Loss Statement (for the full year ending as of date of Balance Sheet) and Balance Sheet, as of a date not more than three months prior to application; organizational chart, diagram of intercompany ownership and interlocking relationships, annotated to show percentages of stock holdings, officers, directors, members, partners and owners in each company; plus a brief account of any arrangement by which applicant will have available financial sources and facilities of other companies or individuals. (b) Additional information. The applicant shall also submit such other additional information pertinent to its proposed activities as may be requested by the Board with respect to any individual application. [ER-311, 25 F.R. 6920, July 21, 1960] § 297.33 Issuance of operating authorization to international air freight forwarders holding letters of registration. Each holder of a currently effective letter of registration as an international air freight forwarder on the effective date of this part shall be issued an "Operating Authorization as an International Air Freight Forwarder" bearing the same effective date as this part. Such authorization shall be deemed to constitute a letter of registration for the purpose of any pending enforcement proceeding and shall in no way affect such proceeding. § 297.34 Issuance of operating authorization to all other applicants. (a) If, after the filing of an application for an Operating Authorization, it appears that the applicant is capable of performing the air transportation authorized by this part as an international air freight forwarder and of conforming to the provisions of the Act and all rules and requirements thereunder, and that the conduct of such operations by the applicant will not be inconsistent with the public interest, the applicant will be notified by letter. Such notification will advise the applicant that upon the filing of a valid tariff within a specified period, an operating authorization will be issued to the applicant, unless the Board finds that it has engaged in unauthorized air transportation or other activities prohibited by the Act or the rules and regulations of the Board between the date of such notification and such filing. In the latter event, an operating authorization will not be issued, unless and until a due showing is made by the applicant that it has terminated such unauthorized or prohibited activities, and that the issuance of such authorization would be consistent with the public interest. (b) No operating authorization will be issued to an applicant who will not have sufficient branch offices, associated companies, affiliated companies, or agents located outside the continental United States to perform pick-up or delivery, consolidation or break-bulk, and to render customs and other necessary services to be performed in conjunction with handling shipments, with reasonable effectiveness for the benefit of the shipping public. (c) No operating authorization will be issued to an applicant which has, or proposes to have, as owner, partner, manager, officer, director, or stockholder holding a controlling interest, any person who is or has been connected in any such capacity with any other international air freight forwarder, air freight forwarder, cooperative shippers association, irregular air carrier, supplemental air carrier, or noncertificated cargo carrier, if the letter of registration, operating authorization, or other exemption authority of such carrier was suspended or revoked by the Board on account of acts or omissions which occurred during the time of such connection: Provided, however, That an operating authorization may be issued to such an applicant where the Board finds, upon a showing by an applicant, that the public interest and applicant's intention and ability to conform to the provisions of the Act and requirements thereunder are not adversely affected by such relationship. (d) If, after the filing of an application for an operating authorization, it appears that the applicant has not made a due showing of capability or that the conduct of operations by the applicant might otherwise be inconsistent with the public interest, the Board may on its own motion assign the application for hearing, or may notify the applicant by letter of its intention to dismiss such application. Within 30 days of the date of the mailing of such letter the applicant may make written request for reconsideration and submit such additional information as it believes will make the necessary showing, or request that the application be assigned for hearing, in which case the applicant shall outline the evidence to be presented at such hearing and shall show the need for hearing in order to properly present its case. (e) In the event that reconsideration or hearing is requested, the Board may, without notice or hearing, approve or disapprove the application in accordance with its determination of the public interest upon the showing made, or on its own initiative may assign the application for hearing. § 297.35 Effective period. Each operating authorization shall be effective upon the date specified therein, and shall continue in effect, unless sooner suspended, revoked or terminated, during such period as the authority provided by this part shall remain in effect, or if issued for a limited period of time, shall continue in effect until the expiration thereof unless sooner suspended or revoked. § 297.36 Conditions on operating au thorization. (a) Attachment of conditions to operating authorizations. At the time of issuance, and from time to time thereafter, there may be attached to the exercise of the privileges granted by any operating authorization issued under this part such reasonable terms, conditions, and limitations applicable to the person named therein as are necessary to carry out the requirements of the Act and the regulations prescribed thereunder. (b) 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 international air freight forwarder, air freight forwarder, cooperative shippers association, irregular air carrier, supplemental air carrier, or noncertificated cargo carrier, under the circumstances set forth in paragraph (c) of $297.34: 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. § 297.37 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. § 297.38 Filing of agreements with foreign agents required. It shall be an express condition upon the exercise of the privileges herein granted and the operating authorization issued hereunder that any contract or agreement between the holder of such operating authorization and a foreign agent encompassing matters set forth in section 412 of the Act and entered into prior to, on, or after the effective date of this part shall be filed with the Board in accordance with the requirements of Part 261 of the Board's Economic Regulations: Provided. That agreements entered into prior to the effective date of this part shall be filled within 30 days after said effective date. Agreements so filed shall be subject to approval or disapproval by the Board in accordance with the provisions of section 412 of the Act. NOTE: Agreements between international air freight forwarders and foreign freight forwarders are, of course, subject to the provisions of section 412 relating to agreements between an air carrier and any other carrier. § 297.39 Prohibition on operations unless tariffs are observed. No holder of an operating authorization issued pursant to this part shall ship property in the capacity of an international air freight forwarder in overseas or foreign 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 forwarder 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. [ER-477, 31 F.R. 14632, Nov. 17, 1966] § 297.40 Prohibition against shipping property at preferential rates without Board authorization. No holder of an operating authorization shall in his capacity as an international air freight forwarder tender property for transportation at preferential rates for freight forwarders filed by a direct air carrier unless the use of such rates by freight forwarders has been authorized by the Board. When a tariff containing such preferential rates has been filed, any international air freight forwarder may apply for such authorization with the Board, serving copies of the application on all direct air carriers authorized by certificate, permit or exemption to engage in air transportation of property between the respective points. In other respects, such applications and the proceeding thereon shall be governed as far as practicable, by the provisions of Subpart D-Rules Applicable to Exemption Pro No holder of an operating authorization issued pursuant to this part shall tender any shipments (for transportation, wholly or partially by air) in the capacity of an international air freight forwarder to any cargo agent or sales agent of any direct air carrier or to any other intermediary receiving a commission on such shipments from the direct air carrier. Nor shall any holder of such authorization tender any shipment to the direct air carrier for the account of, or on behalf of, any cargo agent, sales agent, or any other intermediary while acting in the capacity of an international air freight forwarder. The payment of a commission by the direct air carrier to such agent or intermediary shall be prima facie evidence of a violation of this prohibition by the international air freight forwarder concerned in all proceedings before the Board conducted under the authority of section 1002 (a), (b) and (c) of the Act. Provided, however, That the provisions of this section shall not be construed to prohibit an international air freight forwarder from tendering shipments to a direct air carrier which acts as exclusive agent for another direct air carrier for the purpose of accepting forwarder shipments on its behalf. § 297.42 Name of international air freight forwarder. It shall be an express condition upon the exercise of the privileges herein granted and the operating authorizations issued hereunder, that any international air freight forwarder, 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 § 297.37. (Sec. 411, 72 Stat. 769; 49 U.S.C. 1381) [ER391, 28 F.R. 9202, Aug. 21, 1963] § 297.43 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 decides to institute a suspension proceeding pursuant to this section, which involves alleged knowing and willful violations it shall issue an order instituting a suspension proceeding. However, whenever it appears that the alleged violations are not knowing and willful, 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 such act or regulation. Such notice shall also afford the holder a reasonable opportunity to demonstrate or 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. (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 air freight 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 prescribed. The Board may also order a suspension, of indefinite duration, during the pendency of a docketed revocation proceeding brought under § 297.44. § 297.44 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 regulation. (b) An operating authorization shall be revoked without prejudice to subsequent application for a new authorization upon the filing by an international air freight forwarder of a written notice with the Board indicating the discontinuance of air freight forwarder activities: Provided, That the Board may refuse to accept such notice if any proceedings or actions are pending in which an international air freight forwarder's authority may be subject to suspension or revocation action. The failure of any holder of an operating authorization to perform air transportation services as an international air freight forwarder for a period of two years, or the failure of any such holder for two successive periods to file the periodic reports required by this chapter may be deemed by the Board to constitute the filing of written notice indicating the discontinuance of air freight forwarder activities. § 297.45 Insurance. Any such guaranty shall not be 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 an international freight forwarder pursuant to the provisions of this Part. (b) Public liability, property damage and personal injury. No international air freight forwarder shall engage in the performance of transfer, collection or delivery services pursuant to this part unless it shall have on file with the Board a satisfactory certificate or certificates of insurance evidencing a properly en Filed as part of the original document. Available from Publications Section, Civil Aeronautics Board. dorsed policy of insurance (CAB Form 350), qualifications as a self-insurer (a self-insurer 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 (a) 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 conveyance or premises; minimum $10,000 per conveyance or premises. Conveyance includes, but is not limited to, aircraft, motor vehicles, rail and water craft. (2) Public liability: property. For loss of 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 any one person and $20,000 for all persons in any one accident. (d) Maintenance of insurance coverage. The insurance coverage referred to herein shall be kept in effect by the international air freight forwarder at all times and until such time as the operating authorization may be revoked pursuant to § 297.44 or is otherwise terminated by the Board. Subpart E-Reporting Requirements and Requirements for the Maintenance and Retention of Records § 297.50 Reporting requirements. Each holder of an operating authorization as an international air freight forwarder shall comply with the applicable reporting provisions of Part 244 of this subchapter, as amended. § 297.51 Records requirements. (a) Each holder of an operating authorization as an international air freight forwarder shall comply with the 4 See footnote on page 361. applicable recordkeeping provisions of Part 249 of this subchapter, as amended. (b) Each holder of an operating authorization as an international 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 international air freight forwarder and a copy thereof shall be supplied to the consignor and consignee of each such shipment. Each such airwaybill shall contain: (1) The following information: (i) Name and address of consignor, consignee, and international 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. (vi) Assembly or distribution. (vii) Preparation of export documents. (viii) Insurance (liability). (x) Transportation tax. (xi) Total charges and an indication as to whether charges are prepaid or collect. (c) Each holder of an operating authorization as an international 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 international 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 num |