Data Application for Tax Rules - Record X1

DATA APPLICATION TAX RULES – RECORD X1

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DATA APPLICATION FOR TAX RULES - RECORD X1

DISCLAIMER

In publication of documents such as, but not limited to, file formats, data application, examples of application, meeting summaries, meeting agendas, and other working documents, for itinerary and service taxes, ATPCO in no way intends by example or data application to provide interpretation for any tax legislation. Any examples and data application published are solely for the use of subscribers to understand the technical processing steps applicable to the data provided by ATPCO. It is the sole responsibility of the subscriber to and user of this information to verify that the correct interpretation has been applied

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CONTENTS

1.0 OVERVIEW ...... 1 1.1 DATA REQUIREMENTS ...... 4 1.2 BASIC PROCESSING OVERVIEW ...... 6 2.0 DEFINITIONS AND ASSUMPTIONS ...... 7 2.1 DEFINITIONS ...... 7 2.2 ASSUMPTIONS ...... 12 2.2.1 Concurrence ...... 12 2.2.2 Relationship between “Tax Included” Tag and Tax Records ...... 13 2.2.3 Data Matching ...... 15 2.2.4 Public vs. Private Data...... 16 2.2.5 Processing Match Fields with Unknown Inputs ...... 17 2.2.6 No One Tax Applies More Than Once on the Same Sector ...... 20 3.0 DETAILED FIELD PROCESSING ...... 22 4.0 PROCESSING ...... 31 4.1 APPLICATION OF DATA FOR RECORD X1 ...... 48 4.1.1 Record Type (bytes 1-2)...... 48 4.1.2 Nation (bytes 3-4) ...... 48 4.1.3 Tax Code (bytes 5-6) ...... 49 4.1.4 Tax Type (bytes 7-9) ...... 50 4.1.5 Tax Remittance Identifier (byte 10) ...... 51 4.1.6 Tax Point Tag (byte 11) ...... 51 4.1.7 Percent/Flat Tag (byte 12) ...... 53 4.1.8 Sequence Number (bytes 17-23) ...... 54 4.1.9 Taxable Unit Tags (bytes 24-33) ...... 55 4.1.10 Calculation Order (byte 35) ...... 58 4.1.11 Sale Dates (bytes 36-47) ...... 59 4.1.12 Travel Date Application Tag (byte 48) ...... 61 4.1.13 Travel Dates – First/Last (bytes 49-60)...... 62 4.1.14 Tax Carrier (bytes 61-63) ...... 65 4.1.15 Carrier Application Table No. 190 (bytes 64-71) ...... 66 4.1.16 Return to Origin (byte 72) ...... 67 4.1.17 Passenger Type Code Table No. 169 (bytes 73-80)...... 69

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4.1.18 Geography Fields (bytes 81-200) ...... 76 4.1.18.1 Ticketed Point Tag (byte 81) ...... 78 4.1.18.2 Point of Sale (bytes 82-90) ...... 80 4.1.18.3 Security Table No. 183 (bytes 91-98) ...... 82 4.1.18.4 Point of Ticketing – Geographic Specification (bytes 100-108) ...... 83 4.1.18.5 Point of Delivery – Geographic Specification (bytes 109-117) ...... 84 4.1.18.6 Journey Geographic Specification (bytes 119-155) ...... 85 4.1.18.7 Tax Point Geographic Specification (bytes 156-218) ...... 93 4.1.18.8 Stopover Specifications (bytes 208-218) ...... 134 4.1.19 Service and Baggage Table Application Tag (byte 219) ...... 148 4.1.20 Service and Baggage Table No. 168 (bytes 220-227) ...... 157 4.1.21 Carrier/Flight Application Table No. 186 (bytes 228-243) – Tables 1 & 2 ...... 164 4.1.22 Sector Detail Application Tag (byte 244) ...... 167 4.1.23 Sector Detail Table No. 167 (bytes 245-252) ...... 169 4.1.24 Ticket Value Application (byte 263) ...... 180 4.1.25 Ticket Value Minimum (bytes 264-274) ...... 181 4.1.26 Ticket Value Maximum (bytes 275-285) ...... 182 4.1.27 Ticket Value Currency/Decimal (bytes 286– 289) ...... 183 4.1.28 Currency of Sale (bytes 290-292) ...... 184 4.1.29 Paid by 3rd Party Tag (byte 293) ...... 185 4.1.30 RATD Date (bytes 294-297) ...... 186 4.1.31 Historic Sale Effective Dates (bytes 307-318) ...... 187 4.1.32 Historic Travel Effective and Discontinue Date (bytes 319-330) ...... 188 4.1.33 Tax (bytes 331-400) ...... 189 4.1.33.1 Specified Tax (bytes 331-345) ...... 190 4.1.33.2 Tax Percent (bytes 346-352) ...... 191 4.1.33.3 Minimum Tax (bytes 353-363) ...... 193 4.1.33.4 Maximum Tax (bytes 364-374) ...... 194 4.1.33.5 Min Max Tax Currency (bytes 375-378) ...... 195 4.1.33.6 VAT Inclusive Indicator (byte 379) ...... 196 4.1.33.7 Tax Applies to Tag (byte 380) ...... 197 4.1.33.8 Tax Application Limit (byte 381) ...... 204 4.1.33.9 Net Remit Application Tag (byte 382) ...... 210 4.1.33.10 Tax Rounding Unit (Byte 384) ...... 211 4.1.33.11 Tax Rounding Direction (Byte 385) ...... 212 4.1.33.12 Alternate Tax Rule Reference Tag (byte 386) ...... 213 4.1.33.13 Text Table No. 164 (bytes 387-394) ...... 215 4.1.33.14 Tax Processing Application Tag (bytes 395-396) ...... 216 4.1.33.15 Tax Matching Application Tag (bytes 397-398) ...... 217 4.1.33.16 Output Type Indicator (byte 399) ...... 218 4.1.33.17 Exempt Tag (byte 400) ...... 219

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5.0 TRAVEL SEGMENT INDICATORS ...... 220 6.0 CODING CONVENTIONS ...... 221 APPENDIX A. TAX PROCESSING APPLICATION TAG DEFINITIONS ...... 222 APPENDIX B. TAX MATCHING APPLICATION TAG DEFINITIONS ...... 225

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1.0 OVERVIEW

Record X1 provides information for industry as well as airline instructed taxes and charges (the distinction between taxes and charges is only made for itinerary taxes and there is no impact on automated processing – and service fee taxes are not categorized as such) for airline transportation and airline service fees. Industry taxes are controlled primarily by a generic industry instruction. Industry tax data can be supplied by International Airline Transport Association (IATA), Airlines for America (A4A) and Air Transport Association of Canada (ATAC), as well as other industry bodies which are qualified to supply tax data. These include, but are not limited to, the Arab Air Carriers Organization (AACO), the African Airlines Association (AFRAA), the Asociacion Latinoamericana y del Caribe de Transporte Aéreo (ALTA), the European Regional Airlines Association (ERA), the Association of European Airlines (AEA), the China Air Transport Association (CATA), and the Association of Asia Pacific Airlines (AAPA). Carrier exceptions can be instructed and/or coded by the tax carrier (the carrier liable to pay the tax). In addition, the tax carrier can choose to opt out of the generic instruction by coding a tax carrier specific instruction for the same tax. All exceptions to the generic tax rule will be coded within the Record X1. The ATPCO Tax Record X1 will contain all of the information required to support automated tax pricing for all airlines.

This document details the data application for Tax Record X1 only. The 100 Series Tables used in this record are Tax Record 3s. When the data application for the 100 Series Table does not exist, use the data application for the corresponding 900 Series Tables. Exception: The data application for Zone Table 178 is the same as data application for Zone Table 978, except any three letter alpha code in the Table 178 will always be processed as an airport code and not as a city code).

For purposes of matching this record, no distinction is made between a Tax, a Fee, or a Charge, and no reference is made to ‘TFC’ (tax, fee, charge). All reference in this document concerns matching to a ‘Tax Code’ (defined in Section 2.1).

All reference to fees or service fees in this document are in the context of the ATPCO Service Fees product, in other words Records S1-S2 (Carrier-Imposed (YQ/YR) Fees), S4 (Ticketing Fees), S5-S8 (Optional Services and Baggage).

Outbound subscription files for the Tax Product will be generated and distributed on the same schedule as International Fare Subscriptions (currently hourly).

Record X1 can be used to determine the taxes to be assessed on an itinerary or service being priced and can also be used in post-sale validation of applicable taxes. For all processing (pricing and post-sale validation) except interline billing and settlement, Output Type

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Indicator (byte 399; see see page 218) must = T (TTBS only), B (Both RATD and TTBS), or N (neither TTBS or RATD). For post- sale validation involving interline billing and settlement, only sequences where Output Type Indicator (byte 399) = B (Both RATD and TTBS) or R (RATD only) may be used in processing.

Sequences in which Output Type Indicator (byte 399) = B (Both RATD and TTBS) or R (RATD Only) must also have an associated RATD date (bytes 294-297; see page 186) which determines which sequence to use based on the month of billing.

The data applications for Table 167 (Sector Detail), Table 168 (Service and Baggage Table), and Table 169 (Passenger Type Code), are documented separately from the Record X1 Data Application.

The Tax Rules product X1 will not incorporate any tax rules and values associated to US Passenger Facilities Charges (XF). The product will contain rules for the US Segment Fee (ZP), but will not contain any details on absorption rules for the US Segment Fee. Processing for US PFC (XF) data in its entirety and for US Segment Fee (ZP) taxation absorption data is intended to be contained in the existing ATPCO products supporting these functions, and is completely out of scope for the Record X1 and X2.

There are seven records in the Passenger Facilities Charges System (PFC/ZP) subscriptions:

Passenger Facilities Charge Essential Air Service Co-terminal Equipment type exemption Collection Method Carrier Absorption/Exception to Carrier Absorption US Tax Segment Absorption

ATPCO intends to continue to distribute all records in the PFC product in the current format until such time as all subscribers have migrated to the new ATPCO Automated Tax Subscriptions product. The scheduling for subscriptions of the PFC and ZP data product will be aligned to the subscriptions schedule of the tax product (i.e. the same as international subscriptions) for customers of the ATPCO Tax Subscription product.

Co-terminal points are currently captured within the ATPCO PFC product, which only applies to US co-terminal points. The existing co-terminal record in the PFC product will be used to determine One Way and Round Trip requirements for XF tax in the U.S.

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The following fields are available within the co-terminal record:

Airport/City Effective and Discontinue Dates Co-terminal Points (as defined in the ATPCO PFC Product co-terminal record) Segment Date and Time of Update

When Tax Point Tag ≠ Change Fee (byte 33 ≠ X), record X1 data applies to originally priced itineraries or services only. Data application for involuntary or voluntary reroutes, reissues, exchanges, and refunds of taxes is yet to be defined. When Tax Point Tag = Change Fee (byte 33 = X), record X1 data applies only to voluntary itinerary change transactions (reissues/exchanges) to which a change fee applies, and applies only to the determination of tax on that change fee.

The ATPCO Tax Collection and Distribution product will include data for both ticketed taxes (currently contained in the IATA TTBSTT) and for non-ticketed taxes (currently contained in the IATA TTBSNT). It is noted that the information for non-ticketed taxes will only be as good as is sourced to IATA or ATPCO and is not currently complete in the IATA repository. This data should be used for information purposes as it is incomplete, and as such is processed at the subscriber’s own risk.

As there is no IATA-allocated ticketing code for non-ticket taxes, ATPCO will assign the following:

Nation Nation of legislation setting the tax Tax Code Nation of legislation setting the tax Tax Type Manually allocated distinct number for that tax code, from 100 and up (i.e. not 001-099)

Non-ticket taxes are collected at other points than the sale of the passenger itinerary or the service. These taxes can be identified within the Record X2 when the Accountable Document Tax Tag (byte 33) is set to ‘U’. Examples of non-ticket taxes are those collected at customs on departure from a given country or airport, and thus are not pre-purchased by the passenger, and therefore are also not shown on the passenger sales document.

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1.1 Data Requirements

It is a fundamental assumption to tax pricing that all information in the passenger transaction, whether it is in the Electronic Ticket, the Miscellaneous Document, the PNR, agent/user input, or a combination of all of these sources, needs to be known.

The types of taxable unit are as follows:

1 = Carrier-Imposed (YQ/YR) Fees 2 = Ticketing Fee 3 = Optional Services – Flight Related 4 = Optional Services – Ticket Related 5 = Optional Services – Merchandise 6 = Optional Services – Fare Related 7 = Baggage Charges 8 = Tax on Tax 9 = Itinerary (also known as tax applied to the fare) 10 = Change fee

In order to validate Record X1, it may be required to know the following - this list is not exhaustive:

Information Requirements General Information The Tax Point All Nation geography (ISO Country Codes) within the passenger transaction Whether the Tax Point is Sale, Issue, Departure, Arrival, or Delivery Taxable Unit Tag Tax Carrier All codes related to the service being priced e.g. Tax Code, Service Fee Sub Code Date of issuance of the accountable document (ET/EMD/other) The Validating Carrier for the accountable document (ET/EMD/other) The ticket type (Ticket, EMD, PTA, XSB) Point of Sale and Point of Ticketing The ISO Currency of Sale Whether the accountable document was paid by a 3rd Party

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Information Requirements Ticketed Itinerary Information (Passenger Ticket) The input passenger type code Input PTC details such as age and geographic restrictions The ticket value (fare before taxes) and each fare component value If the transaction is a voluntary itinerary change, the assessed change fee value All ticketed/unticketed points in the itinerary All dates of travel in the itinerary Journey and individual sector detail – ticketed and unticketed points, stops, connections The point and dates of journey commencement, turnaround, and destination Fare Basis Ticket Designator, Fare Type, Tariff, Fare Owner Carrier, and Rule for each fare component on the itinerary Public vs. Private Fares (Negotiated) status for each sector and fare component The departure point and subsequent point (may be next unticketed, ticketed, connection or stopover) for the tax point in relation to the itinerary The arrival point and prior point (may be previous unticketed, ticketed, or stop) for the tax point in relation to the itinerary Whether the tax point is a stopover, as determined by time or other coded factors All stopovers and connections in the itinerary/service, whether ticketed or unticketed The domestic/international status of each sector on the itinerary/service Flight details (carrier and marketing carrier flight number, cabin, RBD, equipment code) for all flown sectors on the itinerary/service Miscellaneous Document Information The input Passenger Type Code (PTC) Input PTC details such as age and geographic restrictions The Miscellaneous Document value (fee before taxes) and each fee component value Reason for Issuance Code and Sub Code as applicable Point of Delivery of the service Reason for Issuance Code and Sub Code as applicable All dates of usage in the service itinerary All ticketed/unticketed points in the service itinerary Service itinerary and individual service sector detail – ticketed and unticketed points, stops, connections The point and dates of service commencement, turnaround, and destination The departure point and subsequent point (may be next unticketed, ticketed, connection or stopover) for the tax point in relation to the service The arrival point and prior point (may be previous unticketed, ticketed, or stop) for the tax point in relation to the service

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1.2 Basic Processing Overview

Validation of Record X1 takes place after itinerary pricing is complete (for Tax Points for ‘Tax on Tax’ itinerary taxes) or pricing for the service (for service fee taxes). (Tag 8) must be processed last Record X1 processing will start by determining all Tax Points and the Taxable into the Record X1 Units, and then deriving the Taxable Unit Tag

Processing within the Record X1 should attempt to match for each of these Tax Points.

Taxable Units will be aggregated according to the following rules: For each Tax Point, attempt to match Record X1 for a unique Tax Code and Sale, All Depart and Arrive Tax Type combination. Itinerary Is there a match? Fuel and Insurance Optional Services (related to sectors) Baggage YES NO Sale only Ticketing Fees Optional Services (not related to sectors)

Delivery Optional Services (not related to sectors)

Each individual charge Tax on Tax

No tax applies for the Tax Code and Apply the rule. For the same Tax Tax Type combination. For the same Point, continue processing with a Taxable Unit, continue processing to different Tax Code/Tax Type another Record X1 with a different combination. Tax Code/Tax Type combination.

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2.0 DEFINITIONS AND ASSUMPTIONS

2.1 Definitions Term Definition Note that any terms not found within these definitions will be contained within the ATPCO Glossary of Terms. Also note that terms found both herein and in the ATPCO Glossary of Terms may have different definitions in each document, and the definitions in this document are those to be used when processing Record X1. Accountable Document The document issued for accounting and receipt purposes to the passenger purchasing the transportation or service. Includes Electronic Tickets, Electronic Miscellaneous Documents, and other miscellaneous documents. Base Fare The amount that appears in the “fare” portion of the Fare field on the ticket. This amount excludes amounts in any other fields on the ticket. For tickets issued where the Fare field contains values IT, BT, or BULK, the Base Fare is assumed to be the total amount paid by the passenger (before service fees) minus all ticketed Taxes, Fees, and Charges. Base Fee Each individually priced Fee amount for the type of fee charged before taxes have been applied. These are all ticketed in different ways:

Carrier-Imposed (YQ/YR) Fees: amount identified as YQ or YR in the Tax/Fee/Charge field on the ticket Ticketing Fees: amount identified as OB in the Carrier Fees data element in the electronic ticket Optional Services: Coupon value and Fare Amount on the Miscellaneous Document Baggage Charges: Coupon value and Fare Amount on the Miscellaneous Document Tax on Tax: IATA code in the Tax/Fee/Charge field on the ticket Buffer Zone Airports in Canada and Mexico that are not more than 225 miles from the nearest point in the Continental United States. Change of gauge A change of aircraft that occurs without a change in the flight number. Connection Any intermediate point on an itinerary not defined as a Stopover (see definition of Stopover).

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Term Definition Continuous Journey A term applicable only to Canadian taxation. When a city is visited twice on the itinerary and the second visit is a stopover, a new continuous journey is deemed to begin.

For example, YYZ ORD YVR YYZ is deemed to be one continuous journey.

For example, YYZ ORD YYZ (stop at YYZ) YVR YYZ is deemed to be two continuous journeys – YYZ ORD YYZ and YYZ YVR YYZ.

A round trip continuous journey is deemed to occur when the city at the start of the continuous journey is revisited as a stopover (or the journey destination).

A one way continuous journey is deemed to occur when the city at the start of the continuous journey is not revisited as a stopover (or the journey destination). Domestic A journey, portion of travel, flight, or sector in which all ticketed and unticketed points have the same country code. For the purposes of this definition, country codes RU and XU are considered the same country code. Travel between a nation and its territory not possessing its own IATA Country Code is domestic. Where conflicts in country codes exist between ATPCO directories and IATA directory of nations, the IATA directory of nations will be used. For example, Puerto Rico and the US Virgin Islands, which are Country US in ATPCO directories, are PR and VI in IATA directories.

A domestic fare is a fare whose origin and destination points have the same country code. A domestic point is a point that has the same country code as the point(s) it is being compared to. Fare Basis Code The code that appears in the Fare Basis Ticket Designator field of the ticket. Fee Break Points The start and end points of a fee component. The points in the service itinerary matching to the start and end points of • Carrier-Imposed (YQ/YR) Fees: Record S1 Sector/Portion Geo Spec – Loc 1/Loc 2 or • Flight-related Option Service Fees: Record S7 Geo Spec – Loc 1/Loc 2 or • Baggage Fees Record S7 Geo Spec – Loc 1/Loc 2 Fee Component The portion of a service itinerary between two consecutive Fee Break Points Fee Owner Carrier The airline owning the record for the applied fee upon which a tax is being assessed.

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Term Definition Interline Tax The tax is interlineable if the operating carrier of the sector or service is liable to pay the tax collected by the validating carrier. International A journey, portion of travel, flight, or sector in which all ticketed and unticketed points do not have the same country code. For the purposes of this definition, country codes RU and XU are considered the same country code. Where conflicts in country codes exist between ATPCO directories and IATA directory of nations, the IATA directory of nations will be preferred. For example, Puerto Rico and the US Virgin Islands, which are Country US in ATPCO directories, are PR and VI in IATA directories. Note that: • Travel between US and Canada is international. • Travel between countries in Scandinavia is international • Travel between countries within the European Union is international • Travel between a nation and its territory possessing its own IATA Country Code is international

An international point is a point that does not have the same country code as the point(s) it is being compared to. Journey Destination Ultimate stopping place of the journey as shown on the ticket, also known as the last ticketed point in the journey. Journey Turnaround The furthest stopover or fare break point on the journey measured from journey origin as determined by indicators in the good for passage area. This does not apply to One Way journeys. If there are multiple candidates for journey turnaround (e.g. equidistant points or the same point appearing more than once on the itinerary), the first candidate will be taken as the point of turnaround. For international journeys, the Journey Turnaround must be outside the country of origin. Stopover Specifications (bytes 208-218) are ignored when determining Journey Turnaround. NOTE: Determination of whether a point is a stopover or fare break point for the purposes of determining journey turnaround is based on the designation in the fare calculation. In the case of plus ups which may apply higher intermediate fares, the ticketed fare break points in the fare calculation area (and not the designated plus up points) will be deemed to be the fare break points. Marketing Carrier The carrier code that will appear on the flight coupon of the ticket (different from operating carrier for code share). The Marketing Carrier may be a primary and/or secondary carrier of the fare component.

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Term Definition Nation An ISO Country code which must be a geographic location relating to the passenger transaction for the tax record to apply. Northern Portion of the An area defined by the US Internal Revenue Service as “the area lying west of the 30th meridian Western Hemisphere west of Greenwich, east of the international dateline, and north of the equator, but not including any foreign country which is a country of South America” Operating Carrier The carrier actually providing flight service (e.g. not necessarily shown on the ticket) Sales Tax A tax which is listed by the IATA TTBS as non-interlineable. Sector A portion of a journey covered by a single flight coupon. A sector may include an intermediate “unticketed” point. Service Anything provided or sold by or on behalf of a carrier on which a tax may be levied by means of X1 data. Services are categorized by Taxable Unit. For example, fuel fees and carrier-imposed fees are part of taxable unit Carrier-Imposed Fees. Form of payment fees and requested service fees are part of taxable unit Ticketing Tees. Pet in hold fees and inflight entertainment fees are part of taxable unit Optional Service – Flight Related fees. Argentine gross receipts tax and Canada airport improvement fee are part of taxable unit Tax on Tax. Transportation (fares) are part of taxable unit Itinerary. Service Type Code A code identifying the service for which a tax may be assessed. This code is made up of a generic “tax” (service) code and a more specific sub-code to further define the service. Exception: transporation/itinerary is a service, but has no service type code. Stopover • The journey/service origin point or • the journey/service destination point or • the end points of surface sectors where the points on either side are in different cities or • any intermediate ticketed point on the itinerary at which scheduled departure from the point is more than 24 hours after scheduled arrival at the point, subject to modification or further definition by the Stopover Specifications fields (bytes 208-218). Fare calculation, good for passage indicators (X/O), and presence/absence of stopover charge are not relevant to this definition. Tax Break Points The points that matched to Tax Point Loc 1 (bytes 159-167) and Tax Point Loc 2 (bytes 171- 179) in the X1 sequence being validated.

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Term Definition Tax Carrier The airline setting the level of any taxes due on the tax point. This is further defined in the Data Application for the Tax Record X1. In general, the tax carrier for a sales tax will be the validating carrier of the accountable document. The tax carrier for a use tax will be the marketing, operating, or service delivering carrier. Tax Code The IATA assigned code for the tax to be applied to the unit. Where no IATA code is available, ATPCO will assign the country code of the tax jurisdiction setting the tax rules. Tax Component The portion of a passenger or service itinerary between two consecutive Tax Break Points Tax on Tax A tax which is charged on an official Tax, Fee, or Charge. These are generally percentage taxes which are levied on top of transportation taxes, and as such must be calculated after all other tax calculation on the itinerary/service is completed. Tax Point The point of sale, departure, arrival, or service delivery. Tax Type Each Tax Code will be assigned a Tax Type, a number from 001 to ZZZ, which allows for the same Tax Code to be used for distinct business purposes. As a coding convention, each business application of the tax – for example US Ticket Tax (Code US) – will be assigned one tax type (e.g. 001). The US International Transportation Tax (also Code US) would need to be assigned a unique tax type (e.g. 002) because the business application is different. Tax Point Tag Indicates whether the tax is levied on a sale, a departure (out of a point), an arrival (into a point), or the delivery of a service. Taxable Unit The monetary amount assessed for, or applicable to, a unit of travel, service, or tax that is defined by the Taxable Unit Tag and other match fields in the X1 record.

Taxable Unit Tag Each Taxable Unit is assigned a taxable unit tag, to represent the type of tax point which is being processed in the Record X1. Use Tax A tax which is listed in the IATA TTBS as interlineable. Validate When used in this document to describe how to process the data, the term “validate” means to compare. For example, “validate the data against the sector being processed” means to compare the data against the sector being processed.

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2.2 Assumptions

2.2.1 Concurrence

This product has an assumed concurrence by all airlines (note that this is not limited to ATPCO customer airlines) for all taxes which are applicable to itineraries. Any airline which does not want an applicable itinerary tax to be charged must instruct IATA/ATPCO, and a carrier exception entry must be updated in the Record X1. Standard IATA coding will be generic for itinerary taxes, and so all carrier exceptions will be instructed initially through ATPCO, IATA, A4A, or ATAC. Any carrier exception which is not accepted by IATA as a generic instruction will be coded by ATPCO with a restriction to the carrier providing the instruction. Application can be to the selling carrier, the marketing carrier, or the fee owner carrier.

Generic instructions for itinerary taxes which are approved by IATA will be coded as ‘YY’ data – meaning that the data has been sourced by IATA. Generic instructions which are not approved by IATA Taxation but are approved by a recognized trade organization (e.g. A4A, ATAC, Local IATA office) will be coded as ‘ZZ’ data. No other generic instructions will be accepted. Any carrier exceptions which are not approved by IATA or a recognized trade association will be coded with a specific entry for that carrier code in the Tax Carrier field. Data will be submitted to IATA in conjunction with ATPCO coding to determine whether the Record X1 is to be coded as YY, ZZ or carrier exception data.

Itinerary tax data which is coded as ‘ZZ’ (recognized trade associations) is intended to be temporary and as such should be replaced in time by an IATA approved ‘YY’ generic data sequence.

There is no assumed concurrence for taxes which are applicable to services (i.e. not itinerary tax data). These must be instructed by the carrier owning the service. Any carrier wishing to use the same rules for taxes on their own services will need to instruct ATPCO to code a separate set of rules relating to that carrier. Carrier provided data for taxes on services will all be coded with reference to the specific carrier code in the Tax Carrier field. Data for tax on services will never be coded as ‘YY’ or ‘ZZ’ data because it will never be considered to be generic. If the same rules apply to multiple carriers, multiple sequence sets will be coded and copied from one carrier to another.

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2.2.2 Relationship between “Tax Included” Tag and Tax Records

ATPCO Service Fee records allow for the carrier owning the fee to instruct whether tax is included or excluded from the filed amount. The relative positions of these fields are as follows:

Service Record Description Byte Location Values Carrier-Imposed S1 Tax Included: Specifies whether or not the fee 276 X = Includes Tax (YQ/YR) Fees includes tax Blank = Does not include tax Ticketing Fees S4 232 Optional Services S7 Tax Application: Specifies if the service fee 312 X = Fee amounts are inclusive of amounts in the currency table 170 are inclusive applicable taxes of applicable taxes Blank = Fee amounts do not include applicable taxes

When the service is instructed to ATPCO with data indicating that tax is included in the instructed amount for the service, processing will not attempt to match taxes on that service as a taxable unit – the taxable unit already includes the tax amount. Downline processing will require processing of the taxable unit to back out the tax value from the service fee amount for revenue accounting and remittance purposes.

When the service is instructed to ATPCO with data indicating that tax in not included in the instructed amount for the service, processing must attempt to match to a Record X1 for the service and the Tax Carrier who owns the instructed record for the service.

For example, YQ of 50.00 is filed by carrier XX applicable to LON - NYC (sold in LON), excluding tax Processing must attempt to match taxes with the following criteria to this taxable unit:

Nation Codes of US and/or GB (all countries involved in the journey/transaction) Tax Carrier = XX or the Validating Carrier of the ticket (will be contained in the same sequence set if a validating carrier exception)

If processing does not match to any record, or processing matches to an exemption (Exemption Tag = ‘X’), no tax is applicable to the YQ charge of 50.00 If processing matches to a Record X1 with an applicable rate or percentage, processing will apply the tax instruction to the YQ charge of 50.00

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If the service is to be treated – for tax processing purposes – exactly as if it were an itinerary (i.e. carrier instructs that exactly the same rules apply to itinerary and service), then the record X1 will contain Alternate Rule Reference Tag (byte 386) = 2, which instructs processing to treat the service as an itinerary taxable unit for matching purposes.

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2.2.3 Data Matching

There are three general outcomes when processing the Record X1:

(1) If processing cannot resolve to an applicable Record X1 for the tax carrier for the tax point being processed, then there is no tax applicable for that tax point for the given Tax Code and Type (2) If processing matches to all of the criteria in a Record X1 and the instruction is to exempt the tax, no tax applies (3) If processing matches to all of the criteria in a Record X1 and the instruction is to apply the tax, tax must be calculated according to the instruction in the record (except in the scenarios described in Section 2.2.6).

Once processing resolves to an applicable Record X1, the tax specified in the record applies to the transaction according to the tax data coded in bytes 331-400.

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2.2.4 Public vs. Private Data

All tax data is assumed to be public and the same data will be sent to any subscriber to the ATPCO Tax Subscription product. There is no restriction on ATPCO data distribution, or on the locations in which the subscriber allows the data to be displayed and priced. In this regard, all carrier-instructed exceptions will be coded as public data.

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2.2.5 Processing Match Fields with Unknown Inputs

There will be occasions when systems will process itineraries against the Record X1 data where the required match data is unknown. In most cases, a match cannot be made to any restrictive data within the Record X1. Unknown data can only be matched to blank entries in that particular field in the Record X1 resulting in the generic instruction being applied.

For example:

The Security Table (bytes 91-98) in the Record X1 requires a specific pseudo-city code for a match to occur.

The pseudo-city code is unknown to the pricing system.

The Record X1 containing the specific pseudo-city code cannot be matched, and the next (more generic) sequence will be attempted for match purposes (assuming a blank pseudo-city code requirement i.e. no restrictions). This is to avoid matching under any circumstances to a specific exemption when it may not be applicable, leaving the carrier with an unfunded liability.

There are some exceptions to the above rule:

The following is a list of match data elements and how processing should behave in the event of unknown data:

Field Name Match / Action Processing in Event Data is Unknown Sale Dates Match Assume that sale date is the date of the pricing request Travel Date Application Tag Match Optimistic not unrealistic processing as described in Section 4 Travel Dates Match Carrier Application Table No. 190 Match No match the sequence or match to blank Return to Origin Match Passenger Type Table No 169 Match When the residency and/or nationality associated to the itinerary or service is not known, nationality and residency is assumed to be the same as the country of sale. If the input PTC is unknown and requires a match, the PTC of the fare is used. For all other fields in the table, if the data is unknown, assume a no match. Ticketed Point Tag Match No match the sequence or match to blank only.

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Field Name Match / Action Processing in Event Data is Unknown Point of Sale – Geographic Match Specification Security Table No. 183 Match Point of Ticketing – Geographic Match Specification Point of Delivery – Geographic Match Specification Journey Geo Spec – Indicator Match Journey Geo Spec – Loc 1/Loc 2 Match Journey Geo Spec – Journey Includes Match Journey Geo Spec – Travel Wholly Match Within Tax Point Geo Spec – Loc 1 Adjacent Match International/Domestic Tax Point Geo Spec – Loc 1 Transfer Match Type Tax Point Geo Spec – Loc 1 Stopover Match Tag Tax Point Geo Spec – Loc 1 Match Tax Point Geo Spec – Loc 2 Match International/Domestic Tax Point Geo Spec – Loc 2 Match Comparison Tax Point Geo Spec - Loc 2 Stopover Match Tag Tax Point Geo Spec – Loc 2 Match Tax Point Geo Spec – Loc 3 Match Tax Point Geo Spec – Stopover Time Match Tag Tax Point Geo Spec – Stopover Time Match Unit Tax Point Geo Spec – Connection Match Tags Service and Baggage Application Tag Match

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Field Name Match / Action Processing in Event Data is Unknown Service and Baggage Table No.168 Match Carrier/Flight Table No. 186 Match Carrier/Flight Table No. 186 Match Sector Detail Application Tag Match Sector Detail Table No. 167 Match Ticket Value Application Match Ticket Value Minimum Match Ticket Value Maximum Match Currency of Sale Match Paid by 3rd Party Tag Match

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2.2.6 No One Tax Applies More Than Once on the Same Sector

A departure or arrival tax with the same Nation, Tax Code and Tax Type will not be assessed more than once on the same sector. When multiple matches are made the following logic will apply:

If And Then Within one transaction all the following Ignore all such matches to the X1 conditions are met: Tax Point Tag (byte 11) = D sequences except the one whose Tax Point • a match is made to at least two X1 Loc 1 appears before all the others in the sequences that have the same Nation, Tax itinerary. code, and Tax type

Ignore all such matches to the X1 • the point matching to Tax Point Loc 2 is the sequences except the one whose Tax Point same in all cases Tax Point Tag (byte 11) = A Loc 1 appears after all the others in the

itinerary. • all such matches result in the assessment of

a non-zero tax amount

Example 1

Ticketed itinerary: PDX-FAI-ANC-SEA All US/US/003 sequences contain Tax Point (byte 11) = D. US/US/003 sequences 0217500 and 0380000 contain non-zero tax amounts or percentages.

In the absence of this system assumption: • Assume a match would be made to US/US/003 sequence 0217500, with the point matching to Tax Point Loc 1 = FAI and Tax Point Loc 2 = SEA • Assume a match would be made to US/US/003 sequence 0380000, with the point matching to Tax Point Loc 1 = ANC and Tax Point Loc 2 = SEA

Although a match would otherwise be made to the two US/US/003 sequences in the same transaction with the points matching to Tax Point Loc 2 = SEA in both X1 sequences, no match is made to US/US/003 sequence 038000 because, in that sequence, that sequence’s point matching to Tax Point 1 (ANC) appears in the itinerary later than the point matching to Tax Point 1 in US/US/003 sequence 0217500 (FAI).

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Example 2

Ticketed itinerary: VVV-YYY-ZZZ All XX/XX/001 sequences contain Tax Point (byte 11) = A. XX/XX/001 sequences 111111 and 222222 contain nonzero tax amounts or percentages.

In the absence of this system assumption: • Assume a match would be made to XX/XX/001 sequence 222222, with the point matching to Tax Point Loc 1 = ZZZ and Tax Point Loc 2 = VVV • Assume a match would be made to XX/XX/001 sequence 111111, with the point matching to Tax Point Loc 1 = YYY and Tax Point Loc 2 = VVV

Although a match would otherwise be made to the two XX/XX/001 sequences in the same transaction with the points matching to Tax Point Loc 2 = VVV in both X1 sequences, no match is made to XX/XX/001 sequence 111111 because, in that sequence that sequence’s point matching to Tax Point 1 (YYY) appears in the itinerary earlier than the point matching to Tax Point 1 in XX/XX/001 sequence 222222 (ZZZ).

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3.0 DETAILED FIELD PROCESSING

Byte Location Match / Action Definition / Processing Bytes 1-2 Key Match Indicates the Record Number for which the data is formatted. Record Type Bytes 3-4 Key Match Specifies an ISO Country Code which must be related to the passenger Nation itinerary, either as a point of sale, point of issuance, point of departure, point of arrival, or point of delivery. Bytes 5-6 Key Match/ Specifies the Tax Code applicable to this record. Tax Code Action Bytes 7-9 Key Match/ A reference number between 001 and ZZZ used to distinguish different Tax Type Action taxes which use the same Tax Code but have more than one data application. Byte 10 Key Match Indicates whether the tax is a Sales Tax (and therefore generally remitted by Tax Remittance ID the validating carrier) or a Use Tax (and therefore generally remitted by the delivering or transporting carrier). Byte 11 Key Match/ Action Specifies whether the tax applies to sale (i.e. once per itinerary), departure, Tax Point Tag arrival, or delivery. Byte 12 Key Match/ Action Defines whether the tax being applied is a percentage or a flat amount. Percent/Flat Tag Bytes 13-16 FILLER Bytes 17-23 Key Match/ Specifies the order in which the records must be processed within each Sequence Number Action unique data key. Byte 24-33 Match Specifies the service to which the record applies (e.g. Carrier-Imposed Taxable Unit Tag (YQ/YR) Fees, Ticketing Fee etc.). Bytes 34 FILLER Byte 35 Action Specifies the order in which the tax is to be calculated relative to other taxes Calculation Order applicable to the transaction. Bytes 36-47 Match Specify the first and last sale dates for which the data in this record applies. Sale Dates These are the maintenance dates for this record.

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Byte Location Match / Action Definition / Processing Byte 48 Match Indicates whether the first and last travel dates apply to journey Travel Date Application commencement or to departure from (departure tax) or arrival into (arrival Tag tax) the tax point. Bytes 49-60 Match Specify the first and last travel dates for the record. The application of travel Travel Dates dates for matching varies based on the Travel Date Application Tag. Bytes 61-63 Action The carrier instructing the tax record. Industry data will be coded with the Tax Carrier value YY for IATA, ZZ for Trade Organization approved, or the specific 2- byte carrier code for carrier specific instructions. Bytes 64-71 Match A number referring to a table that specifies to which validating carriers the Carrier Application Table Record X1 applies. The data in this record only applies if one of these No. 190 carriers is the validating carrier. Byte 72 Match Specifies whether the data in this record only applies when travel on the Return to Origin journey does or does not return to the journey origin. Bytes 73-80 Match A number referring to a table that specifies to which passenger types the Passenger Type Table No Record X1 applies. The data in this record only applies of one of these 169 passenger types (and associated details) matches to the applicable itinerary. Byte 81 Match Specifies whether the geographic data in this sequence applies to ticketed Ticketed Point Tag points only, or to all ticketed and unticketed points Bytes 82-90 Match Specifies that the data in this record only applies when the ticket is sold in a Point of Sale – specific geographic location. Geographic Specification Bytes 91-98 Match A number referring to a table containing a list of sales locations. The data Security Table No. 183 in this record only applies if one of these sales locations is used to sell the accountable document. Byte 99 FILLER Bytes 100-108 Match Specifies that the data in this record only applies when the ticket is issued in Point of Ticketing – a specific geographic location. Geographic Specification

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Byte Location Match / Action Definition / Processing Bytes 109-117 Match Specifies that the data in this record only applies when the service is Point of Delivery – delivered in a specific geographic location. Geographic Specification Note that this field only applies to Optional Services – Merchandise, and Optional Services – Ticket Related Byte 118 FILLER Byte 119 Match Specifies whether the data in the Journey Geo Spec - Loc 2 field (bytes 129- Journey Geo Spec – 137) identifies the journey turnaround point, or journey destination. Indicator Bytes 120-137 Match Indicates that the data in this record only applies when the journey origin Journey Geo Spec – and/or the journey turnaround points and/or journey destination are in the Loc 1/Loc 2 specified locale(s). Bytes 138-146 Match Indicates that the data in this record only applies when the journey contains Journey Geo Spec – travel including the specified locale(s). Journey Includes Bytes 147-155 Match Indicates that the data in this record only applies when the journey is wholly Journey Geo Spec – within the specified locale(s). Travel Wholly Within Byte 156 Match Defines whether travel from the previous point into the point matching to Tax Point Geo Spec – Loc 1 (bytes 159-167) (for a departure tax), or travel from the point Loc 1 Adjacent matching to Loc 1 (bytes 159-167) to the next point (for an arrival tax) must International/ Domestic be international or domestic. The value defines whether next/previous point means “any point” or “next/previous stopover” i.e.

Next/Previous point domestic Next/Previous point international Next/Previous Stopover domestic Next/Previous Stopover international

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Byte Location Match / Action Definition / Processing Byte 157 Match Defines whether the transfer at the point matching to Loc 1 (bytes 159-167) Tax Point Geo Spec – is interline (change of marketing carrier), online (no change of marketing Loc 1 Transfer Type carrier but can change flight number), online with change of gauge (no change of marketing carrier or flight number but change of equipment type), or online with no change of gauge (no change of marketing carrier, flight number, or equipment type) Byte 158 Match Indicates whether the point matching to Loc 1 (byte 159-167) must be a Tax Point Geo Spec – stopover, a connection, a fare/fee/tax break point, not a fare/fee/tax break Loc 1 Stopover Tag point, or has no restriction. Bytes 159-167 Match Indicates that the Tax Point must match either the specified arrival point or Tax Point Geo Spec – a departure point, depending on the value in the in the Tax Point Tag field Loc 1 (byte 11). The point matching to Tax Point Geo Spec Loc 1 is always the point upon which tax is being assessed for departure and arrival taxes, and therefore the point being processed into the Record X1 for tax application or exemption. Byte 168 Match Specifies whether the point matching to Loc 2 must be in the same Tax Point Geo Spec – (domestic) or different (international) country as the point matching to Loc Loc 2 1. International/Domestic Byte 169 Match Specifies whether the point matching to Loc 2 must be the same as the Tax Point Geo Spec – preceding city to the point matching to Loc 1 (departure tax) or the same as Loc 2 Comparison the subsequent city to the point matching to Loc 1 (arrival tax). Byte 170 Match Indicates whether the point matching to Loc 2 must be a stopover, a Tax Point Geo Spec fare/fee/tax break point, the furthest Ticketed Point Miles from the point Loc 2 Stopover Tag matching to Loc 1 (bytes 159-167), or a point adjacent to Loc 1. Bytes 171-179 Match Indicates that the point matching to Loc 2 must match either a preceding Tax Point Geo Spec – point to the point matching to Loc 1 (arrival tax), or a subsequent point to Loc 2 the point matching to Loc 1 (departure tax), depending on the value in the in the Tax Point Tag field (byte 11). Alternatively, if the Loc 3 Type indicates that Loc 3 is the next stop, Loc 2 must match a via point between the point matching to Loc 1 and the next stop.

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Byte Location Match / Action Definition / Processing Byte 180 Action This field specifies when Loc 3 must match to the first stopover or point Tax Point Geo Spec – subsequent or prior to the point matching to Loc 1 Loc 3 Type Bytes 181-189 Match Indicates a further geographic match either to a prior point to the point Tax Point Geo Spec – matching to Loc 1 (Tax Point Tag = D) or the subsequent point to the point Loc 3 matching to Loc 1 (Tax Point Tag = A), or alternatively the next stopover after the point matching to Loc 1 (Tax Point Tag = D) or the prior stopover to the point matching to Loc 1 (Tax Point Tag = A). Bytes 190-207 FILLER Bytes 208-210 Match Specifies the maximum amount of time at the point matching to any of the Tax Point Geo Spec – Tax Point Geographic Specification fields (bytes 156-210) before it is Stopover Time Tag considered a stopover. Byte 211 Match Defines the units in which Stopover Time is expressed. Tax Point Geo Spec – Stopover Time Unit Bytes 212-218 Match Defines exceptions to stopover and connection definitions in Stopover Time Tax Point Geo Spec – (bytes 208-210) and Stopover Time Unit (byte 211). Connection Tags Further edits define how these connection tags can be used in conjunction.

Byte 219 Match A tag indicating whether the Service and Baggage Table (bytes 220-227) is Service and Baggage coded to match to the taxable unit being processed, or is coded to match to Table Application Tag other taxes, fees and charges which have been assessed on the same itinerary or service pricing transaction. Bytes 220-227 Match A table number which specifies to which of the specific services, taxes, and Service and Baggage baggage charge details the Record X1 applies. Table No.168

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Byte Location Match / Action Definition / Processing Bytes 228-235 Match A number referring to a table that specifies to which carriers and flight Carrier/Flight Table No. number combinations on a specific sector the Record X1 applies. The data 186 in this record only applies when travel on the following sector of travel being validated is on the specified carrier(s)/flight(s):

Departure Tax Point: Flight from point preceding the point matching to Loc 1 into the point matching to Loc 1 Arrival Tax Point: Flight from the point matching to Loc 1 to subsequent point. Bytes 236-243 Match A number referring to a table that specifies to which carriers and flight Carrier/Flight Table No. number combinations on a specific sector the Record X1 applies. The data 186 in this record only applies when travel on the following sector of travel being validated is on the specified carrier(s)/flight(s):

Departure Tax Point: Flight from the point matching to Loc 1 into subsequent point Arrival Tax Point: Flight from point preceding the point matching to Loc 1 into the point matching to Loc 1. Byte 244 Match A tag indicating whether the sector detail table is coded to match to all Sector Detail Application sectors between the point matching to Loc 1 and the point matching to Loc Tag 2, every sector in the itinerary, the first international sector, or to any sector between the point matching to Loc 1 and the point matching to Loc 2. Bytes 245-252 Match A number referring to a table that specifies the sector or itinerary details to Sector Detail Table No. which the Record X1 applies, either between the point matching to Loc 1 167 and the point matching to Loc 2 or for the whole itinerary, depending upon the value in the Sector Detail Application Tag (byte 243). Bytes 253-262 FILLER Byte 263 Match Indicates to which amounts (on the ticket) the Ticket Value Minimum Ticket Value Application (bytes 264-274) and Ticket Value Maximum (bytes 275-285) fields apply. Bytes 264-274 Match The minimum accountable document value to which the Record X1 applies, Ticket Value Minimum in the currency specified in bytes 286-289.

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Byte Location Match / Action Definition / Processing Bytes 275-285 Match The maximum accountable document value to which the record X1 applies, Ticket Value Maximum in the currency specified in bytes 286-289. Bytes 286-288 Action The currency of the Ticket Value Minimum (bytes 264-274) and Ticket Ticket Value Currency Value Maximum (bytes 275-285) fields. Byte 289 Action The currency decimal of the Ticket Value Minimum (bytes 264-274) and Ticket Value Decimal Ticket Value Maximum (bytes 275-285) fields. Bytes 290-292 Match The currency of sale of the passenger itinerary or service required for the Currency of Sale Record X1 to apply. Byte 293 Match Indicates whether a government form of payment or frequent flyer miles Paid by 3rd Party Tag must have been used to purchase the passenger itinerary or service in order for the Record X1 to apply. Bytes 294-297 Match The effective first date of the Revenue Accounting Tax Database to which RATD Date the sequence applies. Bytes 298-306 FILLER Bytes 307-312 Action Indicates a past dated sales effective date which could not be coded in the Historic Sale Effective First Sale Date (bytes 36-41). This data has no application in initial pricing Date but has application to audit and repricing processes. Bytes 313-318 Action Indicates a past dated sale discontinue date which could not be coded in the Historic Sale Discontinue Last Sale Date (bytes 42-47). This data has no application in initial pricing Date but has application to audit and repricing processes. Bytes 319-324 Action Indicates a past dated travel effective date which could not be coded in the Historic Travel Effective First Travel Date (bytes 49-54). This data has no application in initial Date pricing but has application to audit and repricing processes. Bytes 325-330 Action Indicates a past dated travel discontinue date which could not be coded in Historic Travel the Last Travel Date (bytes 55-60). This data has no application in initial Discontinue Date pricing but has application to audit and repricing processes. Bytes 331-345 Action The amount resulting when a match is made to the Record X1. Tax Amount/Currency/ Decimal Bytes 346-352 Action The percentage to apply when a match is made to the Record X1. Tax Percent

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Byte Location Match / Action Definition / Processing Bytes 353-363 Action The minimum tax when Tax Percent (bytes 346-352) is non-zero. Minimum Tax Bytes 364-374 Action The maximum tax when Tax Percent (bytes 346-352) is non-zero. Maximum Tax Bytes 375-377 Action The currency of the Minimum Tax (bytes 353-363) and the Maximum Tax Min Max Currency (bytes 364-374) fields. Byte 378 Action The currency decimal of the Minimum Tax (bytes 353-363) and the Min Max Decimal Maximum Tax (bytes 364-374) fields. Byte 379 Action An indicator showing whether the Tax Amount (bytes 331-341) is inclusive VAT Inclusive Indicator or exclusive of applicable VAT or other designated sales tax for that Nation. Bytes 380 Action Specifies the base amount to which the Tax Percent (bytes 346-352) Tax Applies to Tag applies. Byte 381 Match/Action Expresses a limitation on application of the tax, where the tax cannot be Tax Application Limit freely applied to each matched occurrence within a given itinerary or portion of the itinerary. The taxable unit must also match to the type of journey expressed in the Tax Application Limit. Byte 382 Action Specifies whether the percentage should be applied to the sell fare amount Net Remit Application in the event of the transaction being priced with a sell fare level as well as Tag the gross (published) fare Byte 383 FILLER Byte 384 Action Specifies the rounding unit applicable to the resulting tax amount. Tax Rounding Unit Byte 385 Action Specifies whether rounding on a resulting tax amount shall be performed Tax Rounding Direction up, down, or to the nearest rounding unit, in case standard IATA rounding rules do not apply. Byte 386 Action Specifies a reference to an additional set of data or rules which are coded Alternate Rule Reference outside of the record. Tag Bytes 387-394 Action A number referring to a table containing free-form text regarding this Text Table No. 164 record. The information within this table is not priceable data.

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Byte Location Match / Action Definition / Processing Bytes 395-396 Action Indicates that automated tax data application cannot be applied, and that the Tax Processing tax rules for processing are further documented in Appendix A of this Application Tag document. Bytes 397-398 Action Indicates that automated tax data application cannot be applied, and that the Tax Matching tax rules for matching are further documented in Appendix B of this Application Tag document. Byte 399 Match Indicates whether the record is intended to be TTBS data, RATD data, both Output Type Indicator TTBS and RATD, or neither TTBS nor RATD. Byte 400 Action Specifies that the tax point for the passenger itinerary or the service is Exempt Tag exempt from the Tax Code (bytes 5-6) and Tax Type (bytes 7-9) defined in this record.

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4.0 PROCESSING

For the purposes of this documentation the following processing order of fares, ATPCO service fees, and taxes will have been performed:

(1) pricing of fare (2) pricing of fees (i.e. Carrie-Imposed (YQ/YR) Fees and Optional Services included in ticket price) except Ticketing Fees (3) pricing of flat amount taxes on fare and fees priced in (1) and (2) (4) pricing of percentage taxes on fare and fees priced in (1) and (2) (5) pricing of percentage taxes on taxes priced in (3) (6) pricing of percentage tax on taxes priced in (4) (7) pricing of Ticketing Fees (8) pricing of taxes on Ticketing Fees (9) pricing of tax on tax on Ticketing Fees

Further details on processing of tax on tax, including an example, are shown below.

An example of the above items is as follows:

(1) Fare priced 2000.00 (2) Carrier-imposed Charge 200.00 (3) Departure Tax (XX) 15.00 (4) Sales Tax (ZZ) at 20% of fare and fee 440.00 (20% of 2200.00) (5) Sales Tax (VV) at 20% of Tax XX 3.00 (20% of 15.00) (6) Value Added Tax at 5% of ZZ 22.00 (5% of 440.00) (7) Handling Fee 50.00 (8) Sales Tax (ZZ) at 20% of Handling Fee 10.00 (20% of 50.00) (9) Value Added Tax at 5% of ZZ 0.50 (5% of 10.00) (10) Transaction TOTAL 2740.50

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Processing this data in a different order may be possible but critical data elements required for accurate collection may be missing and will need to be re-evaluated once this information is known.

The first step in tax processing will be to determine all tax points in the transaction which will be processed into the Record X1. These have the following attributes, expressed in terms of their related Taxable Unit (bytes 24-33):

Taxable Unit Description Taxable Ticketing Method Established Tax Points Unit Tag Carrier-Imposed (YQ/YR) Fees 1 YQ/YR on ticket face Point of Sale, each departure, each arrival Charge Ticketing Fees 2 OB on passenger receipt Point of Sale Optional Services - Flight Related 3 3 A/N sub code on EMD face Point of Sale or Each departure, each arrival Optional Services – Ticket 4 Other carrier defined Point of Sale, delivery Related Each departure, each arrival (when applicable) Optional Services – Merchandise 5 Point of Sale, delivery Optional Services – Fare Related 6 OC reported as Carrier Fee Point of Sale Baggage Charges 7 3 A/N subcode on EMD face Point of Sale, each departure, each arrival Tax 8 2 A/N IATA-assigned code on Each individual tax code/tax type charged with ticket face individual sale, ticketing, departure, and arrival details Itinerary 9 Reported on ticket face Point of Sale, each departure, each arrival Change Fee 10 per subscriber preference Point of Sale

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A tax point is either:

(1) Sale of an accountable document at a location (2) Departure from a location (all ticketed and unticketed will be considered as candidates prior to processing) (3) Arrival into a location (all ticketed and unticketed will be considered as candidates prior to processing) (4) Delivery of a service at a location

The following can never be tax points and should not be considered for processing into the Record X1:

(1) Departure from the destination of the itinerary or service (2) Arrival into the origin of the itinerary or service (3) Departure from a point which is the origin of a surface/void sector i.e. no travel or service is departing that point (4) Arrival into a point which is the destination of a surface/void sector i.e. no travel or service is arriving into that point

There are a number of other geographic locations (e.g. point of ticketing, point of origin, point of turnaround) which can also be specified within the Record X1 and are related to the tax point, but are not Tax Points in their own right. Application of the tax is limited to the four types of tax point stated above.

Note that when a tax point is being priced which does not have an individual charge associated with it (for example, a carrier-imposed (YQ/YR) charge assessed for a portion of travel), all tax points within that portion of travel should be assessed to find out whether the entire portion has the same tax rate applicable (matching to different sequences may result in application of a consistent rate). If so, the percentage can be applied to the entire portion charge. If not, the percentage must be applied to a prorate of the taxable unit to the sector level. Proration will be based on Ticketed Point Mileage and is described in Section 4.1.33.2.

Processing will validate Record X1 for each Tax Point. Processing will attempt to match the Record X1 based on the match fields identified in the previous section. The relationship among all match fields is AND. Processing must match all match criteria in order to match the record. Blank in any data field, unless otherwise defined, means ‘no restriction’ and is considered to be matched. The data will be coded from most specific to least specific. For details on coding conventions, see Section 6.

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The following chart defines (indicated by a Y) the type of geographic locale that should be derived from the itinerary as part of the Taxable Unit, and it may be needed in order to possibly match a tax for the type of item being assessed:

GEO Taxable Unit 1 2 3 4 5 6 7 8 9 10 Point of Sale Y Y Y Y Y Y Y Y Y Y Point of Ticketing Y Y Y Y Y Y Y Y Y Point of Delivery Y Y Itinerary: Journey level geographic locations Y Y Y Y Y Y Y Y Itinerary: Individual sector depart/arrive geographic locations Y Y Y Y Y Service (misc doc): Journey level geographic locations Y Y Y Y Y Service (misc doc): Individual sector depart/arrive geographic locations Y Y Y Y Y

Taxable Units:

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The following processing applies for each tax point:

For each tax point, process all matched Record X1s in sequential order within each unique data key (Nation, Tax Code, Tax Type). A Record X1 sequence set (for a given Nation, Tax Code, and Tax Type) must be processed for every tax point in the itinerary, and then discarded. Processing should never return to the same X1 Nation, Tax Code, Tax Type sequence set for the same itinerary once all tax points have been validated against the data.

a. If the Tax Point being validated matches a Record X1: i. Apply the Tax data in the matched record. Do not continue processing to any other records with the same Tax Code/Tax Type. ii. Continue processing other Record X1s with a different Tax Code/Tax Type. b. If the Tax Point being validated does not match a Record X1 for the Tax Code/Tax Type: i. That Tax Code/Tax Type does not apply to the Tax point. ii. Continue processing other Record X1s with a different Tax Code/Tax Type.

There are certain processing conventions which can be used to minimize processing of the data in order to find a match:

1) At the point the taxable unit tag (1-10) of the tax point is known, the pricing system only needs to process through any record X1 with that matching field (bytes 24-33) set to the same tag. For example, when tax pricing for a carrier-imposed (YQ/YR) charge, the only relevant Record X1 sequences to process will be those with byte 24 = ‘X’. (Note that in some instances, the sequence will direct the system to process other Taxable Units against ‘Itinerary’ taxation, in which case the system will pick up sequences as directed by the match. Refer to Section 4.1.33.12 on page 213 for details.) 2) At the point when all of the geography of the passenger transaction is known, the pricing system only needs to process through any record X1 with matching Nation (bytes 3-4). For example, if the transaction point of sale is Japan and the journey is wholly within Japan, the pricing system only needs to process any record X1 with Nation (bytes 3-4) = ‘JP’. If the transaction is sold in the US, and has departures and arrivals in US, CA, GB, and DE, then any Record X1 with Nation Code US, CA, GB, or DE will be processed and matched by Nation, and will attempt to match based on all other fields within the Record X1 sequence. 3) The following rules apply to Tax Point Tag: Only the following X1 sequences will be interrogated for possible match to the transaction/journey: a) All X1 sequences that contain Tax Point Tag = ‘S’ and Nation = ‘XX’, where XX is any nation in the transaction (including points of sale and ticketing and all ticketed and unticketed departure and arrival points on the journey). b) All X1 sequences that contain Tax Point Tag = ‘D’ and Nation = ‘XX’, where XX is any departure point, ticketed or unticketed, on the journey.

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c) All X1 sequences that contain Tax Point Tag = ‘A’ and Nation = ‘XX’, where XX is any arrival point, ticketed or unticketed, on the journey.

All tax points in the itinerary must be processed individually independently of the matching results for any other tax points within that same itinerary. Therefore all of the following must be considered:

- the transaction as a whole, referred to in this document as the sale tax point (must always exist) - all points of departure and arrival as applicable, potentially including unticketed points as driven by coded data in the Record X1 - all points of delivery as applicable (only applies to ‘Optional Services – Merchandise’ taxation) The following example shows the initial steps for processing:

For the itinerary – sold in the United Kingdom, travel PAR – MUC (surface) FRA – PAR:

(1) establish all Nations in the passenger transaction: GB (Great Britain), FR (France), DE (Germany) – all Record X1 with these nations are potential matches (2) establish tax points: a. Sale (will need to process against all Record X1 with Tax Point Tag = S and Nation = GB or FR or DE) i. in this case only X1 records with Point of Sale = ‘GB’ or blank will be matched ii. X1 records coded with Tax Point Tag = S and any other Point of Sale are not candidates for matching to this tax point b. Depart PAR (will need to process against all Record X1 with Tax Point Tag = D and Nation = FR or DE) i. in this case only X1 records with Tax Point Loc 1 coded as ‘PAR’ (or other higher level GEO which includes Paris such as Area 2, Nation FR) will be matched ii. X1 records coded with Tax Point Tag = D and any other Tax Point Loc 1 are not candidates for matching to this tax point c. Arrive MUC (will need to process against all Record X1 with Tax Point Tag = A and Nation = FR or DE) i. in this case only X1 records with Tax Point Loc 1 = ‘MUC’ (or other higher level GEO which includes Munich such as Area 2, Nation DE) will be matched ii. X1 records coded with Tax Point Tag = A and any other Tax Point Loc 1 are not candidates for matching to this tax point d. Depart FRA (will need to process against all Record X1 with Tax Point Tag = D and Nation = FR or DE)

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i. in this case only X1 records with Tax Point Loc 1 coded as ‘FRA’ (or other higher level GEO which includes Munich such as Area 2, Nation DE) will be matched ii. X1 records coded with Tax Point Tag = D and any other Tax Point Loc 1 are not candidates for matching to this tax point e. Arrive PAR (will need to process against all Record X1 with Tax Point Tag = A and Nation = FR or DE) i. in this case only records with Tax Point Loc 1 coded as ‘PAR’ (or other higher level GEO which includes Paris such as Area 2, Nation FR) will be matched to this tax point ii. X1 records coded with Tax Point Tag = A and any other Tax Point Loc 1 are not candidates for matching to this tax point f. Note that based on the rules above, the following are not eligible to be tax points: i. Arrival into journey origin PAR ii. Departure from surface sector origin MUC iii. Arrival into surface sector destination FRA iv. Departure from journey destination PAR (3) Matches will be determined by geography and other criteria included in the Record X1 as specified in this data application.

Once processing has attempted to match Record X1s for every tax point and taxable unit determined prior to processing, apply all matched sequences to the itinerary.

It is critical to processing that any given Tax point must only match a maximum of one time (0 or 1 matches) to a given Tax Code and Tax Type combination. This avoids double taxation on any given Tax Point.

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The unique elements of the data key will be the Record Type, Nation, Tax Code, and Tax Type. This unique combination must contain all of the same values for the Tax Remittance ID, Tax Point Tag, and Percent/Flat Tag. For example:

Record Nation Tax Code Tax Type Tax Tax Point Percent/ Flat STATUS Type Remittance ID Tag Tag Bytes 1-2 Bytes 3-4 Bytes 5-6 Bytes 7-9 Byte 10 Byte 11 Byte 12 X1 DE RA 001 S D P Coded first X1 FR RA 001 S D P ALLOWED (different Nation) X1 DE DE 001 S D P ALLOWED (different Tax Code) X1 DE RA 002 S D P ALLOWED (different Tax Type) X1 DE RA 001 U D P NOT ALLOWED (different Tax Remittance ID) X1 DE RA 001 S A P NOT ALLOWED (different Tax Point Tag) X1 DE RA 001 S D F NOT ALLOWED (different Percent/Flat Tag)

For a given combination of Record Type, Nation, Tax Code, and Tax Type, edits prevent the Tax Remittance ID, Tax Point Tag, and Percent/Flat Tag from changing.

In some percentage taxes, ordering of the application of the tax is important. Canadian taxation has been raised as one of the primary examples.

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The basic rules for ordering taxes are as follows:

As per the data application, all percentage taxes should be held until it has been determined whether there is one or multiple taxable units on the same passenger document which are taxable for the same tax code and tax type. In this case, the base amounts are added up prior to applying the percentage so that correct rounding can be applied.

In order to facilitate this process, a Percent/Flat Tag has been added to the data application of the Record X1 in the data key in order to direct the order of processing.

Flat rate taxes (where Percent/Flat Tag = F) should be calculated first in anticipation of the application of a further percentage tax being applied.

For example: tax on fare = 20.00

Percentage taxes (where Percent/Flat Tag = P) for any Record X1 where the Taxable Unit Tag has any or all of bytes 24-30 and bytes 32-33 populated, in other words for tax code and tax type combinations where there is no application to Taxable Unit Tag 8 (Tax on Tax), should be applied after flat rate taxes.

For example: tax on fare = 10% of 1000.00 = 100.00

Percentage taxes (where Percent/Flat Tag = P) for any Record X1 where the Taxable Unit Tag has byte 31 populated with ‘X’ should be calculated next; in other words, for tax code and tax type combinations where there is an application to Taxable Unit Tag 8 (Tax on Tax). Calculations should only be performed where the percentage tax on tax applies to a pre-calculated flat rate tax.

For example: tax on tax = 15% of 20.00 = 3.00

Final calculations should be performed for percentage taxes (where Flat/Percent Indicator = P) for Tax on Tax (byte 31 = ‘X’, Taxable Unit Tag = 8) where the percentage is applicable to a calculated amount from another percentage.

For example: tax on tax = 10% of 3.00 (calculated as 15% of 20.00)

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Many tax rules state that connected tickets must be accounted for in establishing the applicability of a tax, for example:

AKL-WLG-AKL issued in connection with a separate ticket SIN-AKL-SIN

Tax Code NZ has the following exemption: Apply 12.5% to domestic departures, except domestic journeys purchased prior to arrival in New Zealand which at the time of original issue are issued in conjunction with international travel and/or cross referenced as such.”

It is generally noted that pricing systems are not equipped to link the two itineraries at time of pricing. Unless some manual intervention occurs by the selling travel agency, the above two connected tickets would be considered to be two separate itineraries:

AKL-WLG-AKL (domestic NZ and therefore charged at 12.5%) SIN-AKL-SIN (international)

This is a system limitation for the correct business application of taxes, which generally requires that such tickets are treated as one itinerary.

Processing should fail and require a manual tax calculation in the following case:

(1) the coded tax has any sequence coded with a requirement for any journey geography (e.g. Wholly Within, Journey Origin) and (2) the “in connection with” data element of the itinerary is known (i.e. it is a known connected ticket) and (3) the details of the connected ticket are not known

The ordering for the X1 file shall be nation, tax code, tax type, sequence, create timestamp.

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Match Processing for Service Taxable Units

Service Taxable Units are defined as:

(1) Carrier-Imposed (YQ/YR) charges (2) Ticketing Fees (3) Optional Services: a. Flight Related b. Ticket Related c. Merchandise d. Fare Related (4) Baggage Charges

The application of the Record X1 to these taxable units is determined by the Taxable Unit Tags (bytes 24-30).

When the taxable unit being processed is not an itinerary or a tax on tax, there are some different factors to consider in matching including how to establish journey information (origin, destination, includes, wholly within), and how to process departure and arrival tax points when the service may be only a portion of the full passenger itinerary.

In the following table, the following codes apply:

P = Passenger Itinerary – the intended journey characteristics of the passenger S = Service Itinerary – the intended consumption of the service, which may be a subset or a superset of the passenger itinerary N/A = not applicable

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The following shows at summary level where the matching information should be established from when processing service itineraries:

Section Carrier-Imposed Ticketing Optional Services Baggage (YQ-YR) Fees Fees Flight Ticket Merchandise Fare Related Related Related Sale Dates P P S S S P S Travel Dates P P P P N/A P P Carrier Application Table No. 190 P P S S S P S Return to Origin P P P P N/A P P Passenger Type Table No 169 P P S S S P S Point of Sale/Security Table/Point P P S S S P S of Ticketing Point of Delivery – Geographic N/A N/A N/A S S N/A N/A Specification Journey Geography Fields P P P P N/A P P Tax Point Geography Fields S N/A S N/A N/A N/A S Service and Baggage Table No.168 S S S S S S S Carrier/Flight Table No. 186 S N/A S N/A N/A N/A S Sector Detail Table No. 167 P P P P N/A P P Ticket Value P P S S S P S Currency of Sale P P S S S P S Paid by 3rd Party Tag P P S S S P S

In the event that the information is unknown for a service taxable unit being processed, processing shall refer back to the related itinerary to attempt to derive the information for matching purposes. In the case that the information cannot be derived, processing can only match to non-specific (i.e. blank) fields for the Record X1 sequence.

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Exceptions to Standard Record X1 Processing

There are two fields in addition to the process and match application tags, which instruct special processing within the Record X1 (either different calculation, or direction to a different set of attributes for matching):

(1) Alternate Rule Reference (byte 386) a. Application of US prorate percentages requires processing to ignore the percentage value expressed in the matched Record X1, and processing must check the prorate percentage value to be applied between the point matching to Tax Point Loc 1 and the point matching to Tax Point Loc 2 from the US prorate percentage table (provided separately). b. Treatment of the service as an itinerary for matching purposes requires processing to ignore values coded in the matched Record X1 sequence, and to re-start match processing for that Nation, Tax Code, and Tax Type, treating the service as an itinerary taxable unit (and therefore applying the same rules as for an itinerary) based on the Taxable Unit Tag. (2) Output Type Indicator (byte 399) a. Initial pricing and fare audit processing should only match to sequences coded indicating that the Record X1 applies to the TTBS, both the TTBS and RATD, or neither the TTBS and the RATD (in the case of a service) b. Revenue Accounting processing for interline billing should only match to sequences coded indicating that the Record X1 applies to the RATD or both the TTBS and RATD.

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Matching Fields for Revenue Accounting and Audit Processing

Processing may occur at a later stage than initial pricing, for example any revenue accounting processing (fare audit, interline billing) which may be dependent upon Sales Data to match to the applicable tax.

In all cases, the best solution is to obtain the original passenger information to completely re-price the tax, but on the understanding that this will not always be possible, the following data can be used as an alternative for revenue accounting (note that this table is based on sales data, however the information may be derived from other sources available to the revenue accounting system, such as (but not limited to) flight reporting, Electronic Ticket databases, or the PNR):

Field Name Match / Action Revenue Accounting Processing Sale Dates Match Date of Issue. Travel Date Application Tag Match Travel Dates included in the itinerary record. Travel Dates Match Carrier Application Table No. 190 Match Validating carrier included in the Ticket Number (bytes 1-3). Return to Origin Match Derived from the Fare Calculation Area, when journey origin is the same as journey destination. Passenger Type Table No 169 Match Passenger Type Code may be available in the sales data, or

PTC listed in the Passenger Name Field, or

PTC may be derived from the Ticket Designator of the fare in the itinerary record (e.g. Y/CH50).

Ticketed Point Tag Match Unticketed points can be derived from flight numbers in the itinerary record if the system has access to schedules information. Unticketed points are not reported in sales data. Point of Sale – Geographic Specification Match Agency Location Number, use the first three bytes to derive the country of sale as required.

Point of Sale field can be used if available.

Otherwise can be assumed to be the same as the journey origin in the fare calculation area (not accurate).

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Field Name Match / Action Revenue Accounting Processing Security Table No. 183 Match Agency Location Number, use the first three bytes to derive the country of sale as required, else

Pseudo City Codes may also be present in the sales record, else

Otherwise can be assumed to be the same as the journey origin in the fare calculation area (not accurate). Point of Ticketing – Geographic Match Point of Issue field can be used if available, else Specification Can be assumed to be the same as the Point of Sale, which in turn can be assessed as follows:

Agency Location Number, use the first three bytes to derive the country of sale as required, else

Can be assumed to be the same as the journey origin in the fare calculation area (not accurate). Point of Delivery – Geographic Match No match available. Specification Journey Geo Spec – Loc 1/Loc 2 Match Can be derived from the Fare Calculation Area, except for unticketed Journey Geo Spec – Journey Includes Match points, which can be obtained from flight schedules data if available. Journey Geo Spec – Travel Wholly Within Match Tax Point Geo Spec – Loc 1 Adjacent Match International/Domestic Tax Point Geo Spec – Loc 1 Transfer Type Match Marketing Carrier and Flight Number are available in sales data.

Operating carrier may not be available but can be obtained from schedules data if available.

Equipment Code is not available in sales data but can be obtained from schedules data if available.

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Field Name Match / Action Revenue Accounting Processing Tax Point Geo Spec – Loc 1 Stopover Tag Match Stopover status is based on the local time of flight arrival and departure in order to accurately match the time. If either of these times is not available, the revenue accounting system may depend upon the Stopover Indicator in the itinerary record.

This data may also be obtained from schedules data if available. Tax Point Geo Spec – Loc 1 Match Fare Calculation Area and the itinerary record give all of the departures in the itinerary. Tax Point Geo Spec – Loc 2 Match Can be derived from the Fare Calculation Area. International/Domestic Tax Point Geo Spec – Loc 2 Comparison Match Tax Point Geo Spec - Loc 2 Stopover Tag Match Stopover status is based on the local time of flight arrival and departure in order to accurately match the time. If either of these times is not available, the revenue accounting system may depend upon the Stopover Indicator in the itinerary record.

This data may also be obtained from schedules data if available. Tax Point Geo Spec – Loc 2 Match Fare Calculation Area and the itinerary record give all of the points in the itinerary. Tax Point Geo Spec – Loc 3 Match Fare Calculation Area and the itinerary record give all of the points in the itinerary. Tax Point Geo Spec – Stopover Time Tag Match Stopover status is based on the local time of flight arrival and Tax Point Geo Spec – Stopover Time Unit Match departure in order to accurately match the time. If either of these times is not available, the revenue accounting system may depend upon the Stopover Indicator in the itinerary record.

This data may also be obtained from schedules data if available. Tax Point Geo Spec – Connection Tags Match Where the connection is not based on a time, the status of each point can be derived from the Fare Calculation Area.

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Field Name Match / Action Revenue Accounting Processing Service and Baggage Table No.168 Match Services charged with the itinerary can be found either: (1) In the Tax Miscellaneous Fee Type fields in the sales data for ticketed fees or (2) In the itinerary record of the EMD if ticketed separately

Carrier/Flight Table No. 186 Match Marketing Carriers and Flight Numbers are available in the itinerary Carrier/Flight Table No. 186 Match record. Operating carrier information may also be obtained from schedules data if available. Sector Detail Table No. 167 Match The ticketed RBD is available in the itinerary record.

The ticketed Fare Basis Ticket Designator is available in the itinerary record.

Fare and Passenger Type Code can be derived from the Fare Basis Code. Other sector details are not available within sales data. Ticket Value Minimum Match The Ticket Document Amount and the Fare or Equivalent Fare Ticket Value Maximum Match Amount are used depending upon whether the match is to the value including taxes, fees, and charges, or excluding taxes, fees, and charges.

If the fare numeric field is blank, either the ticket document amount less taxes can be used as a substitute, or alternatively the NUC or local currency value presented in the fare calculation area. Currency of Sale Match The currency of sale is available either as the currency type associated to the Fare, or as associated to the Equivalent Fare. Paid by 3rd Party Tag Match Limited information may be available by deriving mileage payment from the fare basis ticket designator, and government forms of payment in the form of payment type field.

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4.1 Application of Data for Record X1 This section provides a detailed explanation of the data application for each field in Record X1.

All references to Loc 1 or Loc 2 throughout the data application refer to Tax Point Geo Spec - Loc1 (bytes 159-167) or Tax Point Geo Spec - Loc2 (bytes 171-179) unless specifically stated otherwise by citing byte location and/or complete field name.

4.1.1 Record Type (bytes 1-2) The Record Type is a part of the data key, and will always contain the value ‘X1’ to denote that this record relates to automated tax data subscriptions.

4.1.2 Nation (bytes 3-4) This is a match field used with all geographic locations (ISO Country Codes) included in the passenger transaction (i.e. the passenger intended itinerary and/or the intended services as applicable) as defined in section 1.1, so that the pricing system can establish all potential matches at a very high level to quickly ignore all records which will have no application. This allows the pricing system to be selective about the records to be processed for matching purposes.

This information is likely to be coded at a much more detailed level later in the record. For example, a tax coded with a Nation of US may contain different sequences applicable depending on whether the departure is out of WAS (Washington) or out of FAR (Fargo).

For an itinerary: IAD (US) – NRT (JP) – BJS (CN) – SIN (SG) – LHR (GB) – MAN (GB) – PAR (FR) Sold and ticketed in Canada - CA

Processing must determine the point of sale, ticketing, and (if applicable) delivery, as well as all points of departure and arrival.

Record X1 with the following Nations coded would be potential matches for tax points in this itinerary: CA, US, JP, CN, SG, GB, FR

All other Record X1 could not be potential matches because no other nations are involved in the itinerary.

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4.1.3 Tax Code (bytes 5-6) The Tax Code field specifies the code for the tax being applied to the tax point. This field will be populated with an IATA assigned tax code where this is available (itinerary taxes). When the tax does not have an IATA assigned code (tax on services or non-ticket tax), ATPCO will assign a code for reference purposes in this field. This code will be the ISO Country Code of the jurisdiction imposing the tax. This field is used for information for the pricing system to reference the tax, in conjunction with the Tax Type field (see Section 4.1.4).

Where IATA-assigned, the tax code will be used on the associated accountable document and reported in sales data feeds to identify the type of tax if the Accountable Document Tax Tag field (byte 33 in the Record X2) is coded as ‘Y’ or ‘Z’. Any ATPCO-assigned codes are for reference only and must not be used for passenger display purposes as they will not be considered official (Accountable Document Tax Tag field (byte 33 in the Record X2) will be coded with ‘N’ or ‘U’).

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4.1.4 Tax Type (bytes 7-9) This field is a reference which will be assigned by ATPCO to each tax code in ascending numerical order from 001 – ZZZ (all combinations of alphanumeric) to ensure that different taxes with the same tax code can be processed separately. A unique Tax Type will be assigned for each business application for a given Tax Code. Any given business application of a tax will have a set of sequence numbers assigned under the same data key combination.

Values 001 through 099 will refer to taxes whose applications are defined in IATA TTBS.

Values 100 through ZZZ will refer to taxes whose applications are not defined in IATA TTBS.

Value 000 will not be allowed in this field.

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4.1.5 Tax Remittance Identifier (byte 10) This field is for information purposes only and has no implication on the pricing application of the taxes and determines whether the tax is defined as:

Sale: Means that the taxing authority has designated that the tax is applicable for Sales, which generally means that the taxes are to be remitted to the taxing authority by the carrier selling the accountable document (ticket or miscellaneous document).

Use: Means that the taxing authority has designated that the tax is applicable at the time of use, which generally means that the taxes are to be remitted by the carrier transporting the passenger (itinerary taxes) or delivering the service (service taxes).

Values:

S Sales tax U Use tax

A given Tax Code and Tax Type combination must always retain a consistent value in the Tax Remittance Identifier, in other words:

FR 001 S 0000005 FR 001 U 0000010 NOT ALLOWED FR 001 S 0000010 ALLOWED FR 002 U 0000005 ALLOWED

Sales taxes are listed as “non interlineable” in the IATA TTBS. Use taxes are listed as “interlineable” in the IATA TTBS.

Taxes not included in the TTBS (i.e. pure service fee taxation) will require the carrier advising the exception to set the Tax Remittance Identifier.

Value blank will not be allowed in this field.

4.1.6 Tax Point Tag (byte 11) This is a match field used to establish the primary driver for the tax rule being applied to the tax point. Tax points being processed into the Record X1 will have a Tax Point Tag attached to in order to match to this field.

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There are four distinct ways of applying tax to a point:

Value S tax on the entire transaction Value D tax on the point of departure Value A tax on the point of arrival Value X tax on the point of delivery of the service (applies to Optional Services – Ticket Related and Optional Services – Merchandise only)

For example: Itinerary Sold in US, Ticketed in GB: LON – PAR – JNB 1000.00 YQ150.00 (charged on PAR-JNB)

When applying tax to the YQ, there are three tax points:

Sold US, Depart PAR, Arrive JNB

When attempting to match the sale in the US, match logic would apply as follows for these Record X1s coded with the following characteristics:

Tax Point Tag = S (sale), Nation = US – eligible for matching (because the sale is in US) Tax Point Tag = S (sale), Nation = DE - not eligible for matching (because the itinerary has no characteristic relating to DE) Tax Point Tag = S (sale), Nation = GB – eligible for matching (because the journey includes GB) Tax Point Tag = S (sale), Nation = FR – eligible for matching (because the journey includes FR) Tax Point Tag = S (sale), Nation = ZA – eligible for matching (because the journey includes ZA) Tax Point Tag = D (depart), Nation = CA – not eligible for matching (because the itinerary has no characteristics relating to CA) Tax Point Tag = D (depart), Nation = US – not eligible for matching (because there is no departure from the US) Tax Point Tag = D (depart), Nation = FR – eligible for matching (because there is a departure from FR in the itinerary) Tax Point Tag = A (arrival), Nation = GB – not eligible for matching (because there is no arrival into the UK) Tax Point Tag = A (arrival), Nation = ZA – eligible for matching (because there is an arrival into ZA in the itinerary)

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4.1.7 Percent/Flat Tag (byte 12) This field is for information purposes only and has limited implication on the pricing application of the taxes and determines whether the tax is defined as:

Value P: Percent Tax a percentage is to be applied to a base to derive the tax value

Value F: Flat Tax the tax value is a flat amount

Processing will use this tag to determine the hierarchy in which taxes will be applied to the transaction, which will be in the following order:

(1) apply all flat tax amounts (2) apply percent taxes which do not have a taxable unit tag of ‘Tax on Tax’ (byte 31 not equal to X) (3) apply percent taxes which apply on top of taxes which are flat amounts (byte 31 = ‘X’) (4) apply percent taxes which apply on top of taxes which are percentages (byte 31 = ‘X’)

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4.1.8 Sequence Number (bytes 17-23) This field specifies the order in which the records should be processed within each unique data key combination. Once a match is made to a sequence, processing will apply the data in the sequence and will not read on to another sequence for the same unique data key for the tax point being assessed. Processing will continue to other sequences with a different data key for the tax point being assessed.

As a coding convention (see Section 6.0), sequences will be coded from the most specific (lowest sequence) to the least specific (highest sequence).

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4.1.9 Taxable Unit Tags (bytes 24-33) These fields match to the type of taxable unit being processed. The taxable unit being processed is determined by the pricing system based on the service type being taxed. A description of the ticketing method for each taxable unit is shown in the table below:

Description Taxable Unit Tag Reference Carrier-Imposed (YQ/YR) Charge 1 Ticketing Fees 2 Optional Services – Flight Related 3 Optional Services – Ticket Related 4 Optional Services – Merchandise 5 Optional Services – Fare Related 6 Baggage Charges 7 Tax on Tax 8 Itinerary 9 Change Fee 10

The tax point being processed must be in a taxable unit that matches to at least one of these coded fields.

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The reference to the taxable unit will be in one of the ten one-byte fields denoting the Taxable Unit Tag, each taking a relative position as follows. Application is denoted by the presence of the value ‘X’.

Taxable Unit Byte Location Value Carrier-Imposed (YQ/YR) Fees 24 X = applies, blank = not applicable Ticketing Fee 25 X = applies, blank = not applicable Optional Service – Flight Related 26 X = applies, blank = not applicable Optional Service – Ticket Related 27 X = applies, blank = not applicable Optional Service – Merchandise 28 X = applies, blank = not applicable Optional Service – Fare Related 29 X = applies, blank = not applicable Baggage Charges 30 X = applies, blank = not applicable Tax on Tax 31 X = applies, blank = not applicable Itinerary 32 X = applies, blank = not applicable Change Fee 33 X = applies, blank = not applicable

So, for example, a Record X1 which applies to itinerary, carrier-imposed fees, and flight related optional services would be coded as follows:

Taxable Unit Tag Byte 24 Byte 25 Byte 26 Byte 27 Byte 28 Byte 29 Byte 30 Byte 31 Byte 32 Byte 33 X X X

The processing of this field is first to determine the type of item being processed against the Record X1 (carrier-imposed (YQ/YR) fee, ticketing fee, etc.), then to check the corresponding value in the Taxable Unit Tag fields. If blank for all sequences for a given tax code and tax type, the tax does not apply to any Tax Points with that taxable unit, and processing will read on to the next tax code and type. If the corresponding Taxable Unit Tag is coded with the value ‘X’ then the tax does apply, and processing will continue to check all of the other match fields.

The above example denotes that the Tax Point matches the sequence (subject to all other matching criteria) if the Tax Point is from a Carrier-Imposed (YQ/YR) charge (Taxable Unit Tag 1), an Optional Service – Flight Related (Taxable Unit Tag 3), or an Itinerary (Taxable Unit Tag 9). The fields are matched as AND/OR criteria, in other words it is possible for processing to check and store all four of these Taxable Units in one pass of the data, although they must be processed in a specific order as noted above for the purpose of percentage tax calculation.

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Edits prevent data being coded in bytes 25 (Ticketing Fee), 27 (Optional Services Ticket Related), 28 (Optional Service Merchandise), 29 (Optional Service Fare Related), and 33 (Change Fee) when the Tax Point Tag (byte 11) = D or A. This is because these service types do not have associated departures or arrivals, and so taxes must be assessed at the journey level.

Edits require that at least one of bytes 24-33 contain value ‘X’.

If Service and Baggage Table 168 (bytes 220-227) = 00000000, then a match is made to the X1 record when the tax point is any kind of charge/fee/tax within the taxable unit being processed, without regard to the tax code/tax type of that charge/fee/tax, provided all other match fields are met.

If Service and Baggage Table 168 (bytes 220-227) ≠ 00000000, then a match is made to the X1 record provided a match is made to the table 168 for the service being processed and all other X1 match fields.

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4.1.10 Calculation Order (byte 35) This field specifies the order in which the tax defined in this X1 record will be calculated relative to other taxes on the transaction.

Valid values are:

1 Apply this tax before applying taxes defined in X1 records where Calculation Order = 2 or 3, except if byte 219 = C, in which case apply this tax after applying the tax matched in the X1 sequence’s Service & Baggage Table 168. 2 Apply this tax after applying taxes defined in X1 records where Calculation Order = 1 and before applying taxes defined in X1 records where Calculation Order = 3 3 Apply this tax after applying taxes defined in X1 records where Calculation Order = 1 or 2

There is no prescribed order in which to calculate taxes defined in X1 records that contain the same value in Calculation Order (byte 35).

ATPCO will populate Calculation Order (byte 35) as follows:

1 When the tax defined by the X1 record is a flat amount tax on a fare, fee, or tax 2 When the tax defined by the X1 record is a percentage tax on a fare or fee or tax (except a percentage tax applied to percentage tax) 3 When the tax defined by the X1 record is a percentage on percentage tax

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4.1.11 Sale Dates (bytes 36-47) These fields specify the First and/or Last Sale Dates for the record. The sale date in this context is exactly the same in meaning as the term “ticketing date” for the purposes of tax data. These dates are also the maintenance dates for the record, meaning that a subscriber will receive a new record for the data key and will need to evaluate the dates on this new record and make any required adjustments to the dates on the subscriber database for this same data key. A valid date must be present in the First Sale Date (bytes 36-41).

When Taxable Unit Tag ≠ Change Fee (byte 33 ≠ X), validation of Sale Dates (bytes 36-47) is against the intended sale date for the itinerary or service being issued as specified below. When Taxable Unit Tag = Change Fee (byte 33 = X), validation of Sales Date (bytes 36-47) is against the intended sale date for the new itinerary or service as specified below.

Processing will match the record if the intended itinerary or service issue date is on or after the First Sale Date and on or before the Last Sale Date. Processing will no match the record if the intended ticket or miscellaneous document issue date is before the First Sale Date or after the Last Sale Date.

Coding for sales effective on the same day (today’s date) and future effective dates will be allowed.

Same day records are applied as follows:

X1 Seq 1000 Effective 02Jan 2009 Disc 999999 Update to X1 Seq 1000 Effective 10Jan2009 Disc 999999 (sent on 10Jan09)

After processing the update the database would look like the following:

X1 Seq 1000 Effective 02Jan2009 Disc 10Jan 2009 (down date is the same as date of receipt of update) X1 Seq 1000 Effective 10Jan2009 Disc 999999

In this case the 1st sequence should no longer be used as soon as this update is applied.

Note: this first sequence would have been updated with 1 minus effective date (or 09Jan2009) if the updated sequence was sent on the 09Jan2009 with an effective date of 10Jan2009).

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Sale Date for tax points will be validated as follows:

Sale date of ticket: Carrier-Imposed (YQ/YR) Charges (1) Ticketing Fees (2) Optional Services – Fare Related (6) Tax on Tax (8) where such tax is applicable to the itinerary Itinerary (9)

Change Fee (10) when the fee is reported on the new ticket

Sale date of miscellaneous document: Optional Services – Flight Related (3) Optional Services – Ticket Related (4) Optional Services – Merchandise (5) Baggage Charges (7) Tax on Tax (8) where such tax is applicable to the service

Change Fee (10 when the fee is reported on the miscellaneous document

Value 999999 may be present in Last Sale Date (bytes 42-47) and signifies there is no restriction on the Last Sale date.

Standard down dating logic will apply when canceling or updating an existing record.

Date maintenance is further described in the ATPCO Service Fee Overview document.

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4.1.12 Travel Date Application Tag (byte 48) This tag indicates the matching criteria for the First and Last Travel Dates in bytes 49-60. Processing is as follows:

Values: J Process travel dates against date of journey commencement

T Process travel dates against date of departure from the Tax Point for departure taxes, and date of arrival into the tax point for arrival taxes

Blank Travel dates are not applicable to the record

When the Tax Point Tag = S or X, edits prevent the Travel Date Application Tag from being coded with value T (i.e. must be J or blank).

When the Taxable Unit Tag contains X in bytes 25 (Ticketing Fee), 27 (Optional Service Ticket Related), 28 (Optional Service Merchandise), 29 (Optional Service Fare Related), and/or 33 (Change Fee), edits prevent the Travel Date Application Tag from being coded with value T (i.e. must be J or blank).

When the Taxable Unit being processed has no related travel or the related travel is unknown, processing will automatically no match the record and continue processing the next available Record X1 which does not have a requirement for travel dates.

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4.1.13 Travel Dates – First/Last (bytes 49-60) Travel dates are not mandatory in this record because the taxable unit may not involve any travel, or have a related itinerary (in some instances when Taxable Unit Tag has an X coded in byte 28 (Merchandise) and some instances of Taxable Unit Tag = 8 (Tax on Tax)).

Taxes on sale and delivery will not have travel directly related to the taxable unit, but coding of travel dates is allowed in case of restrictions on related passenger travel. In such cases, edits require Travel Date Application Tag (byte 48) = J.

When the taxable unit has no related passenger travel – for example, the purchase of a T-shirt from an airline online store – and the Record X1 contains first and last travel dates, then processing automatically no matches the record. In other words, a match cannot be made where travel dates are positively coded and no related travel exists in the passenger transaction. Taxable units with no related travel can only match to records with Travel Dates = 999999999999.

Seasonal Travel Dates will be allowed in the Record. For example, for travel allowed between 01 April and 30 September of any year, the data will be coded:

First Travel Date = bb0401 (1st April any year) Last Travel Date = bb0930 (30th September any year)

Where bb = blank For travel allowed between15 March of any year and 15 September of the same year, the data would be coded:

First Travel Date = bb0315 (15th March any year) Last Travel Date = bb0915 (15th September of the same year)

For travel allowed between 15 September in any year and 15 March of the following year, the data would be coded:

First Travel Date = bb0915 (15th September any year) Last Travel Date = bb0315 15th (March of the next year)

These fields specify the First and/or Last Travel Dates for the record. Validation of these dates is against:

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(1) the departure date from the point matching to Loc 1 (bytes 159-167) if the tax point tag (byte 11) is D and Travel Date Application Tag (byte 48) is T (2) the arrival date into the point matching to Loc 1 (bytes 159-167) if the tax point tag (byte 11) is A and Travel Date Application Tag (byte 48) is T (3) the departure date from itinerary Journey Origin (where applicable) in all cases if the Travel Date Application Tag (byte 48) is J

Processing will match the record when:

(1) Tax Point Tag = D and Travel Date Application Tag = T, and the departure date from the tax point being assessed is on or after the First Travel Date and is on or before the Last Travel Date (2) Tax Point Tag = A and Travel Date Application Tag = T, and the arrival date into the tax point being assessed is on or after the First Travel Date and is on or before the Last Travel Date (3) Tax Point Tag = D and Travel Date Application Tag = J, and the departure date from the journey origin is on or after the First Travel Date and is on or before the Last Travel Date (4) Tax Point Tag = A and Travel Date Application Tag = J, and the departure date from the journey origin is on or after the First Travel Date and is on or before the Last Travel Date (5) Tax Point Tag = S and Travel Date Application Tag = J, and the departure date from the journey origin is on or after the First Travel Date and is on or before the Last Travel Date

Processing will no match the record when:

(1) Tax Point Tag = D and Travel Date Application Tag = T, and the departure date from the tax point being assessed is before the First Travel Date or is after the Last Travel Date (2) Tax Point Tag = A and Travel Date Application Tag = T, and the arrival date into the tax point being assessed is before the First Travel Date or is after the Last Travel Date (3) Tax Point Tag = D and Travel Date Application Tag = J, and the departure date from the journey origin is before the First Travel Date or is after the Last Travel Date (4) Tax Point Tag = A and Travel Date Application Tag = J, and the departure date from the journey origin is before the First Travel Date or is after the Last Travel Date (5) Tax Point Tag = S and Travel Date Application Tag = J, and the departure date from the journey origin is before the First Travel Date or is after the Last Travel Date (6) Dates are coded into the First and Last Travel Dates and the Tax Point has no related travel e.g. Optional Services Merchandise

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It should be noted that the principle of Optimistic not Unrealistic processing should apply to dates in the itinerary. In the case of an open dated segment being assessed for the Tax Point, the date will be adopted from the previous and next flight segments to match to applicable travel segments. Processing will validate all known information pertaining to the tax point and taxable unit, and must not match the Record X1 if there is enough information to ascertain that the date could never comply with the coded Travel Date requirements. However, if it is possible for the date to match to the coded Travel Date requirements, then processing will be optimistic and will not mismatch to the Record X1 on the basis of Travel Date.

An example would be as follows:

Point A departs 01JAN09 Point B departs OPEN (and therefore is possible to match to travel dates starting 01JAN09 through 03MAR09) Point C departs 03MAR09

Point B would be applicable to match to a record with any First Travel Date between 01JAN09 and 03MAR09 and any Last Travel Date greater than the First Travel Date

Travel from point B could never occur before 01JAN09 or after 03MAR09

Point B would not be applicable to match to a record with First Travel Date 04MAR09 or later and any Last Travel Date Point B would not be applicable to match to a record with Last Travel Date 31DEC08 or earlier and any First Travel Date

Where there is no previous sector to refer to (i.e. all travel dates are unknown), the travel date shall be assumed to be on or after the sale date, and on or before the date of first known travel on the itinerary. If no travel dates are known or can be derived, processing automatically no matches the record when travel date requirements are coded.

Both the First and Last Travel Date fields may contain a specific date or may contain 999999 signifying there is no restriction on the date.

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4.1.14 Tax Carrier (bytes 61-63) This is an action field which is used for information only and has no application to automated processing by the subscriber.

Values YY IATA supplied information (itinerary taxes only)

ZZ Trade organization supplied information, not approved by IATA

2-byte carrier code Non-IATA supplied information (used for airline exception coding not approved by IATA)

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4.1.15 Carrier Application Table No. 190 (bytes 64-71) This field points to the table number for Carrier Application Table No. 190. This table specifies one or more carriers that must be the validating carrier (or intended validating carrier) of the document on which the itinerary or service is sold in order to match the record. If the intended validating carrier is unknown, processing must no match the sequence if this field is positively coded (i.e. not 00000000).

Carrier data within Table 190 may be expressed positively (must be the validating carrier) or negatively (must not be the validating carrier). Edits require that when a negative entry is present, there must be a positive entry with carrier code $$ signifying “any carrier except the negative carrier(s).” If the validating carrier validates against a positive entry in Table 190, then processing matches Record X1 (provided a match is also made to all other match fields). If the validating carrier does not validate against any entry in Table 190 or validates against a negative entry in Table 190, then processing no matches Record X1.

The meaning of validating carrier depends upon the Taxable Unit Tag, as follows:

Carrier-Imposed (YQ/YR) Charges Validating carrier of the ticket Ticketing Fees Validating carrier of the ticket Optional Services (flight, ticket, merchandise) Validating carrier of the miscellaneous document Optional Services (Fare Related) Validating carrier of the ticket Baggage Charges Validating carrier of the miscellaneous document Tax on Tax Validating carrier of the document on which the initial tax was reported Itinerary Validating carrier of the ticket

Change Fee Validating carrier of the document on which the change fee was reported

When the Tax Point is not issued on an accounting document (and therefore has no concept of a validating carrier), processing automatically no matches the X1 record when Carrier Application Table No. 190 (bytes 64-71) is any value other than 00000000.

When Carrier Application Table No. 190 (bytes 64-71) is value 00000000 (i.e. does not contain data), there is no restriction on the validating carrier.

Additionally, refer to Data Application for Carrier Application Table No. 190.

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4.1.16 Return to Origin (byte 72) This field specifies whether travel on the journey must or must not return to the journey origin or whether the matched tax point must be the first or the second chargeable point of a continuous journey1 .

Valid values are:

Value Y: Specifies that travel on the journey must return to the journey origin in order to match the record. • When the journey is wholly domestic, then the destination point of the journey must be the same point (same city or co-terminal point (as defined in the ATPCO PFC Product co-terminal record)) as the origin point (origin city) of the journey in order to match the record. • When the journey is international, then the destination point of the journey must be in the same country as the origin point of the journey in order to match the record.

Value N: Specifies that travel on the journey must not return to the journey origin in order to match the record. • When the journey is wholly domestic, then the destination point of the journey must not be the same point (same city or co-terminal point (as defined in the ATPCO PFC Product co-terminal record)) as the origin point (origin city) of the journey in order to match the record. • When the journey is international, then the destination point of the journey must not be in the same country as the origin point of the journey in order to match the record.

Value C: Specifies that the tax point must be the first tax point in a continuous journey* to attract a non-zero Canadian Air Travellers Security Charge tax. If the tax point is not the first tax point in a continuous journey or not part of a continuous journey, then no match the sequence.

Value D: Specifies that the tax point must be the second tax point in a continuous journey1 to attract a non-zero Canadian Air Travellers Security Charge tax. If the tax point is not the second tax point in a continuous journey or not part of a continuous journey, then no match the sequence.

Value Blank: No Application.

1See section 4.1.33.8 for definition of continuous journey.

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Edits permit values C and D only when Tax Code (bytes 5-6) = CA.

The entire passenger itinerary must be examined in order to apply Return to Origin (byte 72), including when the passenger itinerary is ticketed on connected tickets.

This field only has application to itineraries and to services which are related to an itinerary (that is, when byte 28 = blank). This field has no application to Merchandise or to Tax on Tax related to Merchandise (that is, when byte 28 = X). When the Taxable Unit Tag contains byte 28 = X and Return to Origin (byte 72) = A, B, C or D, processing will automatically no match the record and continue processing the next available Record X1.

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4.1.17 Passenger Type Code Table No. 169 (bytes 73-80) This field points to the table number for Table No. 169. Table No. 169 identifies a passenger type and related attributes which must match to the input PTC of the transaction in order to match the record as a primary source. If the input PTC is not available to the pricing system, the ticketed Passenger Type will be used as a secondary alternative for matching purposes.

A value of 0000000 in this field means that no Passenger Type Code Table No. 169 is applicable to the sequence and all passenger types can match to the Record X1.

The following fields exist within each record in Table 169: • Application Tag (Table 169 byte 16) • Passenger Type Code (Table 169 bytes 17-19) • PTC Minimum Age (Table 169 bytes 20-21) • PTC Maximum Age (Table 169 bytes 22-23) • Passenger Status (Table 169 byte 25) • PTC Geographic Restrictions Location Code (Table 169 bytes 26-34) • PTC Match Type (Table 169 byte 35)

Fields within a Table 169 record are associated with an “and” relationship. Records within a Table 169 are associated with an “and/or” relationship. If there is not a match to all match fields (bytes 17-35) within any record of the Table 169, then the Record X1 will be no matched.

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These fields are processed as follows:

Application Tag (byte 16)

This mandatory field specifies the positive or negative application of the data in this Table 169 record. Processing will attempt to match the passenger to the data in Table 169 bytes 17-35 and apply the application tag. When Table 169 is a value greater than 00000000, processing attempts to match Table 169 records in the order they are received. Once a match is made to a Table 169 record, interrogate the Application Tag to determine if the matched passenger (bytes 17-35) is permitted or not permitted (based on byte 16) and do not attempt to match another Table 169 record. If a match is not made to any Passenger Type Code Table 169 record, no match Table 169 and no match Record X1.

Valid values of this field are:

X Not Permitted. If a match is made to the remainder of the data in Table 169, value X indicates the matched passenger type is not permitted. Processing will no match the Record X1 sequence (processing will not attempt to match another Table 169 record in this Record X1 sequence). Continue processing to the next Record X1 sequence. Y Permitted. If a match is made to the remainder of the data in the record on the Table 169, the matched passenger type is permitted. Match Table 169 and match Record X1 (provided a match is made to all other Record X1 match fields).

Edits dictate that the occurrence of a Table 169 record with a negative application (value X) requires at least one Table 169 record (with the same table number) to contain a positive application (value Y).

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Example:

X CNN Y Blank (to which all PTC codes map) Min Age 18

Matching is based on PTC and not the application tag, therefore:

If the PTC input is SRC age 65, processing will no match to the first record in the table as it is not CNN. The application tag is not relevant. Processing will match to the second record in the table as it maps to blank and meets the minimum age requirements. The application tag “permitted” causes this to be a match, and allows processing of the Record X1 to continue.

If the PTC input is CNN, processing will match to the first record in the table as it is CNN, and negative application instructs processing therefore to no match the Record X1.

If a negative application is coded in the Table 169, there must be at least one positive application. When the Application Tag is value ‘Y’ and all other fields are blank, the data indicates that all is permitted.

When Table 169 is value 00000000, there are no restrictions on the passenger applicable to the Record X1 being processed (subject to the remainder of the data in Record X1). Processing assumes an automatic match to Table 169.

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Passenger Type Code (bytes 17-19)

This field specifies the Passenger Type Code (PTC) to which the Tax applies. Validation of this field depends upon the PTC Match Type (byte 35), and can either be against the passenger in the input command that priced the itinerary or service, or the output (resulting) PTC of the fare. If the PTC Match Type (byte 35) specifies that the input PTC is coded, if the data in this field matches the input command for the passenger, then processing matches the record (provided a match is also made to all other match fields). If the input PTC is not available to the pricing system, or the PTC Match Type (byte 35) specifies that the output PTC is coded, the output (ticketed) Passenger Type is used as a secondary alternative for matching purposes. If data in this field does not match either the input command or the output passenger type code, then processing no matches the record and continues to the next record.

PTC mapping applies. The PTC of the entry must exactly match the PTC of the Record X1 being processed (when present) or map up to the Record X1 PTC using hierarchy. For example, Record X1 value CNN matches to any child/infant passenger type in the input command. Edits prevent PTC ADT in this field.

When this field is value blank, there are no passenger type code restrictions for the sector/portion of travel being validated (subject to the remaining data within the record). All PTCs match (map up to) value blank in Table 169. Note that other passenger type restrictions may be coded (e.g. Passenger Status and Geographic Restrictions) with a blank PTC to convey that certain restrictions apply to all passenger types of a certain characteristic (e.g. all residents of Panama).

PTC Minimum Age (bytes 20-21) The minimum age as specified for the passenger type for the itinerary or service being processed. The passenger age must be greater than or equal to the minimum age at the time of the passenger being at the Tax Point.

The passenger age of the tax point for matching purposes will be taken as follows based on the Tax Remittance ID (byte10):

Sales Tax: Passenger age at time of pricing of the itinerary or service Use Tax: Passenger age at commencement of the itinerary, or planned first service consumption if there is no related itinerary (e.g. Merchandise)

Blank means that there is no restriction on the passenger minimum age for this record.

Note that a Senior Citizen over 60 years would be coded with a minimum age of 61.

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PTC Maximum Age (bytes 22-23)

The maximum age for the passenger type for the itinerary or service being processed. The passenger age must be less than or equal to the maximum age at the time of the passenger being at the Tax Point.

The passenger age of the tax point for matching purposes will be taken as follows based on the Tax Remittance ID (byte10):

Blank means that there is no restriction on the passenger maximum age for this record.

There are many examples of this in the exemption categories, as follows:

Infants Under 2 Infants Under 3 Children under 12

Note that an infant under 2 would be coded with a minimum age of zero and a maximum age of 1. Note that an infant under 3 would be coded with a minimum age of zero and a maximum age of 2. Note that a child under 12 would be coded with a maximum age of 11.

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Passenger Status (byte 25)

A code requiring that the PTC for the itinerary or service being processed relates to a National, an Employee, or a Resident. A match will be made on the basis of the status (resident, employee, national, none) identified by the pricing system when the transaction is being priced for tax.

Values shall be coded as follows:

R Resident: The passenger must be a resident of the geographic location coded E Employee: The passenger must be an employee in the geographic location coded N National: The passenger must be a national of the geographic location coded Blank No restrictions

When the residency and/or employee and/or nationality associated to the itinerary or service is not known, nationality, residency, and/or employee status can be assumed to be the same as the country of sale. If the country of sale is not known either, processing will automatically no match the Record X1 and read the next sequence.

PTC Geographic Restrictions Location Code (bytes 26-34)

This field is used in connection with the Passenger Status to determine a passenger type which must match to a certain geographic area, for example residents of Bolivia.

The location code must be coded as a specific geographic location type and code.

This field will be matched to the derived Location Code of the Geographic Restriction on the PTC according to the details entered at time of pricing.

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PTC Match Type (byte 35)

This field indicates whether the data row in the table should be matched to the Passenger Type Code Input – used to generate the pricing result – or the Passenger Type Code of the Fare – returned after the pricing result has been generated.

Values I Match row to the Input PTC O Match row to the PTC of the selected fare (ticketed PTC)

The input PTC means the passenger type in the input command that requested pricing for the service fee (the requested passenger type).

The output PTC means:

(1) The PTC of the applicable Category 19-22, if such a discount has been applied (2) If not applicable, the PTC of the Fare By Rule (Category 25) used in pricing if applicable, or the Record 1 of the Fare used in pricing

Example:

Application Passenger Type PTC Minimum PTC Maximum PTC PTC Geography PTC Match Tag Tag Code Age Age Status Byte 16 Bytes 17-19 Bytes 20-21 Bytes 22-23 Byte 25 Bytes 26-34 Byte 35 N CNN O Y CNN I

If the transaction has a PTC input of CNN which prices a fare which is also CNN, a match is made to the first row and the Application Tag advises that the PTC Table must be no matched, and therefore the Record X1 will also be no matched.

If the transaction has a PTC input of CNN which prices a fare which is ADT (i.e. not CNN), no match is made to the first row. A match is made to the second row and the Application Tag advises that the PTC Table is positively matched.

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4.1.18 Geography Fields (bytes 81-200) The Geography fields are described in detail below.

When the Tax Point Tag (byte 11) specifies a Sale Tax Point (S) at least one journey geographic location (Journey Loc 1 (120-128, Journey Loc 2 (129-137), Journey Includes (bytes 138-146), or Wholly Within (bytes 147-155)) and/or the Point of Sale (bytes 82-90) (using a Security Table No. 183 (bytes 91-98) if multiple points of sale are required), and/or the Point of Ticketing (bytes 100-108) must be coded. Refer to the cross edits in Section 7.0 for applicable Geography based on the Tax Point Tag (byte 11).

When the Tax Point Tag (byte 11) specifies a Delivery Tax (X), at least the Point of Delivery (bytes 109-117) must be coded

When the Tax Point Tag (byte 11) specifies a Departure or an Arrival Tax (D or A), at least Tax Point Loc 1 (bytes 159-167) must be coded.

For processing to assess taxes on services which are fundamentally linked to the passenger itinerary, and are intended to be reported on a passenger ticket, journey geographic matching will be on the basis of the entire passenger itinerary (i.e. from origin to destination of the journey) and on the sale of the passenger itinerary. These are Carrier-Imposed (YQ/YR) Charges (1), Ticketing Fees (2), Optional Services – Fare Related (5), Taxes (8) (if appearing on passenger ticket), Itinerary (9), and Change Fee (10).

For processing to assess taxes on services which appear on a miscellaneous document or other non-ticket form of reporting, journey geographic matching will be on the following basis:

Flight and Ticket Related Optional Services and Baggage – intended itinerary on related passenger ticket

Merchandise and Tax on Miscellaneous Document – journey geography if there is a related itinerary, and if no related itinerary, journey geography is not applicable – if requirements are coded (i.e. non blank), processing must no match the record.

The Miscellaneous Document will never be used to establish journey geography for matching purposes. The relationship between these fields will be AND.

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Departments, Territories, and Possessions

There are a number of geographic regions which involve processing of specific territories, departments and possessions. Examples of these are Guam and American Samoa, which are listed under their own separate Country ISO Code (GU and AS respectively). Further examples are seen in French Overseas Departments (e.g. French Guyana (GF),) and French Overseas Territories (e.g. New Caledonia (NC) and also for the Netherlands (Netherlands Antilles (AN)). In all cases these will be listed as separate Nation (ISO Country Code) entities for matching purposes within the automated tax application, and departure, arrival, delivery, or sale from any of these points will always point to the ISO Country Code of the specific territory or possession. It is noted that territories, departments and possessions as mentioned above generally apply the tax of the host nation (e.g. French Guiana and France itself both apply Tax Code FR) but these are listed separately under the individual country ISO code. In summary, there are no special rules for territories, departments and possessions when matching to the Record X1 on geographic data. The particular territory, department, or possession will be listed as a separate Record X1 as all have a separate country ISO code within the tax database.

All points with a separate country code – including territories and possessions – will be considered to be international for processing purposes in the Record X1.

Note that this rule is specific to the Record X1 and may differ from rules applied to the fare record.

Geographic locales will be coded based on IATA directory data and as such values are not edited against ATPCO directory data.

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4.1.18.1 Ticketed Point Tag (byte 81) This field is used to denote whether the geographic match fields – at both the Journey and the Tax Point level - should be processed against ticketed points only, or against all ticketed and unticketed points. An unticketed point is defined as an arrival and departure within the itinerary which does not appear within the fare calculation ladder (it may be within the good for passage portion of the ticket).

Following is an explanation of the applicable fields/values:

Value U: Match must be made to ticketed and unticketed points.

Value Blank: Match must be made to ticketed points only

It is possible for different sequences with the same record key (Nation, Tax Code, Tax Type) to have different Ticketed Point Tag values in order to express different rules for unticketed vs. ticketed points.

This tag directly affects matching for the following other fields in the record X1:

- Journey Geo Spec – Travel Wholly Within (bytes 147-155) - Journey Geo Spec – Journey Includes (bytes 138-146) - Tax Point Geo Spec – Loc 1 Adjacent International/ Domestic (byte 156) - Tax Point Geo Spec – Loc 1 Stopover Tag (byte 158) - Tax Point Geo Spec – Loc 1 (bytes 159-167) - Tax Point Geo Spec – Loc 2 Comparison (byte 169) - Tax Point Geo Spec – Loc 2 Stopover Tag (byte 170) - Tax Point Geo Spec – Loc 3 Type (byte 180)

Note that journey origin (Journey Loc 1) and journey destination/turnaround (Journey Loc 2) can never be an unticketed point.

For example, for the following journey:

CDG – PPT (including an unticketed stop in LAX)

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If attempting to match Loc 2 to apply a departure tax from CDG – it is necessary to determine how far to look for the next point in the itinerary (LAX or PPT). When the Tax record is coded as follows:

Ticketed Point Tag = blank, then the next point (Tax Point Loc 2) is PPT as processing must ignore unticketed points When Ticketed Point Tag = U, then the next point (Tax Point Loc 2) is LAX as processing must consider ticketed and unticketed points.

If LAX is the Departure tax point:

When Ticketed Point Tag = blank, LAX will not be considered as Loc 1 for matching purposes (i.e. it is not a valid tax point for this tax).

When Ticketed Point Tag = U, LAX can be considered for match as Loc 1 for matching purposes (i.e. it is a valid tax point for this tax).

In addition, processing will match the following where the Ticketed Point Tag (byte 81) is coded with value ‘U’:

- Journey Includes coded Nation US

Further examples of the application of this tag in processing are documented under each Geographic field which this tag can influence.

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4.1.18.2 Point of Sale (bytes 82-90) This field identifies any sales location requirements for Tax collection. The actual point of sale is defined as the location (point) of purchase, determined by the subscriber, at the time that payment is collected for the sold itinerary or service (quoting the fare or fee).

It is recognized that in the era of electronic ticketing and internet purchase, the actual point of sale may not be obvious, and as such there are no generic rules for establishing the point of sale, for example in the cases of:

(1) A ticket purchased through a website or using a smart phone when location of the user is unknown (2) A carrier electronic ticket server which “issues” the ticket but is located in a country which is neither the home country of the consumer nor the validating carrier (for example passenger purchase the ticket in Europe from a validating carrier which has a home base in the US, but the Electronic Ticket Server of the carrier is physically located in South America)

These rules will be documented as they become available.

This field specifies that in order for the tax to be applicable, the ticket must be sold in a specific geographic location. Anyone selling the ticket within the specified geographic location will match the record (e.g. any carrier, any travel agent, etc.). The geographic location may be defined as an Area, Zone, Country, State, City, Airport. Expression of multiple points of sale will not be expressed with a User Zone Table No. 178, but will instead be expressed in a Security Table No. 183 (bytes 91-98), which permits the specification of multiple locations to create a user defined zone.

The document to be used for point of sale matching will depend upon the taxable unit, as follows:

Carrier-Imposed (YQ/YR) Charges Ticket Ticketing Fees Ticket Optional Services (flight, ticket, merchandise) Miscellaneous Document Optional Services (Fare Related) Ticket Baggage Charges Miscellaneous Document Tax on Tax Ticket/Miscellaneous Document on which initial tax was reported Itinerary Ticket

Change Fee Ticket or Miscellaneous Document on which the change fee was reported

Edits prevent the Point of Sale field and the Security Table No.183 to be positively coded in the same Record X1.

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When this field is blank, there are no restrictions on the geographic location of the sale. The Tax will be collected regardless of point of sale (subject to the remainder of the data in the record).

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4.1.18.3 Security Table No. 183 (bytes 91-98) Security Table No. 183 specifies at which locations the sale can occur in order to match the record X1. Refer to Data Application – Security Table No. 183 for details.

When multiple Points of Sale are to be coded in the Record X1, the Point of Sale field (bytes 82-90) cannot be used. Multiple locations must instead be coded into a Security Table No. 183.

Edits prevent the Point of Sale (bytes 82-90) field and the Security Table No.183 to be positively coded in the same Record X1.

The document to be used for Security Table 183 matching will depend upon the taxable unit tag, as follows:

Change Fee Ticket or Miscellaneous Document on which the change fee was reported

When Table 183 is a value greater than 00000000, process Table 183 according to the Data Application – Security Table No. 183 document. Processing will attempt to match the sales location to determine a match to the Record X1. If the sales location matches at least one of the referenced Table 183 records, then processing matches the X1 record (provided a match is also made to all other match criteria). If the sales location does not match any of the referenced Table 183 records, then processing no matches the X1 record.

When Table 183 is value 00000000 and bytes 82-90 are blank, there are no restrictions on the sales location. Processing will match the record for any sales location (provided a match is also made to all other match criteria).

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4.1.18.4 Point of Ticketing – Geographic Specification (bytes 100-108) This field specifies that the tax applies when document completing the sale of the itinerary or service is issued in a specific geographic location. The actual point of ticketing is defined as the geographic location (point) determined by the CRS/GDS that is actually generating a ticket or miscellaneous document for the taxable unit being processed in the Record X1. Anyone issuing the ticket or miscellaneous document within the specified geographic location will match the record (e.g. any carrier, any travel agent, etc.). The geographic location may be defined as an Area, Zone, Country, State, City, Airport, or via use of User Zone Table No. 178 which permits the specification of multiple locations to create a user defined zone.

The document to be used for point of ticketing matching will depend upon the taxable unit tag, as follows:

Change Fee Ticket or Miscellaneous Document on which the change fee was reported

When this field is blank, there are no restrictions based upon the geographic location where the ticket is issued. The tax will be collected regardless of point of ticketing (subject to the remainder of the data in the record).

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4.1.18.5 Point of Delivery – Geographic Specification (bytes 109-117) This field specifies that the tax applies when the service is delivered in a specific geographic location. The actual point of delivery is defined as the geographic location (point) determined by the CRS/GDS that is pricing the service that constitutes a delivery point for the service being sold. The geographic location may be defined as an Area, Zone, Country, State, City, Airport, or via use of User Zone Table No. 178 which permits the specification of multiple locations to create a user defined zone.

When this field is blank, there are no restrictions based upon the geographic location where the service is delivered. The tax will be collected regardless of point of delivery of the service (subject to the remainder of the data in the record).

This field has limited application (and edits prevent coding outside of these parameters), to the following two taxable units only:

Optional Services – Ticket Related Optional Services - Merchandise

When the point of delivery is not known by the pricing system and data is coded in the Point of Delivery field, processing automatically matches the Point of Delivery and continues processing to validate all other fields in the Record X1.

A Point of Delivery can be specified even when the tax is on a Tax Point other than the Point of Delivery.

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4.1.18.6 Journey Geographic Specification (bytes 119-155) The Journey Geographic Specification fields consist of the following fields: • Indicator (byte 119) • Loc 1 – Journey Origin (bytes 120-128) • Loc 2 – Journey Turnaround/Destination Point (bytes 129-137) • Journey Includes Loc (bytes 138-146) • Travel Wholly Within (bytes 147-155)

These fields identify the geographic restrictions for the journey. Validation of these fields is against the entire journey (if applicable). The relationship among the Journey Geographic Specification fields is AND. Processing must match all conditions in order to match the record.

For the assessment of Taxable Units which relate to services which have a connected itinerary, the itinerary (journey origin to journey destination) is used for matching purposes within the Record X1. An example of a ticket related service which does not have an associated segment but may have a connected passenger itinerary is the purchase of lounge access (ticket related optional service), or a credit card fee (ticketing fee).

These fields are not applicable when the taxable unit does not have a related itinerary (e.g. Merchandise and Tax on Tax related to Merchandise). If the Taxable Unit being processed does not have a related itinerary, and any of the Journey Geographic fields are coded, processing automatically no matches the record.

The information which the system must bring into the process to determine if it matched the Tax record varies by Taxable Unit Tag. Passenger Itinerary is the geographic information from the full passenger itinerary which is on or is intended to be on the passenger ticket, and Service Itinerary is the geographic information relating to all services sold with the transaction.

Journey Geographic Specifications always refer to the passenger itinerary where present. Where no passenger itinerary is present, and only a service itinerary is present (i.e. the miscellaneous document), locations within the service itinerary will be used for matching to Journey Geographic Specification (for example, an Excess Baggage itinerary issued where the pricing system can make no automatic linkage to the passenger itinerary).

Note that the Ticketed Point Tag (byte 81) also affects the Journey Geographic Specification. Checking of Journey Includes and Journey Wholly Within must be validated against ticketed and unticketed points if the Ticketed Point Tag is set to U.

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Journey Geo Spec – Indicator (byte 119) This field specifies the journey turnaround or the journey destination application of the location specified in the following Journey Geo Spec - Loc 2 field (bytes 129-137). Note that Loc 1 is always the journey origin. Valid values for this field are:

A Indicates that Journey Loc 2 specifies the journey destination point for a one way, open jaw, or round trip journey Blank Indicates that Journey Loc 2 specifies the journey destination point for a one way journey or the journey turnaround for an open jaw or round trip journey.

The point of turnaround is defined as follows:

The furthest stopover (as listed in Definitions in Section 2.0) or fare break point on the journey measured from journey origin as determined by indicators in the good for passage area. This does not apply to One Way journeys. If there are multiple candidates for journey turnaround (e.g. equidistant points or the same point appearing twice on the itinerary), the first candidate will be taken as the point of turnaround. For international journeys (i.e. more than one ISO Country Code in the itinerary), the Journey Turnaround must be outside the country of origin.

NOTE: Determination of whether a point is a stopover or fare break point for the purposes of determining journey turnaround is based on the designation in the fare calculation. In the case of plus ups which may apply higher intermediate fares, the ticketed fare break points in the fare calculation area (and not the designated plus up points) will be deemed to be the fare break points.

Other fields that determine the meaning of a stopover (Stopover Time and Unit (bytes 208-211) and Connection Tags (bytes 212-218)) never affect the designation of the point of turnaround, which is established based on the fare (assuming a 4 hour stopover for US domestic fares and 24 hour stopover for international journeys).

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Journey Geo Spec – Loc 1 / Loc 2 (bytes 120-137) These are match fields specifying the journey origin and turnaround/destination points (depending upon whether the journey is RT or OW and the coding of the Journey Geo Spec – Indicator) which must be present to match the Record X1. Data in the Indicator field (byte 119) specifies whether Loc 2 is a journey destination point or either a journey turnaround or destination point (defined above).

**The journey turnaround point is defined as the furthest stopover or fare break point, measured from the origin of the journey. Processing should measure using the following steps:

• Measure using the non-stop TPM (Ticketed Point Mileage) between the origin of the journey and the stopover/fare break point.

o When a single TPM exists between the points being measured, use the TPM regardless of the global. o When multiple TPMs exist between the points being measured, apply Global direction in determining the correct TPM to use. o When more than one global direction applies to the points being measured, use the highest TPM that applies for one of the global directions.

• If there are no TPMs, calculate TPMs as MPM (Maximum Permitted Mileage) divided by 1.2 (MPM/1.2). o When a single MPM exists between the points being measured, use the MPM regardless of the global. o When multiple MPMs exist between the points being measured, apply Global direction in determining the correct MPM to use. o When more than one global direction applies to the points being measured, use the highest MPM that applies for one of the global directions.

• If MPMs do not exist, use GCM (Great Circle Mileage).

**NOTE: TPM changes effective September 2013

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The geographic location data in Loc 1 and Loc 2 may be defined as an Area, Zone, Country, State, City, Airport, or via use of User Zone Table No. 178 which permits the specification of multiple locations to create a user defined zone.

When these fields are blank, there are no restrictions on the journey origin and turnaround/destination points, subject to the remainder of the data in the record.

For the following itinerary: WAS (Origin) – TYO – BJS (Turnaround) – TYO – WAS (Destination)

The following Journey Geo Spec fields will match when the journey GEO specification indicator is blank, and:

- Loc 1 = WAS, Loc 2 = BJS - Loc 1 = WAS, Loc 2 = blank - Loc 1 = blank, Loc 2 = BJS - Loc 1 = blank, Loc 2 = blank

The following Journey Geo Spec fields will no match when the journey GEO specification indicator is blank, and:

- Loc 1 = NYC, Loc 2 = WAS - Loc 1 = NYC, Loc 2 = blank - Loc 1 = WAS, Loc 2 = WAS - Loc 1 = WAS, Loc 2 = TYO - Loc 1 = blank, Loc 2 = WAS

The following Journey Geo Spec fields will match when the journey GEO specification indicator is ‘A’, and: - Loc 1 = WAS, Loc 2 = WAS - Loc 1 = blank, Loc 2 = WAS - The following Journey Geo Spec fields will no match when the journey GEO specification indicator is ‘A’ and: - Loc 1 = WAS, Loc 2 = BJS - Loc 1 = NYC, Loc 2 = WAS - Loc 1 = WAS, Loc 2 = TYO - Loc 1 = blank, Loc 2 = BJS

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Journey Geo Spec – Journey Includes Loc (bytes 138-146) This field specifies a point that must be included in the journey in order to match the record – in other words the passenger itinerary or the service itinerary must include the location specified in this field. Validation is against any ticketed or unticketed point on the journey (depending upon the population of the Ticketed Point Tag (byte 81)), including the journey origin, journey turnaround, journey destination, and intermediate points. If at least one point on the journey matches the Journey Includes Loc data, then processing matches the record (provided a match is also made to all other match criteria). If no point on the journey matches the Journey Includes Loc data, then processing no matches the record and continues to the next record.

The geographic location data may be defined as an Area, Zone, Country, State, City, Airport, or via use of User Zone Table No. 178 which permits the specification of multiple locations to create a user defined zone.

When the Ticketed Point Tag (byte 81) is coded ‘U’, processing must evaluate all ticketed and unticketed points when validating geography included in the journey. When the Ticketed Point Tag (byte 81) is blank, processing must ignore unticketed points when validating geography included in the journey.

For the following itinerary: WAS (origin) – (LON) – BJS (turnaround) – (LON) – WAS (destination) London (LON) is unticketed in both directions

Processing will match the record when the Ticketed Point Tag (byte 81) is blank, and:

Journey Includes = N US Journey Includes = N CN Journey Includes = A1 Journey Includes = A3 Journey Includes = C WAS Journey Includes = C BJS

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Processing will no match the record when the Ticketed Point Tag (byte 81) is blank, and:

Journey Includes = N GB Journey Includes = N FR Journey Includes = A2 Journey Includes = LON Journey Includes = PAR

Processing will match the record when the Ticketed Point Tag (byte 81) is ‘U’, and:

Journey Includes = N US Journey Includes = N CN Journey Includes = N GB Journey Includes = A1 Journey Includes = A2 Journey Includes = A3 Journey Includes = C WAS Journey Includes = C BJS Journey Includes = C LON

Processing will no match the record when the Ticketed Point Tag (byte 81) is ‘U’, and:

Journey Includes = N FR Journey Includes = PAR

When this field is blank, there are no Journey Includes Loc restrictions (subject to the remainder of the data in the record.)

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Journey Geo Spec – Travel Wholly Within (bytes 147-155) This field specifies that all points on the journey must be within a specified location in order to match the record. Validation is against all ticketed and unticketed points on the journey (depending upon data in the Ticketed Point Tag (byte 81)), including the journey origin, journey turnaround, and journey destination points. If all points on the journey match the Travel Wholly Within data, then processing matches the record (provided a match is also made to all other match criteria). If at least one point on the journey does not match the Travel Wholly Within data, then processing no matches the record and continues to the next record.

Entries within a User Zone Table 178 for Travel Wholly Within have an and/or relationship. For example:

US, CA

Means that the journey must be:

Wholly Within the USA Wholly Within Canada Wholly Between the US and Canada

When the Ticketed Point Tag (byte 81) is coded ‘U’, processing must evaluate all ticketed and unticketed points when validating whether the journey is wholly within the coded geography. When the Ticketed Point Tag (byte 81) is blank, processing must ignore unticketed points when validating whether the journey is wholly within the coded geography.

For the following itinerary: IAD – (YUL) – SEA Montreal (YUL) is unticketed

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Processing will match the record when the Ticketed Point Tag (byte 81) is blank, and:

Travel Wholly Within = N US Travel Wholly Within = A1 Travel Wholly Within = Table 178 – IAD, YUL, SEA Travel Wholly Within = Table 178 – N US, N CA

Processing will no match the record when the Ticketed Point Tag (byte 81) is blank, and:

Travel Wholly Within = N CA Travel Wholly Within = A2

Processing will match the record when the Ticketed Point Tag (byte 81) is ‘U’, and:

Travel Wholly Within = A1 Travel Wholly Within = Table 178 – IAD, YUL, SEA Travel Wholly Within = Table 178 – N US, N CA

Processing will no match the record when the Ticketed Point Tag (byte 81) is ‘U’, and:

Travel Wholly Within = N US Travel Wholly Within = N CA Travel Wholly Within = A2

When the Table 178 is coded as wholly within IAD, SEA, and the itinerary is IAD (YUL) SEA:

Processing will match the record when the Ticketed Point Tag (byte 81) is blank (because YUL is not considered) Processing will no match the record when the Ticketed Point Tag (byte 81) is U (because YUL does not match the table)

When this field is blank, there are no Travel Wholly Within restrictions on the journey (subject to the remainder of the data in the record.)

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4.1.18.7 Tax Point Geographic Specification (bytes 156-218) The Tax Point Geographic Specification fields consist of the following: • Loc 1 Adjacent International/Domestic (byte 156) • Loc 1 Transfer Type (byte 157) • Loc 1 Stopover Tag (byte 158) • Loc 1 (bytes 159-167) • Loc 2 International/Domestic (byte 168) • Loc 2 Comparison (byte 169) • Loc 2 Stopover Tag (byte 170) • Loc 2 (bytes 171-179) • Loc 3 Type (byte 180) • Loc 3 (bytes 181-189) • Stopover Time Tag (bytes 208-210) • Stopover Time Unit (byte 211) • Connection Tags (bytes 212-218)

These fields are only populated when the Tax Point Tag is D (departure) or A (arrival). Edits prevent data being coded in any of these fields when the Tax Point Tag is value S (Sale) or X (Delivery). In addition, when the Taxable Unit Tag contains X in bytes 25 (Ticketing Fee), 27 (Optional Service Ticket Related), 28 (Optional Service Merchandise), 29 (Optional Service Fare Related), and/or 33 (Change Fee), edits prevent data from being coded in any of these fields.

In summary, these fields must be blank in their entirety for all of the following coding situations:

(1) Tax Point Tag = S (2) Tax Point Tag = X (3) Taxable Unit Tag = X in bytes 25, 27, 28, 29 and/or 33

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At least Tax Point Loc 1 must be coded for the following situations:

(1) Tax Point Tag = D and Taxable Unit Tag = X in bytes 24, 26, 30, 31, and/or 32 (2) Tax Point Tag = A and Taxable Unit Tag = X in bytes 24, 26, 30, 31, and/or 32

When the Taxable Unit being processed is not an itinerary (subject to the edits noted above), processing attempts to match the record in exactly the same manner for the geographic fields. The only exception is that the service itinerary may be a subset of passenger travel, in which case points of connection in the passenger itinerary may be considered to be points of stopover for the service, because they are the start or the end of the service taxable unit.

For example, on the following itinerary:

Passenger Itinerary BJS X/TYO X/WAS LON X/WAS X/TYO BJS Service Itinerary (YQ) TYO X/WAS LON Service Itinerary – Meal WAS TYO

Assume that all taxes that apply in this case are coded as:

Tax Point Tag = D Loc 1 Stopover Tag = S (must be a stopover) Loc 2 Stopover Tag = S (must be a stopover)

The points are treated in the following way:

Tax Point Tag Loc 1 Tax Point Loc 1 to Loc 2 (Byte 11) (Bytes 159-167) Passenger Itinerary Service Itinerary (YQ) Service Itinerary (Meal) D BJS BJS - LON N/A N/A D TYO N/A (not a stop) TYO - LON N/A D WAS N/A (not a stop) N/A (not a stop) N/A D LON LON – BJS N/A N/A D WAS N/A (not a stop) N/A WAS – TYO D TYO N/A (not a stop) N/A N/A A TYO N/A (not a stop) N/A N/A A WAS N/A (not a stop) N/A (not a stop) N/A

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Tax Point Tag Loc 1 Tax Point Loc 1 to Loc 2 (Byte 11) (Bytes 159-167) Passenger Itinerary Service Itinerary (YQ) Service Itinerary (Meal) A LON BJS-LON TYO-LON N/A A WAS N/A (not a stop) N/A N/A A TYO N/A (not a stop) N/A WAS-TYO A BJS LON-BJS N/A N/A

In some instances, the order of points within the service itinerary will need to be established with a further processing step in the case of services which are ticketed in a non-contiguous format. For example:

Coupon 1 LHR – ORY OC 0FD (Meal) Coupon 2 LHR – ORY OC 0CP (Pillow) Coupon 3 ORY – NCE OC 0FD (Meal)

The passenger paid 20.00 GBP for the meals on a portion of travel basis. The passenger paid 10.00 GBP for the pillow. Processing shall establish the points for tax processing as follows:

LHR – ORY – NCE 20.00 Taxable Unit = Optional Service – Meal (Depart LHR, ORY, Arrive ORY, NCE) ORY – NCE 10.00 Taxable Unit = Optional Service – Pillow (Depart ORY, Arrive NCE)

When services are issued on a document by document basis (e.g. vMPD), processing will require a service itinerary to be established prior to processing. In the event that no such itinerary can be established, processing will treat each individual service coupon as a taxable unit for processing into the X1 (i.e. leg based processing).

The meaning of these fields can be affected by other values coded in the record, namely the Tax Point Tag (byte 11) and the Ticketed Point Tag (byte 81). The following meanings apply:

Data Field Tax Point Tag = D Tax Point Tag = A Ticketed Point Tag = blank Ticketed Point Tag = U Ticketed Point Tag = blank Ticketed Point Tag = U Loc 1 Adjacent Previous qualified ticketed Previous qualified ticketed or Next qualified ticketed point Next qualified ticketed or International/Domestic point or stop before Loc 1 unticketed point or stop before or stop after Loc 1 unticketed point or stop after Loc 1 Loc 1 Loc 1 Transfer Type Relationship of the flight into Loc 1 compared to the flight out of Loc 1 Loc 1 Stopover Tag Qualifies the departure being matched in Loc 1 Qualifies the arrival being matched in Loc 1

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Data Field Tax Point Tag = D Tax Point Tag = A Ticketed Point Tag = blank Ticketed Point Tag = U Ticketed Point Tag = blank Ticketed Point Tag = U Loc 1 Ticketed Tax Point departure Ticketed or Unticketed Tax Point Ticketed Tax Point arrival Ticketed or unticketed Tax departure Point arrival Loc 2 International/ Qualifies the relationship between Loc 1 and Loc 2 as either international or domestic Domestic Loc 2 Comparison Qualifies whether Loc 2 must Qualifies whether Loc 2 must be Qualifies whether Loc 2 must Qualifies whether Loc 2 must be the same as the preceding the same as the preceding ticketed be the same as the next be the same as the next ticketed point to Loc 1 or unticketed point to Loc 1 ticketed point after Loc 1 ticketed or unticketed point after Loc 1 Loc 2 Stopover Tag Qualifies Loc 2 as a ticketed Qualifies Loc 2 as a ticketed or Qualifies Loc 2 as a ticketed Qualifies Loc 2 as a ticketed point in the itinerary after unticketed point in the itinerary point in the itinerary before or unticketed point in the Loc 1 after Loc 1 Loc 1 itinerary before Loc 1 Loc 2 A qualified ticketed point A qualified ticketed or unticketed A qualified ticketed point A qualified ticketed or after Loc 1 point after Loc 1 before Loc 1 unticketed point before Loc 1 Loc 3 Type Qualifies Loc 3 as the next Qualifies Loc 3 as the next Qualifies Loc 3 as the Qualifies Loc 3 as the ticketed stop after Loc 1 or ticketed or unticketed stop after previous ticketed stop before previous ticketed or the prior ticketed point before Loc 1 or the prior ticketed or Loc 1 or the next ticketed unticketed stop before Loc 1 Loc 1 unticketed point before Loc 1 point after Loc 1 or the next ticketed or unticketed point after Loc 1 Loc 3 A qualified ticketed point in A qualified unticketed point in the A qualified ticketed point in A qualified unticketed point the itinerary itinerary the itinerary in the itinerary

Examples will be used throughout the following fields to illustrate processing of these fields.

These fields identify the geographic restrictions for the departure out of or arrival into the tax point being validated (depending upon the Tax Point Tag coded in byte 11 and the Ticketed Point Tag coded in byte 81. Validation of all of these fields is against points, either ticketed (if the Ticketed Point Tag is blank) or both ticketed and unticketed (if the Ticketed Point Tag = U). When processing the Record X1, processing will attempt to validate the geography built around the tax point (Loc 1) – the specific point being taxed.

The relationship among the Tax Point Geo Spec fields is AND. Processing must match all conditions in order to match the record.

Processing identifies tax points which are being evaluated for tax application. As determined in Section 4.0, the following can never be considered to be tax points for matching to the Tax Point Geographic Specification fields.

(1) An arrival into the journey origin (2) A departure from the journey destination

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(3) A departure from an airport which is the origin of a surface sector (4) An arrival into an airport which is the destination of a surface sector (5) Any other point which is not a departure or an arrival point in the passenger or service itinerary

Void and Surface Sector Processing

There are specific rules which must be applied to void and surface sectors which are not priced, booked, or ticketed with a flight number or a flight coupon. Processing will first identify the surface segment as a segment between two airports which has no flight information or flight coupon information. Examples of such void or surface segments are as follows:

Surface between London Heathrow and London Gatwick – constructed in the fare calculation as LHR /- LGW Surface between Miami International and Atlanta – constructed in the fare calculation as MIA /- ATL

Examples of itineraries containing the above two void/surface sectors are as follows:

IAD XX LHR/-LGW ZZ NCE 1000.00 BOG XX MIA/-ATL ZZ SFO 350.00

Processing for void and surface sectors will be as follows:

Note: where reference is made in the rules below to “same city” and “different city”, the IATA City Code Directory (CCD) will be the source of information to determine whether the airport is in the same city or a different city.

(1) For void or surface sectors which occur directly after the tax point, the tax point can never be considered to be a Departure (Tax Point Tag = D)

For example:

CDG-MAN MAN /-LHR(surface) LHR-MIA

MAN – LHR is identified as the surface sector in this case.

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CDG can be a departure tax point which incorporates the surface sector (e.g. CDG to MIA) There is no departing flight from MAN and so this is never considered to be a departure tax point MAN can be an arrival tax point The next departure tax point is LHR

(2) For void or surface sectors which occur directly before the tax point, the tax point can never be considered to be an Arrival (Tax Point Tag = A)

For example:

CDG-MAN MAN /-LHR(surface) LHR-MIA

MAN can be an arrival tax point There is no arriving flight into LHR, so LHR cannot be an arrival tax point The next arrival tax point is MIA

(3) For void or surface sectors where the points on either side are in different cities, both points are always considered to be stopover for processing and matching purposes in the Record X1.

For example:

LHR XX IAD – arrive in IAD 14:00 local time BWI XX FAR – depart from BWI 16:00 local time

For a departure tax point out of LHR, particularly if looking for the next stopover (Loc 2 Stopover Tag = S), IAD and BWI would both be considered stopovers because the airport codes are in different cities.

For all tax processing – tax point, next stop etc – both IAD and BWI are considered to be stopovers on the above basis. When processing requires identification of the “next stop” from the tax point for a departure tax, and a surface segment exists where

Page E.03.X1.98 Revised 05 November 2015 Effective 01 May 2016 DATA APPLICATION FOR TAX RULES - RECORD X1 points either side are stops, the next stop will always be the first one encountered in the sequence of travel (i.e. in this case, the origin point of the surface sector).

There is never a case when the airports on each side of a surface or void sector, when they are in different cities as defined by the IATA City Code Directory, can be a mix of stopover and connection. Either both of the points are stops (where the points on either side are different cities), or both of the points are connections (where the points on either side are in the same city and time factors determine that the passenger has not stopped over at the tax point).

(4) For void or surface sectors where the points on either side are in the same city but are at different airports, the status of both of the points on either side of the void or surface sector will be calculated based on:

• arrival into the first airport in the void or surface segment • departure from the last airport in the void or surface segment • any stopover requirements in the Record X1 in the Stopover Time Tag and Unit

For example:

LHR XX JFK – arrive in JFK 14:00 local time LGA XX LAX – depart from LGA 16:01 local time

For a departure tax point out of LHR, particularly if looking for the next stopover (Loc 2 Stopover Tag = S), JFK and LGA would both be considered connections because the departure from LGA is only 2 hours and 1 minute after the arrival into LGA.

This is subject to further data coded in the Record X1 which can override this rule, namely:

a. Stopover Time Tag and Unit define a stopover as 2 hours between arrival and departure, in which case this example would become a stopover. b. Connection Tag G is populated which indicates that same city different airport void or surface sectors are always to be considered stopovers regardless of the time spent.

(5) For the purposes of surface sectors in their application to a Record X1 with a “Wholly Within” matching requirement, points which are not included on the ticket but are visited by the passenger – i.e., passenger travel within the surface or void segment – are not considered for processing the Record X1.

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For example:

Record X1 wholly within US requirement Passenger itinerary is FAR – SEA /- ANC – FAI Passenger crosses Canada in between SEA and ANC However this itinerary is still assumed to be wholly within the US as there is no point outside the US either ticketed or unticketed.

This itinerary meets the requirement of wholly within US, despite implied surface travel in CA.

(6) For the purpose of determining the next/previous international or domestic point or stopover when the point being assessed is an end point of a surface sector, the end points of the surface sector are considered to be one point and, as such, processing shall look beyond the surface sector endpoints to identify the next or previous point or stopover. That is, an endpoint of a surface sector is never considered the next/previous point or stopover when compared to the other endpoint of the surface sector.

For example:DEN – X/IAD – LGW /- LHR – X/MAN – SVO (the stops are DEN, LGW/LHR, and SVO)

For departure from LHR: IAD is the previous point, DEN is the previous stopover

For arrival at LGW: MAN is the next point, SVO is the next stopover

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Tax Point Geo Spec – Loc 1 Adjacent International/Domestic (byte 156) This field specifies whether travel adjacent to the point matching to Loc 1 must be international or domestic in order to match. Application for this field is as follows:

Tax Point Tag = D (departure): compare between the point matching to Loc 1 and the point or stopover prior to the point matching to Loc 1 Tax Point Tag = A (arrival): compare between the point matching to Loc 1 and the point or stopover subsequent to the point matching to Loc 1 Tax Points S, X (sale, delivery): no application, edits prevent coding in these cases

Valid Values are: I International Stopover. Indicates that the travel between the point matching to Loc 1 and the stopover point prior/subsequent must be international When the point matching to LOC 1 is in the United States, the stopover point prior/subsequenct must not be in the Canadian or Mexican buffer zone in addition to not being in the US D Domestic Stopover. Indicates that the travel between the point matching to Loc 1 and the stopover point prior/subsequent must be domestic J International. Indicates that the travel between the point matching to Loc 1 and the point prior/subsequent must be international E Domestic. Indicates that the travel between the point matching to Loc 1 and the point prior/subsequent must be domestic Blank No restriction on adjacent point or adjacent stopover

Values J and E validate against ticketed points only or ticketed and unticketed points depending on the value in Ticketed Point Tag (byte 81) . Stopover points, by definition, are ticketed points. Ticketed Point Tag (bytes 81) has no impact when validating values D and I. Refer to Section 2.1 for stopover definition.

For example:

Loc 1 = US, Adjacent Point/Stop = GB International Loc 1 = US, Adjacent Point/Stop = US Domestic Loc 1 = US, Adjacent Point/Stop = CA International Loc 1 = XU, Adjacent Point/Stop = RU Domestic Loc 1 = RU, Adjacent Point/Stop = XU Domestic

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When Tax Point Tag (byte 11) = D and the point matching to Loc 1 is a departure from a point which is the destination of a surface sector, the origin and destination points of the surface sector are deemed to be one point, and so Loc 1 Adjacent International/Domestic (byte 156) is validated by comparing the point matching to Loc 1 and the previous flown departure point.

When Tax Point Tag (byte 11) = A and the point matching to Loc 1 is an arrival at a point which is the origin of a surface sector, the origin and destination points of the surface sector are deemed to be one point, and so Loc 1 Adjacent International/Domestic (byte 156) is validated by comparing the point matching to Loc 1 and the subsequent flown arrival point.

Value I: International Stop

Example: LON-PAR, where PAR is the departure tax point, is international. Example: NYC-X/MAN-LON, where LON is the departure tax point, is international Example: LON-PAR, where LON is the arrival tax point, is international Example: NYC-X/CHI-LON, where NYC is the arrival tax point, is international

Value D: Domestic Stop.

Example: PAR-NCE, where NCE is the departure tax point, is domestic. Example: NYC-X/YUL-SFO, where SFO is the departure tax point), is domestic. Example: PAR-NCE, where PAR is the arrival tax point, is domestic Example: NYC-X/YUL-SFO, where NYC is the arrival tax point, is domestic

Value J: International

Example: LON-PAR, where PAR is the departure tax point, is international. Example: NYC-X/MAN-LON, where LON is the departure tax point, is not international Example: LON-PAR, where LON is the arrival tax point, is international Example: NYC-X/CHI-LON, where NYC is the arrival tax point, is not international

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Value E: Domestic

Example: PAR-NCE, where NCE is the departure tax point, is domestic. Example: NYC-X/YUL-SFO, where SFO is the departure tax point, is not domestic. Example: PAR-NCE, where PAR is the arrival tax point, is domestic Example: NYC-X/YUL-SFO, where NYC is the arrival tax point, is not domestic

Example: given the following example with an itinerary of: MAN(GB) – X/LON(GB) – X/PAR(FR) – NCE(FR) – (BCN*)(ES) – MAD(ES) *where BCN is an unticketed point assumed to be a connection, the following data produces a match or no-match as shown:

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Tax Point Tag Ticketed Point Tag Loc 1 Adj D/I Loc 1 Prior/Subsequent Outcome (Byte 11) (Byte 81) (Byte 156) (Bytes 159-167) Point/Stopover is D U or Blank I PAR MAN Match D U or Blank I NCE MAN Match A U or Blank I LON NCE Match A U or Blank I NCE MAD Match D U or Blank D LON MAN Match A U or Blank D PAR NCE Match D U or Blank I LON MAN No Match A U or Blank I PAR NCE No Match D U or Blank D PAR MAN No Match D U or Blank D NCE MAN No Match A U or Blank D LON NCE No Match A U or Blank D NCE MAD No Match D U or Blank J PAR LON Match A U or Blank J LON PAR Match A Blank J NCE MAD Match D U or Blank E LON MAN Match D U or Blank E NCE PAR Match A U or Blank E PAR NCE Match D U or Blank J LON MAN No Match D U or Blank J NCE PAR No Match A U or Blank J PAR NCE No Match D U or Blank E PAR LON No Match A U or Blank E LON PAR No Match A U or Blank E NCE BCN No Match D U I BCN NCE Match D U D BCN NCE No Match D U J BCN NCE Match D U E BCN NCE No Match A U I BCN MAD No Match A U D BCN MAD Match A U J BCN MAD No Match A U E BCN MAD Match D U or Blank I,D,E or J MAN None No Match A U or Blank I,D,E or J MAD None No Match D or A U or Blank Blank Any Varies Match

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Tax Point Geo Spec – Loc 1 Transfer Type (byte 157) This field specifies the type of transfer required at the point matching to Loc 1 (bytes 159-167) in order to match the record X1. This field is always validated against the flight(s) into and the flight out of the point matching to Loc 1 (bytes 159-167), so Tax Point Tag (byte 11) and Ticketed Point Tag (byte 81) have no impact. Operating carrier has no impact on the processing of this field.

Valid values are: A Interline (inbound flight is a different marketing carrier to the outbound flight) B Online with change of flight number (inbound flight is the same marketing carrier but different flight number to the outbound flight) C Online with change of gauge only (inbound flight is the same marketing carrier and flight number as the outbound flight, but the equipment codes are different or are both CHG) D Online with no change of gauge (inbound flight is the same marketing carrier and flight number as the outbound flight, and the equipment codes are the same but are not both CHG) Blank No application

If the point matching to Loc 1 (bytes 159-167) is the journey origin or journey destination point, and Loc 1 Transfer Type (byte 157) = A, B, C or D, then no match this field.

For Example: Value Loc 1 Inbound Flight Operated By Loc 1 Outbound Flight Operated By Match/No Match A XX123 XX ZZ567 ZZ Match A XX123 XX ZZ567 XX Match A XX123 XX XX123 ZZ No Match A XX123 ZZ XX123 ZZ No Match B XX123 XX XX456 XX Match B XX123 XX XX123 XX No Match B XX123 XX ZZ567 ZZ No Match C XX123 (757) XX XX123 (767) XX Match C XX123 XX XX567 XX No Match C XX123 XX ZZ567 ZZ No Match C XX123 (757) XX XX123 (757) XX No Match D XX123 (757) XX XX123 (757) XX Match D XX123 (757) XX XX123 (767) XX No Match D XX123 XX XX567 XX No Match D XX123 XX ZZ567 ZZ No Match Blank Any Any Match

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Tax Point Geo Spec – Loc 1 Stopover Tag (byte 158) This field specifies whether the point matching to Loc 1 must be a stopover point, a connection point, a fare/fee/tax break point or not a fare/fee/tax break point. If the tax point being validated does not match the criteria in this field, processing no matches the record. The valid values for this field are:

C The point matching to Loc 1 must be a connection point S The point matching to Loc 1 must be a stopover F The point matching to Loc 1 must be a fare/fee/tax break point N The point matching to Loc 1 must not be a fare/fee/tax break point Blank No application

Values C and N validate against ticketed points only or ticketed and unticketed points depending on the value in Ticketed Point Tag (byte 81). Stopover points and fare break points by definition are ticketed points, so Ticketed Point Tag (byte 81) has no impact validating values S and F. Refer to Section 2.1 for the definitions of stopover and connection.

Determination of whether a point is a fare break point is based on the designation in the fare calculation. In the case of plus ups which may apply higher intermediate fares, the ticketed fare break points in the fare calculation area (and not the designated plus up points) will be deemed to be the fare break points.

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Examples of the use of this field are as follows:

Itinerary: WAS – X/LON – PAR – FRA 1000.00 X/LON – WAS

Tax Points determined in pre-processing:

Departure tax points: WAS, LON, PAR, FRA, LON Arrive tax points: LON, PAR, FRA, LON, WAS

Loc 1 Stopover If Tax Point Tag (byte 11) = D If Tax Point Tag (byte 11) = A Tag Value then Loc 1 Stopover Tag matches then Loc 1 Stopover Tag Matches To C LON (1), LON (2) LON (1), LON (2) S WAS (1), PAR, FRA PAR, FRA, WAS (2) F WAS (1), FRA FRA, WAS (2) N LON (1), PAR, LON (2) LON (1), PAR, LON (2)

Blank WAS (1), LON (1), PAR, FRA, LON (2) LON (1), PAR, FRA, LON (2), WAS (2)

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Tax Point Geo Spec – Loc 1 (bytes 159-167) This field describes a point that must appear on the itinerary in order to match the record X1. If Tax Point Tag = D, Loc 1 must match to a departure point. If Tax Point Tag = A, Loc 1 must match to an arrival point. Validation of this field is against ticketed points only or ticketed and unticketed points depending on the value in Ticketed Point Tag. In all cases, the point matching to Loc 1 constitutes the Tax Point.

Valid values for Loc 1 are P+Airport Code, C+City Code, S+State Code, N+Country Code, and U+User Zone Table 178. A User Zone Table 178 referenced by this field may contain only locations that have the same country code. A+Area Code and Z+Zone Code are not valid values for this field.

Tax Point Tag = D (Departure)

The data in Loc 1 of the Tax Point Geo Spec field must validate against tax points designated as departures in pre-processing.

Tax Point Tag = A (Arrival) The data in Loc 1 of the Tax Point Geo Spec field must validate against tax points designated as arrivals in pre-processing.

The determination of a match to Loc 1 coded data is affected by the following tags:

Tax Point Tag (byte 11) – specifies whether Loc 1 is based on departure out of a point or arrival into a point.

Loc 1 Stopover Tag (byte 158) – specifies whether the point matching to Loc 1 must be a stopover, must be a connection, must be a fare/fee/tax break point, must not be a fare/fee/tax break point, or has no restriction.

Ticketed Point Tag (byte 81) – specifies whether the point matching to Loc 1 must be a ticketed point, or may be a ticketed or an unticketed point.

Edits require that Loc 1 must be coded when Tax Point Tag (byte 11) = D or A.

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Examples of the use of this field are as follows:

Itinerary: WAS – X/LON – PAR – FRA 1000.00 X/LON – WAS

Loc 1 Value Departure Tax Points Matching Arrival Tax Points Matching Nation US WAS WAS Nation GB LON (1), LON (2) LON (1), LON (2) City LON LON (1), LON (2) LON (1), LON (2) Table 178 – FRA, BER, MUC FRA FRA Nation AU NONE NONE

Determination of ‘the point matching to Tax Point Loc 2’

If Loc 1 (bytes 159-167) is coded and Loc 3 Type (byte 180) ≠ N, the point defined by Loc 2 Stopover Tag (byte 170) is considered the point matching to Tax Point Loc 2 provided that: • the point defined by Loc 2 Stopover Tag (byte 170) matches to Loc 2 (bytes 171-179) and • a match is made each of the following: o Loc 2 International/Domestic (byte 168) o Loc 2 Comparison (byte 169)

If a match is not made to one or more of these of these data elements, then processing will no match the X1 record.

If Loc 1 (bytes 159-167) is coded and Loc 3 Type (byte 180) = N, Loc 2 Stopover Tag (byte 170) has no application and the point matching to Tax Point Loc 2 is determined as follows:

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If Then A match is made to each Otherwise of these data elements

The first connection point Prior to the point matching to Loc 1 (bytes 159-167) that is subsequent to the stopover Tax Point Tag point matching to Loc 3 (bytes 181-189) is considered the (Byte 11) = A point matching to Tax Point Loc 2 provided that that point • Loc 2 matches to Loc 2 (bytes 171-179) and International/Domestic (byte 168) Processing will no match the X1 record The first connection point Subsequent to the point • Loc 2 Comparison matching to Loc 1 (bytes 159-167) that is prior to the (byte 169). Tax Point Tag stopover point matching to Loc 3 (bytes 181-189) is (Byte 11) = D considered the point matching to Tax Point Loc 2 provided that that point matches to Loc 2 (bytes 171-179) and

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Tax Point Geo Spec – Loc 2 International/Domestic (byte 168)

This field specifies whether the point matching to Loc 2 when compared to the Tax Point must be a domestic point or an international point. Intermediate points between the Tax Point and the point matching to Loc 2, if any, are not relevant to matching to this field. Refer to the definitions of “domestic” and “international” in Section 2.1 and to “Determination of ‘the point matching to Tax Point Loc 2”. Edits require that this field be blank when Loc 2 (bytes 171-179) contains a non-blank value.

Valid values for this field are: . D When compared to the Tax Point, the point matching to Loc 2 must be a domestic point I When compared to the Tax Point, the point matching to Loc 2 must be an international point Blank No application

Example: Given this itinerary: BJS (CN) – TYO (JP) – (LAX*) (US) – SEA (US) – FAR (US): *where LAX is an unticketed point assumed to be a connection, the following data produces a match or no-match as shown:

Tax Point Tag Ticketed Point Tag Loc 1 Loc 2 D/I Point Matching to Loc 2 Byte 11 Byte 81 Bytes 159-167 Byte 168 D Blank or U BJS D No Match D Blank or U BJS I TYO D Blank or U BJS Blank TYO D Blank TYO D No Match D Blank TYO I SEA D U TYO I LAX D Blank TYO Blank SEA D U TYO Blank LAX D U LAX D SEA D U LAX I No Match D U LAX Blank SEA D Blank or U SEA D FAR D Blank or U SEA I No Match D Blank or U SEA Blank FAR A Blank or U TYO D No Match A Blank or U TYO I BJS

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A Blank or U TYO Blank BJS A U LAX D No Match A U LAX I TYO A U LAX Blank TYO A Blank SEA D No Match A U SEA D LAX A Blank or U SEA I TYO A U SEA Blank LAX A Blank SEA Blank TYO A Blank or U FAR D SEA A Blank or U FAR I TYO A Blank or U FAR Blank SEA

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Tax Point Geo Spec – Loc 2 Comparison (byte 169) This field specifies whether the point matching to Loc 2 must be a different city from the preceding point or preceding stopover to the point matching to Loc 1 (in the case of a Departure tax), or the point matching to Loc 2 must be a different city from the subsequent point or subsequent stopover to the point matching to Loc 1 (in the case of an Arrival tax). Refer to “Determination of ‘the point matching to Tax Point Loc 2’” .

Valid values for this field are:

The point matching to Loc 2 must be different city from the preceding If Tax Point Tag (byte 11) = D point to the point matching to Loc 1 X The point matching to Loc 2 must be different city from the subsequent If Tax Point Tag (byte 11) = A point to the point matching to Loc 1 The point matching to Loc 2 must be different city from the preceding If Tax Point Tag (byte 11) = D stopover to the point matching to Loc 1 Y The point matching to Loc 2 must be different city from the subsequent If Tax Point Tag (byte 11) = A stopover to the point matching to Loc 1 Blank No application

Value X validates against ticketed points only or ticketed and unticketed points depending on the value in Ticketed Point Tag (byte 81). Stopover points, by definition, are ticketed points. Ticketed Point Tag (bytes 81) has no impact when validating value Y. Refer to Section 2.1 for stopover definition.

As an example of the use of the wording “different city”:

Full itinerary: IAD – LHR – X/AMS - CDG – LGW - IAD

Loc 1 = CDG Loc 2 = LGW Previous stop to Loc 1 = LHR

If Loc 2 Comparison is coded with value X, processing matches the record. LGW (Loc 2) and AMS are in different cities If Loc 2 Comparison is coded with value Y, processing no matches the record. LGW (Loc 2) and LHR are in the same city (LON) If Loc 2 Comparison is coded with value blank, processing matches the record as there is no restriction on the Loc 2 Comparison.

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For a further example of application, Singapore Tax SG exempts: “Transit/Transfer passengers scheduled to depart within 24 hours of arrival for a destination other than the last place of embarkation.”

In this case:

Loc 1 = SIN Loc 1 Stopover Tag = C Loc 2 Comparison = X Stopover Time Tag and Unit = 024H (the default, so these fields would actually be blank) Exempt Tag = X

Given this itinerary: FRA – X/LON – (CHI*) – SFO – LON – FRA *where CHI is an unticketed point and assumed to be a connection, the following data produces a match or no-match as shown:

Tag Point Tag Tktd Point Tag Loc 1 Loc 2 Comparison Loc 2 Prior/Subsequent Outcome (Byte 11) (Byte 81) (Bytes 159-167) (Byte 169) (Bytes 171-179) Point to Loc 1 D Blank LON Outbound X SFO FRA Match D Blank LON Inbound X FRA SFO Match A Blank LON Outbound X FRA SFO Match A Blank LON Inbound X SFO FRA Match D Blank LON Outbound Y SFO FRA Match D Blank SFO Y LON FRA Match D Blank LON Inbound Y FRA SFO Match A Blank LON Outbound Y FRA SFO Match A Blank SFO Y FRA LON Match A Blank LON Inbound Y SFO FRA Match D U LON Outbound X CHI FRA Match D U CHI X SFO LON Match D U SFO X CHI LON Match D U LON Inbound X FRA SFO Match A U LON Outbound X FRA CHI Match A U CHI X LON SFO Match A U SFO X LON CHI Match A U LON Inbound X SFO FRA Match D U LON Outbound Y SFO FRA Match

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Tag Point Tag Tktd Point Tag Loc 1 Loc 2 Comparison Loc 2 Prior/Subsequent Outcome (Byte 11) (Byte 81) (Bytes 159-167) (Byte 169) (Bytes 171-179) Point to Loc 1 D U CHI Y SFO FRA Match D U SFO Y LON FRA Match D U LON Inbound Y FRA SFO Match A U LON Outbound Y FRA SFO Match A U CHI Y FRA SFO Match A U SFO Y FRA LON Match A U LON Inbound Y SFO FRA Match D Blank FRA X Any None No Match D Blank SFO X LON LON No Match A Blank SFO X LON LON No Match A Blank FRA X Any None No Match D Blank FRA Y Any None No Match A Blank FRA Y Any None No Match D U FRA X Any None No Match A U FRA X Any None No Match D U FRA Y Any None No Match A U FRA Y Any None No Match

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Tax Point Geo Spec – Loc 2 Stopover Tag (byte 170)

This field specifies whether the point matching to Loc 2 must be the first point, first stopover point, the first fare or fee break point, or the furthest point in the fare component or fee component – before or after the point matching to Loc 1.

Valid values are:

If Tax Point Tag (byte 11) = D The point matching to Loc 2 must be the first stopover point after the point matching to Loc 1 S If Tax Point Tag (byte 11) = A The point matching to Loc 2 must be the first stopover point before the point matching to Loc 1 If Tax Point Tag (byte 11) = D The point matching to Loc 2 must be the first fare/fee/tax break point after the point matching to Loc 1 F If Tax Point Tag (byte 11) = A The point matching to Loc 2 must be the first fare/fee/tax break point before the point matching to Loc 1 If Tax Point Tag (byte 11) = D The point matching to Loc 2 must be the furthest point in the fare/fee/tax component (measured using TPM) after the point matching to Loc 1 T If Tax Point Tag (byte 11) = A The point matching to Loc 2 must be the furthest point in the fare/fee/tax component (measured using TPM) before the point matching to Loc 1 The point matching to Loc 2 must be the first If Tax Point Tag (byte 11) = D If Tax Point Geo Spec – Loc 3 point after the point matching to Loc 1 Type (byte 180) ≠ N The point matching to Loc 2 must be the first Blank If Tax Point Tag (byte 11) = A point before the point matching to Loc 1 If Tax Point Geo Spec – Loc 3 No application Type (byte 180) = N

Validation of this field is against ticketed points only or ticketed and unticketed points depending on the value in Ticketed Point Tag (byte 81). Refer to the definition of Stopover in Section 2.1 and to “Determination of ‘the point matching to Tax Point Loc 2’” .

Examples of the use of this field are as follows:

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Itinerary: WAS – X/LON – PAR – FRA 1000.00 X/LON – WAS

Tax Points determined in pre-processing:

Departure tax points: WAS, LON, PAR, FRA, LON Arrival tax points: LON, PAR, FRA, LON, WAS

Loc 1 (Tax Loc 2 Stopover Itinerary Point Attempting to Match Loc 2 Itinerary Point Attempting to Point) Tag Value Tax Point Tag = D Match Loc 2 Tax Point Tag = A WAS S PAR N/A F FRA T FRA

Blank LON LON S PAR WAS F FRA WAS T WAS WAS

Blank PAR WAS

PAR S FRA WAS F FRA WAS T WAS WAS

Blank FRA LON FRA S WAS PAR F WAS WAS T WAS WAS

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Loc 1 (Tax Loc 2 Stopover Itinerary Point Attempting to Match Loc 2 Itinerary Point Attempting to Point) Tag Value Tax Point Tag = D Match Loc 2 Tax Point Tag = A Blank LON PAR LON S WAS FRA F WAS FRA T WAS WAS

Blank WAS FRA WAS S N/A FRA F FRA T FRA

Blank LON

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Tax Point Geo Spec – Loc 2 (bytes 171-179) This field defines the required geography, if any, of the point matching to Loc 2. If this field is blank there is no restriction to the location of the point matching to Tax Point Loc 2. Refer to “Determination of ‘the point matching to Tax Point Loc 2’” .

Example 1: Itinerary is GDL  X/MEX  LAX

Sequence Tax Point Tag Loc 1 Loc 1 Stopover Tag Loc 2 Loc 2 Stopover Tag Outcome Byte 11 Bytes 159-167 Byte 158 Bytes 171-179 Byte 170 No match because the first stopover 1 D N MX S N MX S subsequent to GDL (LAX) is not there is no stopover in Mexico 2 D N MX S blank S Match (the point matching to Loc 2 is LAX)

Example 2: Itinerary is GDL  MEX  LAX

Sequence Tax Point Tag Loc 1 Loc 1 Stopover Tag Loc 2 Loc 2 Stopover Tag Outcome Byte 11 Byte 159-167 Byte 158 Bytes 171-179 Byte 170 1 D N MX S N MX S Match (the point matching to Loc 2 is MEX) 2 D N MX S blank S Match (the point matching to Loc 2 s MEX)

Processing of a match to a taxable unit which involves a service on part of the itinerary is more complex. The following examples demonstrate this process:

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Example 3: itinerary is IAD  X/NRT  BJS  SIN YQ charged on IAD  NRT

Taxable Unit Tax Point Tag Loc 1 Loc 1 Loc 2 Loc 2 Outcome YQ/YR Stopover Tag Stopover Tag Byte 24 Byte 11 Bytes 159-167 Byte 158 Bytes 171-179 Byte 170 X D IAD S NRT S Match (NRT is considered a stopover because it is the service destination point.)

Example 4: itinerary is IAD  X/NRT  BJS  SIN YQ charged on NRT  BJS

Taxable Unit Tax Point Tag Loc 1 Loc 1 Loc 2 Loc 1 Outcome YQ/YR Stopover Stopover Tag Tag Byte 24 Byte 11 Bytes 159-167 Byte 158 Bytes 171-179 Byte 170 X A BJS S NRT S Match (NRT is considered a stopover because it is the service destination point.)

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Tax Point Geo Spec – Loc 3 Type (byte 180) This field indicates the type of match location required by Loc 3 (bytes (181-189).

Valid values for this field are:

If Tax Point Tag (byte 11) = D Loc 3 must match to the first stopover point subsequent to the point matching to N Loc 1 If Tax Point Tag (byte 11) = A Loc 3 must match to the first stopover point prior to the point matching to Loc 1 If Tax Point Tag (byte 11) = D Loc 3 must match to the first point prior to the point matching to Loc 1 P If Tax Point Tag (byte 11) = A Loc 3 must match to the first point subsequent to the point matching to Loc 1 Blank No application

Value P validates against ticketed points only or ticketed and unticketed points depending on the value in Ticketed Point Tag (byte 81). Stopover points by definition are ticketed points, so Ticketed Point Tag (byte 81) has no impact when validating value N.

When Loc 2 Stop Tag (byte 170) is value S, the Loc 3 Type must not be value N. This is because such data would introduce conflicts, as both Loc 2 and Loc 3 would mean next stop.

When Loc 3 type is value P, processing must match requirements of Loc 3 (bytes 181-189) as well as the Loc 1 Adjacent International/Domestic (byte 156). For example, for the following itinerary:

WAS – TYO – BJS – SIN

Loc 1 (for this purpose) = TYO (departure) Loc 1 Adjacent International/Domestic = I Loc 3 Type = P Loc 3 coded in the Record X1 = JP (conflicting information)

Processing can never match to this record for a TYO departure because the prior point must be both international (not JP) and JP.

Loc 1 (for this purpose) = TYO (departure) Loc 1 Adjacent International/Domestic = D Loc 3 Type = P

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Loc 3 coded in the Record X1 = JP (conflicting information)

Processing no matches the record because the prior point is not domestic, and is not in JP.

Loc 1 (for this purpose) = TYO (departure) Loc 1 Adjacent International/Domestic = D Loc 3 Type = P Loc 3 coded in the Record X1 = US (conflicting information)

Processing can never match to this record because the prior point must be both domestic (JP) and US.

Loc 1 (for this purpose) = TYO (departure) Loc 1 Adjacent International/Domestic = I Loc 3 Type = P Loc 3 coded in the Record X1 = US

Processing matches the record because the prior point is both international and in the US

Loc 1 (for this purpose) = TYO (departure) Loc 1 Adjacent International/Domestic = blank Loc 3 Type = P Loc 3 coded in the Record X1 = US

Processing matches the record because the prior point is in the US and there is no adjacent point requirement.

Loc 1 (for this purpose) = TYO (departure) Loc 1 Adjacent International/Domestic = I Loc 3 Type = P Loc 3 coded in the Record X1 = blank (conflicting information)

Processing matches the record because the prior point is international and there is no specific prior point requirement.

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Tax Point Geo Spec – Loc 3 (bytes 181-189) This is a match field which specifies either the previous/next stop geography, or the prior/subsequent point, which must match to:

(1) for a departure tax, the next stopover or prior point from the point matching to Loc 1 (2) for an arrival tax, the previous stopover or subsequent point to the point matching to Loc 1

Refer to the definitions of Stopover and Connection in Section 2.1.

Some examples of matching to Loc 3 when using the Loc 3 Type “N” (next stop) are as follows:

FRA – X/ROM – JNB

When taxing a departure tax point FRA:

Tax Point Tag = D and Loc 2 Stop Tag = blank Loc 1 = FRA Loc 2 = ROM Loc 3 = JNB (next stop after FRA) Loc 3 Type = N

If Loc 2 Stop Tag = S

Loc 1 = FRA Loc 2 = JNB Loc 3 = blank (always match) When taxing an arrival tax point JNB:

Tax Point Tag = A and Loc 2 Stop Tag = blank Loc 1 = JNB Loc 2 = ROM Loc 3 = LON Loc 3 Type = N

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If Loc 2 Stop Tag = S

Loc 1 = JNB Loc 2 = LON Loc 3 = blank (always match)

An example of the use of this data is the coding of US taxes, which require exemptions for uninterrupted international travel. This means that the point matching to Loc 1 may be in the US, the point matching to Loc 2 may be in the US, but as long as the next stop after the point matching to Loc 1 is outside the US and the 225-mile buffer zone, the domestic tax cannot be charged. Loc 3 would be used to code “all except Nation US and the 225 mile buffer zone” and a positive tax value would be coded. Alternatively, Loc 3 would be used to code “Nation US and the 225 mile buffer zone” and the exempt tag would be set.

If the Loc 2 Stopover Tag (byte 170) is set to S (stopover), then Loc 3 must be set to blank.

The geographic location may be defined as an Area, Zone, Country, State, City, Airport, or via use of User Zone Table No. 178 which permits the specification of multiple locations to create a user defined zone.

When Loc 3 is value blank, there are no requirements on the next stop, or the next stop has already been coded in Loc 2.

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For the following itinerary: MOW – X/STO – AMS – X/LON – (REK*) – NYC

* Where REK is an unticketed point assumed to be a connection

Tax Point Tag Ticketed Point Tag Loc 1 Loc 3 Type Value Geography Matching to Loc 3 Byte 11 Byte 81 Bytes 159-167 Byte 181 D Blank MOW N AMS D Blank STO N AMS D Blank AMS N NYC D Blank LON N NYC D Blank REK N No Match A Blank NYC N AMS A Blank REK N No Match A Blank LON N AMS A Blank AMS N MOW A Blank STO N MOW D Blank MOW P No Match D Blank STO P MOW D Blank AMS P STO D Blank LON P AMS D Blank REK P No Match A Blank NYC P No Match A Blank REK P No Match A Blank LON P NYC A Blank AMS P LON A Blank STO P AMS D U MOW N AMS D U STO N AMS D U AMS N NYC D U LON N NYC D U REK N NYC A U NYC N AMS A U REK N AMS A U LON N AMS A U AMS N MOW

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Tax Point Tag Ticketed Point Tag Loc 1 Loc 3 Type Value Geography Matching to Loc 3 Byte 11 Byte 81 Bytes 159-167 Byte 181 A U STO N MOW D U MOW P No Match D U STO P MOW D U AMS P STO D U LON P AMS D U REK P LON A U NYC P No Match A U REK P NYC A U LON P REK A U AMS P LON A U STO P AMS

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The following are examples of the use of via points which must match when Loc 3 Type = N.

Itinerary: MOW – X/STO – AMS – X/RTM - X/LON – (REK*) – NYC *where REK is an unticketed point assumed to be a connection