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Smarter Regulation

IATA’s smarter regulation initiative seeks to promote partnerships with governments that result in regulation that delivers clearly defined, measurable policy objectives in the least burdensome way.

Definition Statement

Smart regulation delivers clearly defined, measurable policy objectives in the least burdensome way. It is achieved through a transparent, objective, and consultative process.
 
Recognizing the existence of excessive red tape, many governments have launched smarter regulation or better regulation initiatives with a view to cutting unnecessary burdens on consumers and businesses.
 
IATA supports these programs, and has defined its own methodology which incorporates best practices from them. We aim to work with governments to actively apply these smarter regulation principles and therefore reduce avoidable interference in the commercial and operational activities of airlines. 
 
IATA’s smarter regulation initiative seeks to promote partnerships with governments that result in regulation that delivers clearly defined, measurable policy objectives in the least burdensome way. 

Policy Design Principles

  • Consistency and coherence – Regulations should be consistent with existing (and planned) rules and practices that are applicable to regulated activities so that there are no overlaps and contradictions (nationally or internationally). They should also be predictable and applied with clear oversight responsibility and without discrimination against those being regulated. 
  • Proportionality – Regulations should be used only when their necessity is demonstrated and should be proportionate to the problems identified so that the costs of compliance are minimized by pursuing the most cost-effective solution. 
  • Targeted at risk – Regulations should have specific and well-defined objectives that respond directly to the problems identified. Whenever appropriate, flexibility should be given to those being regulated to meet defined objectives.
  • Fair and non-distortive – Regulations should be applied fairly and not create discriminatory burdens on any groups in particular.
  • Clarity and certainty – Audiences subject to regulatory compliance need to clearly know the regulations that will apply, what is expected of them, and have sufficient time to be able to comply with new requirements.

 Process Principles

  • Defining a clear need - The objective of the regulation should be identified based on sound evidence and available alternatives must be considered to select the most appropriate solution.
  • Impact assessment - There should be an assessment of the impacts from the regulation.
  • Transparency - The drafting of the regulation should involve those who are potentially affected;  the decision making process should be transparent and objective.
  • Reducing burdens and  regular reviews - The process of developing the regulation should focus on reducing the compliance burden and allow for regular and systematic review (and subsequent modification, if needed) to ensure that the regulation is still appropriate.
  • Opportunity to respond and revise - There should be clear procedures to respond to adjudications and appeals and to revise the regulation if necessary.
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