(c) Prohibition against holders of Operating Authorizations having tainted officers or owners. No holder of an Operating Authorization shall have and retain as an owner, partner, manager, officer, director, or stockholder holding a controlling interest, any person who was, or is, affiliated in any of said capacities with any other air freight forwarder, international air freight forwarder, cooperative shippers association, irregular air carrier, or noncertificated cargo carrier, under the circumstances set forth in paragraph (b) of this section: Provided, however, That such holder may have and retain persons presently or previously affiliated, in the manner described above, where the Board finds that the public interest and the carrier's intention and ability to conform to the provisions of the act and requirements thereunder are not adversely affected by such relationship. § 296.46 Restrictions on issuance of Operating Authorizations. No Operating Authorization will be issued to an applicant which fails to demonstrate, as a part of its showing of capability, that it has such branch offices, associated companies, affiliated companies, or agents as tend to establish the abilty of the applicant to perform pickup, delivery, and other necessary services to be performed in handling shipments. § 296.46a Prohibition on operations unless tariff's are observed. No indirect air carrier as defined in this part shall ship property in the capacity of an air freight forwarder or a cooperative shippers association in interstate air transportation except in accordance with the rates and charges and all applicable rules, regulations and other provisions for transporting such property as set forth in the currently effective tariff or tariffs of the direct air carrier transporting such property; and no such indirect air carrier shall demand, collect, accept, or receive, in any manner or by any device, directly or indirectly, or through any agent or broker, or otherwise, any portion of the rates or charges so specified in the tariffs of such direct air carrier, and shall not demand, accept, or receive, either directly or indirectly, any privilege, service or facility except those specified in the currently effective tariffs of such direct air carrier. [EP-476, 31 F.R. 14632, Nov. 17, 1966] § 296.47 Nontransferability of Oper ating Authorizations. (a) An Operating Authorization shall be nontransferable and shall be effective only with respect to the person named therein or his successor by operation of law, subject to the provisions of this section. The following persons may temporarily continue operations under an Operating Authorization issued in the name of another person, for a maximum period of six months from the effective date of succession, by giving written notice of such succession to the Board within 60 days after the succession: (1) Administrators or executors of deceased persons; (2) Guardians of incapacitated persons; (3) Surviving partner or partners collectively of dissolved partnerships: and (4) Trustees, receivers, conservators, assignees or other such persons who are authorized by law to collect and preserve the property of financially disabled persons. (b) All operations by successors, as above authorized, shall be performed in the name or names of the prior holder of the Operating Authorization and the name of the successor, whose capacity shall also be designated. Any successor desiring to continue operations after the expiration of the six-month period above authorized must file an application for a new Operating Authorization within 120 days after such succession. If a timely application is filed, such successor may continue operations until final disposition of the application by the Board. § 296.48 Suspension of Operating Au thorizations. An Operating Authorization may be suspended by the institution of suspension proceedings in accordance with 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 suspension period of fixed duration, whichever is later, shall automatically terminate all rights under such authorization. § 296.49 Revocation of Operating Au thorizations. (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. (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. The 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. (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); 8 (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 3 Available from Publications Section. To the filing of a subsequent application for such authorization. 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; For (2) Public liability; property. 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. 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 3 Available from Publications Section. (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: (1) 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: (i) Commodity rate applied. (vii) Other accessorial charges (specify). (viii) Insurance (liability). (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 show ing 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. 72 (Interpret or apply secs. 407, 101(3), 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 comply with the applicable reporting provisions of Part 244 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] NOTE: The reporting requirements contained herein have been approved by the Bureau of the Budget in accordance with the Federal Reports Act of 1942. Subpart -Authorization of LongHaul Motor Carriers of General Commodities as Air Freight Forwarders SOURCE: The provisions of this Subpart I contained in ER-593, 34 F.R. 19341, Dec. 6, 1969, unless otherwise noted. § 296.80 Applicability of subpart. This subpart sets forth the special rules applicable to the processing of applications of long-haul motor carriers, as defined in § 296.1(d), for authorization to operate in their own names as air freight forwarders. The regulation does not govern requests of motor carriers for Board approval of control relationships created when they apply through subsidiaries or other affiliates for authorization as air freight forwarders. Action on such applications for approval of control shall be governed by section 408 of the Act and by § 399.20 of the Board's policy statements. § 296.81 Applicability of other subparts. Unless otherwise provided in this subpart, the provisions of Subparts A through C and E through H of this part shall be applicable to the processing of applications of long-haul motor carriers for authority to operate as air freight forwarders, and to the conduct of such operations. § 296.82 Applicability of policy state (3) An estimate of what portion of the long-haul motor carrier's existing surface traffic is subject to diversion to air; (4) An estimate of beyond-terminalarea traffic moving by surface transportation over the routes of the longhaul motor carrier or via interline agreements; and (5) A statement of the proposed air cargo sales force and facilities. (b) A statement of the long-haul motor carrier's authority from the Interstate Commerce Commission or other regulatory agency, including a description of surface transportation authorized and offered at the stations at which air forwarding operations are proposed. (c) A statement of any other advantages which would result from approval of the application. Within thirty (30) days after publication of notice of application in the FEDERAL REGISTER, any interested person may file an objection thereto. The objection must set forth an adequate factual showing of (a) The party's interest in the matter; (b) His reasons for believing that the long-haul motor carrier or its affiliate will not promote air cargo; and (c) Any other reasons why the application does not meet the licensing criteria of § 296.86. If a hearing is requested, the objection must set forth the economic data and other facts which the party will offer to prove. § 296.86 Criteria for authorization. The Board will approve the application if it appears that: (a) the applicant is capable of performing the proposed air transportation and of conforming to the provisions of Requests for the weekly publication should be addressed to the Publications Section, Civil Aeronautics Board, Washington, D.C. 20428. Unless sooner suspended or revoked, an authorization will continue in effect until it expires by its terms or until this subpart is terminated or revoked. § 296.89 Revocation or suspension. The Board may institute proceedings to revoke the authorization of one or more long-haul motor carriers or a group of motor carriers if it has cause to believe that the continued operations of such carrier or carriers are contrary to the above-stated licensing criteria (§ 296.86). Pending completion of revocation proceedings, the Board may without hearing suspend or limit the authorization of such motor carrier or motor carriers in accordance with procedures specified by § 296.48. |