as

$ 296.3 Freight forwarder acting solidation on condition that it may exeragent of shipper.

cise an expressly reserved option to deal (a) Any air freight forwarder may, by therewith as the agent of the shipper complying with the requirements of this thereof in the event that a volume of section, accept a particular shipment for freight adequate to permit consolidated forwarding on condition that it may ex- shipment cannot be obtained. ercise and expressly reserved option to 8 296.6 Separability. deal therewith as the agent of the shipper thereof in the event that a volume

If any provision of this part or the of freight adequate to permit consoli

application thereof to any air transpordated shipment cannot be assembled.

tation, person, class of persons, or ctrAn air freight forwarder shall not act

cumstance is held invalid, the remainder as the agent of any direct air carrier of the part and the application of such with respect to shipments accepted for

provisions to other air transportation, forwarding.

persons, classes of persons, or circum(b) Any air freight forwarder seeking

stances shall not be affected thereby. to avail itself of this option must give

Subpart B-Exemptions notice that it reserves such right, in the case of every shipment accepted sub- § 296.11 Exemption of air freight forject thereto, to handle the shipment as

warders. agent of the shipper. Such notice shall

Subject to the other provisions of this be given to the shipping public and to

part, air freight forwarders are hereby any person from whom any shipment is relieved from the provisions of section so accepted, and such notice shall be 610(a) (4) (Requirement of Air Carrier furnished such person in writing at the

Operating Certificate) of Title VI of the time when the shipment is accepted.

Act, and from all provisions of Title IV Such notice shall be given by means of:

of the Act, other than the following: (1) Notices with the heading “Notice to

(a) Subsection 401(k) (3) (CompliShippers" conspicuously displayed at all

ance with Labor Legislation); premises operated by or under the con

(b) Section 403 (Tariffs); trol of the forwarder in connection with

(c) Subsection 404(a) (Carrier's its air transportation activities so as to

Duty to Provide Service, etc.), insofar as be clearly visible to the shipping public,

said subsection requires air carriers to (2) a legible statement set forth on all letterhead stationery used by the for

provide safe service, equipment and fa

cilities in connection with air transporwarder in connection with its air trans

tation, and to establish, observe, and portation activities, and (3) reasonably

enforce just and reasonable individual prominent statements on all the air way.

rates, fares, and charges, and just and bills of such forwarder and on such re

reasonable classifications, rules, regulaceipts or other documentation as may

tions, and practices relating to air transbe furnished to the shippers at the time

portation; of acceptance of the shipment.

(d) Subsection 404 (b) (Discrimina(c) Any air freight forwarder exer

tion); cising its option to act as such agent shall transmit a copy of its charges for

(e) Subsection 407(a) (Filing of Rethe accessorial and surface transporta

ports): Provided, That no provision of tion services actually rendered to the

any rule, regulation, term, condition, or

Imitation prescribed pursuant to said shipper with respect to all shipments billed to the consignee.

subsection 407(a) shall be applicable to (d) In the event that it acts as such

air freight forwarders unless such rule, agent, the air freight forwarder shall

regulation, term, condition, or limitation not charge any commission for its agency

expressly so provides;

(f) Subsection 407(b) (Disclosure of services and shall limit its charges for

Stock Ownership); accessorial and surface transportation services actually reudered, directly or

(g) Subsection 407(c) (Disclosure of indirectly, to those separately stated in

Stock Ownership by Officers or Directhe forwarder's own tariffs filed pur

tors);

(h) Subsection 407(d) (Form of ACsuant to Part 221 of this chapter.

counts): Provided, That no provision of 8 296.4 Cooperative shippers associa- any rule, regulation, term, condition, or

tion acting as agent of shipper. limitation prescribed pursuant to said Any cooperative shippers association subsection 407(d) shall be applicable to imay accept particular shipments for con- air freight forwarders unless such rule,

.

thorized to operate, and date company which employed; also a list of officers, was formed; (5) a list containing the owners, etc., of applicant who were connames of each oficer, director, partner, nected in any way with any air freight owner, or member of applicant, and forwarder, noncertificated carrier, etc., holder of more than 5 percent of out- which had its operating authority restanding stock if a corporation, or owner voked or suspended during the time of of a more than 5 percent interest if other that connection; (15) description of exthan a corporation; an indication as to perience of applicant's oficers, managers whether or not 75 percent or more of the and key personnel in transportation voting interest is owned or controlled by activities qualifying them for air freight citizens of the United States or one of its forwarder operations; (16) a detailed possessions; if more than 5 percent of description of any affiliated companies, applicant's stock is held by a corporation their activity, operating authority, points an indication must be made as to whether served, total cargo tonnage handled dur. or not 75 percent or more of the voting ing past full calender year, agency relainterest of such corporation is owned or tionships, agreements concerning transcontrolled by citizens of the United portation activity to which afiliate is & States or one of its possessions; (6) a party, and integration between applicant description of current business activities and affiliates; (17) any additional inforand of former business experience in, or mation as desired in support of applicarelated to, the tranportation field; (7) tions; (18) Profit and Loss Statement description of operating authority (for the full year ending as of date of granted applicant by agencies of the Balance Sheet): Balance Sheet as of a United States Government (such as that date not more than three months prior of surface freight forwarder, motor car- to application, list of terminal facilities rier, etc.) and, if applicable, reasons for and automotive equipment owned or revocation or other termination; (8) leased; Certificate of Insurance (CAB totals of cargo tonnage handled during Form 350)? or statement of qualification past year, the capacity in which handled as a self-insurer (filing of a certificate of (as agent of carrier, agent of shipper, as insurance may be postponed until later direct carrier, etc.), and means of trans- notification); sample of proposed air portation (air, truck, rail, etc.); (9) an waybill; report of ownership of stock and indication as to whether applicant is a other interests (CAB Form 2786)' by cargo sales agent; affiliations, commis- each officer, director, member, partner sions and agreements of the past year in or owner of applicant; for each affiliate, this regard; (10) list of names of parties, a Profit and Loss Statement (for the full effective dates, operating areas, nature year ending as of date of Balance Sheet) and terms of any oral or written agree- and Balance Sheet, as of a date not more ments, contracts, or working arrange- than three months prior to application; ments concerning transportation activi- organizational chart, diagram of interties to which applicant is a party: (11) company ownership and interlocking list of domestic and international points relationships, annotated to show percent served and proposed to be served; list of ages of stock holdings, officers, directors, offices, agents, etc., at points served and members, partners and owners in each proposed to be served; (12) description

company; plus a brief account of any of proposed services and specializations

arrangement by which applicant will and an indication as to whether or not

have available financial sources and owners or affiliates will use the appli

facilities of other companies or individcant's proposed air freight forwarding

uals. services; (13) list of names of the officers, (b) Additional information. The apowners, etc., of applicant who have at

plicant shall also submit such other adany time applied for any type of author- ditional information pertinent to its ity registration from the Civil

proposed activities as may be requested Aeronautics Board and, if applicable,

by the Board with respect to any indireasons for revocation or other ter

vidual application. mination; (14) list of officers, own

(Interpret or apply sec. 101(3), 72 Stat. 737, ers, etc., of applicant who have at

49 U.S.O. 1301) [ER-310, 25 F.R. 6919, July any time been employed by or associated 21, 1960) with any air carrier authorized to operate by the Civil Aeronautics Board indicat- 'Avallable from Publications Section, CIVII ing dates of employment and capacity in Aeronautica Board.

or

$ 296.43 Issuance of Operating Author. (3) In the event that reconsideration ization.

or hearing is requested the Board may, (a) To successful parties to the investi

without notice or hearing, enter an orgation. Any air freight forwarder appli

der of approval or of disapproval in ac

cordance with its determination of the cant whose application for issuance or renewal of operating authority was ap

public interest upon the showing made, proved in the Air Freight Forwarder In.

or on its own initiative may assign the vestigation, Docket No. 5947 et al., shall

application for hearing. be issued an Operating Authorization 8 296.44 Effective period. bearing the same effective date as this part.

Each Operating Authorization shall be (b) To all other applicants. (1) II,

effective upon the date specified therein, after the filing of an application for an

and shall continue in effect, unless sooner Operating Authorization, it appears that

suspended or revoked, during such pethe applicant is capable of performing

riod as the authority provided by this the air transportation authorized by this

part shall remain in effect, or if issued part as an air freight forwarder and of

for a limited period of time, shall conconforming to the provisions of the act

tinue in effect until the expiration thereand all rules and requirements there

of unless sooner suspended or revoked. under, and that the conduct of such 8 296.45 Conditions on Operating Auoperations by the applicant will not be

thorization. inconsistent with the public interest, the applicant will be notified by letter. Such

(a) Attachment of conditions to Opernotification will advise the applicant

ating Authorizations. At the time of that upon the filing of a valid tariff, an

issuance, and from time to time thereOperating Authorization will be issued

after, there shall be attached to the exerto the applicant unless it has engaged in

cise of the privileges granted by any unauthorized air transportation or other

Operating Authorization issued under activities prohibited by the act or the

this part such reasonable terms, condirules and regulations of the Board be

tions, and limitations applicable to the tween the date of such notification and

person named therein as are necessary such filing. In the latter event, an Op

to carry out the requirements of the act erating Authorization will not be issued and the regulations prescribed thereunless and until a due showing is made

under. by the applicant that it has terminated (b) Operating Authorizations will not such unauthorized or prohibited activi

be issued to applicants having tainted ties, and that the issuance of such an

oficers or owners. No Operating Auauthorization would be consistent with

thorization will be issued to an applicant the public interest.

which has, or proposes to have, as owner, (2) I, after the filling of an applica

partner, manager, officer, director, or tion for an Operating Authorization, it

stockholder holding a controlling inappears that the applicant has not made

terest, any person who is or has been a due showing of capability or that the

connected in any such capacity with any

other air freight forwarder, international conduct of operations by the applicant

air freight forwarder, cooperative shipmight otherwise be inconsistent with the

pers association, irregular air carrier, or public interest, the Board shall by letter

noncertificated cargo carrier, if the letter notify the applicant of its findings to of registration, Operating Authorization, that effect. The Board may dismiss any or other exemption privilege of such carsuch application unless within 30 days rier was suspended or revoked by the of the date of the mailing of such letter, Board on account of acts or omissions the applicant has in writing requested which occurred during the time of such reconsideration and submitted such ad- connection: Provided, however, That an ditional information as it believes will Operating Authorization may be issued make the necessary showing, or re- to such an applicant where the Board quested that the application be assigned finds, upon a showing by applicant, that for hearing, in which case the applicant the public interest and applicant's intenshall outline the evidence to be presented tion and ability to conform to the proviat such hearing and shall show the need sions of the act and requirements for hearing in order to properly present thereunder are not adversely affected by its case.

such relationship.