Federal Register / Vol. 81, No. 229 / Tuesday, November 29, 2016 / Rules and Regulations 85843 

(i) Parts Installation Prohibition 

As of the effective date of this AD, no 

person may install a replacement P/N 97867– 

1 or P/N 97867–3 hydraulic hose assembly 

on an airplane, unless the hydraulic hose 

assembly is a serviceable part as defined in 

paragraph (h) of this AD. 

(j) Reporting Requirements 

At the applicable time specified in 

paragraph (j)(1) or (j)(2) of this AD, submit a 

report of the results (including no findings) 

of the inspection required by paragraph (g) of 

this AD. Send the report to Fokker Services 

B.V., Technical Services, Service 

Engineering, P.O. Box 1357, 2130 EL 

Hoofddorp, The Netherlands, email 

technicalservices@fokker.com. The report 

must include the type of damage found and 

airplane flight cycles and also any no 

findings. 

(1) If the inspection was done on or after 

the effective date of this AD: Submit the 

report within 30 days after the inspection. 

(2) If the inspection was done before the 

effective date of this AD: Submit the report 

within 30 days after the effective date of this 

AD. 

(k) Other FAA AD Provisions 

The following provisions also apply to this 

AD: 

(1) Alternative Methods of Compliance 

(AMOCs): The Manager, International 

Branch, ANM–116, Transport Airplane 

Directorate, FAA, has the authority to 

approve AMOCs for this AD, if requested 

using the procedures found in 14 CFR 39.19. 

In accordance with 14 CFR 39.19, send your 

request to your principal inspector or local 

Flight Standards District Office, as 

appropriate. If sending information directly 

to the International Branch, send it to ATTN: 

Tom Rodriguez, Aerospace Engineer, 

International Branch, ANM–116, Transport 

Airplane Directorate, FAA, 1601 Lind 

Avenue SW., Renton, WA 98057–3356; 

telephone 425–227–1137; fax 425–227–1149. 

Information may be emailed to: 9-ANM-116- 

AMOC-REQUESTS@faa.gov. Before using 

any approved AMOC, notify your appropriate 

principal inspector, or lacking a principal 

inspector, the manager of the local flight 

standards district office/certificate holding 

district office. 

(2) Contacting the Manufacturer: For any 

requirement in this AD to obtain corrective 

actions from a manufacturer, the action must 

be accomplished using a method approved 

by the Manager, International Branch, ANM– 

116, Transport Airplane Directorate, FAA; or 

the European Aviation Safety Agency 

(EASA); or Fokker B.V. Service’s EASA 

Design Organization Approval (DOA). If 

approved by the DOA, the approval must 

include the DOA-authorized signature. 

(3) Reporting Requirements: A federal 

agency may not conduct or sponsor, and a 

person is not required to respond to, nor 

shall a person be subject to a penalty for 

failure to comply with a collection of 

information subject to the requirements of 

the Paperwork Reduction Act unless that 

collection of information displays a current 

valid OMB Control Number. The OMB 

Control Number for this information 

collection is 2120–0056. Public reporting for 

this collection of information is estimated to 

be approximately 5 minutes per response, 

including the time for reviewing instructions, 

completing and reviewing the collection of 

information. All responses to this collection 

of information are mandatory. Comments 

concerning the accuracy of this burden and 

suggestions for reducing the burden should 

be directed to the FAA at: 800 Independence 

Ave. SW., Washington, DC 20591, Attn: 

Information Collection Clearance Officer, 

AES–200. 

(l) Related Information 

Refer to Mandatory Continuing 

Airworthiness Information (MCAI) European 

Aviation Safety Agency (EASA) 

Airworthiness Directive 2015–0077, dated 

May 6, 2015, for related information. This 

MCAI may be found in the AD docket on the 

Internet at http://www.regulations.gov by 

searching for and locating Docket No. FAA– 

2016–6895. 

(m) Material Incorporated by Reference 

(1) The Director of the Federal Register 

approved the incorporation by reference 

(IBR) of the service information listed in this 

paragraph under 5 U.S.C. 552(a) and 1 CFR 

part 51. 

(2) You must use this service information 

as applicable to do the actions required by 

this AD, unless this AD specifies otherwise. 

(i) Fokker Service Bulletin SBF28–32–164, 

dated January 14, 2015. 

(ii) Fokker Service Bulletin SBF100–32– 

166, dated January 14, 2015. 

(3) For service information identified in 

this AD, contact Fokker Services B.V., 

Technical Services Dept., P.O. Box 1357, 

2130 EL Hoofddorp, the Netherlands; 

telephone +31 (0)88–6280–350; fax +31 

(0)88–6280–111; email technicalservices@

fokker.com; Internet http://

www.myfokkerfleet.com. 

(4) You may view this service information 

at the FAA, Transport Airplane Directorate, 

1601 Lind Avenue SW., Renton, WA. For 

information on the availability of this 

material at the FAA, call 425–227–1221. 

(5) You may view this service information 

that is incorporated by reference at the 

National Archives and Records 

Administration (NARA). For information on 

the availability of this material at NARA, call 

202–741–6030, or go to: http://

www.archives.gov/federal-register/cfr/ibrlocations.html. 

Issued in Renton, Washington, on 

September 15, 2016. 

Suzanne Masterson, 

Acting Manager, Transport Airplane 

Directorate, Aircraft Certification Service. 

[FR Doc. 2016–28341 Filed 11–28–16; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 187 

[Docket No.: FAA–2015–3597; Amdt. No. 

187–36] 

RIN 2120–AK53 

Update of Overflight Fee Rates 

AGENCY: Federal Aviation 

Administration (FAA), Department of 

Transportation (DOT). 

ACTION: Final rule. 

SUMMARY: This final rule updates 

existing overflight fee rates using Fiscal 

Year (FY) 2013 FAA cost accounting 

and air traffic activity data. Overflight 

fees are charges for aircraft flights that 

transit U.S.-controlled airspace, but 

neither land in nor depart from the 

United States. Overflight fee rates were 

last updated in 2011. As a result, the 

FAA is not recovering the full cost of 

the services it provides. The FAA is 

increasing the rates for enroute and 

oceanic overflights based on Fiscal Year 

(FY) 2013 cost and air traffic activity 

data. The FAA is phasing in this rate 

increase over 3 years in equal 

percentage terms. This is a less 

burdensome approach than the 

alternative of phasing in the new rates 

in equal absolute terms, and is the same 

methodology used in the previous 

rulemaking. Finally, the FAA is making 

several organizational and clarifying 

revisions to the overflight fee 

requirements. 

DATES: This rule is effective January 1, 

2017. 

ADDRESSES: For information on where to 

obtain copies of rulemaking documents 

and other information related to this 

final rule, see ‘‘How to Obtain 

Additional Information’’ in the 

SUPPLEMENTARY INFORMATION section of 

this document. 

FOR FURTHER INFORMATION CONTACT: 

Aleksandra Damsz, Financial Analyst, 

Office of Financial Analysis, AFA–400, 

Federal Aviation Administration, 800 

Independence Avenue SW., 

Washington, DC 20591; telephone (202) 

267–8055; email aleksandra.damsz@

faa.gov. 

SUPPLEMENTARY INFORMATION: 

I. Executive Summary 

On August 28, 2015, the FAA 

published the notice of proposed 

rulemaking (NPRM), Update of 

Overflight Fee Rates (80 FR 52217). This 

rulemaking updates the existing 

overflight fees (last updated in a 2011 


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1The flight leg between the intermediate fuel or 

rest stop outside of the United States and the 

destination outside of the United States qualifies as 

an overflight generating a fee where the flight leg 

transits U.S.-controlled airspace. 

Final Rule) using more current FAA cost 

accounting and air traffic activity data. 

The FAA is increasing the rates for 

enroute and oceanic overflights over 

three 12-month intervals to bring cost 

recovery from FY 2008 to FY 2013 

recovery. The following table shows the 

increases: 

TABLE 1—RATE INCREASES FOR ENROUTE AND OCEANIC OVERFLIGHTS

Revision date 

Enroute rate 

(per 100 

nautical miles) 

Oceanic rate 

(per 100 

nautical miles) 

Current Rate ............................................................................................................................................................ $56.86 $21.63 

January 1, 2017 to January 1, 2018 ....................................................................................................................... 58.45 23.15 

January 1, 2018 to January 1, 2019 ....................................................................................................................... 60.07 24.77 

January 1, 2019 and Beyond .................................................................................................................................. 61.75 26.51 

Each fee rate will be effective for a 12- 

month period. However, the FAA will 

not make fee adjustments based on 

fiscal year or calendar year, but rather 

in 12-month intervals based on the 

effective date of this final rule. 

The FAA received 74 comments to the 

NPRM. The Aircraft Owners and Pilots 

Association (AOPA) and 37 individuals 

(25 of whom were part of a form letter 

campaign) raised the issue that the $250 

overflight fee billing threshold has not 

been raised while the fee rate has been 

raised. As a result, flights that were not 

getting billed in previous years because 

they were below the $250 threshold 

amount are now receiving a bill. Based 

on the comments received and 

subsequent analysis, the FAA is 

increasing the overflight fee billing 

threshold from $250 to $400. 

The FAA also finalizes several 

organizational and content revisions to 

part 187 to clarify the overflight fees 

requirements. 

Summary of Costs and Benefits of the 

Final Rule 

The higher overflight rates based on 

FY 2013 unit costs will allow the FAA 

to move closer to full cost recovery of 

air traffic control services already being 

provided to operators. The present value 

of the fee increases through the third 12- 

month interval—when the full increase 

in rates will have taken place—is 

$9,560,692 for foreign operators and 

$141,888 for domestic operators. The 

increased fees provide greater incentives 

for foreign and domestic operators to 

economize on U.S. air traffic control 

facilities and U.S.-controlled airspace, 

thus increasing the efficient allocation 

of resources. 

II. Authority for This Rulemaking 

The FAA’s authority to issue rules on 

aviation safety is found in Title 49 of the 

United States Code. Subtitle I, Section 

106 describes the authority of the FAA 

Administrator. Subtitle VII, Aviation 

Programs, describes in more detail the 

scope of the agency’s authority. 

This rulemaking is promulgated 

under the authority described in 

Chapter 453, Section 45301, et seq. 

Under that Chapter, the FAA is charged 

with prescribing regulations for the 

collection of fees for air traffic control 

and related services provided to aircraft, 

other than military and civilian aircraft 

of the United States Government or a 

foreign government, that transit U.S.- 

controlled airspace, but neither take off 

from nor land in the United States 

(‘‘overflights’’). This final rule is within 

the scope of that authority. 

III. Background 

A. History of Overflight Fees 

The FAA’s overflight fees were 

initially authorized in section 273 of the 

Federal Aviation Reauthorization Act of 

1996. After a series of legal challenges 

and refinements, overflight fee rates 

were implemented in their current form 

in 2001. Since that time the fee rates 

have been based on cost data from the 

FAA’s Cost Accounting System and air 

traffic data from the FAA’s Traffic Flow 

Management System (TFMS). They were 

last updated in 2011. The 2011 final 

rule updated the existing rates by using 

cost and activity data for FY 2008. 

Because the rates had not been updated 

for 9 years, and the total enroute and 

oceanic rate increases were significant, 

the FAA decided to phase in the 

increases. The 2011 final rule phased in 

the increases over a 4-year period, with 

rate increases occurring on October 1 of 

2011, 2012, 2013, and 2014. Thus, on 

October 1, 2014, the FAA was 

recovering the amounts that would have 

produced full cost recovery in FY 2008. 

B. Aviation Rulemaking Committee 

The FAA established and chartered an 

Overflight Fees Aviation Rulemaking 

Committee (ARC) consisting of foreign 

air carriers (and trade associations of 

those carriers) that are subject to the 

FAA’s overflight fees. The ARC was 

chartered on May 1, 2013, with the task 

to provide the FAA a report detailing 

recommendations for tasks moving 

forward with the process of updating 

the overflight fee rates. 

The ARC met with the FAA on June 

12, 2013, and on January 23, 2014. On 

February 14, 2014, the ARC submitted 

several recommendations on future 

overflight rate updates. For a full 

discussion of the ARC’s 

recommendations and FAA’s responses, 

see the NPRM published at 80 FR 

52218–52219. 

IV. Discussion of the Final Rule 

The FAA received 74 comments to the 

FAA’s notice of proposed rulemaking to 

update the fee rates. Sixty-eight 

comments were received from 

individuals. Of the 68 individual 

comments received, there were 25 

commenters who commented as part of 

a form letter campaign that focused on 

the interests of general aviation pilots 

flying from the U.S. to the Caribbean 

who make one or more intermediate 

stops enroute due to the aircraft’s 

limited range or human physiological 

needs.1 The FAA also received 

comments from three carriers and three 

associations: Carriers included British 

Airways, Lufthansa Airlines and Air 

Canada, and associations included 

National Airlines Council of Canada 

(NACC), International Air Transport 

Association (IATA) and Aircraft Owners 

and Pilots Association (AOPA). 

Commenters raised a total of 17 

issues. These issues, as well as FAA’s 

responses, are discussed below. 

A. Overflight Fee Billing Threshold 

AOPA and 37 individuals (25 of 

whom were part of the form letter 

campaign) raised the issue that the $250 

overflight fee billing threshold should 

be raised. Their concern was that while 

the overflight fee rate has increased, the 

billing threshold has not increased. As 

a result, flights that were not being 

billed in previous years because they 


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Federal Register / Vol. 81, No. 229 / Tuesday, November 29, 2016 / Rules and Regulations 85845 

were below the threshold are now 

receiving a bill. Commenters also asked 

that the threshold be increased to $450 

and that the amendment should provide 

for automatic adjustments to correspond 

with future increases in overflight fees 

rates. 

FAA concurs that the overflight fee 

billing threshold should be increased. In 

consideration of the comments, the FAA 

has analyzed the minimum threshold 

for overflight billings and has decided to 

increase this minimum threshold from 

$250 to $400 as part of this rulemaking. 

Overflight fee rates (per 100 nautical 

miles) in the August 2001 final rule 

were $33.72 for enroute and $18.94 for 

oceanic and the rule included a 

minimum billing threshold of $250. The 

NPRM proposed the following rates over 

a 3 year period: 

TABLE 2—PROPOSED ENROUTE AND OCEANIC FEE RATES

Revision date Enroute rate 

(per 100 nm) 

Oceanic rate 

(per 100 nm) 

Current Rate ............................................................................................................................................................ $56.86 $21.63 

October 1, 2015 ....................................................................................................................................................... 58.45 23.15 

October 1, 2016 ....................................................................................................................................................... 60.07 24.77 

October 1, 2017 ....................................................................................................................................................... 61.75 26.51 

This final rule adopts the rates as 

proposed. The rates under this final rule 

are 83% higher for enroute and 40% 

higher for oceanic as compared with the 

rates in the 2001 final rule ($33.72 for 

enroute and $18.94 for oceanic). The 

minimum billing threshold of $250 has 

been updated to account for the 

percentage growth in the fee rates, 

resulting in a threshold of $457.81 for 

enroute and $349.92 for oceanic. A 

weighted average of the two rates is then 

calculated using actual FY 2014 enroute 

and oceanic miles to calculate the 

updated billing threshold of $400. 

B. Excluding General Aviation 

AOPA and 67 individuals (25 of 

whom were part of a form letter 

campaign) commented that U.S. general 

aviation should be exempt from paying 

overflight fees. These commenters stated 

that Congress did not intend to impose 

overflight fees on general aviation when 

it granted FAA authority to establish 

overflight fees. 

Commenters also stated that charging 

general aviation traffic does little to 

recover air traffic control costs and 

general aviation traffic should not be 

burdened with overflight fees since they 

are an existing active consumer of fuel 

and other taxes which fund FAA and 

aviation services. 

Further, commenters stated their view 

that because the FAA excluded enroute 

Guam and San Juan costs from total 

costs in the NPRM, that FAA therefore 

acknowledged that these fees should not 

apply to U.S. general aviation traffic. 

The FAA notes that Congress did not 

differentiate between general aviation 

and commercial aviation in the 

overflight fees statute. Title 49 U.S.C. 

45301 (a) states that ‘‘[t]he 

Administrator shall establish a schedule 

of new fees, and a collection process for 

such fees, for . . . [a]ir traffic control 

and related services provided to aircraft 

other than military and civilian aircraft 

of the United States government or of a 

foreign government that neither take off 

from, nor land in, the United States.’’ 

Similarly, under the FAA’s Fee 

Regulation, 14 CFR part 187, App. B, 

any person who conducts a flight 

through U.S.-controlled airspace that 

does not include a landing or takeoff in 

the United States must pay a fee for the 

FAA’s rendering or providing certain 

services, including but not limited to 

the following: Air traffic management; 

communications; navigation; radar 

surveillance, including separation 

services; flight information services; 

procedural control; and emergency 

services and training. 

Consistent with the statutory and 

regulatory requirements, the FAA is 

required to collect overflight fees from 

any person who transits US airspace 

and neither takes off or lands in the 

United States. Neither the statute nor 

the regulation permit the FAA to 

exclude general aviation operators or to 

consider whether one aviation user 

group utilizes air traffic control services 

more than another. Additionally, there 

is no statutory or regulatory exception to 

the overflight fee requirement when 

persons covered by the requirement pay 

fuel or other related aviation taxes. 

With regard to enroute Guam and San 

Juan costs and miles being excluded, the 

FAA has determined that the NPRM 

incorrectly stated that the combined 

enroute Guam and San Juan control 

facilities ‘‘may handle a mix of general 

and commercial aviation traffic.’’ The 

FAA had intended to state that these 

control facilities ‘‘may handle a mix of 

terminal and enroute aviation traffic.’’ 

This correction does not impact the 

underlying analysis. 

Overflight fees are assessed on all 

traffic types with the exceptions noted 

in the August 28, 2015 NPRM, which 

stated that ‘‘The FAA’s costs used for 

this fee calculation are total costs 

because the services provided benefit all 

system users, including overflight 

users’’. 80 FR at 52218. While combined 

control facilities may handle a mix of 

Terminal and Enroute aviation traffic, 

this is not an issue because 49 U.S.C. 

45301, as noted above, does not 

distinguish or exempt general aviation 

users from the fees. 

C. General Aviation Charged for Same 

Day Fuel Stops 

AOPA and 32 individuals (25 of 

whom were part of a form letter 

campaign) stated that the FAA’s 

proposal would impose overflight fees 

on U.S. registered general aviation 

operations that land in or depart from 

the United States but also make 

intermediate stops enroute due to the 

aircraft’s limited range or human 

physiological needs. AOPA provided an 

example as follows: 

[A]n aircraft departs from an airport in 

Florida destined for the Dominican Republic 

in the Caribbean, but stops enroute at Nassau 

to refuel before continuing on to the 

Dominican Republic that same day. While 

overflight fees will not be assessed for the 

first leg of the flight between Florida and the 

fuel stop in Nassau, overflight fees under the 

NPRM will be assessed for the second leg of 

the flight between the fuel stop and the 

Dominican Republic. In comparison, a nonstop flight between Florida and the 

Dominican Republic would not result in any 

overflight fees. 

The commenters also noted that when 

general aviation is charged for same-day 

fuel stops, a significant amount of time 

is wasted in working with the FAA to 

get these charges reversed. 

The FAA emphasizes that overflight 

fees are assessed based on an evaluation 

of each flight. During the evaluation 

process, each flight is reviewed to 

consider whether an intermediate stop 

for fuel has occurred. A flight is not 

considered to be an overflight (i.e., 

triggering an overflight fee) if it departs 

or lands in the United States and the 

FAA can determine that an intermediate 


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2 ‘‘Non-overflight services’’ refers to services 

provided by the FAA to aircraft that do land in or 

takeoff from the United States, and operate in U.S. 

airspace under the direction of the FAA. 

stop for fuel occurred. In that case, no 

fee is assessed. The amount of time on 

the ground at an intermediary location 

is considered when making the 

determination. 

D. Compromising Safety 

AOPA and 6 individuals stated that 

by failing to recognize the limitations of 

most general aviation aircraft, the 

proposed rule may encourage non-stop 

flights to or from U.S. airports in order 

to avoid overflight fees, even though an 

intermediate fuel stop would increase 

the safety of the operation or is 

otherwise physiologically necessary. 

Commenters argued that this is not in 

the best interest of safety. One 

commenter stated that to avoid the fees 

‘‘[t]he pilots will not use air traffic 

services. They will not travel, or travel 

unsafely, perhaps to the point of turning 

off transponders. And with this will 

cause preventable accidents.’’ 

As previously stated, overflight fees 

are assessed based on an evaluation of 

each flight. A flight is not considered to 

be an overflight if it departs or lands in 

the United States. This can include 

intermediate stops for fuel. 

Additionally, as discussed previously, 

the FAA is raising the minimum billing 

threshold from $250 to $400 as part of 

this rulemaking action. This will 

provide for air traffic control services in 

many instances without the pilot 

necessarily incurring any cost. 

Discussion of turning off transponders 

is an unlikely scenario and an 

unnecessary action. Use of a 

transponder in and of itself will not 

generate user fees. User fees are based 

on the filing of a flight plan and 

receiving air traffic control services such 

as flight following or instrument flight 

rules separation services. A discrete 

transponder code would also need to be 

assigned to the aircraft. One could 

continue to use the transponder without 

incurring any cost, such as squawking 

1200, indicating a Visual Flight Rules 

(VFR) operation without necessarily 

receiving air traffic control services. 

A desire to reduce or minimize the 

dollar cost associated with any flight 

does not alleviate a pilot from the duties 

and responsibilities associated with 

acting as pilot in command. The pilot in 

command is the final authority and 

ultimately responsible for the 

operational safety of that flight. Pilots 

avoiding necessary fuel stops and/or 

turning off transponders to avoid air 

traffic control services and fees will 

likely jeopardize the safety of that flight 

and create unnecessary risk. The 

overflight fee must be considered part of 

the planning and associated cost of any 

flight, where a pilot does not take off or 

land from an airport located in the 

United States. Again, intermediate fuel 

stops that are of a short duration can be 

considered part of an overall flight that 

originates or departs from a United 

States location. 

E. Cost Recovery Rate Increase 

In the NPRM, the FAA asked for 

comments on whether it should 

expedite the increase of overflight fee 

rates to achieve full cost recovery. 

IATA, NACC, Lufthansa, Air Canada 

and British Airways opposed an 

expedited increase to enable cost 

recovery and suggested that the 

overflight fee rates be frozen at their 

present level until the ARC is reconvened and a new proposal for the 

rate increases is discussed and agreed 

upon. Air Canada noted that the Air 

Transport Agreement between Canada 

and the United States states that user 

charges must be ‘‘just, reasonable, and 

not unjustly discriminatory.’’ 

The FAA has reviewed the feedback 

on expediting the increase in overflight 

fee rates for cost recovery and has 

decided to proceed with the rate 

increases proposed in the NPRM 

without expediting them. Congress has 

directed the FAA to establish and 

maintain overflight fees ‘‘reasonably 

related to the Administration’s costs.’’ 

To retain the cost-based relationship, 

that means the FAA must periodically 

review and revise its overflight fee rates, 

and that is why the FAA is now 

proceeding to the final rule to impose 

the fee rates proposed in the NPRM. The 

FAA believes that fees ‘‘reasonably 

related to the Administration’s costs’’ 

would necessarily be ‘‘just, reasonable, 

and not unjustly discriminatory,’’ under 

the Transport Agreement. In addition, 

the overflight fees are not unjustly 

discriminatory because they are 

assessed only on aircraft flights that 

transit U.S.-controlled airspace, but 

neither land in nor depart from the 

United States. Both foreign and 

domestic operators are charged in the 

same manner. Those aircraft that do not 

transit U.S.-controlled airspace pay no 

fee. 

F. Marginal Allocation 

Lufthansa, Air Canada, and IATA 

commented on the issue of the cost base 

used for the fee calculation and stated 

two concerns: 

The first comment on marginal cost 

allocation stated generally is that costs 

for services neither used nor required by 

overflights should be removed from the 

cost base. The commenters also 

expressed concern that the level of 

overflight fees goes beyond that which 

is reasonably related to costs for 

providing air traffic control and related 

services to these operations. 

Commenters pointed out that the ARC 

noted that the amount recovered for 

non-overflight 2 services has remained 

unchanged, while overflight fees have 

continued to rise at a steady pace over 

the same period. IATA stated that 

insufficient data has been provided to 

justify FAA’s claim that under the ARC 

proposal, ‘‘the FAA would have 

recovered slightly less than 60% for 

enroute and 50% for oceanic of the total 

increase between FY 2015 rates (based 

on FY 2008 costs) and rates using FY 

2013 data.’’ 

Second, these commenters asserted 

that it is difficult to allocate overhead 

costs in a fair and justifiable manner to 

the air navigation cost base, specifically 

to the cost base of overflight charges. 

They asserted that this is because, 

contrary to most other air navigation 

service providers around the world, the 

FAA does not exclusively provide air 

traffic control services and hence, 

according to Air Canada, there is a 

fundamental problem with the FAA’s 

‘‘organizational structure and 

complexity and the size of the overhead 

cost.’’ 

The FAA notes the cost base concerns 

raised by Lufthansa, Air Canada, and 

IATA are not accurate. The 

methodology for estimating the fee is 

the same one used in the FY 2011 Final 

Rule to which the ARC had agreed. 

Since the original issuance of the 

Final Rule relating to overflight fees in 

August 2001, the statutory standard for 

the fees was relaxed by Congress to 

provide that the fees need to be 

‘‘reasonably related’’ to costs. This is in 

contrast to the previous standard in 

effect at the time of the issuance of the 

original Interim Final Rule in August 

2000. That standard provided that the 

fees needed to be ‘‘directly’’ related to 

the FAA’s costs of providing the air 

traffic control and related services. 

The FAA continues to use the same 

methodology for calculating the fee rates 

as was used in the 2011 update. The 

overflight fee rate is calculated by 

dividing total ATO costs by the total 

flight miles. The rate calculation 

methodology is used separately for both 

enroute and oceanic cost and mile data 

to derive the overflight fee rate for 

enroute and oceanic. ATO costs and 

flight miles used in this calculation are 

system totals and not related only to 

overflights. Therefore, there is no need 

to exclude any costs from the cost base. 


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The FAA and ARC proposals are both 

based on FY 13 actual rates. The 

difference in methodology is that the 

FAA proposed a 3 year compounded 

annual growth rate (CAGR) phased-in 

over 3 years. The ARC proposal is based 

on a 5 year CAGR that only includes 3 

years of phase-in. After year 3 the ARC 

recommended that a new ARC be reconvened to determine the need for 

updates after that period. Under the 

ARC’s proposal therefore, the FAA 

would recover less than the FY13 levels. 

In response to IATA’s statement that 

the FAA has not provided the data to 

support its claim that ‘‘the FAA would 

have recovered slightly less than 60% 

for enroute and 50% for oceanic of the 

total increase between FY 2015 rates 

(based on FY 2008 costs) and rates using 

FY 2013 data,’’ the FAA provides the 

following details (per 100 nautical 

miles): 

TABLE 3—COST RECOVERY COMPARISON

Enroute Oceanic 

FAA Rate—FY 2008 Cost Recovery ....................................................................................................................... $56.86 $21.63 

FAA Rate—FY 2013 Cost Recovery ....................................................................................................................... 61.75 26.51 

FAA Increase ........................................................................................................................................................... 4.89 4.88 

ARC Final Proposed Rate ....................................................................................................................................... 59.75 24.09 

ARC Increase .......................................................................................................................................................... 2.89 2.46 

ARC Proposed Increase as % of FAA Increase ..................................................................................................... 60% 50% 

Inclusion of overhead is a commonly 

accepted practice in fee setting, is 

consistent with generally accepted 

accounting principles, and is a 

specifically allowable element of cost 

under Office of Management and Budget 

(OMB) Circular No. A–25 on User 

Charges as well as International Civil 

Aviation Organization’s (ICAO’S) 

Policies on Charges for Airports and Air 

Navigation Services. In addition, the 

same Act of Congress that changed the 

above fee setting standard from 

‘‘directly’’ to ‘‘reasonably related’’ also 

gave the Administrator sole and final 

discretion in the determination of FAA 

costs. 49 U.S.C. 45301(b)(1). Again, the 

methodology used for determining 

overhead also remains unchanged from 

the FY2011 Final Rule and is based on 

FAA’s Cost Accounting System. 

G. FAA Costs 

Lufthansa, Air Canada, NACC and 

IATA commented on the issue of 

increasing FAA costs. They expressed 

concern over the steady pace at which 

FAA operational costs continue to rise 

and their impact on overflight fees. 

Industry partners are expected to 

embark on cost control and cost 

reduction efforts and the FAA is urged 

to commit to a cost efficiency target that 

remains below inflation. Also, IATA 

expressed disagreement with the NPRM 

stating that the FAA ‘‘believes 

forecasting based on projected traffic is 

more appropriate than using arbitrary 

cost targets’’ and stated that it has found 

that unanticipated and untimely 

economic occurrences can significantly 

impact forecast-based traffic projections, 

resulting in inaccurate accounting of 

traffic demand, business plans, required 

resources, and funding streams. As an 

example, over the past several years, the 

FAA forecast has consistently 

overestimated the growth projections for 

operations in the National Airspace 

System. Lufthansa suggested freezing 

the overflight fee rates at their current 

level and ‘‘reconsider the whole 

question of overflight fees.’’ 

The issue of FAA’s operational costs, 

and the rate at which they may increase, 

is outside the scope of this rulemaking. 

Under the statutory requirement, 

overflight fees must be ‘‘reasonably 

related to the Administration’s costs, as 

determined by the Administrator, of 

providing the services rendered.’’ 49 

U.S.C. 45301(b)(1). Neither the FAA 

traffic forecast nor cost targets are used 

in the fee calculation, but rather fees are 

calculated based on actual cost and 

miles. 

H. Overflight Fee Calculation Cost Base 

Lufthansa, IATA and Air Canada 

commented on the cost base used for the 

overflight fee rate calculation. Lufthansa 

and Air Canada both asserted that Air 

Route Traffic Control Center’s 

(ARTCC’s) have staff dedicated to 

manage, organize and optimize traffic 

approaching major airports in 

metropolitan areas. These working 

positions and all associated costs are 

included in the cost base for enroute, as 

the traffic concerned is still hundreds of 

miles away from the respective 

TRACON. As part of the enroute cost 

base, the costs are partly paid for by 

overflight fees. However, according to 

the commenters, overflying traffic does 

not require those services and hence, 

these costs should be excluded from the 

cost base used for the rate calculation. 

IATA also reiterated that the ARC 

recommended that the costs for services 

not used by overflights (e.g., flow 

control into major airports and approach 

services at airports and airfields not 

served by a TRACON) be removed from 

the cost base. 

Lufthansa also commented that it is 

unacceptable for the FAA to simply 

qualify services as ‘‘de minimis’’ 

without providing any details and 

justification. According to Lufthansa, 

‘‘[t]he NPRM on overflight fees is about 

facts and data and transparency of these. 

The term[] ‘‘de minimis’’ is a 

qualification, but not a quantification, 

and is not appropriate or acceptable in 

this context.’’ 

The FAA does not agree that costs 

relating to flow control should be 

removed from the enroute cost base. The 

Traffic Management Unit personnel at 

the enroute centers are responsible for 

the safe and efficient flow of all traffic, 

including overflights, in their airspace, 

and it would be neither reasonable nor 

practicable for the FAA to attempt to 

sort out and exclude the portion of such 

costs solely attributed to overflights. 

Moreover, air traffic flow management 

is a specifically allowable item for cost 

recovery under ICAO’s Policies on 

Charges for Airports and Air Navigation 

Services (ICAO Document 9082). 

While it is true that there are low 

activity airports and airfields that are 

not served by a TRACON or an air traffic 

control tower, and that in these 

instances the air traffic control services 

are provided by enroute controllers, the 

level of such activity is sufficiently low 

that it does not require increased 

staffing. See 76 FR 43114–43115 (July 

20, 2011). 

I. Failed ARC Process 

British Airways, Air Canada, 

Lufthansa, IATA and NACC expressed 

disappointment that the FAA has 

chosen to dismiss the ARC’s 

recommendations and stated that they 

viewed the ARC process as failed. They 

stated concern that the FAA’s proposed 

rule included several new 

methodologies for which there had not 


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been any consultation with industry and 

for which prior indication and relevant 

information required to accurately 

determine the cost-based charges had 

not been provided. Had any prior 

indication or concerns been raised, 

these ARC members stated that they 

could have provided guidance to the 

Agency. Additionally, these ARC 

members stated that the FAA released 

its NPRM one month prior to the current 

rate expiration date, leaving no time for 

the ARC members to react to it and 

develop an alternative that could be 

supported by all parties. 

Under the ARC’s May 1, 2013 Charter, 

the objective of the ARC was to provide 

‘‘advice and recommendations on the 

appropriate amounts for future 

overflight fees.’’ However, the FAA has 

no obligation to accept the advice and 

recommendations; it takes the ARC’s 

report under advisement. The agency 

also is not required to coordinate with 

the ARC after the ARC has issued its 

report. In most cases, the ARC would be 

terminated after its business has 

concluded. 

While the FAA considered the ARC’s 

recommendations, it declined to 

implement the recommendations. Also, 

FY 2015 enroute and oceanic overflight 

fee rates do not have a set expiration 

date and remain in effect until notice of 

new rates is published and the new 

rates are effective. Consequently, the 

NPRM was not released one month prior 

to the expiration date of these fee rates. 

J. ARC Data Transparency 

Lufthansa, British Airways and IATA 

commented that the ARC was not 

provided with relevant information 

such as staffing levels, labor costs, 

actual and projected traffic growth, and 

efficiency measures, to be able to 

accurately determine the cost-based user 

fee. They stated that without this 

information it is impossible to 

accurately determine cost based charges. 

The FAA does not concur that 

information relevant to overflight fees 

was kept from the ARC. The FAA 

provided detailed responses to ARC 

questions in 2013. Moreover, during the 

ARC meetings, the FAA provided the 

following relevant information to ARC 

members: 

• Number of airports providing service 

for approach and departure services 

• Difference between lower and higher 

level sectors 

• IFR flights operating from these 

airports 

• Inclusion and exclusion in cost 

allocation for enroute 

• Stable and decreasing expenses from 

2010 to 2013 

• Specific FAA initiatives to improve 

efficiency 

• Classification of flight miles for IFR 

and VFR traffic 

• Detailed description and breakout of 

overhead costs, staffing levels, and 

capital expenditure 

• Methodology for overflight fee 

calculation 

• Results of sequestration on ATO costs 

• Current rates and collection data for 

overflight fees 

• Use of overflight fee collections 

• Cost Accounting System cost of 

service documents 

• Enroute and oceanic flight miles 

• 2013 President’s Budget (budget in 

effect when the ARC met) 

• 2013 Senate Appropriations Bill 

• Detailed summary of FAA budget 

breakdown 

• Detailed summary specific to FAA 

operating budget 

• Detailed summary specific to FAA 

capital programs 

• Detailed summary specific to FAA 

NextGen programs 

• Detailed summary specific to FAA 

NextGen Research, Engineering & 

Development 

• Air Traffic Controller Workforce 

headcount, hires, and attrition 

• System wide Traffic and Controller 

Trends 

The data stated above as well as 

responses to the ARC’s questions 

include the details to accurately 

determine cost based fee charges. 

K. Guam and San Juan Costs and Miles 

Exclusion 

Lufthansa noted FAA’s proposal in 

the NPRM to exclude enroute Guam and 

San Juan costs from total FAA costs. 

Lufthansa noted that while it did not 

disagree with the exclusion in principle, 

it did not see in the NPRM how the 

exclusion would impact cost base, 

traffic, and fees. Lufthansa then 

questioned why this change and others 

in the NPRM had not been brought to 

the attention of the ARC. 

The FAA response is as follows: 

As an initial matter, the ARC 

concluded business on February 14, 

2014, when it issued its 

recommendations. It was not until 

August 28, 2015, however, that FAA 

announced in the NPRM that it was 

proposing to exclude Guam and San 

Juan costs from total FAA costs. As a 

result, this change could not have been 

brought before the ARC, which was 

terminated 18 months prior to the time 

that the NPRM was issued. 

Costs: 

Guam and San Juan facilities are 

being excluded from the enroute costs to 

be consistent with Honolulu. This 

determination was made after reviewing 

the ARC recommendations. As a result, 

the FAA enroute costs have decreased. 

Traffic Mileage: 

The enroute miles associated with 

Honolulu and oceanic miles for Guam 

were double-counted when presented to 

the ARC as they are also counted as part 

of the Oakland oceanic airspace. It was 

determined that the mileage was to be 

removed for these facilities. As a result, 

the total flight miles (GCD-nm) for 

enroute and oceanic were lower. 

Net Impact: 

With the decrease in costs and flight 

miles for enroute, the per 100nm fee 

decreased. On the oceanic side, the 

costs remained un-changed while the 

flight miles decreased, resulting in an 

increased per 100 nm fee. 

This change was not brought to the 

attention of the ARC before the 

publication of the NPRM because, at the 

time of the change, the FAA had already 

received the ARC’s recommendations. 

TABLE 4—IMPACT OF THE GUAM AND SAN JUAN CHANGE

Prior to Guam and 

San Juan change 

Post Guam and 

San Juan change 

Enroute 

FAA Cost ..................................................................................................................................................... $4,645,629,212 $4,597,808,058 

Total Flight Miles (GCD-nm) ........................................................................................................................ 7,504,243,185 7,445,668,883 

Rate Prior to Change (/100nm) ................................................................................................................... $61.91 $61.75 

Oceanic 

FAA Cost ..................................................................................................................................................... $184,391,603 $184,391,603 


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TABLE 4—IMPACT OF THE GUAM AND SAN JUAN CHANGE—Continued 

Prior to Guam and 

San Juan change 

Post Guam and 

San Juan change 

Total Flight Miles (GCD-nm) ........................................................................................................................ 708,610,831 695,620,413 

Rate After Change (/100nm) ....................................................................................................................... $26.02 $26.51 

Enroute fees are $61.75 per 100 

nautical miles (based on FY13 cost 

recovery) and oceanic fees are $26.51/ 

100 nautical miles (based on FY13 cost 

recovery). 

L. Weight-Based Fee Rates 

Thirteen individuals stated that it is 

not fair that small planes are charged 

the same fee rate as large commercial 

planes. They suggested that a tiered rate 

be charged on only U.S.-registered 

aircraft with a not-to-exceed amount 

depending upon the aircraft total gross 

weight similar to landing fees at larger 

airports or that the rate be based on the 

number of seats on the plane. 

The FAA does not concur that the fee 

rates should be charged based on weight 

or the number of seats on the aircraft. 

As noted above, the FAA is required to 

collect overflight fees from any person 

who transits US airspace and neither 

takes off or lands. 49 U.S.C. 45301(a); 14 

CFR part 187, App. B. The statutory 

requirement is that the overflight fees be 

‘‘reasonably related to the 

Administration’s costs, as determined 

by the Administrator, of providing the 

services rendered.’’ 49 U.S.C. 45301(b). 

No distinction is made in the law 

between types of aircraft, aircraft 

weight, or number of seats. In addition, 

VFR aircraft utilizing flight following 

services are provided similar service as 

IFR traffic. They are both charged 

overflight fees. 

M. General Aviation Excluded From the 

Aviation Rulemaking Committee 

One individual stated that general 

aviation was not represented in the 

ARC, which was established to examine 

overflight fees and provide the FAA 

recommendations on future overflight 

fee rates. 

The 2013 ARC inadvertently did not 

include representatives from general 

aviation because historically, members 

of this ARC and its predecessors were 

primarily composed of the parties from 

the extensive 1997–2003 overflight fees 

litigation—the Air Transport 

Association of Canada and seven 

international air carriers. 

Representatives from general aviation 

were not parties to the litigation. 

Membership of the 2013 ARC appears to 

have been an outgrowth of the 2008 

overflight fees ARC, which appears to 

have been an outgrowth of the 2004 

ARC on overflight fees. According to the 

August 26, 2009 ARC Report, ‘‘[a]s part 

of the settlement with the litigating 

carriers, the FAA agreed to the creation 

of the ARC, which was to consist of 

FAA and industry representatives 

working to examine in depth the FAA’s 

methodology for overflight fees and to 

recommend whether it should be 

modified.’’ 

Despite the fact that general aviation 

was not represented on the ARC, general 

aviation was provided an opportunity to 

review and comment on the final rule. 

Twenty-five of the 74 comments that the 

FAA received in response to the NPRM 

were filed by advocates of general 

aviation. As noted above, the general 

aviation commenters raised the issue 

that the $250 overflight fee billing 

threshold had not been raised while the 

fee rate had been raised. As a result, 

flights that were not getting billed in 

previous years because they were below 

the $250 threshold amount were now 

receiving a bill. As noted, the FAA 

concurred with the general aviation 

commenters that billing threshold 

should be increased. In consideration of 

the comments, the FAA will be 

increasing the minimum threshold from 

$250 to $400 as part of this rulemaking. 

N. General Aviation Visual Flight Rules 

Lufthansa, Air Canada, NACC and 

IATA asked for further clarification on 

the timeline of VFR flights being 

included in the calculation of overflight 

fees. Additionally, three individuals 

stated that because VFR traffic neither 

requires nor receives the same level of 

service as IFR traffic, VFR traffic should 

be charged less or excluded from the 

overflight fees requirement. 

VFR traffic utilizing flight following 

services are already included in the total 

mileage. Hence, there is no need for a 

timeline. In order to provide VFR flight 

following services, air traffic control 

generates a ‘‘flight plan’’ within FAA 

systems that is captured in the TFMS. 

This allows the aircraft call-sign 

(typically tail number for VFR flights) to 

be displayed and tracked against the 

discrete beacon code assigned by air 

traffic control. Non-discrete beacon 

codes (e.g., 1200) are not provided by 

TFMS and therefore not captured in the 

overflights data. These VFR flights 

would not be assessed an overflight fee. 

This is consistent with the 

recommendation. 

Air traffic control actively monitors 

and controls VFR flight following 

aircraft providing them with updates 

and guidance when necessary. VFR 

aircraft utilizing flight following are 

provided similar service as IFR traffic. 

O. Great Circle Distance 

Lufthansa, Air Canada, IATA and 

NACC commented on the use of great 

circle distance for calculating the 

nautical mile distance used in the 

overflight fee rate calculation. They 

stated that great circle distance was not 

part of the ARC agenda, nor was it 

discussed in terms of calculating 

overflight fees and stress the importance 

of ensuring the adoption of great circle 

distance be revenue neutral to the FAA. 

Further, they ask that a clearly defined 

GCD catalogue be published and 

consulted with airline users before it 

takes effect and that the FAA provide 

examples of same-route cost 

comparisons between great circle 

distance, as proposed, versus cost data 

(via the Cost Accounting System) and 

air traffic data (from TFMS). 

The FAA has not changed the 

application of great circle distance 

within overflights. The great circle 

distance methodology is the same as 

used in the previous rulemaking (2011 

Final Rule) with no change to the way 

the fees are generated. The formula in 

the rule was rewritten to enhance clarity 

and transparency concerning how the 

fees are assessed. Since the great circle 

distance use and methodology remains 

the same, FAA has determined there is 

not a need to consult with the airline 

users before taking effect (since it has 

already been in effect), nor is there a 

need for a great circle distance catalogue 

to be published. 

P. Regulatory Costs on Small Entities 

According to IATA, the NPRM 

indicates that there were 469 domestic 

operators (mostly small entities) that 

overflew U.S. controlled airspace in FY 

2013. The NPRM provided assurances 

that the rulemaking would not have a 

significant economic impact on small 

entities (estimated at an average 

increase of $36.50 per operation). In its 

comments, IATA asked for further detail 


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as to the air traffic control services 

rendered to these domestic operators: 

‘‘how much they cost and (most 

importantly) who is covering those 

costs.’’ IATA stated that its members 

should not be required to cover the costs 

incurred by these domestic operators. 

The FAA concurs that IATA members 

are not and will not be assessed costs 

incurred by domestic operators. Any 

aircraft that overflies U.S. controlled 

airspace will be charged the same 

overflight fee, calculated based on 

systemwide cost and traffic, regardless if 

it is a domestic US or foreign operator. 

Regardless of the level of exception, 

which is applied to both domestic and 

foreign carriers, operator origin does not 

affect overflight fee billings. 

Q. Meaning of $250 Billing Threshold 

Language 

One individual commented that the 

NPRM’s ‘‘wording of Section 187.55(b) 

changes the wording in the current rules 

from a prohibition on the FAA sending 

an invoice when monthly fees are below 

the threshold to a statement that the 

FAA will send an invoice when 

monthly fees are above the threshold.’’ 

The commenter further stated that, if 

strictly interpreted, this would allow the 

FAA ‘‘to send invoices when fees are 

below the threshold at its discretion’’ 

and would require invoices ‘‘when fees 

are above the threshold.’’ The 

commenter advised that this would be 

‘‘opposite to the original meaning,’’ and 

recommended that ‘‘the prohibition on 

below-threshold invoices should be 

restored as this appears unintentional. If 

intentional, the FAA has offered no 

justification for the change as would be 

required by the rulemaking process.’’ 

The current regulatory provision 

addressing invoicing of overflight fees 

includes billing and states that the FAA 

will send an invoice to each user that is 

covered by this appendix when fees are 

owed to the FAA. If the FAA cannot 

identify the user, then an invoice will be 

sent to the registered owner. No invoice 

will be sent unless the monthly (based 

on Greenwich Mean Time) fees for 

service equal or exceed $250. Users will 

be billed at the address of record in the 

country where the aircraft is registered, 

unless a billing address is otherwise 

provided. (14 CFR part 187, appendix B, 

paragraph (f)(1).) 

Under this provision, if the overflight 

fee amount owed is less than $250, no 

invoice will be sent and no billing 

results. Overflight fees are only assessed 

when the invoice amount is $250 or 

more. 

In the NPRM, FAA suggested 

regulatory text that would replace the 

language in appendix B relating to 

invoicing. (The NPRM proposed to 

remove and reserve appendix B). (80 FR 

52217, 52224 (Aug. 28, 2015).) 

The FAA does not agree that the 

change in wording would permit the 

agency to issue invoices for fees when 

the fee amount is below the $250 

threshold. The FAA also does not agree 

with the comment that the change 

would be ‘‘opposite to the original 

meaning.’’ As adopted in this final rule, 

the proposed language in section 187.55 

makes no substantive change. It does 

nothing different than the existing 

appendix B provision. In both cases, the 

FAA will send an invoice if fees are 

owed. In both cases, if the fees equal or 

exceed $400, as adjusted from $250 

based on the comments received, the 

FAA will send an invoice. If the fees are 

less than $400, as adjusted from $250 

based on the comments received, then 

the FAA will not send an invoice and 

no fees will be owed for the services 

rendered. As indicated in the NPRM, 

the FAA proposed this change and 

others as ‘‘organizational changes to part 

187 to clarify the overflight fee 

requirements.’’ 80 FR 52220. The NPRM 

proposed no substantive changes to the 

current regulatory provision addressing 

invoicing of overflight fees found in 

appendix B, paragraph (f)(1). ‘‘The 

proposed billing and payment 

procedures in new § 187.55 are 

unchanged from those in existing 

Appendix B.’’ 80 FR 52220. 

V. Summary of Regulatory Text 

Changes 

The changes to the existing regulatory 

text made pursuant to this final rule 

generally reflect ‘‘organizational 

changes to part 187 to clarify the 

overflight fee requirements.’’ 80 FR 

52220. 

The FAA has revised the authority 

citation for part 187 to reflect current 

law. 

In § 187.1, ‘‘Scope,’’ the FAA has 

removed the duplicate reference to 

Appendix A, removed the reference to 

Appendix B because Appendix B is 

being removed, and added a reference to 

Appendix C that inadvertently had not 

been added when Appendix C 

(computation of fees for production 

certification-related services performed 

outside the United States) was added. 

The FAA has added a new § 187.3, 

‘‘Definitions,’’ section to the rule, which 

revises four existing definitions from 

former Appendix B and adds a new 

definition for ‘‘great circle distance’’ 

consistent with the FAA’s method used 

for calculating overflight fees. 

The FAA has added a new § 187.51, 

‘‘Applicability of overflight fees,’’ in 

which subparagraph (a) specifies who 

must pay an overflight fee. The FAA has 

added a new subparagraph (d) to 

address fees for flights through U.S.- 

controlled airspace covered by an FAA 

agreement or other binding 

arrangement. The FAA periodically 

enters into agreements with foreign 

states, regional groups of states, or 

foreign air navigation services providers 

to set the terms for the FAA’s 

management or control of foreign 

airspace among other air navigation 

services provided by the FAA. 

The FAA has added a new § 187.53, 

‘‘Calculation of overflight fees,’’ which 

in subparagraph (a) retains the formula 

for calculating overflight fees from the 

former Appendix B but also clarifies the 

explanation of calculating that fee. 

Subparagraph (b) addresses how miles 

flown through each segment of airspace 

will be calculated, using great circle 

distance (GCD), from the point of entry 

into U.S.-controlled airspace to the 

point of exit from U.S.-controlled 

airspace. Subparagraph (c) includes a 

table providing the rate for each 100 

nautical miles flown through enroute or 

oceanic airspace. Subparagraph (d) 

provides the mathematical formula for 

the total overflight fee. Subparagraph (e) 

states that the FAA will review the rates 

described in this section at least once 

every 2 years and will adjust them to 

reflect current costs and volume of 

services provided. 

In § 187.55, ‘‘Overflight fees billing 

and payment procedures,’’ are 

unchanged from those in former 

Appendix B. 

VI. Regulatory Notices and Analyses 

A. Regulatory Evaluation 

Changes to Federal regulations must 

undergo several economic analyses. 

First, Executive Orders 12866 and 13563 

direct that each Federal agency shall 

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 (Pub. L. 96–354) 

requires agencies to analyze the 

economic impact of regulatory changes 

on small entities. Third, the Trade 

Agreements Act (Pub. L. 96–39) 

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 of 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 


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Federal Register / Vol. 81, No. 229 / Tuesday, November 29, 2016 / Rules and Regulations 85851 

3Office of Management and Budget, Circular A– 

94, ‘‘Guidelines and Discount Rates for Benefit-Cost 

Analysis of Federal Programs,’’ October 29, 1992, p. 

8. 

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 with 

base year of 1995). This portion of the 

preamble summarizes the FAA’s 

analysis of the economic impacts of this 

final rule. 

In conducting these analyses, FAA 

has determined that this final rule: (1) 

Has benefits that justify its costs, (2) is 

not an economically ‘‘significant 

regulatory action’’ as defined in section 

3(f) of Executive Order 12866, (3) is not 

‘‘significant’’ as defined in DOT’s 

Regulatory Policies and Procedures; (4) 

will not have a significant economic 

impact on a substantial number of small 

entities; (5) will not create unnecessary 

obstacles to the foreign commerce of the 

United States; and (6) will not impose 

an unfunded mandate on state, local, or 

tribal governments, or on the private 

sector by exceeding the threshold 

identified above. These analyses are 

summarized below. 

DOT Order 2100.5 prescribes policies 

and procedures for simplification, 

analysis, and review of regulations. If 

the expected cost impact is so minimal 

that a proposed or final rule does not 

warrant a full evaluation, this order 

permits that a statement to that effect 

and the basis for it to be included in the 

preamble if a full regulatory evaluation 

of the costs and benefits is not prepared. 

Such a determination has been made for 

this final rule. The reasoning for this 

determination follows. 

This rule will institute a 3-year phasein of rate increases for oceanic and 

enroute overflights, with rates per 100 

nautical miles increasing in three 12- 

month intervals to $23.15, $24.77, and 

$26.51 for oceanic flights, and to $58.45, 

$60.07, and $61.75 for enroute flights. 

The final rate of $26.51 for oceanic 

services, reached at the end of the third 

12-month interval, is derived from the 

FAA’s FY 2013 total cost of providing 

these services ($184,391,603) divided by 

the total nautical miles (695,620,413 

nm) flown by operators (overflights and 

non-overflights) in oceanic airspace. An 

analogous calculation is made to obtain 

the third 12-month interval rate of 

$61.75 for enroute services 

($4,597,808,058/7,445,668,883 nm). 

These higher rates based on FY 2013 

unit costs will allow the FAA to move 

closer to full cost recovery of air traffic 

control services already being provided 

to operators. 

Tables 5 and 6 show estimates of the 

increase in overflight fees for domestic 

operators and foreign operators for the 

three 12-month intervals, using FY 2013 

overflight mileage totals, thus assuming 

no annual growth. As the tables show, 

the present value (at a 7 percent 

discount rate) in 2013 dollars of the 

projected fee increases through the third 

12-month interval—when the full 

increase in rates will have taken place— 

is $141,888 for domestic operators and 

$9,560,692 for foreign operators. The 

updated fee rates will provide greater 

incentives for foreign and domestic 

operators to economize on U.S. air 

traffic control facilities and U.S.- 

controlled airspace, thus increasing the 

efficient allocation of resources. 

TABLE 5—DOMESTIC OPERATORS—OVERFLIGHT FEES

Domestic Operators Current Year 1 Year 2 Year 3 

Oceanic Fees (per 100 nm) ............................................................................ $21.63 $23.15 $24.77 $26.51 

Oceanic Billings w/o Final Rule ....................................................................... 528,616 528,616 528,616 528,616 

Oceanic Billings w/Final Rule .......................................................................... 528,616 565,707 605,400 647,878 

Increase in Oceanic Billings ..................................................................... 0 37,091 76,784 119,262 

Enroute Fees (per 100 nm) ............................................................................. 56.86 58.45 60.07 61.75 

Enroute Billings w/o Final Rule ....................................................................... 634,376 634,376 634,376 634,376 

Enroute Billings w/Final Rule ........................................................................... 634,376 652,064 670,245 688,933 

Increase in Enroute Billings ...................................................................... 0 17,688 35,869 54,557 

Increase in Overflight Billings ................................................................... 0 54,779 112,653 173,819 

PV Increase in Overflight Billings ............................................................. 0 51,195 98,395 141,888 

TABLE 6—FOREIGN OPERATORS—OVERFLIGHT FEES

Foreign Operators Current Year 1 Year 2 Year 3 

Oceanic Fees (per 100 nm) ............................................................................ $21.63 $23.15 $24.77 $26.51 

Oceanic Billings w/o Final Rule ....................................................................... 28,072,427 28,072,427 28,072,427 28,072,427 

Oceanic Billings w/Final Rule .......................................................................... 28,072,427 30,042,152 32,150,083 34,405,920 

Increase in Oceanic Billings ..................................................................... 0 1,969,724 4,077,656 6,333,493 

Enroute Fees (per 100 nm) ............................................................................. 56.86 58.45 60.07 61.75 

Enroute Billings w/o Proposed Rule ................................................................ 62,543,288 62,543,288 62,543,288 62,543,288 

Enroute Billings w/Proposed Rule ................................................................... 62,543,288 64,287,136 66,079,607 67,922,055 

Increase in Enroute Billings ...................................................................... 0 1,743,848 3,536,318 5,378,767 

Increase in Overflight Billings ................................................................... 0 3,713,572 7,613,974 11,712,259 

PV Increase in Overflight Billings ............................................................. 0 3,470,628 6,650,340 9,560,692 

Notes: 1. Rates for overflights are per 100 nautical miles. 2. Fees are in U.S. dollars. 3. Values are discounted back to the effective date of the 

rule at a 7% discount rate.3 4. Fees are slightly overstated in that we do not account for the fact that under the old rule operators incurring a bill 

of less than $250 were not charged, and under the new rule operators incurring a bill of less than $400 will not be charged. Over the 3-year period, FY2013–FY2015, monthly fees of less than $250 were small, constituting between 0.3% and 0.4% of annual total fees, and monthly fees of 

between $250 and $400 were smaller, constituting between 0.2% and 0.3% of annual total fees. 

B. Regulatory Flexibility Determination 

The Regulatory Flexibility Act of 1980 

(Pub. L. 96–354, subsection (b)) (RFA) 

establishes ‘‘as a principle of regulatory 

issuance that agencies shall endeavor, 

consistent with the objectives of the rule 

and of applicable statutes, to fit 

regulatory and informational 

requirements to the scale of the 

businesses, organizations, and 

governmental jurisdictions subject to 


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85852 Federal Register / Vol. 81, No. 229 / Tuesday, November 29, 2016 / Rules and Regulations 

4Employment and revenue data is from 

www.Manta.com. 

5Since our overflight fees by operator include 

both enroute and oceanic overflights, we first 

calculate the weighted average percentage increase 

in fees from the final rule, which we find to be 

14.95%. To assess the economic impact on any one 

U.S. operator, we then multiply the operator’s 2013 

operating fees by 14.95% to estimate the increase 

in that operator’s fees as a result of the final rule. 

We then divide this estimate by the operator’s 

annual revenue to assess the impact of the final rule 

on the operator. 

regulation. To achieve this principle, 

agencies are required to solicit and 

consider flexible regulatory proposals 

and to explain the rationale for their 

actions to assure that such proposals are 

given serious consideration.’’ The RFA 

covers a wide-range of small entities, 

including small businesses, not-forprofit organizations, and small 

governmental jurisdictions. 

Agencies must perform a review to 

determine whether a 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. 

However, if an agency determines that 

a 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. 

While the FAA did not receive 

comments on the regulatory flexibility 

analysis, the FAA did receive comments 

from 25 individuals and from AOPA, an 

industry group representing small 

entities. They commented that the 

overflight fees should not be applied to 

general aviation aircraft and that the 

fees went up but the $250 threshold was 

not changed. The FAA notes that 

Congress did not differentiate between 

general aviation and commercial 

aviation in the overflight fee statute. 

AOPA commented that with the fee 

increase users were now paying fees 

when they exceeded the $250 threshold. 

In response, the FAA has raised the 

threshold to $400 in this final rule. 

We ranked in descending order all 

469 domestic operators based on their 

overflight fees for fiscal year 2013 and 

found that the 14 top ranked operators 

accounted for more than 40% of that 

year’s total domestic overflight fees. Of 

these 14 operators we identified 4 as 

small entities (using a size standard of 

1,500 or fewer employees) and found all 

of them to have an increase in overflight 

fees as a percentage of annual revenues 

to be less than 1 percent. 4 5 We believe 

this rule does not impose a significant 

economic impact on those small 

entities. 

Therefore, as provided in section 

605(b), the head of the FAA certifies 

that this rulemaking will not result in a 

significant economic impact on a 

substantial number of small entities. 

C. International Trade Impact 

Assessment 

The Trade Agreements Act of 1979 

(Pub. L. 96–39), as amended by the 

Uruguay Round Agreements Act (Pub. 

L. 103–465), prohibits Federal agencies 

from establishing standards or engaging 

in related activities that create 

unnecessary obstacles to the foreign 

commerce of the United States. 

Pursuant to these Acts, the 

establishment of standards is not 

considered an unnecessary obstacle to 

the foreign commerce of the United 

States, so long as the standard has a 

legitimate domestic objective, such as 

the protection of safety, and does not 

operate in a manner that excludes 

imports that meet this objective. The 

statute also requires consideration of 

international standards and, where 

appropriate, that they be the basis for 

U.S. standards. ICAO standards allow 

providers of navigation services to 

require users of these services to pay 

their share of the related costs. The FAA 

has determined that this rule primarily 

affects foreign commercial operators. 

The recovery of costs of providing air 

navigation services is consistent with 

ICAO standards and international 

practice. Foreign operators will be 

charged a fee only if they use U.S.- 

controlled airspace without taking off or 

landing in the U.S., and U.S. operators 

will be charged in the same manner. 

Accordingly, the FAA does not believe 

this rule will create an unnecessary 

obstacle to the foreign commerce of the 

United States. 

D. Unfunded Mandates Assessment 

Title II of the Unfunded Mandates 

Reform Act of 1995 (Pub. L. 104–4) 

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 (in 

1995 dollars) 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 inflation-adjusted value of 

$155.0 million in lieu of $100 million. 

This rule does not contain such a 

mandate. Therefore, the requirements of 

Title II of the Act do not apply. 

E. Paperwork Reduction Act 

The Paperwork Reduction Act of 1995 

(44 U.S.C. 3507(d)) requires that the 

FAA consider the impact of paperwork 

and other information collection 

burdens imposed on the public. The 

FAA has determined that there is no 

new requirement for information 

collection associated with this rule. The 

information used to track overflights 

(including the information collection 

necessary to implement this rule) can be 

accessed from flight plans filed with the 

FAA. The collection of information from 

the Domestic and International Flight 

Plans is approved under OMB 

information collection 2120–0026. 

F. International Compatibility and 

Cooperation 

In keeping with U.S. obligations 

under the Convention on International 

Civil Aviation, it is FAA policy to 

conform to International Civil Aviation 

Organization 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 

these regulations. 

The ICAO guidance document on 

aviation fees and charges, ICAO 

Document 9082 (Ninth Edition—2012), 

ICAO’s Policies on Charges for Airports 

and Air Navigation Services, 

recommends consultations before 

imposing fees. In addition, Article 12 of 

the Air Transport Agreement between 

the United States of America and the 

European Union and its Member States 

(April 30, 2007, as amended June 24, 

2010) encourages consultation. 

By convening an ARC, presenting 

updated cost and traffic data to the ARC, 

and considering the ARC’s 

recommendations, the FAA consulted 

with system users prior to proposing the 

overflight fee update. 80 FR 52217 

(August 28, 2015). Additionally, the 

FAA invited comments on the proposal 

as part of its rulemaking process, which 

permitted participation by all interested 

parties. 

G. Environmental Analysis 

FAA Order 1050.1F 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 


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Federal Register / Vol. 81, No. 229 / Tuesday, November 29, 2016 / Rules and Regulations 85853 

categorical exclusion identified in 

paragraph 5–6.6f and involves no 

extraordinary circumstances. 

VII. Executive Order Determinations 

A. Executive Order 13132, Federalism 

The FAA has analyzed this final rule 

under the principles and criteria of 

Executive Order 13132, Federalism. The 

agency has determined that this action 

will not have a substantial direct effect 

on the States, or the relationship 

between the Federal Government and 

the States, or on the distribution of 

power and responsibilities among the 

various levels of government, and, 

therefore, will not have Federalism 

implications. 

B. Executive Order 13211, Regulations 

That Significantly Affect Energy Supply, 

Distribution, or Use 

The FAA analyzed this final rule 

under Executive Order 13211, Actions 

Concerning Regulations that 

Significantly Affect Energy Supply, 

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

agency has determined that it will not 

be a ‘‘significant energy action’’ under 

the executive order and will not be 

likely to have a significant adverse effect 

on the supply, distribution, or use of 

energy. 

C. Executive Order 13609, Promoting 

International Regulatory Cooperation 

Executive Order 13609, Promoting 

International Regulatory Cooperation, 

(77 FR 26413, May 4, 2012) promotes 

international regulatory cooperation to 

meet shared challenges involving 

health, safety, labor, security, 

environmental, and other issues and to 

reduce, eliminate, or prevent 

unnecessary differences in regulatory 

requirements. The FAA has analyzed 

this action under the policies and 

agency responsibilities of Executive 

Order 13609, and has determined that 

this action will have no effect on 

international regulatory cooperation. 

VIII. Additional Information 

A. Availability of Rulemaking 

Documents 

An electronic copy of rulemaking 

documents may be obtained from the 

Internet by— 

• Searching the Federal eRulemaking 

Portal (http://www.regulations.gov); 

• Visiting the FAA’s Regulations and 

Policies Web page at http://

www.faa.gov/regulations_policies or 

• Accessing the Government 

Publishing Office’s Web page at http:// 

www.fdsys.gov 

Copies may also be obtained by 

sending a request to the Federal 

Aviation Administration, Office of 

Rulemaking, ARM–1, 800 Independence 

Avenue SW., Washington, DC 20591, or 

by calling (202) 267–9677. Commenters 

must identify the docket, notice, or 

amendment number of this rulemaking. 

All documents the FAA considered in 

developing this final rule, including 

economic analyses and technical 

reports, may be accessed from the 

Internet through the Federal 

eRulemaking Portal referenced above. 

B. Comments Submitted to the Docket 

Comments received may be viewed by 

going to http://www.regulations.gov and 

following the online instructions to 

search the docket number for this 

action. Anyone is able to search the 

electronic form of all comments 

received into any of the FAA’s 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.). 

C. Small Business Regulatory 

Enforcement Fairness Act 

The Small Business Regulatory 

Enforcement Fairness Act of 1996 

(SBREFA) requires FAA to comply with 

small entity requests for information or 

advice about compliance with statutes 

and regulations within its jurisdiction. 

A small entity with questions regarding 

this document may contact its local 

FAA official, or the person listed under 

the FOR FURTHER INFORMATION CONTACT

heading at the beginning of the 

preamble. To find out more about 

SBREFA on the Internet, visit http://

www.faa.gov/regulations_policies/ 

rulemaking/sbre_act/. 

List of Subjects in 14 CFR Part 187 

Administrative practice and 

procedure, Air transportation. 

The Amendment 

In consideration of the foregoing, the 

Federal Aviation Administration 

amends chapter I of title 14, Code of 

Federal Regulations as follows: 

PART 187—FEES 

■ 1. Revise the authority citation for part 

187 to read as follows: 

Authority: 31 U.S.C. 9701; 49 U.S.C. 

106(f), 106(g), 106(l)(6), 40104–40105, 40109, 

40113–40114, 44702, 45301. 

■ 2. Revise § 187.1 to read as follows: 

§ 187.1 Scope. 

This part prescribes fees only for FAA 

services for which fees are not 

prescribed in other parts of this chapter 

or in 49 CFR part 7. The fees for services 

furnished in connection with making 

information available to the public are 

prescribed exclusively in 49 CFR part 7. 

Appendix A to this part prescribes the 

methodology for computation of fees for 

certification services performed outside 

the United States. Appendix C to this 

part prescribes the methodology for 

computation of fees for production 

certification-related services performed 

outside the United States. 

■ 3. Add § 187.3 to read as follows: 

§ 187.3 Definitions. 

For the purpose of this part: 

Great circle distance means the 

shortest distance between two points on 

the surface of the Earth. 

Overflight means a flight through 

U.S.-controlled airspace that does not 

include a landing in or takeoff from the 

United States. 

Overflight through Enroute airspace 

means an overflight through U.S.- 

controlled airspace where primarily 

radar-based air traffic services are 

provided. 

Overflight through Oceanic airspace 

means an overflight through U.S.- 

controlled airspace where primarily 

procedural air traffic services are 

provided. 

U.S.-controlled airspace means all 

airspace over the territory of the United 

States, extending 12 nautical miles from 

the coastline of U.S. territory; any 

airspace delegated to the United States 

for U.S. control by other countries or 

under a regional air navigation 

agreement; or any international 

airspace, or airspace of undetermined 

sovereignty, for which the United States 

has accepted responsibility for 

providing air traffic control services. 

■ 4. Add new §§ 187.51, 187.53, and 

187.55 to read as follows: 

§ 187.51 Applicability of overflight fees. 

(a) Except as provided in paragraphs 

(c) or (d) of this section, any person who 

conducts an overflight through either 

Enroute or Oceanic airspace must pay a 

fee as calculated in § 187.53. 

(b) Services. Persons covered by 

paragraph (a) of this section must pay a 

fee for the FAA’s rendering or providing 

of certain services, including but not 

limited to the following: 

(1) Air traffic management. 

(2) Communications. 

(3) Navigation. 

(4) Radar surveillance, including 

separation services. 

(5) Flight information services. 

(6) Procedural control. 

(7) Emergency services and training. 

(c) The FAA does not assess a fee for 

any military or civilian overflight 

operated by the United States 

Government or by any foreign 

government. 


jstallworth on DSK7TPTVN1PROD with RULES
85854 Federal Register / Vol. 81, No. 229 / Tuesday, November 29, 2016 / Rules and Regulations 

(d) Fees for overflights through U.S.- 

controlled airspace covered by a written 

FAA agreement or other binding 

arrangement are charged according to 

the terms of that agreement or 

arrangement unless the terms are silent 

on fees. 

§ 187.53 Calculation of overflight fees. 

(a) The FAA assesses a total fee that 

is the sum of the Enroute and Oceanic 

calculated fees. 

(1) Enroute fee. The Enroute fee is 

calculated by multiplying the Enroute 

rate in paragraph (c) of this section by 

the total number of nautical miles flown 

through each segment of Enroute 

airspace divided by 100 (because the 

Enroute rate is expressed per 100 

nautical miles). 

(2) Oceanic fee. The Oceanic fee is 

calculated by multiplying the Oceanic 

rate in paragraph (c) of this section by 

the total number of nautical miles flown 

through each segment of Oceanic 

airspace divided by 100 (because the 

Oceanic rate is expressed per 100 

nautical miles). 

(b) Distance flown through each 

segment of Enroute or Oceanic airspace 

is based on the great circle distance 

(GCD) from the point of entry into U.S.- 

controlled airspace to the point of exit 

from U.S.-controlled airspace based on 

FAA flight data. Where actual entry and 

exit points are not available, the FAA 

will use the best available flight data to 

calculate the entry and exit points. 

(c) The rate for each 100 nautical 

miles flown through Enroute or Oceanic 

airspace is: 

Time period Enroute rate Oceanic rate 

January 1, 2017 to January 1, 2018 ....................................................................................................................... 58.45 23.15 

January 1,2018 to January 1, 2019 ........................................................................................................................ 60.07 24.77 

January 1, 2019 and Beyond .................................................................................................................................. 61.75 26.51 

(d) The formula for the total overflight 

fee is: 

Rij = E*DEij/100 + O*DOij/100 

Where: 

Rij = the total fee charged to aircraft flying 

between entry point i and exit point j. 

DEij = total distance flown through each 

segment of Enroute airspace between 

entry point i and exit point j. 

DOij = total distance flown through each 

segment of Oceanic airspace between 

entry point i and exit point j. 

E and O = the Enroute and Oceanic rates, 

respectively, set forth in paragraph (c) of 

this section. 

(e) The FAA will review the rates 

described in this section at least once 

every 2 years and will adjust them to 

reflect the current costs and volume of 

the services provided. 

§ 187.55 Overflight fees billing and 

payment procedures. 

(a) The FAA will send an invoice to 

each user when fees are owed to the 

FAA. If the FAA cannot identify the 

user, then an invoice will be sent to the 

registered owner. Users will be billed at 

the address of record in the country 

where the aircraft is registered, unless a 

billing address is otherwise provided. 

(b) The FAA will send an invoice if 

the monthly (based on Universal 

Coordinated Time) fees equal or exceed 

$400. 

(c) Payment must be made by one of 

the methods described in § 187.15(d). 

Appendix B to Part 187—[Removed and 

Reserved] 

■ 5. Remove and reserve Appendix B to 

Part 187. 

Issued under authority provided by 49 

U.S.C. 106(f) and 45302, in Washington, DC, 

on November 7, 2016. 

Michael P. Huerta, 

Administrator. 

[FR Doc. 2016–28589 Filed 11–28–16; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF HEALTH AND 

HUMAN SERVICES 

Food and Drug Administration 

21 CFR Parts 1, 1005, and 1271 

[Docket No. FDA–2016–N–1487] 

RIN 0910–AH41 

Submission of Food and Drug 

Administration Import Data in the 

Automated Commercial Environment 

AGENCY: Food and Drug Administration, 

HHS. 

ACTION: Final rule. 

SUMMARY: The Food and Drug 

Administration (FDA, the Agency, or 

we) is issuing a final rule/regulation to 

establish requirements for the electronic 

filing of entries of FDA-regulated 

products in the Automated Commercial 

Environment (ACE) or any other 

electronic data interchange (EDI) system 

authorized by the U.S. Customs and 

Border Protection Agency (CBP), in 

order for the filing to be processed by 

CBP and to help FDA in determining 

admissibility of that product. ACE is a 

commercial trade processing system 

operated by CBP that is designed to 

implement the International Trade Data 

System (ITDS), automate import and 

export processing, enhance border 

security, and foster U.S. economic 

security through lawful international 

trade and policy. FDA is a Partner 

Government Agency (PGA) for purposes 

of submission of import data in ACE. As 

of July 23, 2016, ACE became the sole 

EDI system authorized by CBP for entry 

of FDA-regulated articles into the 

United States. We also updated certain 

sections of FDA regulations related to 

imports. This rule will facilitate 

effective and efficient admissibility 

review by the Agency and protect public 

health by allowing FDA to focus its 

limited resources on those FDAregulated products being imported or 

offered for import that may be 

associated with a greater public health 

risk. 

DATES: This rule is effective December 

29, 2016. 

ADDRESSES: For access to the docket to 

read background documents or 

comments received, go to https:// 

www.regulations.gov and insert the 

docket number found in brackets in the 

heading of this final rule into the 

‘‘Search’’ box and follow the prompts, 

and/or go to the Division of Dockets 

Management, 5630 Fishers Lane, rm. 

1061, Rockville, MD 20852. 

FOR FURTHER INFORMATION CONTACT: 

With regard to the final rule: Ann M. 

Metayer, Office of Regulatory Affairs, 

Food and Drug Administration, 10903 

New Hampshire Ave., Bldg. 32, Rm. 

4338, Silver Spring, MD 20993–0002, 

301–796–3324, 

Ann.Metayer@fda.hhs.gov. 

With regard to the information 

collection: FDA PRA Staff, Office of 

Operations, Food and Drug 

Administration, Three White Flint 

North, 10A63, 11601 Landsdown St., 


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