'They can pay by cheque
or electronic transfer'
THE MAJOR concern of freight agents at the intention to debit them directly once they joined the Cargo Accounting Settlement System (CASS) has been sorted out, and the system is due to become operational in South Africa by the end of June, says Karen Mitchell, CASS manager Southern Africa.
We have accepted that they can now submit cheques or utilise the electronic transfer method of payment instead, she says. But our bankers have pointed out that in these instances the normal delay period must be allowed for clearance of the payments.
Freight agents may receive their statements either electronically or on paper, but, says Mitchell, efforts are being made to have agents accept them electronically as this saves time and allows them longer to reconcile.
We have received a fair deal of resistance in our planning from the agents, but we are addressing every issue and we are getting there, she says.
The system was originally planned for implementation in February, but has been delayed because the required software had not reached the local office from IATA headquarters in time.
Once in operation, agents will receive two statements per month, on the 1st and 16th of each month, each containing a separate invoice for each CASS airline in air waybill sequence. On remittance, money received from agents will sit in a hinge account at the bank, and be transferred directly to the different airline accounts on clearance.
Mitchell has pointed out, however, that in terms of the agreement agents are contractually obliged to pay the amount due as per the final statement. The clearing bank will advise of any short or non-payments. CASS will then advise the freight agent and issue a 'double irregularity' advice, requesting immediate settlement.
No further action is taken if the agent rectifies the remittance within 24 hours, but thereafter strong action will be taken. Apart from the commencement of interest being charged, IATA Geneva is advised of the default status, and airlines world-wide are advised of the situation. A telex message is sent from the local IATA office to all local airlines advising them of the agency status.
The processing office will only reinstate the agent when full payment is received, and when advised by the CASS manager. If, however, no payment is received after 30 days, the guarantee which agents are initially required to lodge, will be revoked.
Freight agents have also been advised they will be given an 'irregularity advice' form in case of errors in their statements. They are required to complete one per air waybill and fax or e-mail it to IATA and the airline concerned. The airline then completes a debit-credit memo(DCM) and sends it to IATA. The CASS staff will match the agent's advice with the DCM and correct the error.
Airlines have stated they are unable to run separate accounting systems for non-IATA agents, and are currently endeavouring to get all in this category to become members. Non-IATA agents are to contact the CASS office if they choose to be billed through the CASS system. In turn, they will be issued with a pseudo IATA number, which will serve as their account number with CASS, and which will also need to be reflected on their air waybills.
By Leonard Neill
