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Dear, Sir
It is a great pleasure to invite your company to the joining
of CASS-Korea.
Cargo Account Settlement System (CASS) was developed in 1979
to simplify the reporting of export cargo sales and settling of account
between cargo intermediaries and carriers by IATA programme. And, CASS-Korea,
since feasibility study in 1991, has been implemented to reduce cost both
agents and airlines.
The advantages of CASS-Korea reduce expenses and time consuming
clerical function, make sure of carriers' credit and lighten agents' excessive
security as establishment of Industry Financial Guarantee (IFG), provide
CASS Airlines with the Local Marking Data and be in operation of CASS Neutral
Air Waybill (CNA) program.
Also, central reporting and billing through the Settlement Office (Korea
Exchange Bank) offers numerous advantages to both carriers and agents.
Advantages of CASS-Korea are as followings ;
- Carriers no longer prepare billings, agents/CASS Associates no longer
prepare report
- In case of Full Participant carrier, a copy of Air
Waybill serves as the basis for processing by the Settlement Office.
- In case of Billing Participant carriers, a floppy
diskette submits as the basis for processing by the Settlement Office.
- Agent/CASS Associate pay one amount for the remittance period, covering
payment to all carriers; carriers receive one amount covering payment
from all agents/CASS Associates.
- Forms and procedures are standardized.
- Agents/CASS Associates and carriers using their own EDP systems can
eliminate duplication of data capture by delivering or receiving (at
their option) sales and billing information on floppy disk or in other
electronically readable form.
- The Settlement Office look after completion errors, assists agents
in avoiding such errors, follows up on non-payments and resolves other
time-consuming discrepancies.
- Agents' irregularities and defaults are reported neutrally, using
standard rules, without discrimination.
- CASS-Korea IFG (Industry Financial Guarantee) is enhanced and cash
flow improved.
- Reliable and up-to-date national sales statistics are available.
Especially, CASS-Korea provide all CASS Airlines with the Local Cargo
Marketing Data by monthly.
- Processing is neutrally and confidentially supervised by an independent
party, the CASS Manager appointed by IATA.
- All management costs are paid by participating airlines.
- Staff training course are given, organized locally by the CASS-Manager.
- CASS-Korea offer CASS Airlines the outstanding information of Agents
by daily.
At this time, participant members of CASS-Korea are 29 carriers,
60 IATA Agents and 150 CASS associates, and they have occupied about
93% of total aircargo sales in local market.
Numbers of IFG establishment are 199 of 210 agents/CASS
associates.
And, until the end of this year, additionally new participant members
are expected to join 2 carriers and 10 CASS associates.
1. Joining Fee
A carrier which join CASS after implementation shall pay
a fee on joining an established by CASS Steering Panel and endorsed
by the CASS Committee.
The joining fees shall be an amount equivalent to the
applicable pre-implementation cost share plus the applicable share
of the CASS system development cost, during the first three years
following implementation.
* Joining Fee
- For IATA Membership Carrier : USD 2,500 --- ①
- For Non IATA Carrier : USD 3,500 --- ①
A flat surcharge of USD 1,000 was included for each Non-IATA carrier
2. Annual CASS Management Cost Share
Under CASS Procedures Manual attachment 'A' to Resolution
851 Section 4, and IATA Communique No. 2, 40% of CASS management costs
which demanded payment of CASS members every years shall be shared
equally by all carriers participating in the CASS, 30% shall be shared
equally in proportion to settletement volume, 30% of the remainder
shall be share equally proporation to UTP (Unit Trans- action Processed)
volume.
* 2004YR CASS Management Cost Share
- Equal share : KRW 2,318,479 --- (A)
- Settlement share : KRW 0.47026453 per KRW 10,000 settled --- (B)
- UTP share : KRW 73.10590368 per 1 UTP --- (C)
CASS management cost total : KRW 2,318,479+(B)+(C) --- ②
A flat contribution of USD 500 per annum shall be paid by Non-IATA carrier
3. 2004YR CASS Software Maintenance Share
Pursuant to the provisions of the CASS Procedures Manual
attachment'A' to Reso 851 Sec 2.11.3, These are the costs to be paid
for the development of the CASS-Korea Software as specified in the
Settltmtnt Office Manual, and any subsequent software modification
costs as required. These costs are to be shared equally between the
carriers participating in the CASS.
* 2004 CASS Software Cost Share
- Equal share : Nil (included in the above item 2.) --- ③
4. CMD (Cargo Marketing Data) Cost Share
The 4th CAGC meeting endorsed the amount of KRW 50,000
per month as a CMD(Cargo Marketing Data) subscription fee for a airline
effective from January 2001.
- Annual CMD Cost Share : KRW 600,000 --- ④
I shall be very glad if you join CASS-Korea as condition
of 2004 cost KRW 2,318,479+(B)+(C) and USD 2,500 (for Non IATA Carrier:USD3,500)
(Above ① + ② + ③ + ④ )
Above costs item of ② will reconcile sharing in 2005 with the fixed
data of 2004 Year according to IATA formula for cost sharing.
And, the subject of CASS participant is selecting one alternative out
of local branch office and GSA in Korea.
Kindly request to advise me(e-mail: casskorea@iata.org) or Letter
of your any intention for joining CASS-Korea.
Very truly yours,
DaeSuk Hong
Manager, CASS-Korea
Cc : Chairman, Local Customer Advisory Group - Cargo
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