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Frequently Asked Questions

View ATAS FAQs - PDF

This document addresses the following topics and seeks to help answer questions you may have about changes to the travel industry and the introduction of the new AFTA Travel Accreditation Scheme (ATAS) – what it is, how it benefits you, when it’s available and how to apply.

  • The changing regulatory environment
  • ATAS accreditation scheme
  • ATAS participation criteria
  • Insurance protection for my business and customers
  • ATAS participant benefits

The changing regulatory environment

1. I've heard that changes are being made to travel agents' regulation. What are they?

On 7 December 2012, a majority of state and territory Ministers for Consumer Affairs approved a Travel Industry Transition Plan ('Transition Plan') setting out reforms to travel agents' regulation and the Travel Compensation Fund (TCF).

These reforms will take effect in four phases:

  • Phase 1: From 1 July 2013, travel agents were not required to lodge Annual Financial Returns to the TCF (not applicable to Northern Territory travel agents as they are not TCF participants).
  • Phase 2: Repeal of travel agents' legislation is scheduled for 30 June 2014.
  • Phase 3: Introduction of ATAS – a new voluntary industry accreditation scheme from 1 July 2014, with registration commencing in April 2014.
  • Phase 4: Closure of the TCF by mid to late-2015 and final payments of any consumer claims by 30 June 2015.


2. What is the background to the travel industry reform?

The current regulatory framework for travel agents was introduced in 1986. Since then, the rapid rise of new and online business models, coupled with technological advancements and a growth in direct bookings, has gradually reduced the relevance and effectiveness of the existing system. The changing market place has also disadvantaged local travel businesses, which must compete with offshore providers operating outside the regulatory framework.

The Transition Plan recommends a regulatory approach which complements industry efforts to promote confidence and quality, and maintains  appropriate levels of consumer protection and provides a level playing field to Australian travel intermediaries.


3. I'm a travel agent. How do these changes affect me?

From 1 July 2013, travel agents were not required to lodge Annual Financial Returns to the Travel Compensation Fund (TCF). This change only relates to the TCF's auditing requirements and does not affect agents' financial  auditing obligations under any other legislation or industry accreditation, which will continue unchanged until 30 June 2014.

Further, all other licensing, TCF participation and compliance requirements will continue to apply until 30 June 2014.

The second major change is scheduled to occur on 1 July 2014, with the removal of the requirement to hold a licence in order to operate as a travel agent. From this date, it is likely that licensing authorities will no longer require existing, authorised travel agents to renew their licences or accept any new licence applications. The requirement to be a participant in the TCF will also cease from this date.

At all times, regardless of location, travel agents must continue to comply with the Australian Consumer Law when supplying travel or travel-related services to consumers.


4. Will I still require a travel agents licence?

No, from July 1 2014, a travel agent licence will not be required to operate a travel agency.


5. How do these changes benefit me?

The Transition Plan recommended that a grant funded out of Travel Compensation Fund reserves be made to the Australian Federation of Travel Agents to assist with the development of a new industry accreditation scheme known as the AFTA Travel Accreditation Scheme (ATAS). This ensured that a proportion of funds originally received from agents are channelled back into the industry for participants' benefit. ATAS sets a new benchmark of standard for the travel industry. Consumers will recognise ATAS – accredited agents as highly credible and professional.


6. What is expected of me until the changes come into effect?

Travel agents will need to maintain their Travel Compensation Fund (TCF) membership and licence until 30 June 2014, subject to any changes of which they are advised.

It is anticipated that from 1 July 2014, travel agents will be able to trade without needing to be members of the TCF or hold a licence.

At all times, when supplying travel or travel-related services to consumers, agents are reminded that they must comply with their obligations under the Australian Consumer Law (ACL).

The Australian Competition and Consumer Commission have also developed a free online education program to help small businesses learn about their rights and obligations under the Competition and Consumer Act 2010, which includes the ACL.


7. If the Government removes licensing what is to stop unprofessional and unethical operators?

Although anyone wishing to operate as a travel agent will not be required to hold a licence from 1 July 2014, it will not be that easy to just 'open up shop'.

The travel industry imposes restrictions on who can arrange travel products such as air and cruise tickets, accommodation and tour packages. The travel supplier needs to be assured that the agent will conduct business ethically and honestly.

Travel agents may require a particular ‘tick of approval' or other accreditation from an organisation that may set standards for the travel industry.

Other requirements include reputation, experience and educational qualifications.


8. I'm thinking of becoming a travel agent. When is a good time to start?

If you are considering trading as a travel agent before 1 July 2014, please seek independent legal and commercial advice about the best time to enter the industry.

Unless and until you are advised otherwise, do not assume that you will receive a refund of any fees that you may have to pay before existing regulation is phased out.

Please contact your local state or territory licensing authority for information about your licensing obligations. Contact the TCF if you have any queries about the TCF's requirements.


9. What happens if any funds are left over when the Travel Compensation Fund (TCF) closes?

The TCF Trust Deed requires any funds remaining after the TCF closes to be redistributed to all Australian governments except the Northern Territory, which does not participate in the Fund. No portion of the TCF funds will be redistributed to agents; however the Transition Plan approved a range of other uses before the Fund closes. These are to:

  • develop educational and informative material about the national travel agent reforms for businesses and consumers
  • fund the development of a voluntary industry accreditation scheme for travel agents
  • fund consumer research and advocacy initiatives
  • settle any final compensation claims and, if necessary, coverthe cost of any legal action against a travel agent relating to  these claims.


10. How does this change affect consumers?

From 1 July 2014, AFTA will undertake a marketing campaign to educate consumers about its new accreditation scheme – ATAS, what it means and how it will benefit them.

ATAS and the accredited agents it represents will be promoted as highly credible and professional. ATAS will become a symbol of integrity that consumers proactively look for when booking their travel.

It should be noted that between 1 July 2014 and 30 June 2015, consumers will continue to be able to make a claim under the Travel Compensation Fund relating to the 2013/14 financial year.



ATAS accreditation scheme

11. What is the new ATAS accreditation scheme for Travel Intermediaries?

The peak industry body for travel agents, the Australian Federation of Travel Agents (AFTA), has developed a new voluntary accreditation scheme known as the AFTA Travel Accreditation Scheme, or ATAS, for travel intermediaries.

An intermediary includes a travel agent, travel management company, aggregator, distributor, online travel agent, inbound tour operator,  wholesaler and consolidator.

Applications for ATAS accreditation will be accepted by AFTA from mid April 2014, with the scheme officially commencing on 1 July, 2014. To become an ATAS-accredited agent, applicants must be found to comply with a range of criteria. Accredited agents will be assigned an ATAS participant number and
be given access to the ATAS brand – a mark of quality and professionalism.

Travel agents with ATAS accreditation can choose to take out a range of optional insurance products that protects both their business and their customers if an end supplier or travel agent becomes insolvent and cannot deliver on the service paid by the customer. See 'Insurance protection for my business and customers'.


12. Who can become ATAS participants?

To be eligible to apply for ATAS accreditation, you must meet the ATAS definition of a 'Travel Intermediary'.

A 'travel intermediary' is an entity, domiciled, registered or incorporated in Australia, who sells a travel product on behalf of a travel supplier. This includes, but is not limited to, a travel agent, Travel Management Company, aggregator, distributor, online travel agent, inbound tour operator, wholesaler and a consolidator.

An 'entity' is a sole trader, partnership, trust or company (proprietary limited or limited). An ‘entity' does not include independent contractors, sub-agents, branch offices, or persons employed by an entity.


13. Why should my business be ATAS accredited?

An ATAS- accredited agent is a symbol of quality. From 1 July 2014, AFTA will undertake a marketing campaign to educate consumers about ATAS –accredited agents who operate trusted, professional and ethical businesses. When planning a holiday, a consumer will actively seek ATAS – accredited agents over non-accredited agents.


14. What are the ATAS participant benefits?

Become an ATAS participant and receive the following benefits:

National Accreditation

Join ATAS and receive national industry accreditation backed by AFTA. Be recognised as a credible, professional business and offer your clients peace of mind.

Participants are required to annually meet the compliance benchmarks to uphold their accreditation. In return, they receive the right to use the ATAS logo – a mark of industry quality.

ATAS Accreditation Certificate

ATAS participants receive an ATAS Certificate of Accreditation and number to acknowledge successful compliance with the accreditation scheme. This includes a digital signature emblem for use on websites, emails and other electronic communications with consumers.

Business Training Support

ATAS participants have direct access to a range of online training tools and business templates to equip participants with quick, easy to use references throughout the year. Information and assistance regarding the minimum levels of training and certification required for employees within the tourism and travel industry are available to participants.

National Consumer Campaign

Ongoing commitment to increase consumer awareness of the ATAS scheme and benefits of booking through an ATAS accredited travel agent via a national, multi-channel campaign.

Industry Support

As an ATAS participant, keep you informed of all relevant updates and changes to the Australian Consumer Law which is a key plank of the ATAS scheme.

Business Protection

ATAS participants have access to a range of optional insolvency insurance products to protect your business and offer assurance to your clients both leading into and during travel bookings.


15. How do I apply?

We've made it easy for you. Simply, register to become an ATAS participant and complete our easy step-by-step process online. Applications open early May 2014.


16. What's involved in the application process?

The application process to become an ATAS participant and hold ATAS Accreditation, involves completing an online application which will vet your business against 8 benchmark criteria. Measures include business compliance, commercial safeguards, workforce development, dispute resolution and complaints handling processes. Once you have satisfied the selection criteria, an annual fee will apply.

ATAS Application Guideline


17. Is accreditation mandatory?

It is not compulsory for travel agents to be accredited. In addition to ATAS accreditation, travel agents can be accredited by a number of other organisations within their industry, such as the International Air Transport Association (IATA) or the Cruise Lines International Association of Australasia (CLIA).

In some instances, an agent may also be approved under the National Tourism Accreditation Framework (NTAF). Such agents are authorised to display a T-QUAL symbol.

However in some instances, only an accredited agent will be able to provide particular services, such as issuing air tickets.

Contact the relevant organisations for more information about these accreditation schemes.


18. Why is ATAS not mandatory?

The Australian Government's Travel Industry Transition Plan 2012 calls for a voluntary industry-led accreditation scheme.


19. What are the categories and fees associated with ATAS participation?

ATAS participation is subject to an annual subscription fee and based on an entity's 'Total Transaction Value' or TTV, as category levels indicated below.

However for the first-year rollout (period between 1 July 2014 – 30 June 2015) of the ATAS scheme, no participation fee will be charged to those participants who apply during this period who were previously TCF participants. A two year minimum participation agreement will be applicable for those participants joining within the first year.

ATAS Participant Fees for AFTA Members

 OneTwo Three Four Five Six Seven
 <$1m$1m - $2.5m$2.5m - $5m $5m - 10m $10m - $100m $100m - $250m > $250m
 $475$525 $650 $750 $950 $5,000 By negotiation


ATAS Participant Fees for Non-AFTA members

 ONETWO
THREE
FOUR
FIVE
SIX
SEVEN
 $1,350.00 
$1,400.00 
$1,550.00 
$1,670.00 
$1,900.00 
$20,000 
By negotiation 

  • Annual fees in AUD excluding GST and are payable from 1 July 2015

  • Start-up businesses will pay the applicable Participant Fee upon becoming accredited.


20. What is the difference between AFTA membership and ATAS participation?

AFTA has been representing the travel and tourism industry for
over 60 years.

AFTA membership provides members with representation when addressing policy issues at both state and federal government levels and other regulatory bodies.

Alongside industry representation, AFTA membership offers a range of business support tools for Marketing, Financial, Legal and Education & Training.

AFTA is charged with hosting the National Travel Industry Awards annual Gala event to acknowledge and reward those who demonstrate excellence within the travel and tourism industry.

ATAS accreditation will offer participants a nationally recognised industry accreditation backed by AFTA. The scheme will provide participants with an Accreditation Certificate, business training support, and on-going commitment to a national consumer campaign, industry support and exclusive access to a range of insolvency insurance products for business protection.



ATAS participation criteria

21. Who can become ATAS participants?

To be eligible to apply for ATAS accreditation, you must meet the ATAS definition of a 'travel intermediary'.

A 'travel intermediary' is an entity, domiciled, registered or incorporated in Australia, who sells a travel product on behalf of a travel supplier. This includes, but is not limited to, a travel agent, Travel Management Company, aggregator, distributor, online travel agent, inbound tour operator, wholesaler and a consolidator.

An 'entity' is a sole trader, partnership, trust or company (proprietary limited or limited). An ‘entity' does not include independent contractors, sub-agents, branch offices, or persons employed by an entity.


22. What are the eligibility criteria for ATAS participation?

ATAS participant applications will be vetted against 8 selection criteria including business compliance, commercial safeguards, workforce development, dispute resolution and complaints handling processes. The 8 selection criteria are outlined below.

1. Eligible Business Entity
To be eligible to apply for ATAS accreditation, you must meet the ATAS definition of a ‘travel intermediary', as outlined above.

2. Abide by the ATAS Code of Conduct
The Code of Conduct will outline the minimum standards of good practice for travel intermediaries to follow and offer a consistent approach to all participants.

3. Consumer Protection and Engagement
ATAS participants will need to ensure they are fulfilling a complete duty of care for their clients by adhering to the below:

  • Comply with Australian Consumer Law with respect to the way they carry out their business
  • Ensure that all marketing and advertising material complies with Australian Consumer Law
  • Deed Poll will need to be signed by the travel intermediary

4. Business Compliance
ATAS participants will be required to provide evidence that they are a fit and proper entity with the following documentation upon first-time application and annual renewal applications.

  • Australian Business Number (ABN)
  • Provide financial information to ATAS
  • Provide a declaration of solvency

5. Commercial Safeguards
Insurance provides customers with greater confidence in the travel intermediary, and the travel intermediary with a level of protection and minimising risk exposure.

ATAS participants are required to hold both Public Liability and Professional Indemnity Insurance as a commercial safeguard. A copy of the insurance policy and expiration date will be required as part of the application documentation.

AFTA has appointed Gow-Gates to bring to market a range of optional insolvency insurance protection solutions for ATAS members. The insurance products include the following:

  • Scheduled Airline Failure Insurance (SAFI)
  • End Supplier Failure Insurance (ESFI)
  • Travel Agent and Intermediary Failure Insurance (TAIFI)

These insurance solvency products are not mandatory for ATAS participation, but would be advisable for complete business protection.

For more information on insurance contact:
Gow-Gates Insurance Brokers
Rebecca Fleming
Manager – Special Projects
02 8267 9919
rfleming@gowgates.com.au

6. Workforce Development
Adequately skilled employees are important to assist in providing a quality service to customers. Travel consultants that hold qualifications can provide customers with greater confidence in the travel agent.

ATAS participants are required to have 20% of client facing qualified with a Certificate III in Travel or equivalent. Client facing staff includes those employees that are directly selling travel bookings to consumers.

7. Complaints Handling and Dispute Resolution
In order to provide a level of comfort to customers to ensure any problems are addressed appropriately, participants are required to have an internal process for handling disputes and complaints by customers, which is free and accessible.

8. Participation Fee
An annual fee is payable to ATAS for the accreditation scheme. For those participants joining in the first year who are AFTA members OR previous TCF members, there will be no participation fee applicable for the first year. A 2-year committment is required.


23. What financial information is required for ATAS participation?

To ensure ATAS participants are operating in a sound financial position and able to meet the commitments of clients, suppliers and other creditors when they are due and have minimum risk of collapse, ATAS will require applications to include financial information to demonstrate the travel intermediary's current position.

Financial information provided to ATAS will vary depending on whether the participant is subject to an audit or not.

YES - The participant is to provide a copy of the audited financial report to ATAS annually.

NO - The participant is required to provide a balance sheet and income statement certified by a duly authorised individual within the entity annually.
Participants will also be required to provide a Declaration of Solvency.


24. Will my financial documentation be kept private and confidential?

Your information will at all times be treated as commercial in confidence and is both private and secure. AFTA recognises that commercial confidentially is important to you and will at all ensure your commercial situations are kept confidential. 

For more information visit our Privacy Statement.


25. Can I be an ATAS participant if my business is not registered, incorporated or domiciled in Australia?

No, ATAS accreditation is only available to Australian registered businesses, incorporated or domiciled in Australia.


26. Can online travel agents be ATAS participants?

Yes, all business entities that sell travel on behalf of a travel supplier are eligible to become an ATAS participant.


27. What is the ATAS deed poll?

The ATAS Deed Poll is an important part of the application process and is a legally binding declaration that the participant understands and accepts the conditions of ATAS participation.

The deed poll includes:

  • A declaration that they will comply with the Code and will use its best endeavours to ensure that its employees comply with the ATAS Code of Conduct 
  • Understand that accreditation under ATAS is subject to the Charter
  • Declaration that the participant agrees to comply with Australian Consumer Law and will use its best endeavours to ensure its employees comply with the ACL
  • An acceptance that through its corporate policies and procedures it will provide a level of staff education and training which is consistent with the eligibility criteria 
  • Releases and indemnifies AFTA and the ATAS Code Compliance and Monitoring Committee (ACCMC) with respect to ATAS. 
  • Provides a declaration of solvency to accompany financial information provided under criteria 4 - business compliance.

Deed Poll


28. Who can certify accounts and agree to the Deed Poll?

A duly authorised individual from the applying entity is responsible for agreeing to the terms and conditions outlined in the deed poll and certifying financial information provided to AFTA.


29. Where can I obtain a copy of the Code of Conduct and / or Charter?

A copy of both the ATAS Code of Conduct and Charter will soon be available.


30. I am a member of IATA do I still need to do a financial audit?

Yes, you still need to complete a financial audit for IATA purposes.

IATA is a separate organisation, operated independently of AFTA. If you are IATA accredited you may choose to submit your IATA audit to comply with ATAS application criteria 4 – business compliance, where you are required to provide proof of solvency. This is just to make life easier for you!


31. Is my business required to keep a client account?

ATAS participants are not required to keep a client account. However, AFTA believes it is good business practice.


32. What duration is the accreditation valid for?

ATAS accreditation is valid for from the date your application is approved to 30 June the following year. Renewal for the accreditation scheme is required annually to ensure participants meet the selection criteria.


33. How long will it take to have my application approved?

Once an application has been submitted, permitting all appropriate documentation are provided and there is no followup required, applications will be approved within 2-3 weeks. 


34. If my application is declined, can I appeal the decision?

Yes, for any declined application the applicant may appeal the decision. Our Compliance Manager will provide you with the reason for your declined application and work with you, where possible, to be in a position where your application may be approved.


35. What happens if someone makes a complaint against my business?

If a complaint is made against your business, AFTA will act as a moderator between the two parties to facilitate a resolution.


36. What defines a business as solvent?

A participant is solvent if it reasonably expects to be able to pay its debts when they are due to be paid.


37. What insurances do I need to hold?

As a minimum ATAS participants are required to hold both Public Liability Insurance and Professional Indemnity Insurance to be an eligible participant. However there are several optional insurances that are available as additional business safeguard.

  • Scheduled Airline Failure Insurance (SAFI)
  • End Supplier Failure Insurance (ESFI)
  • Travel Agent and Intermediary Failure Insurance (TAIFI)


These insurance solvency products are not mandatory for ATAS participation, but would be advisable for complete business protection.
For more information on insurance contact:

Gow-Gates Insurance Brokers
Rebecca Fleming
Manager – Special Projects
02 8267 9919
rfleming@gowgates.com.au


38. What minimum training requirements are involved?

ATAS participants must have a minimum of 20% of client facing staff qualified with a Certificate III in Travel or equivalent. Recognition of prior learning from previous years of experience selling travel will also be accepted.



Insurance Protection for my business and customers

39. What insurance is available to protect my business and customers?

Generally, travel insurance that consumers buy only covers the cost of cancelling or changing any travel arrangements for unforeseen reasons, lost luggage or travel documents, legal bills and overseas emergency medical expenses. Most insurance policies do not offer protection when consumers' travel arrangements fail to go ahead as planned because the airline or other end supplier collapsed or became insolvent.

Agents have the option to take out three types of insolvency protection offered by International Passenger Protection (IPP). In Australia, IPP is represented by local insurance broker, Gow- Gates. IPP's product range consists of:

  • Scheduled Airline Failure Insurance (SAFI), which covers losses arising from the insolvency of an airline
  • End Supplier Failure Insurance (ESFI), which covers losses arising from the insolvency of an airline and other end suppliers
  • Travel Agent and Intermediary Failure Insurance (TAIFI), which covers the insolvency of the agent.

As well as protecting consumers, these insurance products can also protect agents from the cost of any credit card charge backs obtained by the consumer.

For more information about these insurance products, and which one may be suitable for your business, contact Gow Gates directly on (02) 8267 9999.


40. Who is International Passenger Protection (IPP)?

Formed in 1990, some 23 years ago after identifying a lack of consumer protection IPP are the oldest and World leader in providing financial failure insurances to the travel industry, operating in over 30 countries around the world.

IPP pioneered all their products including: Scheduled Airline Failure, End Supplier Failure Insurance, IATA Agency Default Insurance, Tour Package Regulation Insurance and more. 


41. Who is Gow-Gates Insurance Brokers?

The Gow-Gates Group specialises in advising businesses and individuals on how to mitigate and transfer risk. They are one of Australia’s largest privately owned insurance groups. Gow-Gates have been appointed by AFTA to bring to market three specialised insurance products for the travel industry, as follows;

  • Scheduled Airline Failure Insurance (SAFI)
  • End Supplier Failure Insurance (ESFI)
  • Travel Agent and Intermediary Failure Insurance (TAIFI)



42. Do I need Scheduled Airline Failure Insurance (SAFI)?

Whilst SAFI is not mandatory for ATAS Accreditation, insurance protection is an important business safeguard which requires consideration for complete cover in an ever changing volatile industry.

SAFI is a corporate insurance policy issued to a Travel Agent to cover the insolvency of the declared Scheduled Airlines. The travel intermediary is the Insured, Policyholder and beneficiary. 


43. Do I need End Supplier Failure Insurance (ESFI)?

ESFI is not mandatory for ATAS Accreditation; however insurance protection is an important business safeguard which requires consideration for complete cover in an ever changing volatile industry.

ESFI is a corporate insurance policy issued to a Travel Agent which covers losses arising from the insolvency of an airline and other end suppliers. The travel intermediary is the Insured, Policyholder and beneficiary.


44. What is the difference between SAFI and ESFI?

SAFI provides cover for you to be able to protect your customers should the airline that you have booked them with becomes insolvent. ESFI goes that one step further than SAFI by extending cover to end suppliers such as hotels, coach companies, ferry companies and many more.


45. Do I need Travel Agent and Intermediary Failure Insurance (TAIFI)?

Travel Agent and Intermediary Failure Insurance is not a mandatory insurance for ATAS accreditation however this insurance product is only available to current ATAS accredited participants. The Travel Agent and Intermediary Failure Insurance is for the benefit of your customers – to give clients peace of mind that the money they pass over to you is protected while it is with you.


46. How do I apply for insurance?

Gow-Gates Insurance Brokers (ABN 12 000 837 785 / AFSL 245432) have a dedicated team for the travel industry who can assist with your company insurance needs. For more information or a no-obligation quote, please contact one of the team below;

Rebecca Fleming
Manager - Special Programs
T 02 8267 9919
M 0438 690 377
rfleming@gowgates.com.au

Jacqui Culley
Account Executive
T 02 8267 9969
jculley@gowgates.com.au

Shane Castueras
Account Executive
T 02 8267 9903
scastueras@gowgates.com.au


47. What is the cost for these insurances?

Premiums will vary from member to member due to a different spread of airline risk and the number of tickets covered. For more information or a no-obligation quote, please contact the team at Gow-Gates.


48. Does SAFI and ESFI cover me against credit card charge backs?

Yes – if you have an SAFI or ESFI policy you can immediately contact your clients to refund or repatriate your customers which will be perceived as a great customer service and prevent customers from having to go back to their banks and invoking a charge back to your agency.


49. How do I make a claim?

Simply complete a one-page claim form and forward documentation to Gow-Gates, showing details of sales for failed airline or supplier.


50. How long does it take to process a claim?

Funds are generally returned within seven business days however it may take a little longer in the event of a large collapse.


51. Can anyone get insolvency insurance?

No, these three insurance policies are exclusively available to ATAS accredited participants.


52. Will cover be provided for packages booked with online and overseas suppliers?

For those suppliers that you have covered (i.e. they appear on your schedule of insurance), whether they be online or be overseas, you will be covered.

Gow-Gates Disclaimer - The information in this document is general in nature and referral needs to be made to the policy wording.


Participant helpline
Do you have an unanswered question? Please call the ATAS team on 02 9287 9900 or email atas@afta.com.au


ATAS Workshops: Becoming Travel Accredited

Register here for the May workshop and learn how to become "travel accredited".

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NTIA TICKETS ON SALE!

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