240 Federal Register / Vol. 70, No. 1 / Monday, January 3, 2005 / Rules and Regulations 

1The full name of the Treaty is the Convention 

on International Interests in Mobile Equipment and 

the Protocol on Matters Specific to Aircraft 

Equipment. We have placed a copy of the Treaty 

in the docket for this rulemaking.

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration 

14 CFR Parts 47 and 49

[Docket No. FAA–2004–19944; Amendment 

Nos. 47–27 and 49–10] 

RIN 2120–AI48

Cape Town Treaty Implementation

AGENCY: Federal Aviation 

Administration (FAA), DOT.

ACTION: Final rule with opportunity to 

comment on information collection 

requirements. 

SUMMARY: The FAA is revising the 

regulations concerning registering 

aircraft and recording security 

documents. The Cape Town Treaty 

establishes a new International Registry 

for registering interests against certain 

aircraft and aircraft engines. Section 4 of 

the Cape Town Treaty Implementation 

Act of 2004 requires the FAA to make 

certain changes. This action will enable 

persons to transmit information to the 

new International Registry concerning 

certain aircraft and aircraft engines by 

making the FAA Aircraft Registry the 

U.S. authorizing entry point to the 

International Registry. We are also 

making unrelated technical changes to 

other portions of the regulations in this 

document.

DATES: These amendments become 

effective concurrent with the date the 

Cape Town Treaty enters into force with 

respect to the United States, except for 

subpart F of part 49 which contains 

information collection requirements that 

are not effective until approved by the 

Office of Management and Budget. FAA 

will publish a document announcing 

the effective date of this final rule. 

Send your comments on the 

information collection requirements on 

or before March 4, 2005.

ADDRESSES: You may send comments on 

the information collection requirements 

[identified by Docket Number FAA–

2004–19944] using any of the following 

methods: 

• DOT Docket Web site: Go to

http://dms.dot.gov and follow the 

instructions for sending your comments 

electronically. 

• Government-wide rulemaking Web 

site: Go to http://www.regulations.gov

and follow the instructions for sending 

your comments electronically. 

• Mail: Docket Management Facility; 

U.S. Department of Transportation, 400 

Seventh Street, SW., Nassif Building, 

Room PL–401, Washington, DC 20590–

001. 

• Fax: 1–202–493–2251. 

• Hand Delivery: Room PL–401 on 

the plaza level of the Nassif Building, 

400 Seventh Street, SW., Washington, 

DC, between 9 a.m. and 5 p.m., Monday 

through Friday, except Federal holidays. 

• Mail: Office of Information and 

Regulatory Affairs, OMB, New 

Executive Building, Room 10202, 725 

17th Street, NW., Washington, DC 

20053, Attention: Desk Officer for FAA. 

For more information on the 

rulemaking process, see the 

SUPPLEMENTARY INFORMATION section of 

this document. 

Privacy: We will post all comments 

we receive, without change, to http://

dms.dot.gov, including any personal 

information you provide. For more 

information, see the Privacy Act 

discussion in the SUPPLEMENTARY

INFORMATION section of this document.

Docket: To read background 

documents or comments received, go to 

http://dms.dot.gov at any time or to 

Room PL–401 on the plaza level of the 

Nassif Building, 400 Seventh Street, 

SW., Washington, DC, between 9 a.m. 

and 5 p.m., Monday through Friday, 

except Federal holidays.

FOR FURTHER INFORMATION CONTACT: Mr. 

Mark D. Lash, Civil Aviation Registry, 

Mike Monroney Aeronautical Center, 

6500 South MacArthur Blvd., Oklahoma 

City, OK 73169, telephone (405) 954–

4331.

SUPPLEMENTARY INFORMATION: 

Availability of Rulemaking Documents 

You can get an electronic copy using 

the Internet by: 

(1) Searching the Department of 

Transportation’s electronic 

DocketManagement System (DMS) Web 

page (http://dms.dot.gov/search); 

(2) Visiting the Office of Rulemaking’s 

Web page at http://www.faa.gov/avr/

arm/index.cfm; or 

(3) Accessing the Government 

Printing Office’s Web page at http://

www.access.gpo.gov/su_docs/aces/

aces140.html. 

You can also get a copy by submitting 

a request to the Federal Aviation 

Administration, Office of Rulemaking, 

ARM–1, 800 Independence Avenue 

SW., Washington, DC 20591, or by 

calling (202) 267–9680. Make sure to 

identify the amendment number or 

docket number of this rulemaking. 

Anyone is able to search the 

electronic form of all comments 

received into any of our dockets by the 

name of the individual submitting the 

comment (or signing the comment, if 

submitted on behalf of an association, 

business, labor union, etc.). You may 

review DOT’s complete Privacy Act 

statement in the Federal Register

published on April 11, 2000 (Volume 

65, Number 70; Pages 19477–78) or you 

may visit http://dms.dot.gov. 

Small Business Regulatory Enforcement 

Fairness Act 

The Small Business Regulatory 

Enforcement Fairness Act (SBREFA) of 

1996 requires FAA to comply with 

small entity requests for information or 

advice about compliance with statutes 

and regulations within its jurisdiction. If 

you are a small entity and you have a 

question regarding this document, you 

may contact your local FAA official, or 

the person listed under FOR FURTHER

INFORMATION CONTACT. You can find out 

more about SBREFA on the Internet at 

http://www.faa.gov/avr/arm/sbrefa.cfm. 

The Cape Town Treaty 

The Cape Town Treaty 1 (the Treaty) 

creates a new international legal 

framework to give greater security to 

those who finance the purchase of 

aircraft, aircraft engines and certain 

helicopters. The financing provisions of 

the Treaty are fully consistent with 

current U.S. law under the Uniform 

Commercial Code. The Treaty 

establishes an International Registry 

where rights in aircraft, aircraft engines, 

and helicopters may be registered. The 

sole purpose of this registry is to 

establish the priorities between 

competing interests against certain 

aircraft and aircraft engines. There are 

no safety, oversight, or other regulatory 

implications. The existing FAA Aircraft 

Registry will be preserved and work in 

tandem with the new International 

Registry.

The Treaty represents an advance in 

international aviation financing and will 

be beneficial to U.S. aviation and 

aerospace interests. Key Federal 

agencies concerned with civil aviation 

and U.S. exports, including the FAA, 

the Export-Import Bank of the United 

States, and the Departments of 

Commerce, State, and Transportation, 

support the Treaty. 

An important difference between the 

FAA Aircraft Registry and the new 

International Registry is that parties 

having recordable interests in U.S. 

aircraft and related equipment file their 

complete documents relating to the 

interest with the FAA Registry, while 

they will file only electronic notices of 

such interests with the International 

Registry. 

The Treaty enters into force three 

months after the eighth country deposits

Federal Register / Vol. 70, No. 1 / Monday, January 3, 2005 / Rules and Regulations 241

formal instruments with the 

International Institute for the 

Unification of Private Law (Unidroit) 

depositary in Rome. To date, five 

countries, including the United States, 

have deposited instruments of 

ratification. The United States Senate 

approved the Treaty on July 21, 2004. 

On October 28, 2004, the United States 

deposited its instruments of ratification 

and adoption with Unidroit in Rome. It 

is anticipated that ratification by at least 

three more countries will follow shortly. 

The Cape Town Treaty Implementation 

Act 

On August 9, 2004, the President 

signed the Cape Town Treaty 

Implementation Act of 2004, Public Law 

108–297, which requires conforming 

changes to the regulations concerning 

registration and deregistration of 

aircraft. The Act designates the FAA 

Aircraft Registry as the U.S. entry point 

to the International Registry relating to 

civil aircraft of the United States, 

aircraft for which a United States 

identification has been assigned (but 

only with respect to notices of 

prospective assignments, interests, and 

sales), and aircraft engines. 

The Act also provides for the filing of 

notices of prospective interests. Under 

the Treaty, priority is established by the 

date of the filing of the notice of 

prospective interest. The FAA must 

establish a system for filing such notices 

and authorizing the parties to transmit 

information to the International 

Registry. Under section 3 of the Act, the 

filing of a notice of prospective 

assignment, interest or sale with the 

FAA Aircraft Registry and registration 

with the International Registry is not 

valid unless the parties subsequently 

file with the FAA, within 60 days, their 

recordable documents relating to the 

notice.

The Act also makes conforming 

amendments to existing law to 

recognize the application of the Treaty. 

It allows recording with the FAA against 

slightly less powerful engines to be 

consistent with the threshold 

requirements of the Treaty. It directs the 

FAA to immediately prescribe 

regulations for the registration and 

deregistration of aircraft according to 

the terms of the Treaty. The FAA is to 

complete the rulemaking by December 

31, 2004 under an expedited process 

without preparing an economic analysis 

of the cost and benefits associated with 

the rule. To provide legal certainty and 

clarity during the rulemaking process, 

the Act expressly provides that the 

Treaty applies to those matters covered 

by the rulemaking until the final rule is 

effective, or December 31, 2004, 

whichever is earlier. 

The amendments made by the Act are 

effective when the Treaty comes into 

force with respect to the U.S., and do 

not apply retroactively. The Act does 

not affect any existing rights. 

Section-by-Section Analysis of the Final 

Rule 

Section 47.13 Signatures and 

Instruments Made by Representatives 

The final rule amends paragraph (d), 

which sets forth the signature 

requirements applicable when a 

corporation files an application for 

aircraft registration or a request for 

registration cancellation. Under existing 

§ 47.13(d)(3), a corporation must file a 

copy of the authorization from the board 

of directors to sign for the corporation 

with the application or cancellation 

request, unless the signer is a corporate 

officer or other person in a managerial 

position or a valid authorization to sign 

is already on file at the FAA Aircraft 

Registry. This final rule adds paragraph 

(d)(4), which creates an exception to the 

provisions of paragraph (d)(3) for an 

irrevocable deregistration and export 

request authorization prepared under 

the terms of the Treaty. The purpose of 

this change is to allow the FAA Aircraft 

Registry to accept and process 

documents consistent with the Treaty. 

Section 47.37 Aircraft Last Previously 

Registered in a Foreign Country 

The final rule amends paragraph (a)(3) 

to require the owner(s) of aircraft last 

previously registered in a foreign 

country in which the Treaty is in effect 

to submit evidence satisfactory to the 

FAA that all holders of priority interests 

have been satisfied or have consented to 

the deregistration and export of the 

aircraft. Currently paragraph (a)(3) does 

not contain any reference to the Treaty. 

By requiring evidence that all holders of 

priority interests have been satisfied, the 

final rule conforms to the Treaty. 

Section 47.47 Cancellation of 

Certificate for Export Purpose 

Section 47.47 sets forth the 

requirements applicable to cancellation 

of U.S. aircraft registration for the 

purpose of export. The final rule 

expands the scope of paragraph (a) to 

include holders of authorizations 

recognized under the Treaty. The final 

rule also adds the specific information 

that the FAA must receive for aircraft 

subject to the Treaty, including a 

certification that all priority interests 

have been discharged or consented to. 

Section 49.41 Applicability 

Section 49.41 currently applies to the 

recording of leases, tax liens, and other 

kinds of conveyances that affect title to, 

or any interest in, any specifically 

identified aircraft engine of 750 or more 

rated takeoff horsepower, or equivalent 

horsepower. This final rule lowers the 

horsepower threshold for aircraft 

engines from 750 to 550. The purpose of 

this change is to conform our 

regulations to the provisions of the 

Treaty. Horsepower rating for propellers 

remains unchanged since the Treaty 

does not pertain to propellers. 

Subpart F—Transmission of 

Information to the International 

Registry 

The final rule adds subpart F, 

consisting of §§ 49.61 and 49.63, to 

establish a procedure for getting 

authorization from the FAA Aircraft 

Registry to send information to the 

International Registry. 

Section 49.61 Applicability 

This new section designates the FAA 

Aircraft Registry as the U.S. entry point 

for transmitting information to the 

International Registry with respect to 

civil aircraft of the United States, 

aircraft assigned a U.S. identification 

number, and aircraft engines with a 

rated takeoff horsepower of at least 550. 

This change will preserve the 

recordation function of the FAA Aircraft 

Registry and allow it to work in tandem 

with the new International Registry. 

Section 49.63 Eligibility for 

Authorization for Transmission to the 

International Registry: General 

Requirements 

This new section sets forth the 

requirements for obtaining a unique 

authorization code from the FAA 

Aircraft Registry. The authorization 

code will enable requesters to 

electronically send information, 

including information about prospective 

interests, directly to the International 

Registry. To get an authorization code, 

a requester must file a completed AC 

Form 8050–135 with the FAA Aircraft 

Registry. On the form, requesters will 

provide their identification and contact 

information, as well as a limited amount 

of other relevant information.

In addition to filing the form, anyone 

requesting an authorization code must 

also file any recordable documents 

relating to their interest with the FAA 

Aircraft Registry. For civil aircraft of the 

United States, this means documents 

recordable under part 49, subpart C, 

including the conveyances identified in 

§ 49.31. For aircraft engines, this means 

documents recordable under part 49, 

242 Federal Register / Vol. 70, No. 1 / Monday, January 3, 2005 / Rules and Regulations 

subpart D, including the conveyances 

identified in § 49.41. For aircraft that 

have been assigned a U.S. identification 

number but are not civil aircraft of the 

United States, the requester only has to 

file the AC Form 8050–135. 

Readers should note that while the 

final rule requires requesters to file 

recordable documents relating to an 

interest with the FAA Aircraft Registry, 

it does not require them to file the 

recordable documents with the 

International Registry. The International 

Registry is an electronic, notice-based 

system. Readers should also note that, 

consistent with the Treaty, § 49.63(b) of 

the final rule does not require use of the 

FAA Aircraft Registry as the entry point 

to the International Registry for aircraft 

engines. 

Technical Amendments 

In addition to the changes we are 

adopting to implement the Treaty, 

discussed above, we are also adopting a 

series of non-substantive changes to 

parts 47 and 49. These technical 

amendments, which are described in 

more detail below, are primarily 

editorial in nature and, in many cases, 

are simply intended to update 

references to the United States Code. 

Part 47—Aircraft Registration 

We are replacing all references to the 

Federal Aviation Act of 1958 with 

current United States Code citations 

according to the following table:

Existing reference Amended to Section affected 

Section 501 of the Federal Aviation Act of 1958 (49 U.S.C. 1401) ........... 49 U.S.C. 44101–44104 .................. 14 CFR 47.1. 

Section 501(b) of the Federal Aviation Act of 1958 (49 U.S.C. 1401(b)) .. 49 U.S.C. 44102 .............................. 14 CFR 47.3(a). 

Section 501 of the Federal Aviation Act of 1958 ....................................... 49 U.S.C. 44101–44104 .................. 14 CFR 47.3(b). 

Section 501(f) of the Act (49 U.S.C. 1401(f)) ............................................. 49 U.S.C. 44103(c) .......................... 14 CFR 47.5(c). 

Section 501(b)(1)(A)(i) of the Act ............................................................... 49 U.S.C. 44102 .............................. 14 CFR 47.7(b), (c), and (d). 

Section 101(16) of the Act .......................................................................... 49 U.S.C. 40102(a)(15) ................... 14 CFR 47.8(a)(2)(i). 

Section 501(b)(2)(A)(ii) of the Act ............................................................... 49 U.S.C. 44102 .............................. 14 CFR 47.9(a), (e), and (f). 

Federal Aviation Act of 1958 ...................................................................... 49 U.S.C. 44101–44104 .................. 14 CFR 47.33(a). 

Federal Aviation Act of 1958 ...................................................................... 49 U.S.C. 44101–44104 .................. 14 CFR 47.35(a). 

Section 501 of the Federal Aviation Act of 1958 (49 U.S.C. 1401) ........... 49 U.S.C. 44101–44104 .................. 14 CFR 47.43(a)(4). 

Section 101(13) of the Federal Aviation Act of 1958 (49 U.S.C. 1301) .... 49 U.S.C. 40102(a)(15) ................... 14 CFR 47.65. 

We are also amending § 47.2, 

Definitions, to remove the definition of 

the Act of 1958. We are amending 

§ 47.3, Registration required, to refer to 

the requirements for registration as 

stated in 49 U.S.C. 44103. We are 

amending § 47.19, FAA Aircraft 

Registry, to reflect the current address of 

the FAA Aircraft Registry. And, in 

newly redesignated paragraph (c) of 

§ 47.47, Cancellation of certificate for 

export purpose, we are removing 

references to older means of 

communication by which FAA notifies 

the country to which the aircraft is to be 

exported of the cancellation of 

registration. 

Part 49—Recording of Aircraft Titles 

and Security Documents 

We are replacing all references to the 

Federal Aviation Act of 1958 with 

current United States Code citations 

according to the following table:

Existing reference Amended to Section affected 

Section 501 of the Federal Aviation Act of 1958 (49 U.S.C. 1401) ........... 49 U.S.C. 44101–44104 .................. 14 CFR 49.1(a)(1). 

Section 604(b) of the Federal Aviation Act of 1958 (49 U.S.C. 1424(b)) .. 49 U.S.C. 44705 .............................. 14 CFR 49.1(a)(4). 

Section 503(e) of the Federal Aviation Act of 1958 (49 U.S.C. 1403(e)) .. 49 U.S.C. 44107(c) .......................... 14 CFR 49.13(c). 

Section 101(17) of the Federal Aviation Act of 1958 (49 U.S.C. 1301) .... 49 U.S.C. 40102(a)(19) ................... 14 CFR 49.17(a). 

Section 101(19) of the Federal Aviation Act of 1958 (49 U.S.C. 

1301(19)).

49 U.S.C. 40102(a)(18) ................... 14 CFR 49.17(d)(6). 

Section 501 of the Federal Aviation Act of 1958 (49 U.S.C. 1401) ........... 49 U.S.C. 44101–44104 .................. 14 CFR 49.33(d). 

Section 604(b) of the Federal Aviation Act of 1958 (49 U.S.C. 1424(b)) .. 49 U.S.C. 44705 .............................. 14 CFR 49.51(a). 

Section 604(b) of the Federal Aviation Act of 1958 (49 U.S.C. 1424(b)) .. 49 U.S.C. 44705 .............................. 14 CFR 49.53(a)(1). 

We are also amending § 49.11, FAA 

Aircraft Registry, to reflect the current 

delivery address and include the ninedigit zip code for the post office box. 

And, we are amending paragraph (a) of 

§ 49.17, Conveyances Recorded, to 

define the term, ‘‘conveyance,’’

consistent with 49 U.S.C. § 40102(a)(19). 

Justification for Expedited Rulemaking 

Section 553 of the Administrative 

Procedure Act, 5 U.S.C. 553(b), provides 

that when an agency for good cause 

finds that the notice and public 

comment procedure is impracticable, 

unnecessary, or contrary to the public 

interest, the agency may issue a rule 

without providing notice and an 

opportunity for public comment. For the 

changes we are adopting to implement 

the Treaty, we find the notice and 

public comment procedure is 

unnecessary. Given the noncontroversial nature of the rulemaking, 

the clear content of the rules adopted 

based on express provisions in the 

Treaty, the fact that the development of 

the Treaty had broad participation by 

the international aviation industry and 

Government agencies, and the potential 

economic benefits, we find that no 

public purpose would be served by 

unnecessary delay. In addition, section 

4 of the Cape Town Treaty 

Implementation Act (Pub. L. 108–297, 

Aug. 9, 2004) requires the FAA to 

publish a final rule by December 31, 

2004. It does not require FAA to prepare 

an analysis of the cost and benefits of 

the final rule. For the technical 

amendments, we also find the notice 

and public comment procedure is 

unnecessary. The technical amendments 

are minor procedural and editorial 

changes that do not affect the substance 

of the existing rules. 

Paperwork Reduction Act 

This proposal contains the following 

new information collection 

requirements. As required by the 

Paperwork Reduction Act of 1995 (44 

U.S.C. 3507(d)), the FAA has submitted 

the information requirements associated 

Federal Register / Vol. 70, No. 1 / Monday, January 3, 2005 / Rules and Regulations 243

with this final rule to the Office of 

Management and Budget with a request 

for clearance. 

Title: FAA Entry Point Filing Form—

International Registry, AC Form 8050–

135. 

Summary: The FAA Civil Aviation 

Registry was designated by Congress as 

the exclusive entry point for 

transmitting information to the 

International Registry as provided for in 

the Treaty. The Cape Town Treaty 

Implementation Act of 2004 (Pub. L. 

108–297) directed the FAA to establish 

a system for filing notices of 

international and prospective 

international interests, and authorizing 

parties to transmit information to the 

International Registry. 

To implement these requirements, the 

FAA Civil Aviation Registry will require 

the submission of a completed FAA 

Entry Point Filing Form—International 

Registry, AC Form 8050–135, to issue an 

authorization code. This code allows for 

the transmission of information to the 

International Registry with respect to 

civil aircraft of the United States, 

aircraft assigned a U.S. identification 

number, and aircraft engines with a 

rated takeoff horsepower of at least 550. 

Use of Information Collected: The 

FAA has no specific use for the 

information collected. The disclosure 

activities include information being 

transmitted to the International Registry, 

consisting of party name(s), collateral 

description(s), and the type of interest 

being filed. Additionally, the name of 

the submitter, address and telephone 

number will also be on the AC Form 

8050–135. The party name(s), collateral 

description(s), and the authorization 

code will be entered into the FAA Civil 

Aviation Registry’s existing database 

system, as search criteria. The FAA 

expects that interested parties will 

access the information to determine if 

an authorization code was issued. The 

user may then request a copy of the 

completed AC Form 8050–135, or check 

the International Registry to determine 

if an interest has been registered there. 

Respondents: The respondents to this 

information collection are persons who 

want to file an interest with the 

International Registry. We estimate the 

number of security agreements that 

would likely be filed with the Registry 

under the rule would total 15,000 per 

year. 

Frequency: The respondents would 

file AC Form 8050–135 with the FAA 

Civil Aviation Registry on an as-needed 

basis determined by the respondent. 

Annual Burden Estimate: We estimate 

the time to complete the single-page AC 

Form 8050–135 is 30 minutes or less. 

Therefore, respondents would spend 

approximately 7,500 hours annually 

completing the required form. 

The agency is soliciting comments 

to—

(1) Evaluate whether the information 

requirement is necessary for the proper 

performance of the functions of the 

agency, including whether the 

information will have practical utility; 

(2) Evaluate the accuracy of the 

agency’s estimate of the burden; 

(3) Enhance the quality, utility, and 

clarity of the information to be 

collected; and 

(4) Minimize the burden of the 

collection of information on those who 

are to respond, including through the 

use of appropriate automated, 

electronic, mechanical, or other 

technological collection techniques or 

other forms of information technology. 

Individuals and organizations may 

provide comments on the information 

collection requirement by March 4, 

2005, and should direct them to the 

address listed in the ADDRESSES section 

of this document. Comments also 

should be sent to the Office of 

Information and Regulatory Affairs, 

OMB, New Executive Building, Room 

10202, 725 17th Street, NW., 

Washington, DC 20053, Attention: Desk 

Officer for FAA. 

According to the 1995 amendments to 

the Paperwork Reduction Act (5 CFR 

1320.8(b)(2)(vi)), an agency may not 

collect or sponsor the collection of 

information, nor may it impose an 

information collection requirement 

unless it displays a currently valid OMB 

control number. The FAA will publish 

the OMB control number for this 

collection in the Federal Register, after 

the Office of Management and Budget 

approves it. 

International Compatibility 

In keeping with U.S. obligations 

under the Convention on International 

Civil Aviation, it is FAA policy to 

comply with International Civil 

Aviation Organization (ICAO) Standards 

and Recommended Practices to the 

maximum extent practicable. The FAA 

has reviewed the corresponding ICAO 

Standards and Recommended Practices 

and has identified no differences with 

them. In fact, ICAO will likely be the 

Supervisory Authority for the 

International Registry. 

Economic Assessment, Regulatory 

Flexibility Determination, International 

Trade Impact Assessment, and 

Unfunded Mandates Assessment 

Changes to Federal regulations must 

undergo several economic analyses. 

First, Executive Order 12866 directs 

each Federal agency to propose or adopt 

a regulation only upon a reasoned 

determination that the benefits of the 

intended regulation justify its costs. 

Second, the Regulatory Flexibility Act 

of 1980 requires agencies to analyze the 

economic impact of regulatory changes 

on small entities. Third, the Trade 

Agreements Act (19 U.S.C. 2531–2533) 

prohibits agencies from setting 

standards that create unnecessary 

obstacles to the foreign commerce of the 

United States. In developing U.S. 

standards, this Trade Act requires 

agencies to consider international 

standards and, where appropriate, that 

they be the basis for U.S. standards. 

Fourth, the Unfunded Mandates Reform 

Act of 1995 (Pub. L. 104–4) requires 

agencies to prepare a written assessment 

of the costs, benefits, and other effects 

of proposed or final rules that include 

a Federal mandate likely to result in the 

expenditure by State, local, or tribal 

governments, in the aggregate, or by the 

private sector, of $100 million or more 

annually (adjusted for inflation). 

If it is determined that the expected 

impact is so minimal that the final rule 

does not warrant a full cost-benefit 

evaluation, Department of 

Transportation Order DOT 2100.5 

permits a statement to that effect and 

the basis for it to be included in the 

preamble and a full cost-benefit 

evaluation need not be prepared. 

Moreover, section 4 of the Cape Town 

Treaty Implementation Act (Pub. L. 

108–297) states that the FAA is not 

required to prepare an economic 

analysis of the cost and benefits of the 

final rule. 

Regulatory Flexibility Determination 

The Regulatory Flexibility Act of 1980 

(RFA) establishes ‘‘as a principle of 

regulatory issuance that agencies shall 

endeavor, consistent with the objective 

of the rule and of applicable statutes, to 

fit regulatory and informational 

requirements to the scale of the 

business, organizations, and 

governmental jurisdictions subject to 

regulation.’’ To achieve that principle, 

the RFA requires agencies to solicit and 

consider flexible regulatory proposals 

and to explain the rationale for their 

actions. The RFA covers a wide range of 

small entities, including small 

businesses, not-for-profit organizations 

and small governmental jurisdictions. 

Agencies must perform a review to 

determine whether a proposed or final 

rule will have a significant economic 

impact on a substantial number of small 

entities. If the agency determines that it 

will, the agency must prepare a 

regulatory flexibility analysis as 

described in the RFA. 

244 Federal Register / Vol. 70, No. 1 / Monday, January 3, 2005 / Rules and Regulations 

However, if an agency determines that 

a proposed or final rule is not expected 

to have a significant economic impact 

on a substantial number of small 

entities, section 605(b) of the RFA 

provides that the head of the agency 

may so certify and a regulatory 

flexibility analysis is not required. The 

certification must include a statement 

providing the factual basis for this 

determination, and the reasoning should 

be clear. 

This final rule will help promote the 

export of U.S.-manufactured products 

by reducing aircraft and engine 

financing costs, thus facilitating the 

acquisition of newer, safer aircraft. 

Therefore, the final rule will have a 

positive impact (or, at worst, no impact) 

on small aviation operators and on 

small aviation manufacturers. 

Consequently, the FAA certifies that the 

final rule will not have a significant 

economic impact on a substantial 

number of small entities.

International Trade Impact Assessment 

The Trade Agreement Act of 1979 

prohibits Federal agencies from 

establishing any standards or engaging 

in related activities that create 

unnecessary obstacles to the foreign 

commerce of the United States. 

Legitimate domestic objectives, such as 

safety, are not considered unnecessary 

obstacles. The statute also requires 

consideration of international standards 

and, where appropriate, that they be the 

basis for U.S. standards. This final rule 

implements in the United States minor 

technical changes necessary to support 

the Treaty, particularly with respect to 

the relationship between the 

International Registry and the FAA 

Aircraft Registry. Thus, the FAA has 

assessed the potential effect of this 

rulemaking and has determined that it 

will accept international registration 

standards defined by the Treaty as a 

basis for U.S. regulation and promote 

free trade. 

Unfunded Mandates Assessment 

The Unfunded Mandates Reform Act 

of 1995 (the Act) is intended, among 

other things, to curb the practice of 

imposing unfunded Federal mandates 

on State, local, and tribal governments. 

Title II of the Act requires each Federal 

agency to prepare a written statement 

assessing the effects of any Federal 

mandate in a proposed or final agency 

rule that may result in an expenditure 

of $100 million or more (adjusted 

annually for inflation) in any one year 

by State, local, and tribal governments, 

in the aggregate, or by the private sector; 

such a mandate is deemed to be a 

‘‘significant regulatory action.’’ The 

FAA currently uses an inflationadjusted value of $120.7 million in lieu 

of $100 million. 

This final rule does not contain such 

a mandate. The requirements of title II 

of the Act, therefore, do not apply. 

Executive Order 13132, Federalism 

The FAA has analyzed this final rule 

under the principles and criteria of 

Executive Order 13132, Federalism. We 

determined that this action will not 

have a substantial direct effect on the 

States, or the relationship between the 

National Government and the States, or 

on the distribution of power and 

responsibilities among the various 

levels of government, and therefore does 

not have federalism implications. 

Environmental Analysis 

FAA Order 1050.1E identifies FAA 

actions that are categorically excluded 

from preparation of an environmental 

assessment or environmental impact 

statement under the National 

Environmental Policy Act in the 

absence of extraordinary circumstances. 

The FAA has determined this 

rulemaking action qualifies for the 

categorical exclusion identified in 

paragraph 307(f) and involves no 

extraordinary circumstances. 

Regulations That Significantly Affect 

Energy Supply, Distribution, or Use 

The FAA has analyzed this final rule 

under Executive Order 13211, Actions 

Concerning Regulations that 

Significantly Affect Energy Supply, 

Distribution, or Use (May 18, 2001). We 

have determined that it is not a 

‘‘significant energy action’’ under the 

executive order because it is not a 

‘‘significant regulatory action’’ under 

Executive Order 12866, and it is not 

likely to have a significant adverse effect 

on the supply, distribution, or use of 

energy.

List of Subjects 

14 CFR Part 47

Aircraft, Reporting and recordkeeping 

requirements. 

14 CFR Part 49

Aircraft, Reporting and recordkeeping 

requirements.

The Amendments

■ In consideration of the foregoing, the 

Federal Aviation Administration 

amends chapter I of title 14, Code of 

Federal Regulations as follows:

PART 47—AIRCRAFT REGISTRATION

■ 1. Revise the authority citation for part 

47 to read as follows:

Authority: 4 U.S.T. 1830; Pub. L. 108–297, 

118 Stat. 1095 (49 U.S.C. 40101 note, 49 

U.S.C. 44101 note); 49 U.S.C. 106(g), 40113–

40114, 44101–44108, 44110–44113, 44703–

44704, 44713, 45302, 46104, 46301.

■ 2. Revise § 47.1 to read as follows:

§ 47.1 Applicability. 

This part prescribes the requirements 

for registering aircraft under 49 U.S.C. 

44101–44104. Subpart B applies to each 

applicant for, and holder of, a Certificate 

of Aircraft Registration. Subpart C 

applies to each applicant for and holder 

of, a Dealers’ Aircraft Registration 

Certificate.

§ 47.2 [Amended]

■ 3. Amend § 47.2 by removing the 

definition of ‘‘Act’’ entirely.

■ 4. Amend § 47.3 by revising paragraph 

(a) and the introductory language of 

paragraph (b) to read as follows:

§ 47.3 Registration required. 

(a) An aircraft may be registered 

under 49 U.S.C. 44103 only when the 

aircraft is—

(1) Not registered under the laws of a 

foreign country and is owned by—

(i) A citizen of the United States;

(ii) An individual citizen of a foreign 

country lawfully admitted for 

permanent residence in the United 

States; or 

(iii) A corporation not a citizen of the 

United States when the corporation is 

organized and doing business under the 

laws of the United States or a State, and 

the aircraft is based and primarily used 

in the United States; or 

(2) An aircraft of—

(i) The United States Government; or 

(ii) A State, the District of Columbia, 

a territory or possession of the United 

States, or a political subdivision of a 

State, territory, or possession. 

(b) No person may operate an aircraft 

that is eligible for registration under 49 

U.S.C. 44101–44104, unless the 

aircraft—

* * * * *

■ 5. Amend § 47.5 by revising the first 

sentence of paragraph (c) to read as 

follows:

§ 47.5 Applicants.

* * * * *

(c) 49 U.S.C. 44103(c), provides that 

registration is not evidence of 

ownership of aircraft in any proceeding 

in which ownership by a particular 

person is in issue. * * *

* * * * *

§ 47.7 [Amended]

■ 6. Amend § 47.7 paragraphs (b), (c), 

and (d) by revising the references to 

‘‘section 501(b)(1)(A)(i) of the Act’’ in the 

Federal Register / Vol. 70, No. 1 / Monday, January 3, 2005 / Rules and Regulations 245

first sentence of each paragraph to read 

‘‘49 U.S.C. 44102.’’

■ 7. Amend § 47.8 by revising paragraph 

(a)(2)(i) to read as follows:

§ 47.8 Voting trusts. 

(a) * * *

(1) * * *

(2) * * *

(i) That each voting trustee is a citizen 

of the United States within the meaning 

of 49 U.S.C. 40102(a)(15).

* * * * *

§ 47.9 [Amended]

■ 8. Amend § 47.9 paragraphs (a), (e), 

and (f) by revising the references to 

‘‘section 501(b)(1)(A)(ii) of the Act’’, in 

the first sentence of each paragraph to 

read 49 U.S.C. 44102.

■ 9. Amend § 47.13 by adding paragraph 

(d)(4) to read as follows:

§ 47.13 Signatures and instruments made 

by representatives.

* * * * *

(d) * * *

(4) The provisions of paragraph (d)(3) 

do not apply to an irrevocable 

deregistration and export request 

authorization when an irrevocable 

deregistration and export request 

authorization under the Cape Town 

Treaty is signed by a corporate officer 

and is filed with the FAA Aircraft 

Registry.

* * * * *

■ 10. Revise § 47.19 to read as follows:

§ 47.19 FAA Aircraft Registry. 

Each application, request, 

notification, or other communication 

sent to the FAA under this Part must be 

mailed to the FAA Aircraft Registry, 

Department of Transportation, Post 

Office Box 25504, Oklahoma City, 

Oklahoma 73125–0504, or delivered to 

the Registry at 6425 S. Denning Ave., 

Oklahoma City, Oklahoma 73169.

■ 11. Amend § 47.33 by revising 

paragraph (a) introductory text to read as 

follows:

§ 47.33 Aircraft not previously registered 

anywhere. 

(a) A person who is the owner of an 

aircraft that has not been registered 

under 49 U.S.C. 44101–44104, under 

other law of the United States, or under 

foreign law, may register it under this 

part if he—

* * * * *

■ 12. Amend § 47.35 by revising 

paragraph (a) to read as follows:

§ 47.35 Aircraft last previously registered 

in the United States. 

(a) A person who is the owner of an 

aircraft last previously registered under 

49 U.S.C. Sections 44101–44104, or 

under other law of the United States, 

may register it under this part if he 

complies with §§ 47.3, 47.7, 47.8, 47.9, 

47.11, 47.13, 47.15, and 47.17, as 

applicable and submits with his 

application an Aircraft Bill of Sale, AC 

Form 8050–2, signed by the seller or an 

equivalent conveyance, or other 

evidence of ownership authorized by 

§ 47.11.

* * * * *

■ 13. Amend § 47.37 by revising the 

introductory language of paragraph (a) 

and paragraphs (a)(2) and (a)(3) to read 

as follows:

§ 47.37 Aircraft last previously registered 

in a foreign country. 

(a) A person who is the owner of an 

aircraft last previously registered under 

the law of a foreign country may register 

it under this part if the owner—

* * * * *

(2) Submits with his application a bill 

of sale from the foreign seller or other 

evidence satisfactory to the FAA that he 

owns the aircraft; and 

(3) Submits evidence satisfactory to 

the FAA that—

(i) If the country in which the aircraft 

was registered has not ratified the 

Convention on the International 

Recognition of Rights in Aircraft (4 

U.S.T. 1830), (the Geneva Convention), 

or the Convention on International 

Interests in Mobile Equipment, as 

modified by the Protocol to the 

Convention on International Interests in 

Mobile Equipment on Matters Specific 

to Aircraft Equipment (the Cape Town 

Treaty), the foreign registration has 

ended or is invalid; or 

(ii) If that country has ratified the 

Geneva Convention, but has not ratified 

the Cape Town Treaty, the foreign 

registration has ended or is invalid, and 

each holder of a recorded right against 

the aircraft has been satisfied or has 

consented to the transfer, or ownership 

in the country of export has been ended 

by a sale in execution under the terms 

of the Geneva Convention; or 

(iii) If that country has ratified the 

Cape Town Treaty and the aircraft is 

subject to the Treaty, that the foreign 

registration has ended or is invalid, and 

that all interests ranking in priority have 

been discharged or that the holders of 

such interests have consented to the 

deregistration and export of the aircraft. 

(iv) Nothing under (a)(3)(iii) affects 

rights established prior to the Treaty 

entering into force with respect to the 

country in which the aircraft was 

registered.

* * * * *

■ 14. Amend § 47.43 by revising 

paragraph (a)(4) to read as follows:

§ 47.43 Invalid registration. 

(a) * * *

(4) The interest of the applicant in the 

aircraft was created by a transaction that 

was not entered into in good faith, but 

rather was made to avoid (with or 

without the owner’s knowledge) 

compliance with 49 U.S.C. 44101–

44104.

* * * * *

■ 15. Amend § 47.47 by revising it to 

read as follows:

§ 47.47 Cancellation of Certificate for 

export purpose. 

(a) The holder of a Certificate of 

Aircraft Registration or the holder of an 

irrevocable deregistration and export 

request authorization recognized under 

the Cape Town Treaty and filed with 

FAA who wishes to cancel the 

Certificate for the purpose of export 

must submit to the FAA Aircraft 

Registry—

(1) A written request for cancellation 

of the Certificate describing the aircraft 

by make, model, and serial number, 

stating the U.S. identification number 

and the country to which the aircraft 

will be exported; 

(2)(i) For an aircraft not subject to the 

Cape Town Treaty, evidence satisfactory 

to the FAA that each holder of a 

recorded right has been satisfied or has 

consented to the transfer; or 

(ii) For an aircraft subject to the Cape 

Town Treaty, evidence satisfactory to 

the FAA that each holder of a recorded 

right established prior to the date the 

Treaty entered into force with respect to 

the United States has been satisfied or 

has consented to the transfer; and 

(3) A written certification that all 

registered interests ranking in priority to 

that of the requestor have been 

discharged or that the holders of such 

interests have consented to the 

cancellation for export purposes. 

(b) If the aircraft is subject to the Cape 

Town Treaty and an irrevocable 

deregistration and export request 

authorization has been filed with the 

FAA Aircraft Registry, the FAA Registry 

will honor a request for cancellation 

only if an authorized party makes the 

request. 

(c) The FAA Aircraft Registry notifies 

the country to which the aircraft is to be 

exported of the cancellation.

■ 16. Revise § 47.65 to read as follows:

§ 47.65 Eligibility. 

To be eligible for a Dealer’s Aircraft 

Registration Certificate, a person must 

have an established place of business in 

the United States, must be substantially 

246 Federal Register / Vol. 70, No. 1 / Monday, January 3, 2005 / Rules and Regulations 

engaged in manufacturing or selling 

aircraft, and must be a citizen of the 

United States, as defined by 49 U.S.C. 

40102(a)(15).

PART 49—RECORDING OF AIRCRAFT 

TITLES AND SECURITY DOCUMENTS

■ 17. Revise the authority citation for 

part 49 to read as follows:

Authority: 4 U.S.T. 1830; Pub. L. 108–297, 

118 Stat. 1095 (49 U.S.C. 40101 note, 49 

U.S.C. 44101 note); 49 U.S.C. 106(g), 40113–

40114, 44101–44108, 44110–44113, 44704, 

44713, 45302, 46104, 46301.

■ 18. Amend § 49.1 by revising 

paragraphs (a)(1) and (a)(4) to read as 

follows:

§ 49.1 Applicability.

(a) * * *

(1) Any aircraft registered under 49 

U.S.C. 44101–44104;

* * * * *

(4) Any aircraft engine, propeller, or 

appliance maintained by or for an air 

carrier certificated under 49 U.S.C. 

44705, for installation or use in an 

aircraft, aircraft engine, or propeller, or 

any spare part, maintained at a 

designated location or locations by or 

for such an air carrier.

* * * * *

■ 19. Revise § 49.11 to read as follows:

§ 49.11 FAA Aircraft Registry. 

To be eligible for recording, a 

conveyance must be mailed to the FAA 

Aircraft Registry, Department of 

Transportation, Post Office Box 25504, 

Oklahoma City, Oklahoma 73125–0504, 

or delivered to the Registry at 6425 S. 

Denning Ave., Oklahoma City, 

Oklahoma 73169.

■ 20. Revise § 49.13(c) to read as follows:

§ 49.13 Signatures and 

acknowledgements.

* * * * *

(c) No conveyance or other instrument 

need be acknowledged, as provided in 

49 U.S.C. 44107(c), in order to be 

recorded under this part. The law of the 

place of delivery of the conveyance 

determines when a conveyance or other 

instrument must be acknowledged in 

order to be valid for the purposes of that 

place.

* * * * *

■ 21. Amend § 49.17 by revising 

paragraphs (a) and (d)(6) to read as 

follows:

§ 49.17 Conveyances recorded. 

(a)(1) Each instrument recorded under 

this part is a ‘‘conveyance’’ within the 

following definition in 49 U.S.C. 

40102(a)(19):

‘‘Conveyance’’ means an instrument, 

including a conditional sales contract, 

affecting title to, or an interest in, property.

(2) A notice of Federal tax lien is not 

recordable under this part, since it is 

required to be filed elsewhere by the 

Internal Revenue Code (26 U.S.C. 6321, 

6323; 26 CFR 301.6321–1, 301.6323–1).

* * * * *

(d) * * *

(6) A contract of conditional sale, as 

defined in 49 U.S.C. 40102(a)(18), must 

be signed by all parties to the contract.

■ 22. Amend § 49.33 by revising 

paragraph (d) to read as follows:

§ 49.33 Eligibility for recording: general 

requirements.

* * * * *

(d) It affects aircraft registered under 

49 U.S.C. 44101–44104; and

* * * * *

■ 23. Amend § 49.41 by revising 

paragraph (a) to read as follows:

§ 49.41 Applicability.

* * * * *

(a) Any lease, a notice of tax lien or 

other lien (except a notice of Federal tax 

lien referred to in § 49.17(a)), and any 

mortgage, equipment trust, contract of 

conditional sale, or other instrument 

executed for security purposes, which 

affects title to, or any interest in, any 

specifically identified aircraft engine of 

550 or more rated takeoff horsepower, or 

the equivalent of that horsepower, or a 

specifically identified aircraft propeller 

capable of absorbing 750 or more rated 

takeoff shaft horsepower.

* * * * *

■ 24. Amend § 49.51 by revising 

paragraph (a) to read as follows:

§ 49.51 Applicability.

* * * * *

(a) Any lease, a notice of tax lien or 

other lien (except a notice of Federal tax 

lien referred to in § 49.17 (a), and any 

mortgage, equipment trust, contract of 

conditional sale, or other instrument 

executed for security purposes, which 

affects title to, or any interest in, any 

aircraft engine, propeller, or appliance 

maintained by or on behalf of an air 

carrier certificated under 49 U.S.C. 

44705 for installation or use in aircraft, 

aircraft engines, or propellers, or any 

spare parts, maintained at a designated 

location or locations by or on behalf of 

such an air carrier.

* * * * *

■ 25. Revise § 49.53(a)(1) to read as 

follows:

§ 49.53 Eligibility for recording: general 

requirements. 

(a) * * *

(1) It affects any aircraft engine, 

propeller, appliance, or spare part, 

maintained by or on behalf of an air 

carrier certificated under 49 U.S.C. 

44705;

* * * * *

■ 26. Add new subpart F to read as 

follows:

Subpart F—Transmission of 

Information to the International 

Registry

Sec. 

49.61 Applicability. 

49.63 Eligibility for Authorization for 

Transmission to the International 

Registry: General Requirements.

§ 49.61 Applicability. 

The FAA Civil Aviation Registry is 

designated under Section 3 of the Cape 

Town Treaty Implementation Act of 

2004, as the entry point for authorizing 

the transmission of information to the 

International Registry affecting United 

States civil aircraft, aircraft assigned a 

U.S. registration number and engines 

with a rated shaft horsepower of 550 or 

the equivalent thereof. This subpart 

applies to the transmission of 

information to the International 

Registry; the filing of the Entry Point 

filing form, AC Form 8050–135; and the 

filing of documents eligible for 

recording under subparts C and D of 

part 49.

§ 49.63 Eligibility for Authorization for 

Transmission to the International Registry: 

general requirements. 

(a) To send information to the 

International Registry with respect to a 

civil aircraft of the United States, an 

aircraft for which a U.S. identification 

number has been assigned, or an aircraft 

engine, a person requesting a unique 

authorization code from the FAA 

Aircraft Registry must comply with the 

following: 

(1) File a completed AC Form 8050–

135 with the FAA Aircraft Registry; and 

(2) For civil aircraft of the United 

States, file with the FAA Aircraft 

Registry any documents representing 

the transaction that meet the 

requirements of subpart C of this part; 

or 

(3) For aircraft engines, file with the 

FAA Aircraft Registry any documents 

representing the transaction that meet 

the requirements of subpart D of this 

part. 

(b) Nothing in this section requires 

transmittal of information relating to 

aircraft engines to the International 

Federal Register / Vol. 70, No. 1 / Monday, January 3, 2005 / Rules and Regulations 247

Registry through the FAA Aircraft 

Registry.

Marion C. Blakey, 

Administrator.

[FR Doc. 04–28388 Filed 12–28–04; 11:37 

am] 

BILLING CODE 4910–13–P