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Pricing Schedule with reference to ISPA Attachment A

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Created by Tzung-hsing W (China Airlines) on 2011-09-06 04:20:47 Back to Topics

Pricing Schedule with reference to ISPA Attachment A

1. Could you please give an example to illustrate how much and when an existing ICH member Participant fully migrated on APR2012 need to pay for migration surcharge? Will the number of invoices before IS be used to determine the charging band?
2. Are the transaction fees only applicable to the billing entity only or also the billed one?
Replied by Ashley H on 2011-09-07 14:33:12

Dear Tzung-hsing,

 

Please find the answers to your questions as follows:

 

1. Could you please give an example to illustrate how much and when an existing ICH member Participant fully migrated on APR2012 need to pay for migration surcharge? Will the number of invoices before IS be used to determine the charging band?

The 2012 fees have not been set yet – these can only be set closer to the time based on better estimates of throughput at the time. Please keep in mind that SIS is a cost-recovery service so we have to try and set the prices as close as possible to the amount needed to recover the operating costs of the service. The invoice count to be used for a given year or quarter will always be the count from the prior year or quarter.

 

2. Are the transaction fees only applicable to the billing entity only or also the billed one?

The transactions fees are applicable to the billing entity only, except in the case of Additional Services, such as Digital Signatures or archiving, that may be selected by the billed entity.

 

Rgds,

Ashley

Replied by Tzung-hsing W (China Airlines) on 2011-09-08 03:30:06
Dear Ashley,
 
I fully understand that SIS is a cost-recovery service but I need a best estimate for expense budgeting.
 
Let me put my question in a more specific manner.
Say an IS participant start to use IS service in DEC2011 and the number of invoices the participant submitted annually to ICH is 8,000, when will the participant receive billing from ICH for migration surcharge of the one-month use of IS in year 2011? How much will the migration surcharge be for the one-month usage?  Will it be USD9,000 or USD750(=USD9,000/12*1)?
 
Best regards,
 
tzung-hsing

From:
Posted: Wednesday, September 07, 2011 2:33 PM
Subject: Pricing Schedule with reference to ISPA Attachment A

Dear Tzung-hsing,

 

Please find the answers to your questions as follows:

 

1. Could you please give an example to illustrate how much and when an existing ICH member Participant fully migrated on APR2012 need to pay for migration surcharge? Will the number of invoices before IS be used to determine the charging band?

The 2012 fees have not been set yet – these can only be set closer to the time based on better estimates of throughput at the time. Please keep in mind that SIS is a cost-recovery service so we have to try and set the prices as close as possible to the amount needed to recover the operating costs of the service. The invoice count to be used for a given year or quarter will always be the count from the prior year or quarter.

 

2. Are the transaction fees only applicable to the billing entity only or also the billed one?

The transactions fees are applicable to the billing entity only, except in the case of Additional Services, such as Digital Signatures or archiving, that may be selected by the billed entity.

 

Rgds,

Ashley

Replied by Ashley H on 2011-09-08 14:24:03

Hi Tzung-hsing,

It’s neither. Assume that the annual charge for 2011 is USD10000. SIS goes live on 8 October, which is when the operating costs are charged to, and recoverable from, the industry. All ICH members will therefore be surcharged for the period Oct-Dec, at 25% (3/12) of their applicable annual rate. So it would be USD2500 on 1 October, even if you started using SIS from 1 December.

Hope that clarifies.

Best regards

Replied by Tzung-hsing W (China Airlines) on 2011-09-08 20:41:34
Dear Ashley,
 
Yes, your reply helps to some extent, but I still have one question.
 
Is the migration surcharge of 2011 will be applicable to all ICH members, even to an ICH member not signing ISPA by end of 2011?
tzung-hsing

From:
Posted: Thursday, September 08, 2011 2:53 PM
Subject: Pricing Schedule with reference to ISPA Attachment A

Hi Tzung-hsing,

It’s neither. Assume that the annual charge for 2011 is USD10000. SIS goes live on 8 October, which is when the operating costs are charged to, and recoverable from, the industry. All ICH members will therefore be surcharged for the period Oct-Dec, at 25% (3/12) of their applicable annual rate. So it would be USD2500 on 1 October, even if you started using SIS from 1 December.

Hope that clarifies.

Best regards

Replied by Ashley H on 2011-09-19 10:12:02

Dear Tzung-Hsing,

 

Yes – that is correct. The migration surcharge will apply to all ICH Members, whether or not they have signed the ISPA.

 

Rgds,

Ashley

Replied by Tzung-hsing W (China Airlines) on 2011-09-19 23:11:40
Dear Ashley,
 
I doubt most of ICH members not planning to sign ISPA by end of 2011 are aware of this potential charges.  May I suggest ICH communicate this to members as soon as possible to avoid complaints.
 
Best regards,
 
tzung-hsing
Replied by Ashley H on 2011-09-21 13:48:21

Dear Tzung-Hsing,

 

I believe this has already been made known to ICH members via the ICH channels of communication.

 

Best regards

 

Replied by Tzung-hsing W (China Airlines) on 2011-09-29 20:54:36
Glad to see the release of ICH Circular No 072/11 addressing this issue officially to all ICH users on 29SEP2011.
 
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