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1. IATA Application Checklist 2. Procedures Summary 3. Request for Application Form 4. Complete Guide for Cargo Agency Registration IATA Application Checklists Minimum paid-up capital : Rp 500,000,000 (five hundred million rupiah). Application form (i.e Questionnaire), designed to determine details such as identification, ownership, facilities & staff, legal entity, financial standing, sales & promotion, etc. Should be submitted in 1 original copy and 2 copies. Each set of the answer script must be fully supported by the requisite documentary evidence. Agent has to be in operation for at least 1 year. LEGAL Certificate of incorporation/association/registration by Registrar of company and equivalent authority (3 copies). License to trade or other special authority SIUJPT, TDP, NPWP, PKP, Domisili, SITU, Pengesahan Akte Pendirian Perseroan Terbatas (3 copies). Custom clearance license – if applicable (3 copies). Articles and Memorandum of Association – if applicable (3 copies). PREMISES The latest and valid Premise lease / ownership agreement (3 copies). If premises are owned, documentary evidence of ownership (3 copies). INSURANCE Insurance policy to cover its liability for loss/damage to shipper’s cargo (3 copies). FINANCE Recent Audited Balance Sheet complete with Notes to the Accounts Auditors’ Report and Directors’ Report (3 sets). Auditor must be a member of Associations of Indonesian Public Accountants (Ikatan Akuntan Indonesia) www.akuntanpublik.org/direktori/direktori.html Audited Profit and Loss Statement (3 sets). Aging Analysis of Account Receivables (3 sets). Bank Credit Report (3 sets). STAFF QUALIFICATIONS Certificates of courses completed by staff handling cargo operations (3 copies of each certificate). i. 2 persons hold a basic or introductory qualification in air cargo (From an IATA Member Airline’s introductory/basic training course; or acceptable equivalent) AND ii. 2 persons hold valid Dangerous Goods Training certificates (from an IATA Member Airline, certificates only valid for 2 years). SALES with AIRLINES International sales report with IATA airlines member/s for the past 12 months including following items : Name of Airlines ; Prepaid LCL AMT ; CHARGES COLLECT LCL AMT ; WEIGHT KG. (3 copies). FEES The fees. Types of Fee Currency : USD New Agent Application Fee 775 Registration Fee 195 Agency Commissioner Fee 50 Certificates of Registration 30 1st Annual Agency Fee 230 Yellow Application Form 50 Total 1330 Existing Agent Annual Agency Fee 230 Certificate Fee 20 The registration fee is paid only once upon approval. In the case of disapproval the registration and annual fee will be reimbursed. The Annual Agency fee is invoiced annually to all registered Agent in October to cover the coming year. FINANCIAL GUARANTEE Financial guarantee (Default Insurance Program or Industrial Bank Guarantee) For Agent without any CASS sales: Provide an accreditation bank guarantee of USD15,000 for the first year only; Procedures Summary Investigators, acting on behalf of IATA, will visit the installations indicated by the applicant. The investigation seeks to ascertain that all the criteria are met. Particular attention is paid to ensure that the premises, cargo handling equipment and staff meet the requirements in order to prepare air cargo ready for carriage on behalf of Member Airlines. When investigation and financial reports are satisfactory, details of the applicant are published to all Member Airlines. Members Airlines has 30 days in which to protest or file evidence indicating why any applicant fails to meet the criteria. If no protest is received, then promptly thereafter approval will be granted. The approval decision is notified to all Member Airlines and to the applicant within 45 days of publication. A successful applicant will be sent i. an approval letter advising of the assigned IATA numeric code and effective date of approval/registration. ii. The Agent’s duplicate copy of the Cargo Agency Agreement, counter- signed by IATA, and additional documentation regarding IATA and its Member Airlines iii. the newly registered Cargo Agent receives the latest edition of the IATA Cargo Agent’s Handbook and Dangerous Goods Regulations. Upon approval, a cargo Agency Agreement will be sent to applicants for pre- signature and return. The Cargo Agency Agreement is countersigned by IATA, acting on behalf of its Member Airlines and becomes valid between the parties on the effective date of approval. The original of the Agreement is kept by IATA, the duplicate is sent to the Agent. The Agreement should therefore be executed by a person legally authorized to sign on behalf of the Agency and witnessed (eg. Notarized). Publications Each successful applicant is provided with a free copy of the Cargo Agent’s Handbook. Registered Agents receive a free copy of the latest edition of the Handbook when reissued (usually annually). o Additional copies are available from IATA Geneva at a nominal charge (USD 47+USD 6). o The current edition of the Dangerous Goods Regulations Manual is also sent regularly to each registered Cargo Agent. (These publications are available in English, French & Spanish). REQUEST FOR APPLICATION FORM Please submit USD 50 for application form We will send you the application form if we have received your payment. Please settle the payment to Bank Name : Citibank N.A Account Number : 0.330.009.527 Account Name: IATA-BSP Operating Account I have read the Guide for Cargo Agency Registration and consider that the organization below meets the requirements for IATA Cargo Agency approval. Would you please send a set of application forms to : (Please type or print clearly) Name of Agency ____________________________________________________________ Full Address (including mailing address & post code) ___________________________ Country ___________________________________________________________________ Telex or Fax number ________________________________________________________ Attention Mr/Ms. __________________________________________________________ Title/Capacity _____________________________________________________________ Date ______________________________ Signature ______________________________ ********************** This Request and subsequent correspondence should be sent to : Country Manager - Indonesia Bapindo Plaza, Citibank Tower 24/F Jl. Jend. Sudirman Kav. 54-55 Jakarta Fax No. ( 021) 526 6741 Telephone No. (021) 526 6777 For Further Question Please Contact : Ms. Sariati Dewi email email@example.com Ms. Rahma Utami email firstname.lastname@example.org Telephone No. (021) 526 6777 ext 737 or 745 A GUIDE FOR CARGO AGENCY REGISTRATION This leaflet gives general information about the IATA Agency Program and details on how to obtain industry accreditation as an IATA Registered Cargo Agent. The procedures and qualifications required of a freight forwarder to gain and maintain IATA approval are outlined and the documentation to be supplied when making an application is explained. In addition there is information regarding agency fees, the Cargo Agency Agreement, appointment by Member Airlines as well as details of other Agency services, such as training, settlement systems and publications available to Agents. THE IATA AGENCY PROGRAM IATA is a trade association of the world scheduled airlines, to which over 200 air carriers belong, IATA’s major purpose is to ensure that airline traffic worldwide moves with the greatest possible speed, safety, convenience and efficiency – and with the utmost economy. IATA provides a forum which facilitates interchange and cooperation. Through IATA, airlines work towards developing worldwide industry standards which ensure safe, speedy and economic international air transportation. IATA simplifies, standardizes and severs the transport of people, cargo and mail throughout a global airline network worldwide. No airline can afford to set up sales offices to market its product throughout the world. The air transport industry has thus grown to rely on agents to act as intermediaries in the marketplace. A freight forwarder has traditionally provide the link between the shipper and the airlines. To date, there are over 3,700 freight forwarders registered as IATA Cargo Agents worldwide and over a further 1200 in the USA are listed by IATA’s US subsidiary, the Cargo Network Services Corporation (CNS). The relationship between Member Airlines and their registered Cargo Agents are regulated and administered under a set of IATA Resolutions. These Government –approved rules, establish the rights and obligations of both parties, as well as the procedures and requirements for agents wishing to obtain and to maintain industry accreditation. As the industry’s commercial environment has evolved, so has the Agency Program. Simplified procedures and conditions for agency accreditation have been developed to meet regional requirements. Europe and other areas are modifying the classic airline/agent relationship to varying degrees, without abandoning the basic principle of setting certain objective business criteria for agents. IATA has regular consultations with FIATA (International Federation of Freight Forwarders Associations) as well as with national cargo agency associations, who work together for the common benefit of the air cargo industry. In today’s market being recognized as an IATA agent has become a hallmark of quality for the airlines and public at large. APPLICATION FOR REGISTRATION AS AN IATA CARGO AGENT Any person complying with appropriate licensing and legal requirements may apply for registration as an IATA Cargo Agent in the country where he conducts his business. Application forms and instructions for completion may be obtained from IATA at the address shown at the end of this brochure. Agents should submit their application request directly to the IATA Cargo Agency Accreditation Service. Registration is by country, and the Cargo Agency Agreement and the numeric code assigned to an Agent covers its activities throughout the country concerned. An Agent may also apply for its registration to be extended to cover delivery of Shipments to airlines at an airport(s) in an immediately adjacent country. REQUIRED DOCUMENTATION FOR APPLICATION Each applicant is required to complete an application form, which is a questionnaire, designed to determine the following details regarding each applicant : identification, ownership, facilities & staff, legal entity, financial standing, sales & promotion, etc. The following documents should accompany the application : • Legal Aspects of the Company The applicant must submit the articles of incorporation/association/registration and license to trade or other special authority (SIUJPT, TDP,NPWP,SITU, PKP, Domisili). • Staff Qualifications The applicant shall employ at all places where cargo is prepared ready for carriage full- time staff competent and qualified to provide the service and handling functions necessary to make air cargo ready for carriage. Evidence, in the form of training certificates, should be submitted showing that : - 2 persons hold a basic or introductory qualification in air cargo (from an IATA Member Airline’s introductory/basic training course; or acceptable equivalent) AND - 2 persons have recently completed a Dangerous Goods Training course (from an IATA Member Airline, certificates are only valid for 2 years). • Financial Requirements Applicants and registered IATA Cargo Agents are expected have a satisfactory financial and credit standing. An evaluation is conducted of the applicant’s independently produced financial statements. These shall consist : Current financial statements consisting of an audited Profit & Loss account and balance sheet, independently produced and prepared in accordance with local accounting practices, Aging Analysis of Account Receivables and Payables, together with notes to the Accounts Auditors’ Report and Directors’ Report Applicants may be required to provide further information such as monthly Cash Flow Statements. Financial statements meeting certain established criteria, such as a positive liquidity and a net profit before tax, will be considered satisfactory. Should one of established criteria not be met, then additional financial support may be necessary. Agents failing to meet any of the standards, or insolvent companies, will not be considered as financially satisfactory. The financial standing of Agents, especially those providing guarantees, is reviewed periodically. • Suitability of Premises & Cargo Handling Equipment Suitable premises are to be maintained and operated by an applicant for the promotion or sales of international air cargo transportation over the lines of Members and for the handling of consignments. The applicant should have warehouse facilities which comply with national security standards and which are equipped to prepare air freight ready for carriage, (or have access to such facilities, be means of a leasing or similar written agreement). The applicant’s premises, staff and equipment should be capable of performing the following functions as a minimum quoting. Member Airlines’ rates, charges and related conditions, assisting customers regarding the formalities for transportation of cargo by air, including reservation services: general acceptance of all consignments for carriage and delivery (or arranging delivery) to a Member Airline at an airport ready for carriage, including restricted articles in accordance with the applicable Dangerous Goods regulations: collecting charges from customers, and remitting monies to carriers. • License to Trade & Other Requirements Where required, an applicant shall have a valid license to trade and comply with any other national legal requirements in the country of operation. The applicant’s insurance should be adequate to cover its liability for loss of damage to shippers’ cargo. An applicant may not be approved if a director or shareholder or person of general management has been found guilty of business violations or is an undischarged bankrupt. Nor if any such person has held a similar position whit an Agent in default or with outstanding debts to Member Airlines. However, if IATA is satisfied that such person did not cause such default and can be relied upon in future to comply with the terms of the Cargo Agency Agreement the applicant may be approved. PROCESSING AND PROCEDURES FOR IATA CARGO APPLICATIONS All applications, with full supporting documentation and applicable fees should be sent directly to the Manager, Cargo Agency Accreditation Services, c/o IATA. All applications are acknowledged and applicants are informed should any elements be incomplete or, already at this stage, appear not to meet the established criteria. The following procedures are followed upon receipt of a complete application. Investigators, acting on behalf of IATA, will visit the installations indicated by the applicant. The investigation seeks to ascertain that all the criteria are met. Particular attention is paid to ensure that the premises, cargo handling equipment and staff meet the requirements in order to prepare air cargo ready for carriage on behalf of Member Airlines. At the same time, the financial standing of the applicant will be assessed, based on the certified accounts and financial information provided. When satisfactory investigation and financial reports are received then details of the applicant are published to all Member Airlines. The rules provided Members Airlines with 30 days in which to protest or file evidence indicating why any applicant fails to meet the criteria. If the applicant meets all qualifications and no protest is received, then promptly thereafter approval will be granted. The approval decision is notified to all Member Airlines and to the applicant within 45 days of publication. APPROVAL/DISAPPROVAL/REASSESSMENT A successful applicant will be sent an approval letter advising of the assigned IATA numeric code and effective date of approval/registration. The Agent’s duplicate copy of the Cargo Agency Agreement, counter-signed by IATA, and additional documentation regarding IATA and its Member Airlines is also sent, together with an IATA crest. Under separate cover the newly registered Cargo Agent receives the latest edition of the IATA Cargo Agent’s Handbook and Dangerous Goods Regulations. Disapproved applicants will be notified of the grounds for disapproval. A rejected applicant may, within 30 days, request reconsideration of the decision by the Agency Administrator or, following reconsideration, may invoke the procedures for review by the Agency Commissioner. A reapplication may be made as soon as the grounds for disapproval have been corrected. In order to ensure that all registered cargo Agents on the official Agency List continue to meet the criteria, periodic reassessments are conducted. In addition, any registered Agent which changes its financial or legal structure, name, ownership or premises is required to notify IATA. Certain changes may affect the accredited status of an Agent may be subject to review procedures under the Cargo Agency Rules. CARGO AGENCY AGREEMENT & APPOINTMENT A cargo Agency Agreement will be sent to applicants for pre-signature and return, to speed up the formalities in anticipation of final approval. Upon approval, the Cargo Agency Agreement is countersigned by IATA, acting on behalf of its Member Airlines and becomes valid between the parties on the effective date of approval. The original of the Agreement is kept b IATA, the duplicate is sent to the Agent. This Agreement is the contractual instrument binding the Agent in its relations with IATA Airlines. The Agreement should therefore be executed by a person legally authorised to sign on behalf of the Agency and witnessed. If there is a requirement in notional law of the Agent’s country relating to authentication of contractual documents, then the signature should be so authenticated (eg. Notarized). Once an Agent has been registered and has signed an Agreement, then IATA Member Airlines may appoint, grant credit facilities and air waybill stocks to the Agent. Most commonly airlines appoint Agents globally by a method known as a Statement of General Concurrence. Otherwise Agents are appointed by means of an individual certificate of appointment. There is no obligation for an individual Member Airlines to appoint a registered agent or provide it with its air waybill stocks. An individual appointment may be terminated by giving notice in accordance with the Agreement. Air waybills may be withdrawn at any time, since these are the property of the airlines. An Agent who considers itself aggrieved following termination of appointment by an airline may seek recourse with the Agency Commissioner. AGENCY FEES The following fees are payable by new applicants and are to accompany any complete application. Fees should be paid in US Dollars, by cheque or bank draft directly to the INTERNATIONAL AIR TRANSPORT ASSOCIATION in Singapore. (Fees shown are 1998 levels and may be subject to change) Non refundable application fee USD 775,00 Registration fee USD 195,00 Annual Agency fee USD 230,00 Annual Agency Commissioner fee USD 50,00 Certificate of registration fee USD 30,00 TOTAL USD 1,280 In addition to the above, a fee of USD 50 for the Agency Commissioner will be levied. The registration fee is paid only once upon approval. In the case of disapproval the registration and annual fee will be reimbursed. The Annual Agency fee is invoiced annually to all registered Agent in October to cover the coming year. Agents which fail to settle their annual fee in due time, despite registered reminders, will be removed from the List. CARGO AGENT’S HANDBOOK & OTHER IATA PUBLICATIONS AND SERVICES Each successful applicant is provided with a free copy of the Cargo Agent’s Handbook. Registered Agents receive a free copy of the latest edition of the Handbook when reissued (usually annually). Additional copies are available from IATA Geneva at a nominal charge (USD 47+USD 6). The Handbook should be studied and kept for ready reference, since it contains the IATA Resolutions which affect Cargo Agents and which are binding under the Cargo Agency Agreement. The current edition of the Dangerous Goods Regulations Manual is also sent regularly to each registered Cargo Agent. (These publications are available in English, French & Spanish). The Cargo Accounts Settlement System (CASS) is an industry settlement system for the computerized processing of accounting between Cargo Agents and airlines. The CASS simplifies airline/agent reporting and remittance, saves costs and improves cash flow. Freight forwarders settle amounts due to the various airlines with whom they do business by means of one payment made to it single central accounting office in a country operated neutrally by IATA. At the beginning of 1992, 12 CASS are already in operation worldwide, with several others planned for implementation in the near future. IATA/FIATA air cargo training programs, designed and monitored by training specialists from major international airlines and freight forwarders, are aimed at helping cargo agents in their efforts to train their staff. The IATA/FIATA home study courses are available worldwide and diploma examinations are held twice-yearly in all countries of operation. The following courses are available in English: Introductory Course (Spanish version also available). Advanced Module I – International Air Cargo Rating and Advanced Module 2 – Dangerous Goods and a Refresher Dangerous Goods Course. An official Diploma is awarded to successful candidates and holders of this diploma are considered qualified under the term of the Cargo Agency Rules.
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