(a) Air carriers and foreign air carriers are exempted from the duty to file passenger tariffs with the Department of Transportation, as required by 49 U.S.C. 41504 and 14 CFR part 221, as follows:

1. (1) The Assistant Secretary for Aviation and International Affairs will, by notice, issue and periodically update a list establishing the following categories of markets:

   1. (i) In Category A markets, carriers are exempted from the duty to file all passenger tariffs unless they are nationals of countries listed in Category C, or are subject to the provisions of paragraph (c) of this section.
   2. (ii) In Category B markets, carriers are exempted from the duty to file all passenger tariffs except those setting forth one-way economy-class fares and governing provisions thereto, unless they are nationals of countries listed in Category C, or are subject to the provisions of paragraph (c) of this section.
   3. (iii) In Category C markets, carriers shall continue to file all passenger tariffs, except as provided in § 293.10(b);

2. (2) The Assistant Secretary will list country-pair markets falling in Categories A and C, taking into consideration the factors in paragraphs (a)(2) (i) through (iv) of this section. All country-pair markets not listed in Categories A or C shall be considered to be in Category B and need not be specifically listed.

   1. (i) Whether the U.S. has an aviation agreement in force with that country providing double-disapproval treatment of prices filed by the carriers of the Parties;
   2. (ii) Whether the country's Government has disapproved or deterred U.S. carrier price leadership or matching tariff filings in any market;
   3. (iii) Whether the country's Government has placed significant restrictions on carrier entry or capacity in any market; and
   4. (iv) Whether the country's government is honoring the provisions of the bilateral aviation agreement and there are no significant bilateral problems.