International Air Transport Association-Air Service Desk



BSP Manual for Agents – Local Procedures

Chapter 14

China

April 2013

English

Content

FOREWORD: This chapter (Chapter 14) covers local BSP procedures applicable in the People’s Republic of China. For all other applicable BSP procedures please refer to the core BSP Manual for Agents.

CHAPTER 14 - Local Procedures

TABLE OF CONTENTS

14.1 ADDRESSES & Contacts 5

IATA Local Office 5

Data Processing Centre (DPC) 5

Ticket Document Distribution Centre (TDD) 5

Clearing Bank 5

List of Approved Ticketing System Providers 5

LCAG Delegates 6

APJC Delegates 6

14.2 PARTICIPATING AIRLINES 8

14.2.1 Participating Airlines List 8

14.2.2 Airline Contact Details 10

14.3 customer interfaces – questions 11

14.3.1 General 11

14.3.2 IATA Country homepage: iata- 11

14.3.3 IATA Customer Services Help Desk or Portal 11

14.3.4 BSPlink – bsplink. 11

14.3.5 IATA International homepage - 11

14.4 STANDARD TRAFFIC DOCUMENTS (STD) 12

14.4.1 STDs used in China 12

14.4.2 Allocation of electronic STDs – Computer Generated Numbers (CGNs) 12

14.4.3 Recall of Stock 12

14.5 STANDARD ADMINISTRATIVE FORMS (SAF) 13

14.5.1 Administrative forms used in China - General 13

14.5.2 Airline’ own accounting memoranda 13

14.5.3 ADM/ACM Procedures 13

14.5.4 Ticketing Authority through ASD 13

14.6 BSP BILLING REPORTS – OUTPUT 14

14.6.1 General 14

14.6.2 BSP Reports available 14

14.6.3 List of BSP Reports with descriptions 15

14.7 REMITTANCE PROCEDURES 18

14.7.1 General 18

14.7.2 Method of Remittance/Direct Debiting 18

14.7.3 Reporting Errors and Missing Remittance Notice 18

14.7.4 Post-Settlement Errors discovered by Agent 18

14.7.5 Post-Settlement Errors discovered by the BSP Airline 18

14.7.6 Post Settlement Errors Discovered by IATA 18

14.7.7 Net Remittance 18

14.8 Sanctions, ADMINISTRATIVE AND CLEARING BANK CHARGES 19

14.8.1 Administrative Charges 19

14.8.2 Interest and Clearing Bank Charges 19

14.8.3 Sanctions 19

14.9 CREDIT CARD SALES 20

14.9.1 General 20

14.9.2 Ticket Entry on Credit Card Sales 20

14.9.3 Face to face transactions 21

14.9.4 Non Face to face transactions 21

14.9.5 Passengers Signature 21

14.9.6 Reporting of Credit Card Sales by IATA/BSP 21

14.10 REFUNDS 22

14.10.1 General 22

14.10.2 Direct Refunds 22

14.10.3 Refund Application/Refund Notice 22

14.10.4 Handling of Refunds by IATA Members 22

14.11 REPORTING CALENDARS 23

14.11.1 General 23

14.1 ADDRESSES & Contacts

IATA Local Office

China

3F East Tower, World Financial Center,

No.1, Dongsanhuang Zhong Road, Chaoyang District

Beijing 100020

P.R.China

E-mail: @

Internet: iata-

Telephone: 0086 10 8571 9909

Contact Hours: 09:00~11:00 and 13:00~16:00, Monday to Friday

Data Processing Centre (DPC)

Company Name Accounting Center of China Aviation

Address 5F, Building 12, Xibahebeili Chaoyang District

Postal Code, City Beijing 100028

Country P. R. China

Telephone: 0086 10 64513322

Ticket Document Distribution Centre (TDD)

Company Name BSP China, IATA

Address 3F East Tower, World Financial Center,

No.1, Dongsanhuan Zhong Road, Chaoyang District

Postal Code, City Beijing 100020

Country P. R. China

Telephone: 0086 10 85719909

Fax: 0086 10 85719906/08

Clearing Bank

Bank Name ICBC (Industrial and Commercial Bank of China)

Contact Name Ms. Luo ZhenHong

Address 1/F, Tower A, Tianyuangang Center No 2C, Dongsanhuanbeilu

Postal Code, City Beijing 100027

Country P. R. China

Telephone: 0086 10 65932271

Fax: 0086 10 65076008/65302554

List of Approved Ticketing System Providers

GDS TravelSky

Company Name TravelSky Technology Limited.

Address 157 Dongsi Xidajie, Dongcheng District, Beijing

Postal Code, City Beijing 100010

Country P. R. China

Telephone: 0086 10 84018401

Contact name Li Ningdi

Telephone: 0086 10 57651200

Fax: 0086 1057651208

LCAG Delegates

The LOCAL CUSTOMER ADVISORY GROUP (LCAG) is a forum where Airline delegates discuss operational issues for the BSP. Please find the current delegates list as follow:

Air China Limited

All Nippon Airways Co. Ltd

China Eastern Airlines

China Southern Airlines

Hainan Airlines Company Ltd

Hong Kong Dragon Airlines Ltd.

Japan Airlines International Co. Ltd.

Airfrance & KLM

Quatar Airways

Shandong Airlines Co., Ltd

Shenzhen Airlines

Sichuan Airlines Co. Ltd.

Singapore Airlines Limited

Thai Airways International Public Co. Ltd

Xiamen Airlines

United Airlines

Deutsche Lufthansa AG

Eva Air

APJC Delegates

In each country or area where Resolution 818g is implemented an AGENCY PROGRAMME JOINT COUNCIL (APJC) shall be established and shall continue to operate. APJC is responsible for providing oversight on those aspects of the Passenger Agency Programme relevant to the Agent/Airline relationship and make recommendations in the form of agenda proposals to the Passenger Agency Conference.

APJC shall consist of an equal number of BSP Airlines and Agents. Please find the current delegates list as follow:

( Airline:

Air China Limited

China Eastern Airlines

China Southern Airlines

Hainan Airlines Company Ltd

Cathay Pacific Airways Ltd

Singapore Airlines Limited

Deutsche Lufthansa AG

Emirates

United Airlines

( Agent:

Shaanxi silkroad business travel co.,ltd.

Chengdu yuandong air agent limited liability company

Beijing atbb travel & express service co.ltd

Beijing baosheng air service co,ltd.

Shanghai foreign aviation service corp.

Shanghai merchants intl air-freight curise service center.

Itour co.,ltd.

Guangzhou merchants int'l air trans.co.,ltd.

Liaoning foreign e & t cooperation co.ltd

14.2 PARTICIPATING AIRLINES

14.2.1 Participating Airlines List

The below list shows participating Airline members of BSP China as per date of latest revision/validation

|NS 836 |Hebei Airlines Co., Ltd. |

|SU 555 |Aeroflot - Russian International Airlines |

|AM 139 |Aeromexico - Aerovias de Mexico S.A. de C.V. |

|AH 124 |Air Algerie |

|KC 465 |Air Astana |

|AB 745 |Air Berlin PLC & Co. Luftverkehrs KG |

|AC 014 |Air Canada |

|CA 999 |Air China Limited |

|AF 057 |Air France |

|AI 098 |Air India Limited |

|JS 120 |Air Koryo |

|NX 675 |Air Macau Company Limited |

|MD 258 |Air Madagascar |

|MK 239 |Air Mauritius |

|NZ 086 |Air New Zealand Ltd. |

|AZ 055 |Alitalia - Compagnia Aerea Italiana S.p.A. |

|NH 205 |All Nippon Airways Co. Ltd. |

|AA 001 |American Airlines |

|OZ 988 |Asiana Airlines Inc. |

|OS 257 |Austrian Airlines, Österreichische Luftverkehrs AG dba Austrian |

|J2 771 |Azerbaijan Hava Yollary |

|PG 829 |Bangkok Airways Co., Ltd |

|JD 898 |Beijing Capital Airlines Co., Ltd |

|BA 125 |British Airways P.L.C. |

|CX 160 |Cathay Pacific Airways Ltd. |

|EU 811 |Chengdu Airlines |

|CI 297 |China Airlines Ltd. |

|MU 781 |China Eastern Airlines |

|G5 987 |China Express Airlines Co,Ltd |

|CZ 784 |China Southern Airlines |

|KN 822 |China United Airlines |

|PN 847 |China west Air Co. Ltd. |

|OQ 878 |Chongqing Airlines Co,.Ltd |

|CO 005 |Continental Airlines Inc. |

|DL 006 |Delta Air Lines Inc. |

|LH 220 |Deutsche Lufthansa AG |

|BR 695 |EVA Airways Corporation |

|MS 077 |Egyptair |

|LY 114 |El Al Israel Airlines Ltd. |

|EK 176 |Emirates |

|ET 071 |Ethiopian Airlines Enterprise |

|EY 607 |Etihad Airways |

|FE 436 |Far Eastern Air Transport Corp. |

|AY 105 |Finnair Oyj |

|GA 126 |Garuda Indonesia |

|CN 895 |Grand China Air Co.,Ltd |

|GF 072 |Gulf Air Company G. S. C. |

|HU 880 |Hainan Airlines Company Limited |

|HA 173 |Hawaiian Airlines Inc. |

|HX 851 |Hong Kong Airlines Limited |

|KA 043 |Hong Kong Dragon Airlines Ltd. |

|UO 128 |Hong Kong Express Airways Limited |

|JL 131 |Japan Airlines Co. Ltd |

|9W 589 |Jet Airways (India) Limited |

|JQ 041 |Jetstar Airways Pty Limited |

|JR 929 |Joy Air |

|HO 018 |Juneyao Airlines Co. LTD |

|KL 074 |KLM - Royal Dutch Airlines |

|KQ 706 |Kenya Airways |

|KE 180 |Korean Airlines Co. Ltd. |

|KY 833 |Kunming Airlines Co., Ltd |

|LO 080 |LOT - Polish Airlines |

|8L 859 |Lucky Air Co. Ltd |

|OM 289 |MIAT - Mongolian Airlines |

|W5 537 |Mahan Airlines |

|MH 232 |Malaysian Airline System Berhad |

|AE 803 |Mandarin Airlines Ltd. |

|8M 599 |Myanmar Airways International Company Ltd |

|BK 866 |Okay Airways Company Limited |

|PK 214 |PIA Pakistan International Airlines |

|PR 079 |Philippine Airlines, Inc. |

|QF 081 |Qantas Airways Ltd. |

|QR 157 |Qatar Airways (Q.C.S.C) |

|FV 195 |ROSSIYA AIRLINES |

|BI 672 |Royal Brunei Airlines |

|RA 285 |Royal Nepal Airlines |

|LX 724 |SWISS International Air Lines Ltd. dba SWISS |

|4Q 741 |Safi Airways |

|HZ 598 |Sakhalinskie Aviatrassy SAT |

|SV 065 |Saudi Arabian Airlines |

|SK 117 |Scandinavian Airlines System (SAS) |

|SC 324 |Shandong Airlines Co., Ltd |

|FM 774 |Shanghai Airlines Co. Ltd. |

|ZH 479 |Shenzhen Airlines |

|S7 421 |Siberia Airlines |

|3U 876 |Sichuan Airlines Co. Ltd. |

|MI 629 |Silkair (Singapore) Private Limited dba Silkair |

|SQ 618 |Singapore Airlines Limited |

|SA 083 |South African Airways |

|UL 603 |SriLankan Airlines Ltd. |

|DT 118 |TAAG - Linhas Aereas de Angola (Angola Airlines) |

|TG 217 |Thai Airways International Public Co. Ltd. |

|GS 826 |TianJin Airlines Co., Ltd. |

|TV 088 |Tibet Airlines Corporation Limited |

|GE 170 |TransAsia Airways Corporation |

|UN 670 |Transaero Airlines |

|TK 235 |Turkish Airlines Inc. |

|B7 525 |UNI Airways Corporation |

|UA 016 |United Airlines Inc. |

|U6 262 |Ural Airlines |

|HY 250 |Uzbekistan Airways |

|VN 738 |Vietnam Airlines |

|VS 932 |Virgin Atlantic Airways |

|XF 277 |Vladivostok Air |

|IY 635 |Yemenia - Yemen Airways |

|JJ 957 |TAM LINHAS AEREAS S.A. |

|KR 265 |Ait Bishkek |

|UT 298 |UTAir Aviation Joint - Stock Company |

14.2.2 Airline Contact Details

For any queries towards BSP Member Airline you could find contact details on Agent Service Desk: iata-.

14.3 customer interfaces – questions

14.3.1 General

For any questions about your ticket sales and the BSP Procedures, there are several ways to find the answers. This Manual should be one of the first sources for you to check, and depending on the nature of the problem you should then turn to the respective party for help:

▪ Any problems to complete a ticket sale or problems to extract any reports from your ticketing system?

Agent could contact Travelsky helpdesk for any guidance or assistance regarding ticketing system at 0086 10 84018401.

▪ Questions about how to issue a ticket, or any queries regarding the rules for a ticket?

These should be stated directly to the Airline in question or Travelsky helpdesk (Tel 0086 10 84018401) if there is a technical problem or any queries regarding the rules and procedures of ticket issuance.

▪ Questions on any discrepancies between what you have reported through your ticketing system and what you find on the BSP Reports?

Agent could contact Travelsky or DPC (Tel 0086 10 64513322) to check the reason.

IATA has several customer interfaces where you can seek information and we wish to point out some of them below.

14.3.2 IATA Country homepage: iata-

Air Service Desk (ASD) provides local information regarding this market including airline key contacts, Agent application procedure, customer bulletins and circulars as well as links to other IATA products & services etc.

14.3.3 IATA Customer Services Help Desk or Portal

Agent queries are handled through TEL, FAX, Email and ASD website.

Contact Details:

TEL: 010-8571 9909

FAX: 010-8571 9906/08

Email: @

Web: iata-

14.3.4 BSPlink – bsplink.

BSPlink is open to Airlines only by far in China with basic functions of report downloading and agent authorization.

14.3.5 IATA International homepage -

By entering to you will come to IATA’s global home page. Here you can find information on all IATA activities, find ruling resolutions and also buy any IATA publications via the online store. A search tool is available on the site, which will help you to find the information you are looking for.

14.4 STANDARD TRAFFIC DOCUMENTS (STD)

14.4.1 STDs used in China

ET Electronic Ticket

EMD Electronic Miscellaneous Document

14.4.2 Allocation of electronic STDs – Computer Generated Numbers (CGNs)

▪ Manual Application

Agent may apply for ET /EMD numbers via ASD on weekday mornings before AM12:00, submitting the application online with proper ET types (International or Domestic Ticket) and quantities.

IATA will in turn to process the ET/EMD stock applications raised by agent. In accordance with following ET /EMD distribution principles IATA may partly/fully approve or reject the applications.

- Agent guarantee balance

- Ticket unit price

- Other constraint conditions (e.g. ET storage usage, legal info under update, settlement status etc.)

▪ Auto Distribution

IATA automatically allocates ET numbers to agents according their ET settings on each settlement day.

The approved quantity of ET/EMD numbers will be distributed to Agent’s Ticketing System (E-Term) by PM4:30 on the day of application. Agents are required to issue the allocated ET/EMD within one month from the date of allocation. Otherwise, IATA may reject their further ET/EMD application.

14.4.3 Recall of Stock

Due to global shortage of Computer Generated Numbers, IATA Head Office must from time to time recall ET stock. This means that stock has a limited lifecycle of 2 to 3 years from the date of its allocation.

14.5 STANDARD ADMINISTRATIVE FORMS (SAF)

14.5.1 Administrative forms used in China - General

• Refund Application/Authority (RA)

• Agency Credit Memo (ACM)

• Agency Debit Memo (ADM)

14.5.2 Airline’ own accounting memoranda

Individual BSP Airlines also prepare certain BSP accounting memoranda, which are sent directly by the BSP Airline to the Agent concerned. The documents are issued under the provisions of Resolution 850m, online in ASD (iata-) or by using a mass file upload feature.

This feature allows the airline (or third party acting on the airline’s behalf) raising the ADM/ACM to issue the document in its own system and upload as a file into ASD so the Agent can view it.

Non-disputed ACMs/ADMs are automatically reported to the DPC for processing and inclusion in billings. Local dispute periods are automatically taken into account, and online disputing through ASD can be activated by the airline.

The airline can also download disputed transactions from ASD, and load them into their own system for dispute handling. The purpose of these accounting memoranda is to adjust the Agent’s account with the Airline via the BSP. The two accounting memoranda are Agency Debit Memo (ADM) and Agency Credit Memo (ACM)

▪ Agency Debit Memo (ADM)

The ADM serves to notify an Agent that unless there is some justification to the contrary, the Agent owes the issuing BSP Airline the amount shown on the ADM for the reasons indicated. In case of disagreement, the Agent is obliged to contact the issuing Airline within the set disputing period, which is calendar 30 days.

An ADM shall only be processed through the BSP, if issued within nine (9) months of the final travel date. Any claims beyond this period need to be addressed outside of the BSP processes.

▪ Agency Credit Memo (ACM)

The ACM is used in those cases where the Airline owes money to the Agent. The Airline submits an ACM to the Agent, setting out the details of the amount to be credited to the Agent.

14.5.3 ADM/ACM Procedures

The rules governing the issue of Airlines’ ADMs are detailed in resolutions published in the Travel Agent’s Handbook (Resolution 850m). For the ADM/ACM procedures please refer to Agent ASD manual in ASD website FAQ.

14.5.4 Ticketing Authority through ASD

Airlines assign Ticketing Authority to their appointed Agents via ASD. Agent could check the Ticketing Authority List assigned by Airline in ASD.

14.6 BSP BILLING REPORTS – OUTPUT

14.6.1 General

IATA provides Agents with a range of BSP Reports for each period (8 or 9 billing periods per month). The reports are provided in electronic form via ASD.

The BSP reports are final remittance statement. Because the BSP reports are considered as supporting accounting documentation it is important that Agents will save BSP reports for the time prescribed in the local legislation (normally period of 5 years according to local rules and regulations).

The reports are available online on ASD for the period of 4 settlement periods. Old reports can be requested from IATA office, and if available there is a cost involved with such a rerun.

Reports are provided in the pdf format and are compressed. Agents are required to have appropriate software (e.g. Acrobat Reader and a WinZip program).

14.6.2 BSP Reports available

| |Agent Output – Basic Package |

| |For you to easily see what standard reports that are included in our Basic Package and available on a regular basis via ASD |

| |(iata-), please use this guide. Use it as a source of information and as a reference when you have queries on any|

| |reports. |

|Report |Period 1– 8/9 |Annual |

|BSP Agent Billing Statement and Analysis |X | |

|BSP Agent Consolidated Billing Statement |X | |

|Agent Credit Card Detail Report |X | |

|Agent TAX Type Summary |X | |

|Agent Net Remit Tickets Error Report |X | |

|Agent Unreported Documents Report |Period 8/9 | |

|Agent Remittance Notice |X | |

|Agent Annual Sales Volume & STD Usage | |X |

|Agent Financial Year Summary | |X |

14.6.3 List of BSP Reports with descriptions

Below are descriptions of BSP reports sent to Agents. Please note that the File Name stated e.g. DX0(IX0)08xxxxxYYMMCC, will reflect the DX0 as domestic sales report and IX0 as international one.

|BSP Agent Billing |This Agent Statement provides a summary for each Airline followed by a list of ALL |

|Statement and Analysis |transactions billed to the Agent for the specified Billing Period. The transactions are |

| |sorted by the four main “groups”, being ISSUES, ADM, ACM and REFUNDS. |

| |More information |

| |This report has a summary of all sales for billing period displayed (Summary Box) at the |

| |top. |

| |NTFA (Net Fare Amount) are not displayed on “Comments” column. The NTFA can be calculated |

| |(Balance Payable amount less Tax amounts). |

| |"Supplementary Commission Rate" (percentage) in addition to "Supplementary Commission |

| |Amount" is displayed. |

| |Exchange tickets, Check Digit and Coupon Usage Indicator on exchanged ticket number are |

| |displayed ("Comments" column). |

| |Tour Code is displayed on “Comments” column. |

| |“Tax on Commission” is displayed in a separate column (but it is not currently applicable |

| |in Ireland) |

| |Date of Issue is displayed on its own column. |

| |No total amounts per tax type are displayed, but can be found in “Agent Tax Type Summary |

| |Report”. |

| |Breakdown of sales per airline is displayed. |

| |Frequency: |Periodically |

| |Media: |ASD |

| |Format: |PDF |

| |File name: |DX0(IX0)11xxxxxYYMMCC (see description above) |

| |Price: |Standard – free of charge. |

|BSP Agent Consolidated Billing |This report consolidates totals for each Billing Period in the month up to and including |

|Statement |the current Billing Period. |

| |More information |

| |This report has a total amount per billing period displayed. |

| |Frequency: |On Request |

| |Media: |ASD |

| |Format: |PDF |

| |File name: |CN_RPAGCONS___ |

|Agent Credit Card |This report shows credit card transactions that have been forwarded by IATA within the |

|Detail Report |Credit Card Invoicing Scheme. |

| |Frequency: |On Request |

| |Media: |ASD |

| |Format: |PDF |

| |File name: |CN_RPAGCCDT___ |

| |Price: |Standard – free of charge. |

|Agent TAX Type |This report provides a summary of the tax types for each Agent, giving totals for each tax|

|Summary Report |type and broken up into cash and credit, refunds and ADMs and ACMs. |

| |Frequency: |On Request |

| |Media: |ASD |

| |Format: |PDF |

| |File name: |CN_RPAGTAX1___ |

| |Price: |Standard – free of charge. |

|Agent Net Remit |This report prints all the Net Remit error tickets for an agent. The tickets are sorted by|

|Tickets Error Report |ticket number. The itinerary details are also included in this report, as well as the |

| |error for the ticket. |

| |Frequency: |On Request |

| |Media: |ASD |

| |Format: |PDF |

| |File name: |CN_RPAGNETE___ |

| |Price: |Standard – free of charge. |

|Agent Unreported |The ticket stock is to be issued and reported sequentially (in the same order as |

|Documents Report |supplied). This report prints all the ticket numbers that are detected to have a sequence|

| |error during the month. The document also contains instructions to correct the status of |

| |the unreported documents. |

| |Frequency: |On Request. |

| |Media: |ASD |

| |Format: |PDF |

| |File name: |CN_RPAGUNRP___ |

| |Price: |Standard – free of charge. |

|Agent Remittance |This is an Agent Remittance Notice produced after billing reconciliation, showing the |

|Notice |amount due for the remittance from the agents account. |

| |Frequency: |On Request. |

| |Media: |ASD |

| |Format: |PDF |

| |File name: |CN_RPAGTRMT___ |

| |Price: |Standard – free of charge |

|Agent Annual Sales |This is by calendar month and it outlines all sales volumes and STD Usage for an agent. |

|Volume & STD Usage |The report is grouped by airlines showing gross and net issues for domestic and |

| |international. |

| |Frequency: |Annual Report – On Request |

| |Media: |ASD |

| |Format: |PDF |

| |File name: |CN_STAGSAVU___ |

| |Price: |Standard – free of charge |

|Agent Financial Year Summary |This report gives agent’s financials by calendar month. |

| |Frequency: |Annual Report – On Request |

| |Media: |ASD |

| |Format: |PDF |

| |File name: |CN_STAGFIYR___ |

| |Price: |Standard – free of charge |

14.7 REMITTANCE PROCEDURES

14.7.1 General

IATA produces and forwards BSP billing analysis and summary on behalf of all BSP Airlines to Agents. This statement identifies the amount due from/to the Agent, which should be settled by means of Direct Debit via Clearing Bank in strict compliance with published BSP timetable.

14.7.2 Method of Remittance/Direct Debiting

BSP China’s remittance method is Direct Debit. Agents are required to sign the Direct Debit Agreement with Clearing Bank to allow bank directly collect the BSP payment from agents’ BSP settlement bank account on demand of IATA.

14.7.3 Reporting Errors and Missing Remittance Notice

Where an Agent, for whatever reason, has not received his Notice of Billing Statement by the remittance date, he is required to carry out the following:

▪ Notify IATA that the Notice of Billing Statement has not been received;

▪ Establish and agree with IATA the amount due for remittance on the remittance date.

Where an Agent’s remittance amount is affected by a Ticketing System Provider, that fails to report parts of agency sales for the referred period or due to Agent’s own negligence to report issued tickets he is required to carry out the following:

▪ Notify IATA

▪ Establish and agree with IATA the amount of deposit due for remittance on the remittance date or on a date advised by IATA.

The Agent must ensure that sufficient funds are available to facilitate the settlement process.

14.7.4 Post-Settlement Errors discovered by Agent

If Agent discovers a billing error after remittance date, the Agent needs to directly approach the relative BSP Airline with an adjustment request. Where the BSP Airline agrees with the adjustment, an ADM or an ACM will be raised in following periods to adjust the billing error.

14.7.5 Post-Settlement Errors discovered by the BSP Airline

If BSP Airline discovers a billing error after remittance day, they could produce ADM or ACM to relative agent via ASD to adjust the error in following period. The management of ADM is in accordance with IATA Resolution 850m.

14.7.6 Post-Settlement Errors Discovered by IATA

If IATA discovers a billing error after remittance date, it shall notify all parties who it may concern e.g. BSP airline, agent and DPC etc.

14.7.7 Net Remittance

Net Reporting is an agreement between an Airline and an Agent to report STDs at a value other than the published fare. The difference between the amount entered in the STD’s fare box and the agreed fare may be a Supplementary (Commission) Amount in the Agent’s favour, or the Agent may sell the STD at a reduced price to customer. When an Airline enters into an agreement with Agent authorizing the Agent to sell net reporting STDs, the Airline establishes a special code(s) (e.g. Tour code, Commercial Agreement Reference) with the Agent.

14.8 Sanctions, ADMINISTRATIVE AND CLEARING BANK CHARGES

All references to Sections, Paragraphs and Subparagraphs below are references to Sections, Paragraphs and Subparagraphs as prescribed in Resolution 818g of the Travel Agent’s Handbook, unless stated otherwise.

14.8.1 Administrative Charges

Excessive Voids Fees

When the volume of cancelled ET exceeds 5% of total volumes issued in a specific billing period, Agent will be charged CNY5.00 per VOID for the excessive voids. These charges are automatically reported to DPC for processing and inclusion in Agent billings. Above charging standard is approved by LCAG-P and IATA will refund these charges to BSP participating airlines accordingly.

Late Remittance Recovery

▪

Late Remittance Recovery = USD128+ (Bank base interest rate of unpaid amount + 2%)/365 x no. days

IATA issues SPDR to collect the Late Remittance Recovery through BSP settlement. Above charging standard is approved by IATA PAConf and IATA will refund these charges to BSP participating airlines accordingly.

Reinstatement Recovery

The Reinstatement Recovery charge amounted as USD119 is applied to Agents applying for reinstatement after default. IATA sends the notice to Agent after receives reinstatement request from Agent. The requested amount should be remitted to the bank account designated by IATA within the due date. Above charging standard is approved by IATA PAConf and IATA will refund these charges to BSP participating airlines accordingly.

14.8.2 Interest and Clearing Bank Charges

Clearing Bank Charges, which shall be in the amount debited to IATA by the Clearing Bank as a result of the Agent’s failure to remit as prescribed. The charging standard should comply with applicable bank interest rates and regulations.

14.8.3 Sanctions

The local procedure for Notice of Irregularity and Default is in accordance with IATA Resolution 818g, Attachment “A”.

If the Clearing Bank does not receive remittance from agent by the remittance date, the Bank would inform BSP China immediately.

BSP China will send a Notice of Irregularity to the Agent’s Head Office Location on the settlement date. The Notice of Irregularity will count as two listed instances of Irregularity.

If payment is not received on demand by the settlement date, BSP China will immediately notify ISS Management and will take Default Actions with respect to all the approved locations of the agent. Notice of Default will be sent to the Agent’s Head Office accordingly.

The local procedure for Default Action is according to IATA Resolution 818g, Attachment “A”.

14.9 CREDIT CARD SALES

14.9.1 General

Subject to the authority of the ticketing Airline and the procedures set out in this manual, an Agent may accept Credit Cards and/or Charge Cards in full payment for ticket sales on behalf of the plated airline. Failure to comply with the procedures herein and/or the airlines policies may result in the transaction being billed as cash to the Agent’s Billing and once such action is taken, the airline will not retrospectively accept a card as payment for the transaction. Furthermore should a customer dispute and refuse to pay a transaction appearing on their Card Statement where such transaction was generated by an Agent, the airline will raise an ADM for the full value of the rejected transaction and the Agent must settle same. It is important that all Agents understand the general principles of Credit Card transactions.

When processing a credit card sale, the Agent should always ensure card acceptance and follow customary safety precautions:

• Does the Airline accept Credit Card as form of payment?

• Does the Airline accept this type of Credit Card as form of payment?

• Is the credit card abbreviation valid?

o VI – Visa

o CA – Master Card (including Euro card)

o DC – Diners Club

o AX – American Express Card

o TP – Airlines own UATP cards (ATCAN)

• Is the card offered a valid card?

• Has it been altered in any way?

• Has it been blacklisted by the issuing Card Company

• Does the signature on the charge form match with that on the card? (a local CC acceptance procedure may involve controlling the Card holder’s identity as customary)

• Is the Card within the validity date?

• Negotiate an approval code from the Credit Card company

14.9.2 Ticket Entry on Credit Card Sales

When accepting the Credit Card on behalf of an Airline the credit Card details shall be entered in the Form of Payment box of the ticket. Credit Card number must follow a specific format.

For Entry in the Ticketing System the Agents must control the applicable format with the Ticket System Provider. The format shall cater for Approval code and Date of Validity

For the Manual documents the entry in the Form of Payment box shall follow following format.

CCVI5456 6785 8574 8899 followed by the expiry date, 12/09 for example

Where:

“CC” indicates Form of Payment = Credit Card

“VI” indicated type of Credit Card (in this case Visa)

“5456 6785 8574 8899” indicates credit card number

The approval code is entered in its own box.

14.9.3 Face to face transactions

For face-to-face credit card transactions the Airline will hold Agents responsible if customary safety precautions were not taken and result in the Credit Card being rejected due to fraudulent use.

14.9.4 Non Face to face transactions

These are transactions where the cardholder is not present at time of issue. Such transactions are either made by telephone or mail order or against signature on file.

These sales are accepted at the risk of the Agent. Any charges in respect of disputed transactions will be passed back to the issuing office. Where a BSP Airline incurs a loss and such loss is attributable to an Agent’s failure to adhere to the instructions of the Airline in respect of credit card sales, the Airline may invoice the Agent for such loss. (In normal cases, an ADM will be issued by the Airline.)

14.9.5 Passengers Signature

All Tickets issued against Credit Card require approval by the Cardholder. This is expressed by a cardholder’s signature. In those cases a Credit Card charge form is used (described in later paragraph) the cardholder shall sign the CCCF. In cases where the ticketing procedure will not require a CCCF the cardholder shall sign the Agent Coupon of the ticket.

14.9.6 Reporting of Credit Card Sales by IATA/BSP

All Credit Card Sales are reported on the BSP Billing Analysis and Statement under a separate column. The commission amount is credited to the Agent in cash and as such is deducted from the total balance payable.

BSP China is able to handle credit card sales. If agents would like to accept credit card as payment on behalf of ticketing airlines, please contact airlines concerned directly. The local procedure for Credit Card sales is according to IATA Resolution 890, which is accessible to Agents on ASD. (iata-)

14.10 REFUNDS

14.10.1 General

An Agent is permitted to effect refunds on STDs that were issued and reported by the Agent himself. Prior permission must be obtained from the Airline whose document has been used.

In all cases where prior permission to affect a refund must be obtained from the Airline concerned, either as a matter of policy or because the Agent cannot compute the refund himself, an Airline Refund Application/Authority must be issued.

14.10.2 Direct Refunds

The practice of direct refunds in China is that when Agent is permitted to effect refunds on STDs which specified in Passenger Sales Agency Rules, they shall produce the refunds by using GDS (Travel sky) refunding applications.

14.10.3 Refund Application/Refund Notice

▪ Refund Application (RA)

Prior permission of RA issuing must be obtained by Agent from the Airlines whose traffic documents have been used. Agent issues RA in ASD to seek Airline’s approval and only the approved RA will be submitted to DPC for further consequent process and settlement.

▪ Refund Notice (RN)

Prior permission of RN issuing must be obtained by Agent from the Airlines whose traffic documents have been used. RN is the notification from Agent to Airline of refunds and doesn’t need Airline’s approval. RN will be submitted to DPC automatically for further consequent process and settlement after Agent issued in ASD.

14.10.4 Handling of Refunds by IATA Members

The Passenger Sales Agency Rules doesn’t stipulate the time-frame on refunds by IATA Airlines. Under the provisions of IATA Resolution 824r, Airlines are recommended to authorise the use of GDS refunding applications for totally unused traffic documents. In all cases airlines shall expedite refunds on unused or partly used traffic documents in accordance with the following practices:

▪ Unused traffic documents

Airlines will ensure that valid refunds on totally unused traffic documents are made or authorised not later than the following remittance date after the refund application is received from the Agent by the Carrier.

▪ Partly used traffic documents

Airlines will ensure that refunds on partly used traffic documents are made or authorised by not later than two months after the refund application is received from the Agent by the Carrier.

In China the refund procedure for partly used traffic documents is the same as unused traffic documents. The practice is that valid refunds are made or authorised not later than the following remittance date after the refund application is received from the Agent by the Carrier through system.

14.11 REPORTING CALENDARS

14.11.1 General

The reporting calendar shows all important dates of the BSP remittance process. Agents are obliged to check the dates in the calendar.

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NOTICE:

DISCLAIMER. The information contained in this publication is subject to constant review in the light of changing government requirements and regulations.

No subscriber or other reader should act on the basis of any such information without referring to applicable laws and regulations and/or without taking appropriate professional advice. Although every effort has been made to ensure accuracy, the International Air Transport Association shall not be held responsible for loss or damage caused by errors, omissions, misprints or misinterpretation of the contents hereof. Furthermore, the International Air Transport Association expressly disclaims all and any liability to any person, whether a purchaser of this publication or not, in respect of anything done or omitted, and the consequences of anything done or omitted, by any such person in reliance on the contents of this publication.

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