CEA Urges U.S. DOT Not to Change Resolution 502 Jun 5, 2003

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The Consumer Electronics Association (CEA) yesterday urged the U.S. Department of Transportation not to grant an exemption from U.S. antitrust laws for a proposed change in the international standard used to determine international shipping rates (Resolution 502), according to a press release. CEA said that the International Air Transportation Association (IATA) has proposed changes to Resolution 502 that would increase the rate to be charged on low-density, high-volume shipments.

According to CEA, the proposed changes would raise costs for companies and consumers. It said that a 10-percent increase in airfreight shipping rates would cost the average consumer electronics company U.S. $1.2 million annually. CEA reported that the proposed changes to Resolution 502 could force some manufacturers to package their products with less protection in order to comply with a reduced conversion standard at current cost levels. The reduced packaging could reportedly result in damaged product.

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