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<br />~
<br />
<br />classes of direct:. air 'carriers, to reflect
<br />this declination of jurisdiction. Accord~
<br />ingly we hereby propose to expressly au-
<br />thorize these classes of direct air ca.rrlers
<br />to perform outbound charters for foreign
<br />air freight forwarders whose currently
<br />effective section 402 permits authorize
<br />the performance of such charters, and to
<br />perform inboWld charters tor any for-
<br />eign air freight forwarder.
<br />
<br />PROPOSED,RuLE
<br />
<br />It is proposed to amend parts 207, 206,
<br />and 212 of the Brnu:d's economic regula-
<br />tions 04 ern parts 207, 208, 212) as
<br />follows:
<br />
<br />PART 207-cHARTER TRIPS AND
<br />SPECIAL SERVICES
<br />
<br />1. Amend 1207.11 to read in part as
<br />follows:
<br />
<br />~ 207.11 Charier flight lil11ilalion~.
<br />
<br />.~
<br />
<br />. .
<br />
<br />(b) Air transportation perfonned .,. .. .
<br />(3) By an air freight forwarder or
<br />1ntelnational air freight forwarder hold-
<br />ing a currently effective operating au-
<br />thorization under part 296 or part 297 ot
<br />this subchapter for the carnage of prop.
<br />erty in air transportation; by a person
<br />authorized by the Board to transport by
<br />air used household goods of personnel of
<br />the Department of Defense; or, with re-
<br />,spect to flights from the United States
<br />in foreign air transportation, by a. for-
<br />eign air freight forwarder holding a
<br />currently effective foreign air carrier
<br />permit issued by the Board under sec-
<br />tion 402 of the act and, with respect to
<br />tlights to the United states in foreign air
<br />transportation, by any foreign air freIght
<br />forwarder;
<br />(4) [Reservedl
<br />
<br />.
<br />
<br />.
<br />
<br />.
<br />
<br />.
<br />
<br />PART 2OS-TERMS, CONDITIONS, AND
<br />LIMITATIONS OF CERTIFICATES TO
<br />ENGAGE IN SUPPLEMENTAL AIR
<br />TRANSPORTATION
<br />2. Amend ~ 208.6 to read in Part as
<br />follows:
<br />fi 208.6 alflner flighllimil8lion8.
<br />Charter fUghts in air transportation
<br />performed by supplemental air carriers
<br />shall be limited to the following:
<br />
<br />.
<br />
<br />.
<br />
<br />.
<br />
<br />.
<br />
<br />.
<br />
<br />.
<br />
<br />(b) . . oj.
<br />(3) By an air freight forwarder or
<br />international air freight forwarder hold-
<br />ing a currently effective operating au-
<br />thorization under part 296 or part 297
<br />of this subchapter for the carriage of
<br />prope>>$ in air transportation: by a
<br />person atithprized by the Board to trans-
<br />'port by air used household goods of
<br />personnel of the Department of Defense;
<br />or, with respect to flights from the United
<br />States in foreign air transportation, by
<br />a foreign air freight forwarder holding
<br />a. currently effective foreign a.ir carrier
<br />permit issued by the Board under sec-
<br />Lion 402 of the act and, with respect to
<br />
<br />..
<br />
<br />PROPOSED RULES
<br />
<br />fHghts to the United States in foreign
<br />air transportation, by any foreign air
<br />freight forwarder;
<br />
<br />.
<br />
<br />.
<br />
<br />10817
<br />
<br />action on the proposed rule. Copies of
<br />such communications w1ll be available
<br />for examination by interested persons in
<br />the Doc..ket Section of the Board, Room
<br />712, Universal Building, 1825 Connecti-
<br />cut Avenue NW.. Washington. D.C.. upon
<br />receipt thereof.
<br />
<br />Dated April 26, 1973.
<br />
<br />By the CiVil Aeronautics Board.
<br />
<br />[SEAL] EDWIN Z. HOLLAND,
<br />Secre tary.
<br />
<br />EXPLANATORY STATEMENT
<br />
<br />The Board's existing regulations con-
<br />cerning the operations of both domestic
<br />and international air freight forwarders
<br />do not specltlcaUy deal with the subject
<br />of "collect on delivery" (hereinafter
<br />"C.O.D.") shipments. However. the
<br />Board's staff has received an increasing
<br />number of complaints, involving exten-
<br />sive amounts of money, regarding the
<br />failure of some air freight forwarders to
<br />remit C.O.D. moneys. The Office of Con-
<br />sumer Affairs for calendar years 1968
<br />and 1969 received a total of 42 such com-
<br />plaints, and for the years 1970 and 1971.
<br />a total of 80 such complaints were
<br />recorded. For the year 1972, over 100
<br />complaints of this type were received.
<br />The financIal condition of some of the
<br />more marginal air freight forwarders is
<br />apparently causing shippers extensive
<br />delays in their receipt of. or complete
<br />loss of. moneys collected by forwarders
<br />from consignees on C.O.D. shipments.
<br />The Board is concerned that the failure
<br />of some forwarders to promptly remit
<br />C.O.D. moneys is causing substantial fi-
<br />nancial losses to the shipping public. In
<br />this connection. it is noted that of the 80
<br />complaints received in 1930 and 1971,'19
<br />were against 4 forwarde'f,S which filed
<br />for bankruptcy during that period. The
<br />shippers involved appear to have little
<br />chance of recovering the full amount of
<br />the invoice value of the goods trans-
<br />ported. ~
<br />In light of its concern, the Board pro-
<br />poses herein to require remittance of
<br />C.O.D. moneys promptly, and in no event
<br />later than 10 days after delivery, and
<br />to require air freight forwarders ren-
<br />dering C.O.D. service to file with the
<br />Board surety bonds PI"Ov'iding protection
<br />to consignors with respect to C.O.D. col-
<br />lections. The Board tentatively finds that
<br />a requirement of prompt remittance of
<br />C.O.D. moneys. and the posting of a
<br />bond, are.necessary to adequately protect
<br />the users of air freight forwarders' C.O.D.
<br />services. The prompt remittance of such
<br />moneys should curtail their use by fi-
<br />nancially troubled forwarders as operat-
<br />ing funds, and the surety bond should
<br />afford considerable protection to con.
<br />signors against loss in the event that a
<br />forwarder becomes bankrupt prior to
<br />remittance of a C.O.D. collection.
<br />In addition. the Board proposes to
<br />amend part 244, involving filing of re-
<br />ports by a1r freight forwarders and in-
<br />ternational air freight forwarders, so as
<br />
<br />FEDERAL REG/STER, VOL. 38, NO. 14-WEDNESDAY, MAY 2, 1913
<br />
<br />10667.
<br />
<br />PART 212-CHARTER TRIPS BY FOREIGN
<br />AIR CARRIERS
<br />3. Amend ~ 212.8 to read in part as
<br />follows:
<br />~ 212.8 Cha.rler fli~hllimillllions.
<br />
<br />(al . . .
<br />(3) By an international air freight
<br />forwarder holding a currently effective
<br />operating authorization under part 297
<br />of this subchapter for the carriage of
<br />property in foreign air transportation;
<br />by a person authorized by the Board to
<br />transport by air used household goods of
<br />personnel of the Department of Defense;
<br />or, with respect to filghts from the
<br />United States in foreign air transporta-
<br />tion, by a foreign air freight forwarder
<br />holding a currently effective foreign air
<br />carrier permit issued by the Board under
<br />section 402 of the act and, with respect
<br />to ftights to the United States in foreign
<br />air transportation, by any foreign air
<br />freight forwarder;
<br />
<br />.
<br />
<br />.
<br />
<br />.
<br />
<br />.
<br />
<br />(FR Doc.73-aS61 Filed 5-1-73;8:45 amI
<br />
<br />[ 14 CFR Parts 244. 249, 296, 297 ]
<br />
<br />[Docket No. 25472; EDR-244]
<br />
<br />HANDLING OF C.O.D. SHIPMENTS
<br />
<br />Proposed Rulemaking
<br />
<br />Notice is herebY given that the Civll
<br />Aeronautics Board proposes to amend
<br />parts 244. 249, 296. and 297 of the Eco-
<br />nomic Regulations <14 CFR parts 244..
<br />249. 296, and 297) so as to reqUire air
<br />freight forwarders and international air
<br />freight forwarders to remit all C.O.D.
<br />collections to the conSignor or h1s des-
<br />ignee within 10 days after delivery of the
<br />shipment to the consignee. and to pro-
<br />vide security protection to conSignors
<br />for c.o.d. collections in the manner pre-
<br />. scribed theretn. The principal features
<br />of the proposed amendments are ex-
<br />plained in the attached explanatory
<br />statement, and the proPosed amend-
<br />ments are set forth in the proposed rule.
<br />The amendments are proposed under
<br />the authority of sections 101(3). 204(a).
<br />403.407. and 416(a) of the Federal Avia-
<br />tion Act of 1958. as amended. (72 stat.
<br />737 (as amended) 743. 758 (as amended
<br />by 74 Stat. 445), 766 (as amended by
<br />83 Stat. 103). 771; 49 U.S.C. 1301. 1324,
<br />1373. 1377, and 1386).
<br />Interested persons may participate In
<br />the "roposed rulemak1ng through sub-
<br />mission of 12 copies of written data,
<br />views. or arguments pertaining thereto,
<br />addressed to the Docket Section. Civil
<br />Aeronautics Board., Washington. D.C.
<br />20428. All relevant material received on
<br />or before Jnne 1. 1973. w1ll be consid-
<br />ered by the Board before taking final
<br />
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