Air Canada’s Domestic e-AWB Agreement

Congratulations on deciding to conduct business with e-AWB. Please review the following guidelines prior to completing the editable fields in the attached document.

If you will be using an in-house system to transmit EDI messages, please contact our Manager, e-Business Processes ( or 905 694 5330) to conduct EDI testing to confirm that data exchange between parties is functioning and data quality is good.

Once a successful test is confirmed, please send two (2) signed copies of the agreement to:

Air Canada Cargo

Attn: Karen Jones, Manager, e-Business Processes

2580 Britannia Road East

Mississauga, ON, L4W 2P7

Canada.

If you will be using Cargo Portal Services (CPS), no test is required. Please send two (2) signed copies of the agreement to:

Air Canada Cargo

Attn: Karen Jones, Manager, e-Business Processes

2580 Britannia Road East

Mississauga, ON, L4W 2P7

Canada.

Before printing, please ensure to electronically complete the following entries:

page 1, Party A

page 11, Section 19.3, Notices

page 13, Freight Forwarder Signature

Important Note: Signatory must have the authority to legally bind the company to the agreement.

One copy of the agreement will be counter-signed by Air Canada and returned for your records. You will be notified when our system has been updated to accept e-AWBs from your account(s).

Please ensure to include all IATA and commercial accounts associated with this agreement. Also, in the future, please ensure that Air Canada Cargo is notified of any new account numbers or any deletions, as well as any changes to company names or company acquisitions. In case of a large number of affiliates to be added, please contact Karen Jones for an excel sheet template.

Should you have any questions related to the agreement, please contact Karen Jones or your local Air Canada Cargo Sales Manager.

Domestic e-AWB – Freight Forwarder Page 1


AGREEMENT FOR

ELECTRONIC DATA INTERCHANGE (EDI)

FOR DOMESTIC CARGO

Between

Domestic e-AWB – Freight Forwarder Page 22


(enter your company name )

of (enter your complete address)

represented by (enter name of signatory)

Domestic e-AWB – Freight Forwarder Page 22


(hereinafter referred to as “Freight Forwarder”)

And

AIR CANADA

A body corporate duly incorporated pursuant to the laws of Canada, having its principal place of business at Suite 410, 3100 Côte Vertu Road West, Saint-Laurent, Quebec. Canada, H4R 2J8, duly represented by its Vice President Cargo.

(hereinafter referred to as “Carrier”)

Recitals

WHEREAS the Parties hereto have, or expect to have, commercial dealings with each other;

WHEREAS the Parties desire to improve the efficiency of any future commercial transactions by replacing the flow of paper air waybills between them with electronic data interchange;

WHEREAS the Parties understand the technical and legal consequences of using electronic data interchange to conduct commercial transactions; and

WHEREAS the Parties’ intention and desire is to facilitate and conduct paperless electronic cargo transactions,

NOW, THEREFORE, the Parties agree as follows:

Article 1 — Preamble

1.1 The foregoing recitals and any footnotes, are incorporated into and shall form an integral part of the Agreement.

1.2 This Agreement is suitable for use on traffic routes with an origin and a final destination wholly within Canada where the preservation of the Shipment Record through electronic means in lieu of a paper air waybill is permitted under international convention and local law

Article 2 — Definitions

For the purpose of the Agreement, the terms listed below are defined as follows:

2.1 “Agreement” shall mean this Agreement, together with Annex ‘A’, Annex ‘B’ and Annex ‘C’. In addition, the provisions of Resolution 670 and Recommended Practice 1672 of the IATA Cargo Services Conference Resolutions Manual are incorporated into the Agreement by reference, as if recited at length herein with necessary adaptation to exclude international carriage.

2.2 “EDI” or “Electronic Data Interchange” shall mean the electronic transfer, from computer to computer, of commercial, administrative and transport data using an agreed standard to structure an EDI Message, as set out in the Annex ‘A’.

2.3 “EDI Message” shall mean a message consisting of a set of segments, structured using an agreed standard, prepared in a computer readable format, transmitted via EDI, and capable of being automatically and unambiguously processed.

2.4 “Electronic Communication” shall mean the use of EDI Messages or Air Canada’s web-portal to establish a Shipment Record.

2.5 “IATA Message Standard” shall mean the message standard specified, published and updated by the International Air Transport Association (IATA) from time to time.

2.6 “Cargo Contract” shall mean a contract between the Parties, entered into by EDI under this Agreement, for the transportation of, and settlement with respect to a specific cargo shipment wholly between two points in Canada and shall not comprise any international carriage.

2.7 “Parties” shall mean the parties identified on Page 1. Party shall mean either of them.

2.8 “IATA” shall mean the International Air Transport Association.

2.9 “Cargo Receipt” or “Receipt for the Cargo” shall mean a document (in paper or electronic form) which is provided to the Shipper, by the Carrier in paper form unless otherwise agreed between the Parties, creating a Shipment Record as a substitute for the issuance of an air waybill and which permits identification of the shipment that has been accepted and deemed “ready for carriage”.

The technical aspects of the Cargo Receipt shall be as described in Annex ‘A’ and in the form set forth in Annex ‘C’.[1]

2.10 “Shipment Record” shall mean any record of the Cargo Contract preserved by Carrier. The technical aspects of the Shipment Record shall be as specified in Annex ‘A’.

2.11 “Warehouse Receipt” shall mean a document (in paper or electronic form) provided to the Freight Forwarder by the Carrier acknowledging the receipt of the cargo shipment as “freight on hand” for carriage by air. At a minimum, it shall specify (a) the Shipper; (b) the weight and number of pieces of the cargo shipment; (c) the date, time and place received by the Carrier; (d) reference the shipment identification number covering the specific cargo shipment. To the extent it is readily available, an indication of the places of departure, destination and, if applicable, agreed stopping places, should also be specified.

2.12 “Shipper’s Delivery Note” shall mean a document (in paper or electronic form) provided to the Carrier by the Freight Forwarder acknowledging the delivery of the cargo shipment as “freight on hand” for carriage by air. At a minimum, it shall specify (a) the Shipper; (b) the weight and number of pieces of the cargo shipment; (c) the date, time and place received by the Carrier; (d) reference the shipment identification number covering the specific cargo shipment. To the extent it is readily available, an indication of the places of departure, destination and, if applicable, agreed stopping places, should also be specified.

It is understood that there will be a transition period where some Parties may depend on paper for handover purposes[2]. Parties may use the paper form of their choosing for the Warehouse Receipt (or Shipper’s Delivery Note if used as a Warehouse Receipt). However it is envisioned that Parties shall endeavor to establish electronic means for the Cargo Receipt and for the Warehouse Receipt.

2.13 “Shipper” (which is equivalent to the term “Consignor”) shall mean the person whose name appears on the Air Waybill or Shipment Record, as the party contracting with Carrier for the Carriage of Cargo.

Article 3 — Object and Scope

3.1 It is the expectation of the Freight Forwarder and the Carrier that they shall be doing business together in the future. The objective of the Agreement is to permit the Parties to conclude legally binding Cargo Contracts for domestic carriage by electronic means. However, nothing in the Agreement shall create any obligation for either Party to transact with the other, nor any obligation of exclusivity to deal only with the other, nor shall Carrier be obligated to contract pursuant to this Agreement for contracts to be concluded in respect of international shipments.

3.2 In the absence of an express written agreement to the contrary, the provisions of the Agreement shall only apply to future Cargo Contracts, and not to any other commercial relations between the Parties. All shipments covered as a Cargo Contract under this Agreement shall be clearly identified as an EDI Message shipment by the Freight Forwarder through the corresponding EDI message.

3.3 This Agreement shall become effective between Freight Forwarder and Air Canada on the later of the date it is signed by Air Canada or Freight Forwarder. Notwithstanding the foregoing, Freight Forwarder shall only commence tendering cargo shipments under this Domestic e-AWB Agreement to Air Canada on the date after Air Canada sends a notice (Activation Notice) to Freight Forwarder upon Air Canada confirming that:

(a) Freight Forwarder has satisfied Air Canada that Freight Forwarder is capable of transmitting and receiving EDI Messages to Air Canada in accordance with the IATA Message Standard

or

(b) Air Canada will accept another form of Electronic Communication (e.g. web-portal, e-mail, etc.) to establish a Shipment Record and enter into Cargo Contracts;

and

Freight Forwarder and Air Canada have agreed on a satisfactory procedure for confirming the authenticity and integrity of Electronic Communication directed to Air Canada.

3.4 The obligations set forth in Section 3.3 are continuing obligations that remain in effect throughout the term of this Agreement.

3.5 For shipments to be tendered as agent of a third party shipper (a “Third Party”), the Freight Forwarder warrants and represents that, prior to entering into such Cargo Contracts, it is authorized by the Third Party to act as its agent for purposes of initiating, processing and concluding Cargo Contracts. Furthermore, Freight Forwarder shall receive Cargo Receipts and consents to the use of electronic means in lieu of a paper air waybill on behalf of such Third Party. Freight Forwarder shall ensure that proper identification is included within such Electronic Communication, or by other means as agreed by the Parties, so that Air Canada can recognize that the Freight Forwarder is acting as agent of the Third Party for purposes of concluding a Cargo Contract between the Third Party and Air Canada.

3.6 The Conditions of Contract detailed in Annex ‘B’ shall apply to all Cargo Contracts under this Agreement, except as otherwise agreed in writing.

Article 4 — Validity and Formation of Contract

4.1 The Parties acknowledge and agree that EDI is a proper means for concluding Cargo Contracts and agree not to contest the validity or terms of Cargo Contracts on the basis that they were concluded by EDI, that the original records are in electronic form, or that no signature(s) evidence such Cargo Contracts.

4.1.1 Without prejudice to the provisions of clause 3.2, this clause 4.1 and the overriding objective of the Agreement a Cargo Receipt will be made available.

4.2 Each Party shall ensure that the content of an EDI Message sent or received complies with the law of Canada, and shall take reasonable measures to inform the other Party of any inconsistency without delay.

4.3 A Cargo Contract shall be concluded once the Carrier has accepted the cargo and can provide a Cargo Receipt (or a Warehouse Receipt in the event that a Cargo Receipt cannot be provided at the time of delivery of the cargo shipment as per Footnote 1). Transportation of the cargo shipment, however, shall continue to be subject to (i) the Carrier confirming to the Freight Forwarder that the shipment is “ready for carriage” and (ii) Freight Forwarder complying with all other applicable rules and regulations.

In the event that the EDI Message from the Carrier confirming that the shipment is “ready for carriage” deviates in weight, volume and/or total number of pieces from the EDI Message sent by the Freight Forwarder initiating the Shipment Record, the cargo shipment shall be treated according to the exception management procedures agreed between the Parties. The particulars shall be incorporated into section 3 of the Annex ‘A’.

4.4 In the event that Freight Forwarder wishes to enter into a Cargo Contract on behalf of a third party (the “Third Party”), the Freight Forwarder warrants and represents that, prior to entering into such Cargo Contracts, it has obtained the authorization from the Third Party to act as its agent for purposes of concluding Cargo Contracts, including but not limited to identifying the Third Party as the “Shipper” on the EDI Message initiating the Cargo Contract. Freight Forwarder shall ensure that such EDI Messages are properly identified such that Carrier can recognize that the Freight Forwarder is sending and receiving EDI Messages on behalf of the Third Party for purposes of concluding a Cargo Contract between the Third Party and Carrier.

4.5 THE TRANSMITTAL OF EDI MESSAGES BY FREIGHT FORWARDER AS SET FORTH IN SECTION 4.4 FOR PURPOSES OF CONCLUDING A CARGO CONTRACT BETWEEN A THIRD PARTY AND THE CARRIER FOR CARRIAGE BY AIR (“THIRD PARTY SHIPMENTS”) SHALL AUTHORIZE CARRIER TO ISSUE A CARGO RECEIPT IN THE NAME OF THE THIRD PARTY, A COPY OF WHICH SHALL BE DELIVERED TO THE FREIGHT FORWARDER AS THIRD PARTY'S AGENT. BY TRANSMITTING SUCH EDI MESSAGES FREIGHT FORWARDER CERTIFIES THAT FREIGHT FORWARDER HAS OBTAINED AUTHORIZATION FROM THE THIRD PARTY TO PERMIT SUCH ISSUANCE.

4.6 In the event the Freight Forwarder uses third parties to deliver to, or pick-up from, carrier any Shipment covered by this Agreement, Freight Forwarder shall ensure that said third party carries proper identification and authorization.

4.7 The Freight Forwarder shall indemnify the Carrier against all damage suffered by it, or by any other person to whom Carrier is liable, by reason of the Freight Forwarder's breach of the warranties and representations set out in above Articles 4.4 and 4.6 and for any irregularity, incorrectness or incompleteness of the particulars and statements set forth in the EDI Messages furnished by the Freight Forwarder or on the Third Party’s behalf. The representations and warranties set forth in Section 4.4 and 4.6 and this indemnity obligation shall survive termination of this Agreement.

Article 5 — Admissibility in Evidence of EDI Messages

The Parties agree that in the event of any dispute, the records of EDI Messages, maintained in accordance with the Agreement, shall be admissible as evidence before the Courts, any arbitrator(s), other tribunals, or any other means of dispute resolution. However such evidence may be challenged by any other means of evidence (e.g., any documents, witnesses, etc.).