NOTICE TO INTERLINE PARTNERS

Regarding U.S. Trade Restrictions

December 2004

As you may know, the United States government has in place a variety of trade-related limitations and requirements applicable to importers, exporters, trade facilitators and other persons subject to U.S. jurisdiction, including U.S. air carriers such as Polar Air Cargo. We request your cooperation with our compliance efforts.

The Office of Foreign Assets Control (“OFAC”), U.S. Department of Treasury, administers a series of laws and regulations that impose economic sanctions against certain countries and their nationals. A current list of those countries on the "OFAC" sanctions list may be found on the OFAC website at: http://www.treas.gov/offices/enforcement/ofac/sanctions/.

OFAC’s efforts are supported by other U.S. government agencies, including the U.S. Department of Transportation. As a U.S. air certificated air carrier, Polar Air Cargo is required to abide by these restrictions and is subject to its own potential fines and sanctions for non-compliance.

To satisfy its obligations, Polar refuses to accept interline shipments to, from or through the countries listed below, ¹ regardless of whether or not the freight originates in or is destined for the United States:
The Balkans
Libya
Burma (Myanmar)
North Korea
Cuba
Sudan
Iran
Syria
Lebanon²
Zimbabwe

Other restrictions may be applicable to shipments to and from countries not on the aforementioned list, and you have certain compliance obligations. OFAC prohibits transactions with named blocked persons, narcotics traffickers, terrorists and promoters of the proliferation of weapons of mass destruction. It is your responsibility not to tender shipments involving such individuals or entities. You may obtain updated lists of these Specifically Designated Nationals and Blocked Persons from the OFAC website at http://www.treas.gov/offices/eotffc/ofac/sdn/index.html.

Additional U.S. government agencies, including the Commerce Department’s Bureau of Industry and Security (“BIS”), administer export control programs of which you should be aware. Pertinent information may be found on the BIS website at: http://www.bis.doc.gov and http://www.bis.doc.gov/about/reslinks.html.

¹ While OFAC has liberalized Iraq restrictions and we thus have removed Iraq from our embargo list, OFAC continues to restrict two limited categories of shipments to Iraq:

(1) certain types of technology controlled by Department of Commerce Export Administration regulations; shipment of those needs to be specifically authorized in advance by OFAC as well as the Department of Commerce; and

(2) shipments to individuals on OFAC's Specifically Designated Nationals list.

² The embargo applicable to Lebanon is covered by separate US DOT order and only applies to Lebanese exports. The embargo does not apply to imports into Lebanon or shipments transiting this country.

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