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10818 to require notification to the Board by forwarders of changes in location of their corporate or business headquarters. or principal place of business, and of filing any petition in bankruptcy. T)1e Board tentatively finds that such notification is necessary to adequately protect the P\l.blic in situations in which forwarders are experiencing financial difficulties. Presently. the lack of such notification has hampered the Board in providing SSM ~stance to shippers who have complained regarding the activities of some freight forwarders, and constitutes a gap in in- formation which should be available to the Board in performing its statutory responsibility to regulate the activities of freight forwarders. The salient features of the proposed rule are as follows: 1. Every air freight forwarder would be required to remit C.O.D. collections promptly, and in no event later tha.n 10 days after deli very, and to refl~ct this requirement in its tariffs containing the rates. charges, and rules govenung C.O.D. ,service filed with the Board. 2. Every air freight forwarder render- ing C.O.D. Bel'vice would be required to file a.su:cet~ boad; issued by a surety com- pany meetin& _the standarcls prescribed for a suret,)l; company. by part 378 of the Board's special, regulations, in. a sum not less than $25,000. Although the Board has tentatively concluded. that such amount is the minimum amount neces- sary to provide adequate protection to the slupping public, we particularly in- vite comments on the question of an ap~ poopriate specified amount or formula for determining such a.mount. The terms of the bond shall obUgate the surety to pay a consignor any amount, not ex- ceed1ng the amount of the bond, as may have been collected by the forwarder on a C.O.D. shipment, but not remitted within 10, days after delivery. 3. To moDi tor compliance with the prompt remittance requirement, the pro- posed ruJe imposes new record mainte- nance requirements. Eacll: forwarder would be required to' maintain records plainly and readily showing the follow- ing information with respect to each C.O.D. shipment received for. delivery: (1) Numbel' and date- of airway bill; (2) name and address of consignor and des- Ignee, if any; (3) name and address of consignee; (4) date shipment delivered.; (5) amoWlt collected; (6) date collected; (7) date C.O.D. moneys remitted; and Of) check number or other identiftcation of the remittance. PROPOSED RULE It is proposed to amend parts 244, 249~ 296, and 297' of the Economic Regulations <14 CFR parts 244, 249, 296, and 297) II.'l follows: PART 2M-FILING OF REPORTS BY AIR FREIGHT FORWARDERS, INTERNA- TIONAL AIR FREIGHT FORWARDERS. AND COOPERATIVE SHIPPERS ASSO. CIATIONS 1. Amend I 244.18 by adding a new paragraph (c) to read as follows: PROPOSED RULES fi 244.18 Corporale and eecurities dala, inve!lUDenl!l in other companies (l:!Jchedule G-2). . .. (c) In addition to schedule 0-2, a for- warder shall notify the Board in writing of any change in its corporate headquar- ters, office, or pIinc1pal place of business not later than 30 days after the effective date of said change; and in addition shall notify the Board in writing immediately upon the filing, by or against it, of any petition in bankruptcy. PART 249-PRESERVATION OF AIR CAR. RIER ACCOUNTS, RECORDS AND MEM- ORANOA 2. Amend ~ 24:9.2'1 by adding a new item 4 (c) , to "Category H, ShIpping and Agency Documents," to read as follows: ~ 249.27 Prcscribf'd period or relcnlion. Iwm number and cnl(l- R<!wntion :-'Iicrofllm gory orrBCord~. period. illtliea!.or. R. SHIPPING A:!I:DA(:Il~CY DOCUIIE~TS -t. Freight I'f'crrr(\.s (I,l1d report;;: (c) Rrcorclsofc.o.d. shill' .____do.______ ])0. ments. . . . fi 296.70 Prepllrnlion or airwaybills and manir~u. . . . PART 296-CLASSIFICATION AND EX. EMPTION OF INDIRECT AIR CARRIERS 3. Amend the Table of Contents of part 296 by adding to subpart H-Prep- a.ratton and Retention of Records and Reporting Requirements: Air Freight Forwarders, a new ~ 296.70a, the Table as amended to read as follows: Subpart H-Preparatlon and Relention of Records and Reporting Requirements: Air Freight Forwarders Sec. 296.70 Prepe.ratlon or a.1rwaybllls and mani- fests. 296.70a Preparation of C.O.D. Shipment records. 296.71 Record. retention requirements. 4. Amend ~ 296.1 by adding a new par- agraph (n . the new paragraph to read as follows: ~ 296.1 Definilions. (e) An "afilllate" . . .. (f) A "collect on delivery" ("C.O.D." herein) shipment means a shipment of goods, the delivery of which has been conditioned by the consignor upon pay- ment by the consignee of a specified sum of money, which s'um Is to be received by the forwarder, in such fOnD as the con- signor may instruct, as agent for the con- sIgnor, for remittance to tIre consignor or his desIgnee. ,Subpart H-Preparation and Retention of Records. and Reporting Requirements: Air Freight.Forwarders 5. Amend ~ 296.70 by adding a new paragraph (c), the new paragraph to read as follows: (b) Each holder of . . . (c) Each holder of an operating au- thorization as an a.1r freight forwarder shall provide to consignors of C.O.D. shipments a written notice setting forth the 10-day limit on remittance of collec- tions, the applicable time l1m1tatton on filing claims against the surety whose bond has been flIed with the Board, pur- suant to ~ 296.93, and the name and address of the surety. Such notice shall either be printed upon the consignor's copy of the airwaybill or attached thereto. 6. Amend subpart H-"Preparation and Retention of Records and Reporting Requirements: Air Freight Forwarders," by adding a new fi 296.70a, the section to read as follows: ~ 296.70a Pr~paralion or €.O.D. 8hip- ment rcconh. Each holder of an operating authori- zation as an air freight forwarder shall maintaIn a record of aD C.O.D. ship- ments received for delivery in fJUch a manner and form as will plainly and readily show the following information with respect to each shipment: (a) Nwnber and date of airwaybill. (b) Name and address of consignor and, if collections of payment are to be remUted to a designee of the consignor, the name and address of such designee. (c) Name and address of consignee. (d) Date shipment delivered. (e) Amount of C.O.D. to be collected. (f) Date C.O.D. collected by the for- warder. (g) Date C.O.D. collection remitted to consignor or his designee. (h). Check number or other identifica- tion of remittance. 7. Amend part 296 by adding new sub- part J, to read as follows: Subpart J-Condllions on Handling C.O.D. Shipments 296.91 Tariff' requ1n!ment. 296.92 Remittance. 296.93 Surety bond. III ., AUTHORITY.-Secs. 101(3). 204(&), 403, 407, and 416 (a) or the Federal Avtatlon Act or 1958. as amended (72 Stat. 737 (as amended), 743. 768 (88 a.mend~d by 74 Stat. 446)., 766 (as amend.ed by 83 Stat. 103), 771; 49 U.S.C. 1301, 1324, 1373. 1377 and 1386). Subpart J--COnditions on Handling C.O.D. Shipments ~ 296.91 Tariff requiremenl. No air freight forwarder engaged in a1r transportation pursuant to this part shall render any C.O.D. service lUlless such forwarder has published, posted, and filed tariffs which conta.in the rates, charges, and rules governing such serv- ice, which rules shall conform to the pro- visions.of this subpart. ~ , ~ 296.92 Remittance, Any atf' freight forwarder engaged in air transportation pursuant to this part shall remit each C.O.D, collection, in the FEDERAL REGISTER, VOL. 38, NO. 84-WEDNESDAY, MAY ~, 1973