ECONOMIC REGULATON NO.

8
(ER-8)
(As amended by Resolution No. 189-84)

GENERAL SALES AGENTS AND CARGO SALES AGENTS

CHAPTER I General Provision

CHAPTER II Terms, Conditions and Limitations in the

Operations of General Sales Agents

CHAPTER III Terms, Conditions and Limitations in the

Operations of Cargo Sales Agents

CHAPTER I

GENERAL PROVISIONS

Section 1. Title fo Regulation - This Regulation shall be known and cited

as “Economic Regulation on General Sales Agents and Cargo Sales Agents”.

Section 2. Definition - The following definitions shall control in the

interpretation and application of this Regulation, unless the context otherwise requires.

(a) “Board” means the Civil Aeronautics Board

(b) “Act” means Republic Act No. 776, as amended.

(c) “Person” means any individual, partnership, corporation, company or

association.

(d) “General Sales Agent” means a person, who, pursuant to an authority from
an airline, by itself or through an agent, sells or offers for sale any air
transportation, or negotiates for, or holds himself by solicitation,
advertisement or otherwise as one who sells, provides, furnishes,
contracts or arranges for, such air transportation.

(e) “Cargo Sales Agent” means any person who does not directly operate an
aircraft for the purpose of engaging in air transportation or air commerce
and who, as principal or agent, sells, or offers for sale any air
transportation of cargo, or negotiates for, or holds himself out by

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 solicitation, advertisement or otherwise as one who provides, sells,
furnishes, contracts, or arranges for, such air transportation of cargo.

CHAPTER II

TERMS, CONDITIONS AND LIMITATIONS IN THE

OPERATIONS OF GENERAL SALES AGENTS

Section 3. Applicability - This Chapter shall apply to general sales

agents only as defined in this Regulation.

Within the scope of the definition of general sales agent as contained in Chapter I,
Section 29 (d) is an air carrier who may act as general sales agent to another air carrier.

Section 4. Authority to Operate as General sales Agents - No person

shall act as general sales agent unless there is in force a permit or any other form of
authorization issued by the Board.

Section 5. Application for Authorization - Any person desiring to

act as general sales agent as defined in this Regulation shall apply tot he Board for an
authority as required under the law. Such application shall be submitted to the Board in
nine (9) copies, duly subscribed by the applicant and shall be verified. The application
contain the following information:

(a) Name of business address of the applicants;

(b) Citizenship;

(c) Form of organization (i.e. individual, partnership, corporation, etc.)

(d) Paid-up capitalization (minimum of P 500,000.00);

(e) List of stockholders and their stockholdings; and

(f) List of officers, directors or partners, managers and key personnel and
their qualifications and experiences.

Section 6. Documents to be submitted - An application shall attach to its

application the following:

(a) Latest audited financial statements;

(b) A copy of its general sales agency agreement or agreements; and

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 (c) Surety bond for passenger and cargo in an amount not less than P
200,000.00. If the applicant is a corporation or a partnership, etc., it shall
likewise attached a copy of its Articles of Incorporation or Articles of Co-
partnership.

Section 7. Additional Information - An applicant shall also submit such

other information as may be required by the Board in support of the application.

Section 8. Filling Fee - A fee of P 375.00 shall be paid by an applicant

upon filing of its application.

Section 9. Citizenship Requirement - Only citizens of the Philippines as

defined in the Act shall be eligible to apply for authority to act as general sales agent,
except those which are already acting as general sales agent at the time of the effectivity
of this Regulation.

Section 10. Filing of Agreement - Each general sales agent covered by

this Regulation shall submit to the Board a copy of all general sales agency agreement
which it may have with other airline or airlines containing the terms and conditions
thereof.

Section 11. Keeping of Records - Each general sales agent shall keep a
book of accounts, and other records as are necessary to afford an intelligent
understanding of its activities, and such other records as the Board may require.

Section 12. Filing of Reports - Each general sales agent shall file with
the Board a monthly sales report including the number of passengers handled and their
origin and destination on or before the end of each succeeding month, and such other
reports that the Board may require.

Section 13. Examination and Inspection of Records - Records of the

general sales agent shall be open for inspection by the Board or its duly authorized
representative at any time during office hours. Any act of the general sales agent or any
of its officers or employees which would interfere, obstruct, hinder or delay such
inspection or examination is a sufficient ground for the imposition of the penalty
provided for in Section 42 (B) fo the act or the suspension or cancellation of its authority
or both.

Section 14. Rates to be Charged - The fares, rates and charges to be

charged by a general sales agent shall be those which are duly authorized by its principal.
Any unauthorized discount or rebates on authorized fares, rates and charges shall be
punishable in accordance with Section 42 (B) of the Act.

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 Section 15. Suspension or Cancellation of Authorization - The permit
of a general sales agent is subject to suspension or cancellation for violation of any
provision of the Act or the order, rules or regulations issued by the Board.

Section 16. Existing General Sales Agent may continue their Operation
Pending Issuance of Authorization - Notwithstanding the provisions of Section 11
of the act and Section 4 of this Regulation, any person operating as a general sales agent
without a permit from the Board on the date of the effectivity of this Regulation shall
continue to act as such time as the Board shall have passed or disapproved an application
for authorization which shall be filed within ninety (90) days from the date of the
effectivity of this Regulation.

Existing general sales agents which are not citizens of the Philippines as defined
under the act and which desire to continue to act as such, shall comply with the
citizenship requirement within five (5) years from the effectivity of this Regulation.

CHAPTER III

TERMS, CONDITIONS AND LIMITATIONS IN THE OPERATIONS OF

CARGO SALES AGENTS

Section 17. Applicability - This chapter shall apply to cargo sales

agents only as defined in this Regulation.

Section 18. Authority to Operate Cargo Sales Agent - NO person

shall act as cargo sales agent unless there is in force a permit or any other form of
authorization issued by the Board.

Section 19. Application for Authorization - Any person desiring to act

as cargo sales agent as defined in this Regulation shall apply to the Board for an authority
as required under the law. Such application shall be submitted to the Board in nine (9)
copies, duly subscribed by the applicant and shall be verified. This application shall
contain the following:

(a) Name and business address of the applicant;

(b) Citizenship;

(c) Form of organization (i.e., individual, partnership, corporation, etc.)

(d) Paid-up capitalization (minimum of P 250,000.00);

(e) List of stockholders and their stockholdings; and

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 (f) List of officers, directors or partners, managers and key personnel and
their qualifications and experiences.

Section 20. Documents to be submitted - An applicant shall attach to its

application the following:

(a) Latest audited financial statement;

(b) A copy of its appointment as a cargo sales agent; and

(c) Surety bond for cargo in an amount not less than P 250,000.00. If the
applicant is a corporation or a partnership, etc., it shall likewise attach a
copy of its Articles of Incorporation or Articles of Co-partnership.

Section 21. Additional Information - An applicant shall also submit

such other information as may be required by the Board in support of its application.

Section 22. Filing Fee - A fee of P 375.00 shall be paid by an applicant

upon filing its application.

Section 23. Citizenship Requirement - Only citizens of the Philippines

as defined in the Act shall be eligible to apply for an authority to act as cargo sales agent.

Section 24. Certificated Air Freight Forwarders Need Not Apply -

Any person duly authorized by the Board to operate as airfreight forwarder may act as
cargo sales agent without the need of another authorization as required in this Chapter.
Cargo sales agent as defined in Section 2 (e) of this Regulation can only act as principal
when it is duly authorized to operate as airfreight forwarder.

Section 25. Keeping of Records - Each cargo sales agent shall keep such
book of accounts, and other records as are necessary to afford an intelligent
understanding of its activities and such other records as the Board may require.

Section 26. Filing of Agreement - Each cargo sales agent covered by

this Regulation shall submit tot he board a copy of any subsequent cargo sales agency
agreement which it may have with other airline or airlines containing the terms and
conditions thereof.

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 Section 27. Filing of Reports - Each cargo sales agent shall file with
the Board a monthly sales report on or before the end of each succeeding month, and
such reports that the Board may require.

Section 28. Examination and Inspection of Records - Records of each

cargo sales agent shall be open for inspection by the Board or its duly authorized officers
or employees at any time during office hours. Any act of a cargo sales agents or any of
its officers or employees which would interfere, obstruct, hinder or delay such inspection
or examination shall be sufficient causes for the imposition of the penalty provided for in
Section 42 (B) of the Act or the suspension or cancellation of its authority or both.

Section 29. Rates to be Charged - The rates and charges to be charged

by the cargo sales agent shall be those which are duly authorized by the principal it
represents. Any unauthorized discount or rebates on authorized rates and charges shall
be penalized in accordance with Section 42 (B) of the Act.

Section 30. Suspension or Cancellation of Authorization - The

authority fo a cargo sales agent be subject to suspension or cancellation for violation of
any provision of the Act or the order, rules, or regulation issued by the Board.

Section 31. Existing Cargo Sales Agents may continue Operation Pending
Issuance of Authorization - Any person operating or acting as cargo sales agent on
the date fo the effectivity of this Regulation shall continue to act as such until such time
as the Board shall have passed upon or disapproved its application for authorization,
which shall be filed as required in this chapter within ninety (90) days from the
effectivity of this Regulation.\

APPROVED, September 06, 1982.

(Sgd) JOSE D. ASPIRAS

Chairman, CAB

(Sgd) JESUS Z. SINGSON (Sgd) MAJ. GEN. VICENTE M. PICCIO, JR.

Vice-Chairman Member

(Sgd) LEON H. TIANSAY

Member