U.S. Department

of Transportation

Federal Aviation

Administration

Subject: VOLUNTARY DISCLOSURE

REPORTING PROGRAM -HAZARDOUS

MA TERIALS

Date: 01/31/06

Initiated by: ADG-l

AC No: 121-37

Change:

1. Purpose.

a. Holders of certificates under 14 CFR parts 119 and 125 and foreign air carriers issued

operations specifications under 14 CFR part 129 (operators, you, your) who accept hazardous

materials (HAZMAT) for transport by air may voluntarily disclose to the Federal Aviation

Administration (FAA, we, us) violations of certain hazardous materials regulations (HMR)

under the voluntary disclosure reporting program. This Advisory Circular (AC) provides

guidance for you when reporting to FAA instances of noncompliance through this voluntary

disclosure reporting program.

b. You are encouraged, but not required, to develop internal evaluation programs that

monitor your compliance with the HMR and your policies and procedures so that you achieve a

high-level of safety and security. However, you may voluntarily disclose certain apparent

violations following the guidance contained in this AC, even though you have not established

an internal evaluation program.

2. What Violations This AC May Cover.

The voluntary disclosure reporting program discussed in this AC applies to violations of 49 CPR

part 175, which cover certain HAZMAT reporting, training, acceptance, loading, unloading,

handling and stowage requirements. It does not apply to violations of 49 CFR parts 171, 172,

and 173, or to violations of 14 CFR.

3. Why Do We Need This AC?

We believe that aviation safety is well served by incentives for you to identify and correct your

own instances of noncompliance and to invest your resources in efforts to prevent a recurrence.

Civil penalties under our compliance and enforcement program are considered a means to

promote compliance with the regulations. In addition to the deterrence achieved by the

appropriate use of civil penalties, the public interest is also served by positive incentives to

promote and achieve compliance. Our policy of forgoing civil penalty actions when you detect a

violation, disclose the violation to us, and take prompt corrective action to ensure the violation

does not recur is designed to encourage compliance with the regulations, foster safe operating

practices, and promote the development of internal evaluation programs.
01/31/06 AC-121-37

4. Understanding The Key Terms And Phrases Used In This AC.

a. Evidence -written documentation or reports that support your analysis of the apparent

violation and the resulting elements of the proposed comprehensive fix. Evidence may come

from, among other things:

(1) Reviewing documents or manuals.

(2) Examining equipment.

(3) Observing activities.

(4) Interview data.

b. Appropriate FAA Regional HAZMAT Branch Manager (HAZMAT Branch Manager)"'"'-

the HAZMA T Branch Manager in the regional office that holds the operators certificate or, in

the case of a foreign air carrier, the regional office closest to the apparent violation.

(See Appendix II)

c. Comprehensive Fix -corrective steps and actions to prevent the apparent violation you

voluntarily disclosed under this AC from recurring.

d. Satisfactory Fix -a comprehensive fix that you have completed on schedule toF AA 's

satisfaction.

e. Implementation Period -the period of time, after you have initially notified us of the

apparent violation and before the HAZMA T Branch Manager makes a final assessment.

5. How The Voluntary Disclosure Program Works.

a. We believe the open sharing of apparent violations and a cooperative, as well as, an

advisory approach to solving problems will enhance and promote aviation safety. We will issue

you a letter of correction, instead of a civil penalty action, for covered instances of

noncompliance that are voluntarily disclosed to us under the terms of this AC. Once we issue the

letter of correction, the case will be closed. However, we will reopen the case if you fail to

complete the comprehensive fix in accordance with the letter of correction and we may take legal

enforcement action.

b. This voluntary disclosure program consists of seven steps:

(1) You make the initial notification to the HAZMA T Branch Manager of an apparent

violation.

(2) We respond to your initial notification and request your written report.

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01/31/06 AC-121-37

(3) You provide a written report to the HAZMAT Branch Manager.

(4) We evaluate your written report

(5) We review the proposed Comprehensive Fix you submitted with the written report

and concur or recommend changes.

(6) You carry out your Comprehensive Fix and conduct a subsequent audit.

(7) The HAZMA T Branch Manager makes a final assessment.

6. You Make The Initial Notification To The HAZMA T Branch Manager Of An Apparent

Violation.

a. The voluntary disclosure reporting program applies only when you discover an apparent

violation and notify the HAZMA TBranch Manager before we learn of the apparent violation.

You must make the initial notification within 24 hours of the discovery of the apparent violation,

(Exception: if we learn of the apparent 49 CPR part 175 violation through an Aviation Safety

Action Program (ASAP) report, as described in AC 120-66, current edition, the operator may

still subnrit it as described in this AC, provided the initial notification occurs within the timelinrit).

b. This notification may be in any form, such as telephonic, fax, e-mail, oral, orwtitten

(See Appendix n for Regional HAZMAT office phone numbers.)

c. In your notification you should:

(1) Describe the apparent violation, including the duration of time that it remained

undetected, as well as how and when you discovered it.

(2) Verify that noncompliance ceased after you identified it.

(3) Describe the immediate action taken to terminate the conduct that resulted in the

apparent violation and identify the person who was responsible for taking the immediate action

(4) Verify that you are continuing your ongoing evaluation to identify any systemic

problems and determine the corrective actions necessary to prevent recurrence.

(5) Identify the person and organization responsible for preparing the comprehensive fix.

(6) Assure us that a detailed written report will be provided to the HAZMAT Branch

Manager within 30 working days.

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7. We Respond To Your Initial Notification And Request Your Written Report.

a. Once you notify the HAZMA T Branch Manager of the violation, we will respond with a

written acknowledgement that we received your initial notification. The written

acknowledgement is sent instead of a letter of investigation.

b. Our written acknowledgement will include a request for your written report, the report

must be prepared as described in paragraph 8 of this AC and Appendix I. The HAZMA T Branch

Manager will open an enforcement investigative report that will be closed out with a letter of

correction, unless the comprehensive fix has not been completed.

8. You Provide A Written Report To The HAZMAT Branch Manager.

a. You must provide a written report to the HAZMAT Branch Manager within

30 working days after the initial notice of the apparent violation. The written report must (see

Appendix I):

(1) List the specific FAA regulations that may have been violated.

(2) Describe the apparent violation, including time it remained undetected, as well as

how and when you detected it.

(3) Describe the immediate action you took to terminate the conduct that resulted in the

apparent violation, including when it was taken, and who took it.

(4) Explain why the apparent violation was inadvertent.

(5) Provide evidence that demonstrates the seriousness of the apparent violation and your

analysis of that evidence.

(6) Describe the proposed comprehensive fix, outlining the planned corrective steps,

and a time schedule for completing the fix. You must identify the company official responsible

for completing the comprehensive fix.

9. We Evaluate Your Written Report.

a. We will evaluate and ensure that the following conditions are met when you report an

apparent violation:

(1) You have notified the HAZMA T Branch Manager of the apparent violation within 24

hours after detecting it and before we have learned of it by other means.

(2) The apparent violation was inadvertent.

(3) The apparent violation does not indicate a lack, or reasonable question of, your

qualification to hold a certificate, or, in the case of a foreign air carrier, operations specifications,

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01/31/06 AC-121-37

(4) You took immediate action to tenninate the conduct that resulted in the apparent

violation.

(5) You have developed or are developing a comprehensive fix satisfactory to us. The

comprehensive fix includes a follow-up self-audit to ensure that the corrective action taken

prevents a recurrence or noncompliance. This self-audit is in addition to any audits we

conducted.

b. Ordinarily, we will not forgo legal enforcement action if you inform us of the apparent

violation during, or in anticipation of, our investigation/inspection or in association with an

accident or incident.

10. We Review The Proposed Comprehensive Fix You Submitted With The Written

Report And Concur Or Recommend Changes.

We will work with you to ensure that you accomplish the comprehensive fix

a. If the HAZMAT Branch Manager determines that the proposed comprehensive fix is

acceptable, we will issue a letter of correction that includes the dates by which you must

complete the comprehensive fix.

b. After we issue the letter of correction, the case is closed but remains subject to reopening

if you do not complete the agreed-upon actions covered in the comprehensive fix to our

satisfaction.

c. TheHAZMAT Branch Manager has the authority to close the case.

11. You Carry Out Your Comprehensive Fix And Conduct A Subsequent Audit.

a. During the implementation period, we will continue to work with you. We may advise

and assist you in correcting any identified systemic problems. You may change the correctiye

action(s) outlined in the comprehensive fix, if we concur with the change. When we concur with

the change to a comprehensive fix, the HAZMAT Branch Manager will prepare an amended

letter of correction that reflects this change.

b. Throughout the implementation period, we will assess and monitor your corrective

efforts and top management's awareness of these efforts. If, during this period, we determine

that the steps you have taken are not those documented in the comprehensive fix, we may rescind

the letter of correction, reopen the Enforcement Investigative Report, and start appropriate legal

enforcement action.

c. You then finish the agreed-upon comprehensive fix, which includes a self-audit to ensure

that the corrective action taken prevents a recurrence of the noncompliance.

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01/31/06 AC-121-37

12. The HAZMA T Branch Manager Makes A Final Assessment.

a. At the conclusion of the implementation period, the HAZMAT Branch Manager makes a

final assessment. If all elements of the comprehensive fix have been adequately accomplished,

we will prepare a follow-up statement confirming the fix is satisfactory. The statement is placed

in the Enforcement Investigative Report.

b. If the same or similar violations are discovered after we finish an Enforcement

Investigative Report, we will not reopen the case unless we determine that you failed to

carry out one ot more of the elements of the comprehensive fix that the parties agreed on

13. Dispute Resolution

If a dispute occurs regarding FAA's acceptance of the proposed comprehensive fix or a

modification to the originally accepted comprehensive fix, the HAZMAT Branch Manager or

you may request that the issue be resolved at the next level of management within the FAA. The

next level of management is the Regional Security and Hazardous Materials Division Manager.

14. Applicability of the Freedom of Information Act (FOIA) to Voluntary Disclosure

Records Submitted Under This AC.

FAA will protect records submitted for review under this voluntary disclosure reporting program

to the extent allowed by law.

15. 

Repeated Violations After Yon Complete The Comprehensive Fix.

If a repeat violation occurs after you complete the satisfactory fix, the procedures outlined in this

AC may apply to the disclosure of the repeated violation. We will determine whether the

repeated violation will be accepted under this AC in each case, after evaluating the facts and

circumstances surrounding the repeated violation.

16. For More Information, Contact The Regional HAZMA T Branch Manager (see

Appendix II).

~~s 0 '- OrQJ"{V\}..A D

Assistant Administrator, Office of

Security and Hazardous Materials

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AC-121-37 01/31/06

APPENDIX I. SAMPLE FORMAT TO BE FOLLOWED WHEN SUBMITTING

THE WRITTEN REPORT AS OUTLINED IN PARAGRAPH 8 OF TmSAC.

This is a suggested fonnat to be used when preparing the written report to the

Appropriate Regional HAZMA T Branch Manager. While an air operator or foreign air

carrier should include at least all the elements specified below, the structure of the written

report can be modified by the air operator or foreign air carrier to fit its particular needs.

A. General

1. Date.

2. Certificate type or equivalent.

3. Pertinent air carrier or foreign air carrier number or equivalent.

4. Company name.

5. Company address.

6. Company official filing report.

a. Name.

b. Position.

c. Telephone number.

B. Description Of Apparent Violation

1. Applicable 49 CFR.

2. Date apparent violation was discovered.

3. Location of discovery.

4. Company official who discovered the apparent violation.

a. Name.

b. Position.

c. Telephone number.

5. Date and time of initial notification to the Appropriate Regional HAZMAT Branch

Manager.

6. Name of HAZMA T Branch Manager notified.

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AC-121-37 0.1/31/06

7. Company official making notification.

a. Name.

b. Position.

c. Telephone number.

8. Duration of time apparent violation remained undetected.

a. Hours.

b. Cycles.

c. Days.

C. Summary Of Apparent Violation

The summary should be a brief statement that describes the nature of the apparent

violation and identifies the specific aircraft and hazardous material/substance, and/or

individuals associated with the apparent violation.

D. Immediate Action

1. When the immediate action was taken.

2. Description of the immediate action. (This description should outline the

immediate steps that were taken to cease the apparent vIolation.)

3. Company official responsible for the immediate action.

a. Name.

b. Position.

c. Telephone number.

E. Analysis.

1. Summary of evidence. (This summary should describe the scope of the apparent

violation and explain how it was detected. In addition, conclusions reached regarding

possible or probable systemic deficiencies, i.e., who, what, when, where, why, and

how the noncompliance occurred, should be described.)

2. Reasons why the apparent violation was inadvertent.

3. Supporting documentation. (The evidence associated with the apparent violation

should be attached. This evidence should include a statement regarding how the air

operator or foreign air carrier determined the extent of the apparent violation.)

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AC-121-37 01/31/06

F. Comprehensive Fix. The corrective steps and actions proposed by the air operator or

foreign air carrier to prevent the apparent violation from recurring should be listed in this

section. Each corrective step should identify the individual or department responsible for

implementing and completing the corrective step and the time allotted for completion of

each corrective step. Examples of types of questions or issues that a comprehensive fix

should address are as follows:

(1) Whether the apparent violation involves equipment facilities, or individuals

beyond those addressed in the initial notification and for which immediate action was

taken.

(2) Whether procedural or organizational changes are necessary.

(3) How it will be determined whether any procedural or organizational changes are

effective.

(4) What procedures will be developed to ensure that the affected area is periodically

reviewed in the future so that concerns can be identified before a violation occurs?

(5) Who will be responsible for perfonning periodic reviews?

(6) To whom in the air operator's and foreign air carrier's organization will the

results of those periodic reviews be reported, and how will they be documented?

G. Responsibility For Monitoring The Implementation Of The Comprehensive Fix.

(1) Name.

(2) Position.

(3) Telephone number.

(4) Signature.

H. FAA Acceptance (To Be Completed By The FAA).

(1) Name.

(2) Position (Regional HAZMA T Branch Manager).

(3) Date.

(4) Office.

(5) Signature.

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AC-121-37 01/31/06

APPENDIX II. FAA's Regional HAZMA T Office Phone Numbers

New England Region

Burlington, MA

PHONE: (781) 238-7705

FAX: (781) 238-7716

Eastern Region

Jamaica, NY

PHONE: (718)553-2596

FAX: (718) 977-6720

Southern Region

Atlanta, GA

PHONE: (404) 305-6831

FAX: (404) 305-6754

Great Lakes Region

Des Plain, IL

PHONE: (847) 294-7414

FAX: (847) 294-7816

Central Region

St. Ann, MO

PHONE: (314) 890-4842

FAX: (314) 423-0884

Southwest Region

Ft. Worth, TX

PHONE: (817) 222-5720

FAX: (817) 222-5990

Western-Pacific Region

Lawndale, CA

PHONE: (310) 725-3701

FAX: (310) 725-6879

Northwest Mountain Region

Renton, W A

PHONE: (425) 227-2706

FAX: (425) 227-2706

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