A.
First of all, as indicated in DGR 10.7.4.4.1; 10.7.4.3.1 and 10.7.4.3.2, Type B (M) packages and Freight Containers containing Type B (M) packages are restricted on passenger aircraft and must be loaded on CAO. Consequently must carry the CAO label. A minimum of two labels are required on opposite sides. For Freight Containers, CAO label is required on all 4 sides.

Exclusive Use does not mean that all packages must carry the CAO label. Only those packages that cannot be loaded on a passenger aircraft need to bear the CAO label. As stated in DGR 10.9.B if a package has a Transport Index exceeding 50, it cannot be loaded on a passenger aircraft, and hence CAO label is required. For fissile material, if the Criticality Safety Index of a package is more than 50, it cannot be loaded on a passenger aircraft and require CAO label.

US State Variation USG-10 (a) and (b) states that radioactive material other than for medical research, medical diagnosis or treatment, and radioactive material package with a Transport Index in excess of 3.0 must not be loaded on a passenger aircraft. These are all CAO shipments and must bear CAO labels.