards, and all processes recommended by the manufacturer shall be observed to protect it from deterioration or accidental destruction.

(5) Each roll of film shall include a microfilm of a certificate or certificates stating that the photographs are direct and facsimile reproductions of the original records and that they have been made in accordance with prescribed instructions. Such certificate or certificates shall be executed by a person or persons having personal knowledge of the facts covered thereby.

a new resolution or order each time a successor is appointed. An existing appointment in conformity with the procedure indicated herein which was made under prior regulations shall be recognized as being in compliance with the regulations herein.

(b) If the property of a freight forwarder subject to this subpart is in the hands of a trustee, executor, administrator, or assignee, the officer or other employee to have responsibility for the destruction of records and documents shall be designated by such trustee, executor, administrator, or assignee.

(c) It is not required that a copy of the resolution or order of appointment be filed with the Board.

§ 249.25 List of records destroyed.

(a) The responsible officer or employee shall maintain a comprehensive list describing all records and documents which have been destroyed pursuant to this subpart. The list so maintained shall include all records and documents destroyed, including microfilms destroyed. This list shall include form numbers and descriptive titles (or descriptions) of the records destroyed and the periods covered.

(b) The list so maintained shall be available for inspection in the office of the responsible officer or employee and shall be in such detail that the destroyed records or documents may be identified and the time, place, and method of destruction can be established. If the destruction is by accident or at the hand of an unauthorized person not subject to the freight forwarder's control, then the list shall include a statement of the relevant circumstances.

§ 249.26 Freight forwarder going out of business.

The records and documents herein referred to may be destroyed after business is discontinued and the freight forwarder is completely liquidated. The records may not be destroyed until dissolution is final and all transactions are completed. When a freight forwarder is merged with another regulated company, the successor company shall preserve records and documents of the merged company in the manner and for the retention periods prescribed herein. § 249.27 Prescribed periods of reten

tion.

The following is a list showing category of records and documents, the reten

Item number and category of records

Retention periods

Microfilm indicator (§ 249.23)

B. TREASURY-continued

5. Records of securities owned or held by custodians, detailed ledgers and journals, or their equivalents.

6. Statements of funds and deposits:

(a) Statements from depositaries on funds received, disbursed and transferred.

(b) Authorization for transfer of funds from one depositary to another.

(c) Periodical statements of the receipt and disbursement of funds.

(d) Bank deposit books, stubs, ledgers, or records of checks, and copies of deposit slips.

(e) Bank reconciliations; checks canceled by banks; checks, drafts, etc., issued and not presented. (f) Records pertaining to verification of treasurers' cash or securities.

1. Ledgers:

C. FINANCIAL ACCOUNTING RECORDS

(a) General and subsidiary ledgers and indexes thereto.. (b) Balance sheets and trial balance sheets of general and subsidiary ledgers.

2. Journals (except as otherwise provided herein): (a) General journals..

(b) Subsidiary journals and any supporting papers necessary to explain journal entries.

(c) Schedules of recurring or standard journal entries and entry numbers.

3. General and subsidiary cash books, except cash books at agencies provided for under item H-5.

4. Voucher distribution registers or their equivalent.......... 5. Vouchers:

(a) Voucher indexes..

(b) Vouchers, expenditure authorizations, detailed distribution sheets and other supporting papers, including original bills and invoices, except as otherwise provided herein.

(c) Receipts for cash paid out...

(d) Reports of drafts issued by claim agents, terminal and station agents, and others.

6. Accounts Receivables and Payables:

(a) Traffic accounts receivable or payable, detailed journals and ledgers or their equivalents, with supporting papers.

(b) General accounts receivable or payable, detailed journals and ledgers or their equivalents, together with supporting papers.

(c) Bills issued for collection and supporting papers... 7. Statements of receipts, disbursements, and balances of working or petty cash funds in hands of employee-custodians and supporting papers.

8. Uncollectible accounts:

(a) Reports and statements showing age and status of accounts receivable.

(b) Authorizations for writing off accounts receivable... D. PAYROLLS AND PERSONNEL

1. Payroll records: (a) Payroll sheets, registers, or their equivalents, of salaries and wages paid to individual officers and employees.

(b) Records showing the distribution to accounts and jobs of the salaries and wages paid to officers and employees for each periodic payroll and summaries or recapitulation statements of such distribution.

(c) Original source documents used in the preparation of payrolls such as time and attendance cards or job and cost distribution cards.

notices.

M.