when any shipment is accepted, of the limits of its cargo liability insurance, or of the absence of such insurance; and the limits of its liability, if any. The notice shall be included clearly and conspicuously on all of its rate sheets and airwaybills, and on any other documentation that is given to a shipper at the time of acceptance of the shipment.

§ 296.31 Preparation of airwaybills and

manifests.

(a) Each registered indirect air carrier shall prepare an accurate airwaybill describing completely all services rendered to or on behalf of the shipper, including the conditions under which the contract will be completed, in its capacity of an indirect air carrier. A copy of the airwaybill shall be given to the consignor and to the consignee.

(b) Each registered indirect air carrier shall prepare an accurate manifest showing every individual shipment included in each shipment consigned for transportation to a direct air carrier.

(c) A waiver of paragraph (a) of this section may be granted by the Board upon a written application by the indirect air carrier not less than 30 days before the shipment to which it relates is transported, if the waiver is in the public interest, and is warranted by special or unusual circumstances.

§ 296.32 Prohibition against receipt of

commissions.

No air freight forwarder, acting in that capacity, shall accept directly or indirectly any payment of a commission on traffic tendered to a direct carrier or its agent.

Subpart E-Reporting Requirements

§ 296.40 Financial and operating report. (a) Each air freight forwarder, and cooperative shippers association shall file with the Board a Financial and Operating Report (CAB Form 296R) (obtainable from Publications Services Section, САВ, Washington, D.C. 20428) on or before February 15 of each year, addressed to Reports Control, Data Systems Management Division, Office of the Comptroller.

(b) Blank copies of CAB Form 296R will be supplied annually by the Civil Aeronautics Board.

(c) In the spaces provided, each indirect air carrier shall report the gross air freight forwarding revenues, gross air freight forwarding expenses, net income (loss) from forwarding operations and the number of shipments and number of tons of air freight received from customers as an indirect carrier. Cooperative shippers associations need not report revenue or expense data.

(Secs. 204, 416 of the Federal Aviation Act of 1958, as amended, 72 Stat. 743, 771, as amended by 92 Stat. 1731, 1732 (49 U.S.C. 1324, 1386))

[ER-1094, 44 FR 6639, Feb. 1, 1979, as amended by ER-1165, 44 FR 69642, Dec. 4, 1979]

In case of any violation of any of the provisions of the Act, or this part, or any other rule, regulation, or order issued under the Act, the violator may be subject to a proceeding under section 1002 and 1007 of the Act before the Board or a U.S. District Court, as the case may be, to compel compliance; or to civil penalties under the provisions of section 901(a) of the Act; or in the case of a willful violation, to criminal penalties under the provisions of section 902(a) of the Act; or other lawful sanctions including cancellation of registration.

Subpart B-Exemption for Foreign Indirect Air Transportation of Property

Sec.

297.10 Exemption from the Act. 297.11 Disclaimer of jurisdiction.

Subpart C-Registration for Foreign Air Freight Forwarders and Foreign Cooperative Shippers Associations

297.20 Filing for registration.

297.21 Objections to registration application.

297.22 Procedure on receipt of registration application.

297.23 Waiver of sovereign immunity. 297.24 Notification to the board of change in operations.

297.25 Cancellation or conditioning of reg

istration.

Subpart D-General Rules for Foreign Indirect Air Carriers

297.30 Public disclosure of cargo liability insurance.

297.31 Preparation of airwaybills and manifests.

297.32 Prohibition against receipt of com

missions.

Subpart E-Reporting Requirements 297.40 Financial and operating report. Subpart F-Violations

297.50 Enforcement.

AUTHORITY.-Sec. 204, 416 of the Federal Aviation Act of 1958, as amended, 72 Stat. 743, 771, as amended by 92 Stat. 1731, 1732; (49 U.S.C. 1324, 1386).

SOURCE: ER-1159, 44 FR 69635, Dec. 4, 1979, unless otherwise noted.

Subpart A-General

§ 297.1 Purpose.

This part establishes registration procedures and operating rules for foreign air carriers that engage indirectly in air transportation of property from points within the United States to points outside of the United States. It also exempts these carriers from certain provisions of the Act, and establishes a simplified reports for them.

§ 297.2 Applicability.

This part applies to foreign air transportation of property by foreign indirect air carriers outbound from the United States. It also applies to

applications for registration as a foreign indirect air carrier of property. § 297.3 Definitions.

For purpose of this part:

(a) “Foreign air freight forwarder" means a foreign indirect air carrier that is responsible for the transportation of 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 or its agent, of another foreign air freight forwarder, or of an air freight forwarder registered under Part 296.

(b) "Foreign cooperative shippers association" means a bona fide asociation of shippers operating as a foreign indirect air carrier on a nonprofit basis that undertakes to ship property by air for the account of such association or its members, and utilizes for the whole or any part of such transportation the services of a direct air carrier or its agent, of a foreign air freight forwarder, or of an air freight forwarder registered under Part 296.

(c) "Direct air carrier" means an air carrier or foreign air carrier directly engaged in the operation of aircraft under a certificate, regulation, order, or permit issued by the Board.

(d) "Foreign indirect air carrier" means any person, not a citizen of the United States, who undertakes indirectly to engage in foreign air transportation of property.1

§ 297.4 Joint loading.

Nothing in this part shall preclude joint loading, meaning the pooling of

1Section 101(16) of the Act defines a "citizen of the United States" as:

(a) an individual who is a citizen of the United States or one of its possessions, or

(b) a partnership of which each member is such an individual, or

(c) a corporation or association created or organized under the laws of the United States or of any State, Territory, or possession of the United States, of which the president and two-thirds or more of the board of directors and other managing officers thereof are such individuals and in which at least 75 percentum of the voting interest is owned or controlled by persons who are citizens of the United States or of one of its possessions.

Subpart C-Registration for Foreign Air Freight Forwarders and Foreign Cooperative Shippers Associations

§ 297.20 Filing for registration.

(a) Not later than 60 days before the start of operations as a foreign indirect air carrier, every foreign air freight forwarder and foreign cooperative shippers association shall apply for registration with the Board, unless upon a showing of good cause, the Director, Bureau of International Aviation, allows application at a later time.

(b) Application shall consist of filing with the Board's Bureau of International Aviation, Regulatory Affairs Division, two copies of completed Form 297A (obtainable from the Civil Aeronautics Board, Publications Services Division, Washington, D.C. 20428). Substantial ownership and effective control of an applicant must reside in citizens of the country indicated in the registration application as authorizing operations to and from the United

States.

§ 297.21 Objections to registration application.

Persons objecting to registration by a foreign air freight forwarder or foreign cooperative shippers association shall file their objections with the Bureau of International Aviation, Regulatory Affairs Division, within 28 days of the filing date of the registration forms. The Board will list the names and nationality of all persons applying for registration in its Weekly Summary of Filings.

§ 297.22 Procedure on receipt of registration application.

After review of a registration form filed under § 297.20, the Board will take one or more of the following actions:

(a) Indicate by stamp on CAB Form 297A the effective date of registration, and return to the carrier the duplicate copy of Form 297A as evidence of registration with the Board under this part;

(b) Reject an application for registration for failure to comply with this part;

(c) Request additional information from the applicant;

(d) Issue an order subjecting a carrier's exercise of authority under this part to such terms, conditions, or limitations as may be required by the public interest; or

(e) Institute a proceeding under section 402 of the Act.

§ 297.23 Waiver of sovereign immunity.

By accepting an approval registration form under this part, a carrier waives any right it may possess to assert any defense of sovereign immunity from suit in any action or proceeding instituted against the carrier in any court or other tribunal in the United States based upon any claim arising out of operations by the carrier under this part.

§ 297.24 Notification to the Board of change of operations.

(a) Not later than 30 days before any change in its name or address or any temporary or permanent cessation of operations, each foreign indirect air carrier shall notify the Board's Bureau of International Aviation, Regulatory Affairs Division, of the change by resubmitting CAB Form 297A.

(b) The registrant shall apply for an amendment of its registration not later than 30 days after any person listed on its existing registration as owning or holding beneficial ownership of 10 percent or more of the registrant's stock no longer has an interest of 10 percent or more, or after any person not so listed becomes an owner or holder of 10 percent or more. Application for amendment shall be made by resubmitting CAB Form 297A, but the existing registration shall remain valid pending Board action on the amendment.

§ 297.25 Cancellation or conditioning of

registration.

The registration of a foreign indirect air carrier may be canceled or subjected to additional terms, conditions, or limitations if:

(a) It files with the Board a written notice that it is discontinuing foreign indirect air carrier activities;

(b) It fails to perform air transportation services as authorized;

(a) Each registered foreign indirect air carrier shall prepare an accurate airwaybill describing completely all services rendered to or on behalf of the shipper, including the conditions under which the contract will be completed, in its capacity as a foreign indirect air carrier. A copy of the airwaybill shall be given to the consignor and to the consignee.

(b) Each registered foreign indirect air carrier shall prepare an accurate manifest showing every individual shipment included in each shipment consigned for transportation to a direct air carrier.

(c) A waiver of paragraph (a) of this section may be granted by the Board upon a written application by the foreign indirect air carrier not less than 30 days before the shipment to which it relates is transported, if the waiver is in the public interest, and is warranted by special or unusual circumstances.

§ 297.32 Prohibition against receipt of

commissions.

No foreign air freight forwarder, acting in that capacity, shall accept directly or indirectly any payment of a commission from a direct carrier or its agent.

Subpart E-Reporting Requirements

§ 297.40 Financial and operating report. (a) Each foreign indirect air carrier shall file with the Board a Financial and Operating Report (CAB Form 296R) on or before February 15 of each year, addressed to Reports Control, Data Systems Management Division, Office of Comptroller.

(b) Blank copies of CAB Form 296R will be supplied annually by the Civil Aeronautics Board.

(c) In the spaces provided, each foreign indirect air carrier shall report the gross air freight forwarding revenues, gross air freight forwarding expenses, net income (loss) from forwarding operations, and the number of shipments and number of tons of air freight received from customers as an indirect carrier. Foreign cooperative shippers associations need not report revenue or expense data.

In case of any violation of any of the provisions of the Act, or this part, or any other rule, regulation or order issued under the Act, the violator may be subject to a proceeding under sections 1002 and 1007 of the Act before the Board or a U.S. District Court, as the case may be, to compel to compliance; or to civil penalties under the provisions of section 901(a) of the Act; or in the case of willful violation, to criminal penalties under the provisions of section 902(a) of the Act; or other lawful sanctions including cancellation of registration.