# Presentation: 308485

## Understanding the U.S.-EC Maintenance Agreement

*US/EU Feedback Forum*

## Overview

- Status of Negotiations
- The Proposed Executive Agreement
- Annexes
- Maintenance Annex
- Technical Implementation Procedures

## Status of Negotiations

**After several rounds of informal discussions since October 2003 and five formal negotiations, the U.S. and EU negotiating teams have a draft proposal for the Executive Agreement.**
**	**--Formal coordination with Member States is expected to begin after U.S./Commission negotiation next week (June 14-15, 2006).

**Notes:**
Last year, at the annual conference in Cologne, we were happy to report that both governments are working diligently towards the conclusion of a new agreement.  This year, I am even more pleased to report that we have a draft text for the Executive Agreement.

## The Executive Agreement is applicable to all EU Member States.  
It applies to entities within the U.S. and the territory of the European Union.
The application of the Annexes is limited to specified Member States.

New agreement will have similar structure to a BASA... 
	... but will be presented together with Annexes to be ratified by the European Community (European Parliament and Council.)

- It applies to entities within the U.S. and the territory of the European Union.
- The application of the Annexes is limited to specified Member States.
**New agreement will have similar structure to a BASA... **
**	****... but will be presented together with Annexes to be ratified by the European Community (European Parliament and Council.)**

**Status of Negotiations**

## Status of Negotiations

- Because the U.S. and EU regulatory systems are different in several key areas, a **treaty level** document is necessary in Europe in order to provide a derogation from Community law.
**Involves formal ratification process in European Community.**
**Expected to take at least 6 months.**
- Agreement would remain an Executive Agreement in U.S. structure (not treaty level).

## Agreement Format

- Three-tier concept was proposed by EU and accepted by agreed by U.S.
- Tiers 1 & 2 will be ratified by the European Parliament and Council. These documents are binding on all Parties, including the National Aviation Authorities.

**Exec. Agreement**

**Annexes**

**Technical **
**Implementation Procedures**

- +

**FAA **

**EASA **

- Guidance Materials

*Safety Agreement between US/EU*

- 1

- 2

- 3

-  Annex 1:  Airworthiness &
- Environmental Certification
-  Annex 2:  Maintenance

## New items in draft Executive Agreement:

Regulatory cooperation

Formal oversight board mechanism

More detailed dispute resolution provisions

**Regulatory cooperation**
**Formal oversight board mechanism**
**More detailed dispute resolution provisions**

**The Draft Executive Agreement**

## Contents:
19 Articles
ARTICLE I:  	Definitions
ARTICLE II: 	Purpose and Scope
ARTICLE III:	Executive Management
ARTICLE IV:	General Provisions
ARTICLE V:	Annexes
ARTICLE VI:  Regulatory Cooperation and Transparency
ARTICLE VII:  Cooperation in Quality Assurance and Standardization Inspection Activities
ARTICLE VIII: Cooperation in Enforcement Activities
ARTICLE IX:    Exchange of Safety Data
ARTICLE X:	Applicable Requirements, Procedures, and Guidance Material

**19 Articles**
- ARTICLE I:  	Definitions
- ARTICLE II: 	Purpose and Scope
- ARTICLE III:	Executive Management
- ARTICLE IV:	General Provisions
- ARTICLE V:	Annexes
- ARTICLE VI:  Regulatory Cooperation and Transparency
- ARTICLE VII:  Cooperation in Quality Assurance and Standardization Inspection Activities
- ARTICLE VIII: Cooperation in Enforcement Activities
- ARTICLE IX:    Exchange of Safety Data
- ARTICLE X:	Applicable Requirements, Procedures, and Guidance Material

**The Draft Executive Agreement**

**Notes:**

The proposed executive agreement has 19 articles; a traditional Bilateral Aviation Safety Agreement has __ articles.

## Contents (continued):
ARTICLE XI:	Protection of Proprietary Data and Requests for Information
ARTICLE XII: 	Applicability
ARTICLE XIII:	Unimpeded Access
ARTICLE XIV:	Fees
ARTICLE XV:	Preservation of Regulatory Authority 
ARTICLE XVI:	Other Agreements 
ARTICLE XVII:	Consultations and Settlement of Disputes
ARTICLE XVIII:	Suspension of Acceptance of Findings
ARTICLE XIX:	Entry into Force, Amendments, and Termination 

- ARTICLE XI:	Protection of Proprietary Data and Requests for Information
- ARTICLE XII: 	Applicability
- ARTICLE XIII:	Unimpeded Access
- ARTICLE XIV:	Fees
- ARTICLE XV:	Preservation of Regulatory Authority
- ARTICLE XVI:	Other Agreements
- ARTICLE XVII:	Consultations and Settlement of Disputes
- ARTICLE XVIII:	Suspension of Acceptance of Findings
- ARTICLE XIX:	Entry into Force, Amendments, and Termination

**The Draft Executive Agreement**

## ARTICLE I:  Key Definitions
  “Aviation Authority” -- a responsible government agency or entity of a European Union Member State that exercises legal oversight on behalf of the European Community over regulated entities and determines their compliance with applicable standards, regulations, and other requirements within the jurisdiction of the European Community.

“Technical Agent”-- for the United States, the Federal Aviation Administration (FAA); and for the European Community, the European Aviation Safety Agency (EASA.

“Regulated entity” -- any natural or legal person whose civil aviation safety and environmental testing and approval activities are subject to the statutory and regulatory jurisdiction of one or both of the Parties. 

-   “**Aviation Authority**” **-- **a responsible government agency or entity of a European Union Member State that exercises legal oversight on behalf of the European Community over regulated entities and determines their compliance with applicable standards, regulations, and other requirements within the jurisdiction of the European Community.
**“****Technical Agent”-- **for the United States, the Federal Aviation Administration (FAA); and for the European Community, the European Aviation Safety Agency (EASA.
**“****Regulated entity” -- **any natural or legal person whose civil aviation safety and environmental testing and approval activities are subject to the statutory and regulatory jurisdiction of one or both of the Parties.

**The Draft Executive Agreement**

## ARTICLE II:  Purpose and Scope
   The agreement currently covers reciprocal                       acceptance related to:
	Airworthiness
	Environment 
	Maintenance

   With the possibility of additional areas in the future.

-    The agreement currently covers reciprocal                       acceptance related to:
- 	Airworthiness
- 	Environment
- 	Maintenance
**   **With the possibility of additional areas in the future.
** **

**The Draft Executive Agreement**

## ARTICLE III:  Executive Management
The agreement creates a Bilateral Oversight Board (BOB)
U.S. represented by FAA
EU represented by European Commission, assisted by EASA

Major functions of the BOB:
Oversee functioning of the agreement
Dispute resolution
Amendment of the Annexes and adoption of new Annexes
“Early warning” of draft regulations or legislation 
Discussion forum for safety issues

- The agreement creates a _Bilateral Oversight Board (BOB)_
- U.S. represented by FAA
- EU represented by European Commission, assisted by EASA
- Major functions of the BOB:
- Oversee functioning of the agreement
- Dispute resolution
- Amendment of the Annexes and adoption of new Annexes
- “Early warning” of draft regulations or legislation
- Discussion forum for safety issues

**The Draft Executive Agreement**

## Responsibilities

- Agreement

- Annexes

- Technical Implementation Procedures

**EU Council**
**+EP**

**EC (BOB)**

**EASA **

**USA**

**FAA (BOB)**

**FAA**

## ARTICLE IV:  General Provisions:
Terms and conditions for the reciprocal acceptance of findings and approvals are defined in the Annexes.

Recognize each other’s systems of delegation to designees or regulated entities existing as of the date of entry into force of the Agreement. 
New delegation systems are subject to confidence building.

Agreement, including its Annexes, are binding.

- Terms and conditions for the reciprocal acceptance of findings and approvals are defined in the Annexes.
- Recognize each other’s systems of delegation to designees or regulated entities existing as of the date of entry into force of the Agreement.
- New delegation systems are subject to confidence building.
- Agreement, including its Annexes, are binding.

**The Draft Executive Agreement**

**Notes:**

Rather than spell out all the requirements for reciprocal acceptance, the details are covered in each specific Annex, I.e. conditions for the reciprocal acceptance of repair station certificates are in the Maintenance Annex; conditions for the acceptance of design, production, airworthiness and environmental certification approvals are described in the Airworthiness Annex, with further definitions in implementation procedures.

## ARTICLE V:  Annexes
Defines the contents required to be in each Annex.

ARTICLE VI:  Regulatory Cooperation
Develop and adopt procedures, based on US/EU joint guidelines.
Procedures must include:
“the opportunity for consultation and participation by one Party’s Technical Agent and industry experts with the other Party’s Technical Agent, whenever possible in the early stages of drafting civil aviation regulatory materials. “

- Defines the contents required to be in each Annex.
**ARTICLE VI:  Regulatory Cooperation**
- Develop and adopt procedures, based on US/EU joint guidelines.
- Procedures must include:
**“****the opportunity for consultation and participation by one Party’s Technical Agent and industry experts with the other Party’s Technical Agent, whenever possible in the early stages of drafting civil aviation regulatory materials.**** “**

**The Draft Executive Agreement**

**Notes:**

Rather than spell out all the requirements for reciprocal acceptance, the details are covered in each specific Annex, I.e. conditions for the reciprocal acceptance of repair station certificates are in the Maintenance Annex; conditions for the acceptance of design, production, airworthiness and environmental certification approvals are described in the Airworthiness Annex, with further definitions in implementation procedures.

## ARTICLE VII, VIII IX and X:  Areas for Specific Cooperation
Participation in standardization and quality assurance inspections
Cooperation in enforcement proceedings
Timely exchange of safety data related to accidents and incidents
Notification of applicable guidance 

- Participation in standardization and quality assurance inspections
- Cooperation in enforcement proceedings
- Timely exchange of safety data related to accidents and incidents
- Notification of applicable guidance
**	**

**The Draft Executive Agreement**

**Notes:**

Rather than spell out all the requirements for reciprocal acceptance, the details are covered in each specific Annex, I.e. conditions for the reciprocal acceptance of repair station certificates are in the Maintenance Annex; conditions for the acceptance of design, production, airworthiness and environmental certification approvals are described in the Airworthiness Annex, with further definitions in implementation procedures.

## 	ARTICLE XI:  Protection of Proprietary Data
Commits both Parties to protect intellectual property, confidential business data, proprietary data, etc. unless otherwise required by law (e.g. a court action).
	“Neither Party shall copy, release, or show information identified as restricted to anyone other than an employee of that Party without prior written consent of the person or entity possessing confidentiality interests in the restricted information.” 

European Community will ensure that Aviation Authorities similarly protect data.

Also addresses how requests from the public for information will be handled.

- Commits both Parties to protect intellectual property, confidential business data, proprietary data, etc. unless otherwise required by law (e.g. a court action).
**	**“Neither Party shall copy, release, or show information **identified as restricted** to anyone other than an employee of that Party without prior written consent of the person or entity possessing confidentiality interests in the restricted information.”
- European Community will ensure that Aviation Authorities similarly protect data.
- Also addresses how requests from the public for information will be handled.

**The Draft Executive Agreement**

**Notes:**

Rather than spell out all the requirements for reciprocal acceptance, the details are covered in each specific Annex, I.e. conditions for the reciprocal acceptance of repair station certificates are in the Maintenance Annex; conditions for the acceptance of design, production, airworthiness and environmental certification approvals are described in the Airworthiness Annex, with further definitions in implementation procedures.

## ARTICLE XII Applicability -- the United States and the European Community.

ARTICLE XIII Access -- commits both Parties to assist with access to facilities of regulated entities.

ARTICLE XIV:  Fees -- reasonable and commensurate with services provided.

**ARTICLE XIII Access**** -- **commits both Parties to assist with access to facilities of regulated entities.
**	**
**ARTICLE XIV:  Fees**** -- **reasonable and commensurate with services provided.

**The Draft Executive Agreement**

**Notes:**

Rather than spell out all the requirements for reciprocal acceptance, the details are covered in each specific Annex, I.e. conditions for the reciprocal acceptance of repair station certificates are in the Maintenance Annex; conditions for the acceptance of design, production, airworthiness and environmental certification approvals are described in the Airworthiness Annex, with further definitions in implementation procedures.

**The Draft Executive Agreement**

**ARTICLE XV:  Preservation of Regulatory Authority**
- The Parties reserve the right to take individual action as necessary within their respective systems.
**ARTICLE XVI:  Other Agreements**** **
-  Take measures to terminate or amend other bilateral agreements with Member States.
-  Continued validity of findings and approvals recognized under prior bilateral agreements until such approvals are amended or canceled.

**Notes:**

Rather than spell out all the requirements for reciprocal acceptance, the details are covered in each specific Annex, I.e. conditions for the reciprocal acceptance of repair station certificates are in the Maintenance Annex; conditions for the acceptance of design, production, airworthiness and environmental certification approvals are described in the Airworthiness Annex, with further definitions in implementation procedures.

## ARTICLE XVII:  Consultations and Settlement of Disputes
Provisions for consultations by the Parties at any time.
Annexes will contain additional information on how the Technical Agents will consult.
Matters can be referred as necessary to the BOB.

ARTICLE XVIII: Suspension of Acceptance of Findings
If consultations are not successful, Parties may suspend acceptance of findings with 30 days prior written notice.

- Provisions for consultations by the Parties at any time.
- Annexes will contain additional information on how the Technical Agents will consult.
- Matters can be referred as necessary to the BOB.
**ARTICLE XVIII: Suspension of Acceptance of Findings**
- If consultations are not successful, Parties may suspend acceptance of findings with 30 days prior written notice.

**The Draft Executive Agreement**

**Notes:**

Rather than spell out all the requirements for reciprocal acceptance, the details are covered in each specific Annex, I.e. conditions for the reciprocal acceptance of repair station certificates are in the Maintenance Annex; conditions for the acceptance of design, production, airworthiness and environmental certification approvals are described in the Airworthiness Annex, with further definitions in implementation procedures.

## Annexes

- In accordance with Article V, two annexes have also been negotiated.
- Annex 1:  Airworthiness and Environmental Certification
- Annex 2: Maintenance
-  These annexes will be submitted for ratification along with the Executive Agreement.

**Notes:**

This session will focus on the ___________________  Annex.  The ______________________Annex was/is being discussed in a separate session this (morning/afternoon).

## Technical Implementation Procedures

- The Annexes also provide for details to be outlined in** technical implementation procedures.**
- Two sets of procedures are drafted:
- Airworthiness and environmental certification
- Maintenance

## Next Steps/Open Issues

**Resolution of open items from FAA’s two assessments of EU regulatory system.**
- Closure of FAA’s findings may take until December 2006.
- Agreed text of the agreement and its annexes will need to be translated into the other 19 official EU languages and ratified by the European Community.

## Summary

*Executive Agreement is essentially complete.*
*Both sides have worked intensively to draft text on airworthiness and environmental certification that progresses bilateral cooperation in new areas.*
*Closing FAA assessment findings are key to timing of final signature.*

## THE MAINTENANCE ANNEX

## Maintenance Annex

- The maintenance annex covers the acceptance of findings of compliance, approvals and documentation for repair stations/maintenance organizations.

## Maintenance Annex

- The Maintenance Annex is based on a review of each other’s standards and systems.
- The differences are addressed in Special Conditions identified in the Annex.

## Maintenance Annex

-   Annex has 10 Articles
- Article 1:	Purpose & Scope
- Article 2:	Definitions
- Article 3: 	Joint Coordination Body
- Article 4:  	Implementation
- Article 5:  	Communication and Cooperation
- Article 6:  	Qualification Requirements for 				Acceptance of Findings and Approvals
- Article 7:  	Notification of Enforcement Action
- Article 8:  	Transition Provisions
- Article 9:	Transfer Provisions
- Article 10: 	Fees

## Maintenance Annex

-   The Annex is drafted as high level binding text applicable to the FAA, EASA and the National Aviation Authorities.
-   Additional procedural details will be provided in agreed procedures and guidance documents.

## Maintenance Annex

**Article 1:  Purpose & Scope**
- Reciprocal acceptance of findings of compliance, approvals, and documentation
- Technical assistance
**Article 2:  Definitions**
- Clarifies common terminology on specific items for the purposes of this agreement

## Maintenance Annex

**Article 3:  Joint Coordination Body**
- Establishes a **Joint Maintenance Coordination Board **
- The Joint Maintenance Coordination Board (JMCB) is accountable to the BOB
- Jointly led by FAA and EASA
- Meets regularly to ensure functioning of this Annex

## Maintenance Annex

**Article 3:  Joint Coordination Body**
- Functions of the **JMCB**
- Develop, approve and revise the appropriate procedures.
- Share safety information
- Ensuring consistent application of this Annex
- Resolve technical issues within its responsibilities; examine other issues
- Report unresolved issues to the BOB and ensures the implementation of decisions from the BOB

## Maintenance Annex

**Article 3:  Joint Coordination Body**
- Functions of the **JMCB**
- Develop means for transition, cooperation and exchange of information, quality management & standardization
- Propose amendments of this Annex to the BOB

## Maintenance Annex

**Article 4:  Implementation**
- Acceptance of each other’s systems in accordance with this agreement
- Make recommendations to each other for the issuance of certificates in accordance with the Agreement and Special Conditions outlined in Appendix 1.
- The Special Conditions have been revised to reflect current FAA and EASA regulations.

## Maintenance Annex

**Article 4:  Implementation**
- Defines actions taken on each other’s behalf
- Providing recommendations and endorsements
- Performing surveillance
- Acceptance/Approval of supplements
- Additional actions as defined
- Technical Assistance
- Independent Inspections of facilities based on safety concerns
- Coordination on changes in system
*  *

## Maintenance Annex

**Article 5:  Communication and Cooperation**
- English Language
- Principle is to attempt to resolve issues at the lowest level possible
- Ensure urgent situations are communicated in a timely manner
**	**

## Maintenance Annex

**Article 6:  Qualification Requirements for the Acceptance of Findings of Compliance**** **
- Details basic qualifications and confidence building for inclusion in the agreement.
- Aviation Authorities that meet the conditions are listed in Appendix 2.
- Details requirements to demonstrate continued confidence.
- Provides for the addition of Aviation Authorities following a consultation process and action by the Bilateral Oversight Board.** **

## Maintenance Annex

**Article 7:  Notification of Investigation and Enforcement Action**
- Prompt notification of investigation or enforcement action for a non-compliance within the scope of this Annex.
- Ability to take separate action.
- Revocation or suspension by the original certifying authority automatically invalidates the corresponding certificate.

## Maintenance Annex

**Article 8:  Transition Provisions **
- Details the transition of the Repair Stations and Approved Maintenance Organizations approved under the current Maintenance Implementation Procedures.
**Article 9:  Transfer Provisions**
- Details the transfer of Approved Maintenance Organizations in Member States included in the new Agreement.

## Maintenance Annex

-   Both Transition and Transfer activities currently proposed to be accomplished at renewal with a two year maximum.

## Maintenance Annex

-   **Article 10:  Fees**
- Fees will be applied in accordance with appropriate regulatory requirements

## Appendices to Annex 2

**Appendix 1:  Special Conditions**
- EASA Special Condition Applicable to U.S. based Repair Stations
- FAA Special Conditions Applicable to EU Based Approved Maintenance Organizations

## EASA Special Conditions Applicable to U.S.-Based Repair Stations

**(a) Application in a form and a manner acceptable to EASA.**
**(b) Repair stations with airframe/aircraft or limited airframe ratings shall have appropriate covered hangar(s) for the base maintenance of aircraft.**

## EASA Special Conditions Applicable to U.S.-Based Repair Stations

**(c) Repair Station Manual supplement that shall include procedures for the following:**
- (i) operation of an independent quality monitoring system including multiple facilities and line stations.
- (ii) release or approval for return to service.
- (iii) ensuring that the certificate of airworthiness and the Airworthiness Review certificate are valid prior to the issue of a release to service document.
- (iv) repairs and modifications accomplished in accordance with data approved by EASA.

## EASA Special Conditions Applicable to U.S.-Based Repair Stations

- (v) human factors training.
- (vi) reporting unairworthy conditions.
- (vii) ensuring compliance with, the customer or operator work order or contract.
- (viii)  ensuring the quality system includes the oversight of all FAR 145 line stations within the United States.
- (ix) contracting.
- (x) contractor/subcontractor utilization reports

## FAA Special Conditions Applicable to EU Based Approved Maintenance Organisations (AMOs)

**(****a)  An application in a form and a manner acceptable to the FAA, including need, list of functions and dangerous goods training. **
**(b)  Multiple locations within the EU Member State in which the principal place of business is located. **

## FAA Special Conditions Applicable to EU Based Approved Maintenance Organisations (AMOs)

**(c) ****Repair Station Manual supplement that shall include procedures for the following**** :**
- (i) summary of quality system
- (ii) approval for release or return to service
- (iii) reporting failures, malfunctions or defects
- (iv) recognition of line stations within the EU
- (v) contracted/sub-contracted activities
- (vi) contractor/sub-contractor utilization reports

## FAA Special Conditions Applicable to EU Based Approved Maintenance Organisations (AMOs)

- (vii) ensure that major repairs and major alterations/modifications are accomplished in accordance with FAA approved data
- (viii) ensure compliance with air carrier’s Continuous Airworthiness Maintenance Program
- (ix) ensure compliance with the manufacturer’s maintenance manuals or instructions for continued airworthiness
- (x) confirm that the AMO supervisors, and employees responsible for final inspection and return to service of U.S are able to read, write and understand English

## Appendices to Annex 2

**Appendix 2:  List of Member States**
**Appendix 3:  Aviation Authority Procedures**
**Appendix 4:  EASA Approval Certificate**

## Maintenance Annex

**A draft of the Maintenance Annex is complete.  There are five paragraphs that remain open for additional negotiation. **
**Once the final version of the text is available, it will be circulated internally and then put forward for ratification.**
**The negotiation team is continuing to develop the lower level procedures necessary for successful implementation of the Annex**

## Maintenance Annex

**The presentation at this conference is the opportunity for industry to provide feedback to the process.**