PDF 1.4 files can contain a transparency feature that cannot be described in native form in PostScript or in PDF 1.3. Transparency can be created in newer versions of Illustrator software 9 and 10, and InDesign 2 software. For transparency to be represented in PostScript and PDF 1.3 files, it must be flattened. That is, two transparent PDF 1.4 objects are converted to three opaque PostScript or PDF 1.3 objects, the third object being the PostScript representation of the overlap between the two PDF 1.4 objects.
You can save PDF 1.4 transparency for submission as:

Note: If you use a low quality setting when flattening files with transparency, text may become rasterized and result in fuzzy edges when processed. For the latest recommendations on flattening outside of the system, see http://www.adobe.com.