Federal Register / Vol. 68, No. 127 / Wednesday, July 2, 2003 / Rules and Regulations 39449

these classes of products, a small 

business manufacturer must have 

submitted a proposal for a contract 

solicitation or received a contract from 

the Federal government within the last 

24 months. The SBA defines ‘‘class of 

products’’ based on a six digit North 

American Industry Classification 

System (NAICS) and the four digit 

Product and Service Code established 

by the Federal Procurement Data 

System. 

The U.S. Small Business 

Administration is currently processing a 

request to waive the Nonmanufacturer 

Rule for Other Ordnance and 

Accessories Manufacturing, NAICS 

332995.

Linda G. Williams, 

Associate Administrator for Government 

Contracting.

[FR Doc. 03–16717 Filed 7–1–03; 8:45 am] 

BILLING CODE 8025–01–P

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. 2003–NE–21–AD; Amendment 

39–13183; AD 2003–11–23] 

RIN 2120–AA64 

Airworthiness Directives; International 

Aero Engines AG (IAE) V2522–A5, 

V2524–A5, V2527–A5, V2527E–A5, 

V2527M–A5, V2530–A5, and V2533–A5 

Turbofan Engines; Correction

AGENCY: Federal Aviation 

Administration, DOT.

ACTION: Final rule; correction

SUMMARY: This document makes a 

correction to Airworthiness Directive 

(AD) 2003–11–23 applicable to IAE 

V2522–A5, V2524–A5, V2527–A5, 

V2527E–A5, V2527M–A5, V2530–A5, 

and V2533–A5 turbofan engines that 

was published in the Federal Register

on June 5, 2003 (68 FR 33621). The lists 

of engine models in the Airworthiness 

Directives title, the Summary, the 

Supplementary Information, and the 

Applicability section are incorrect. This 

document corrects those listings. Also, 

paragraph (c) of the regulatory text was 

incorrectly printed as run-in with the 

heading Applicability. In all other 

respects, the original document remains 

the same.

EFFECTIVE DATE: Effective June 20, 2003.

FOR FURTHER INFORMATION CONTACT:

Glorianne Niebuhr, Aerospace Engineer, 

Engine Certification Office, FAA, Engine 

and Propeller Directorate, 12 New 

England Executive Park, Burlington, MA 

01803; telephone (781) 238–7132; fax 

(781) 238–7199.

SUPPLEMENTARY INFORMATION: A final 

rule AD, FR Doc, 03–14133 applicable 

to IAE V2522–A5, V2524–A5, V2527–

A5, V2527E–A5, V2527M–A5, V2530–

A5, and V2533–A5 turbofan engines, 

was published in the Federal Register

on June 5, 2003 (68 FR 33621). The 

following correction is needed:

§ 39.13 [Corrected] 

On page 33621, in the third column, 

in the Heading Section, in the 

Airworthiness Directives title, 

‘‘International Aero Engines AG (IAE) 

V2522–A5, V2524–A5, V2527–A5, 

V2527E–A5, V2527M–A5, and V2530–

A5 Turbofan Engines ‘‘is corrected to 

read’’ International Aero Engines AG 

(IAE) V2522–A5, V2524–A5, V2527–A5, 

V2527E–A5, V2527M–A5, V2530–A5, 

and V2533–A5 Turbofan Engines’’. In 

the same column, in the Summary 

section, in the fourth and fifth lines, 

‘‘V2527E–A5, V2527M–A5, and V2530–

A5 turbofan engines’’ is corrected to 

read ‘‘V2527E–A5, V2527M–A5, V2530–

A5, and V2533–A5 turbofan engines’’. 

On page 33622, in the first column, in 

the Supplementary Information section, 

in third and fourth lines, change 

‘‘V2527–A5, V2527E–A5, V2527M–A5, 

and V2530–A5’’ to ‘‘V2527–A5, 

V2527E–A5, V2527M–A5, V2530–A5, 

and V2533–A5’’. In the same column, 

third paragraph, fourth and fifth lines, 

change ‘‘V2527–A5, V2527E–A5, 

V2527M–A5, and V2530–A5’’ to 

‘‘V2527–A5, V2527E–A5, V2527M–A5, 

V2530–A5, and V2533–A5’’.

Issued in Burlington, MA, on June 26, 

2003. 

Francis A. Favara, 

Acting Manager, Engine and Propeller 

Directorate, Aircraft Certification Service.

[FR Doc. 03–16690 Filed 7–1–03; 8:45 am] 

BILLING CODE 4910–13–P

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. 2003–SW–17–AD; Amendment 

39–13215; AD 2003–08–51] 

RIN 2120–AA64 

Airworthiness Directives; MD 

Helicopters, Inc. Model 369A, D, E, H, 

HE, HM, HS, F, and FF Helicopters

AGENCY: Federal Aviation 

Administration, DOT.

ACTION: Final rule; request for 

comments. 

SUMMARY: This document publishes in 

the Federal Register an amendment 

adopting Airworthiness Directive (AD) 

2003–08–51, which was sent previously 

to all known U.S. owners and operators 

of the specified model MD Helicopters, 

Inc. helicopters by individual letters. 

This AD requires reducing the 

retirement life of certain tail rotor 

blades, performing a one-time visual 

inspection of each tail rotor blade pitch 

horn (pitch horn) for a crack or 

corrosion, and replacing unairworthy 

tail rotor blades with airworthy tail rotor 

blades. This AD also requires revising 

the Airworthiness Limitations section of 

the helicopter maintenance manual to 

reflect the reduced retirement life, and 

reporting information to the FAA within 

24 hours following the one-time 

inspection. The actions specified by this 

AD are intended to prevent a pitch horn 

from separating from the tail rotor blade, 

leading to an unbalanced condition, 

vibration, loss of tail rotor pitch control, 

and loss of directional control of the 

helicopter.

DATES: Effective July 17, 2003, to all 

persons except those persons to whom 

it was made immediately effective by 

Emergency AD 2003–08–51, issued on 

April 15, 2003, which contained the 

requirements of this amendment. 

Comments for inclusion in the Rules 

Docket must be received on or before 

September 2, 2003.

ADDRESSES: Submit comments in 

triplicate to the Federal Aviation 

Administration (FAA), Office of the 

Regional Counsel, Southwest Region, 

Attention: Rules Docket No. 2003–SW–

17–AD, 2601 Meacham Blvd., Room 

663, Fort Worth, Texas 76137. You may 

also send comments electronically to 

the Rules Docket at the following 

address: 9-asw-adcomments@faa.gov.

FOR FURTHER INFORMATION CONTACT: Fred 

Guerin, Aviation Safety Engineer, FAA, 

Los Angeles Aircraft Certification 

Office, Airframe Branch, 3960 

Paramount Blvd., Lakewood, California 

90712, telephone (562) 627–5232, fax 

(562) 627–5210.

SUPPLEMENTARY INFORMATION: On April 

15, 2003, the FAA issued Emergency AD 

2003–08–51 for the specified model 

helicopters, which requires, before 

further flight, reducing the retirement 

life of certain tail rotor blades from 

5,140, 5,200, or 10,000 hours time-inservice (TIS) to 400 hours TIS, 

performing a one-time visual inspection 

of each pitch horn for a crack or 

corrosion, and replacing unairworthy 

tail rotor blades with airworthy tail rotor 

blades. The Emergency AD also requires 

revising the Airworthiness Limitations 

section of the helicopter maintenance 

39450 Federal Register / Vol. 68, No. 127 / Wednesday, July 2, 2003 / Rules and Regulations 

manual to reflect the reduced retirement 

life, and reporting information to the 

FAA within 24 hours following the onetime inspection. That action was 

prompted by two reports of cracked 

pitch horns that failed during flight. In 

both occurrences, the pilot was able to 

land the helicopter without further 

incident. Investigation revealed that the 

cause of the failures was a fatigue crack 

in the pitch horns that developed before 

the tail rotor blade reached its 

retirement life. This condition, if not 

corrected, could result in a pitch horn 

separating from the tail rotor blade, 

leading to an unbalanced condition, 

vibration, loss of tail rotor pitch control, 

and loss of directional control of the 

helicopter. 

Since the unsafe condition described 

is likely to exist or develop on other MD 

Helicopters, Inc. Model 369A, D, E, H, 

HE, HM, HS, F, and FF helicopters of 

the same type designs, the FAA issued 

Emergency AD 2003–08–51 to prevent a 

pitch horn from separating from the tail 

rotor blade, leading to an unbalanced 

condition, vibration, loss of tail rotor 

pitch control, and loss of directional 

control of the helicopter. The AD 

requires, before further flight, reducing 

the retirement life of certain tail rotor 

blades from 5,140, 5,200, or 10,000 

hours TIS to 400 hours TIS, performing 

a one-time visual inspection of each 

pitch horn for a crack or corrosion, and 

replacing unairworthy tail rotor blades 

with airworthy tail rotor blades. The AD 

also requires revising the Airworthiness 

Limitations section of the helicopter 

maintenance manual to reflect the 

reduced retirement life, and reporting 

information to the FAA within 24 hours 

following the one-time inspection. The 

short compliance time involved is 

required because the previously 

described critical unsafe condition can 

adversely affect the structural integrity 

of the helicopter. Therefore, reducing 

the retirement life of certain tail rotor 

blades; performing a one-time visual 

inspection of each pitch horn; replacing 

unairworthy tail rotor blades; and 

revising the Airworthiness Limitations 

section of the helicopter maintenance 

manual to reflect the reduced retirement 

life are required before further flight, 

and this AD must be issued 

immediately. 

Since it was found that immediate 

corrective action was required, notice 

and opportunity for prior public 

comment thereon were impracticable 

and contrary to the public interest, and 

good cause existed to make the AD 

effective immediately by individual 

letters issued on April 15, 2003, to all 

known U.S. owners and operators of MD 

Helicopters, Inc. Model 369A, D, E, H, 

HE, HM, HS, F, and FF helicopters. 

These conditions still exist, and the AD 

is hereby published in the Federal 

Register as an amendment to 14 CFR 

39.13 to make it effective to all persons. 

The Emergency AD contained two 

typographical errors that are corrected 

in this AD. Paragraph (c) of the 

Emergency AD stated ‘‘400 hours TIS’’

twice, and the ‘‘or’’ in the listing of part 

numbers should have been ‘‘and’’. 

On July 10, 2002, the FAA issued a 

new version of 14 CFR part 39 (67 FR 

47997, July 22, 2002), which governs the 

FAA’s AD system. The regulation now 

includes material that relates to altered 

products, special flight permits, and 

alternative methods of compliance. 

Because we have now included this 

material in part 39, we no longer need 

to include it in each individual AD. 

The FAA estimates that this AD will 

affect 213 helicopters of U.S. registry, 

and replacing the tail rotor blades will 

take approximately 2 work hours per 

helicopter to accomplish at an average 

labor rate of $60 per work hour. 

Required parts will cost approximately 

$2,000 per helicopter. Based on these 

figures, we estimate the total cost 

impact of the AD on U.S. operators to 

be $2,120 per helicopter, or $451,560 to 

replace all the blades in the fleet.

Comments Invited 

Although this action is in the form of 

a final rule that involves requirements 

affecting flight safety and, thus, was not 

preceded by notice and an opportunity 

for public comment, comments are 

invited on this rule. Interested persons 

are invited to comment on this rule by 

submitting such written data, views, or 

arguments as they may desire. 

Communications should identify the 

Rules Docket number and be submitted 

in triplicate to the address specified 

under the caption ADDRESSES. All 

communications received on or before 

the closing date for comments will be 

considered, and this rule may be 

amended in light of the comments 

received. Factual information that 

supports the commenter’s ideas and 

suggestions is extremely helpful in 

evaluating the effectiveness of the AD 

action and determining whether 

additional rulemaking action would be 

needed. 

Comments are specifically invited on 

the overall regulatory, economic, 

environmental, and energy aspects of 

the rule that might suggest a need to 

modify the rule. All comments 

submitted will be available in the Rules 

Docket for examination by interested 

persons. A report that summarizes each 

FAA-public contact concerned with the 

substance of this AD will be filed in the 

Rules Docket. 

Commenters wishing the FAA to 

acknowledge receipt of their mailed 

comments submitted in response to this 

rule must submit a self-addressed, 

stamped postcard on which the 

following statement is made: 

‘‘Comments to Docket No. 2003–SW–

17–AD.’’ The postcard will be date 

stamped and returned to the 

commenter. 

The regulations adopted herein will 

not have a substantial direct effect on 

the States, on the relationship between 

the national Government and the States, 

or on the distribution of power and 

responsibilities among the various 

levels of government. Therefore, it is 

determined that this final rule does not 

have federalism implications under 

Executive Order 13132. 

The FAA has determined that this 

regulation is an emergency regulation 

that must be issued immediately to 

correct an unsafe condition in aircraft, 

and that it is not a ‘‘significant 

regulatory action’’ under Executive 

Order 12866. It has been determined 

further that this action involves an 

emergency regulation under DOT 

Regulatory Policies and Procedures (44 

FR 11034, February 26, 1979). If it is 

determined that this emergency 

regulation otherwise would be 

significant under DOT Regulatory 

Policies and Procedures, a final 

regulatory evaluation will be prepared 

and placed in the Rules Docket. A copy 

of it, if filed, may be obtained from the 

Rules Docket at the location provided 

under the caption ADDRESSES.

List of Subjects in 14 CFR Part 39 

Air transportation, Aircraft, Aviation 

safety, Safety.

Adoption of the Amendment

■ Accordingly, pursuant to the authority 

delegated to me by the Administrator, 

the Federal Aviation Administration 

amends part 39 of the Federal Aviation 

Regulations (14 CFR part 39) as follows:

PART 39—AIRWORTHINESS 

DIRECTIVES

■ 1. The authority citation for part 39 

continues to read as follows:

Authority: 49 U.S.C. 106(g), 40113, 44701.

§ 39.13 [Amended]

■ 2. Section 39.13 is amended by adding 

a new airworthiness directive to read as 

follows:

2003–08–51 MD Helicopters, Inc.:

Amendment 39–13215. Docket No. 

2003–SW–17–AD.

Federal Register / Vol. 68, No. 127 / Wednesday, July 2, 2003 / Rules and Regulations 39451

Applicability: Model 369A, D, E, H, HE, 

HM, HS, F, and FF helicopters, with tail rotor 

blades, part number (P/N) 369D21640–501, 

369D21641–501, 369D21642–501, 

369D21643–501, 500P3100–101, 500P3100–

301, 500P3300–501, or 500P3500–701, 

installed, certificated in any category. 

Compliance: Required as indicated, unless 

accomplished previously. 

To prevent a tail rotor blade pitch horn 

(pitch horn) from separating from the tail 

rotor blade, leading to an unbalanced 

condition, vibration, loss of tail rotor pitch 

control, and loss of directional control of the 

helicopter, accomplish the following: 

(a) This airworthiness directive (AD) 

establishes a new retirement life of 400 hours 

time-in-service (TIS) for the tail rotor blades 

listed in the Applicability section. For 

helicopters with an affected tail rotor blade 

installed that has 390 through 700 hours TIS, 

remove and replace the tail rotor blade with 

an airworthy tail rotor blade within 10 hours 

TIS. 

(b) Before further flight, perform a one-time 

visual inspection of each pitch horn for a 

crack or corrosion in the area indicated by 

Note 2 in Figure 1 of this AD. Paint removal 

in accordance with Note 1 of Figure 1 of this 

AD is not required for the visual inspection. 

BILLING CODE 4910–13–P

BILLING CODE 4910–13–C

(c) Revise the helicopter Airworthiness 

Limitations section of the maintenance 

manual by making pen-and-ink changes to 

indicate the new retirement life of 400 hours 

TIS for the tail rotor blades, P/N 369D21640–

501, 369D21641–501, 369D21642–501, 

369D21643–501, 500P3100–101, 500P3100–

301, 500P3300–501, and 500P3500–70. 

(d) For helicopters with a tail rotor blade 

installed that has more than 700 hours TIS, 

a one-time special flight permit to fly it to a 

repair facility may be issued only upon 

completion of an eddy current surface scan 

of each affected pitch horn (see Figure 1 of 

this AD). Paint removal in accordance with 

Note 1 of the Figure 1 of this AD IS required 

for the surface scan. If a crack is found,


ER02JY03.100</GPH>
39452 Federal Register / Vol. 68, No. 127 / Wednesday, July 2, 2003 / Rules and Regulations 

remove the tail rotor blade and replace it 

with an airworthy tail rotor blade before 

further flight. 

(e) Within 24 hours after completing the 

requirements of this Emergency AD, report 

the information requested in Appendix A for 

all tail rotor blades listed in the Applicability 

section, including the tail rotor blades that 

were removed as a result of this AD. Report 

the information to: Manager, Los Angeles 

Aircraft Certification Office, ATTN: Fred 

Guerin, 3960 Paramount Blvd., Lakewood, 

California 90712, telephone (562) 627–5232. 

Reports may also be faxed to (562) 627–5210 

or emailed to fred.guerin@faa.gov.

(f) Information collection requirements 

contained in this AD have been approved by 

the Office of Management and Budget (OMB) 

under the provisions of the Paperwork 

Reduction Act of 1980 (44 U.S.C. 3501 et 

seq.) and have been assigned OMB Control 

Number 2120–0056. 

(g) To request a different method of 

compliance or a different compliance time 

for this AD, follow the procedures in 14 CFR 

39.19. Contact the Los Angeles Aircraft 

Certification Office, Transport Airplane 

Directorate, FAA, for information about 

previously approved alternative methods of 

compliance. 

(h) This amendment becomes effective on 

July 17, 2003, to all persons except those 

persons to whom it was made immediately 

effective by Emergency AD 2003–08–51, 

issued April 15, 2003, which contained the 

requirements of this amendment.

Appendix A—Tail Rotor Blade 

Inspection (Sample Format) 

Send within 24 hours to: 

Manager, Los Angeles Aircraft Certification 

Office, ATTN: Fred Guerin, 3960 Paramount 

Blvd., Lakewood, California 90712. 

Fax: (562) 627–5210. 

Email: fred.guerin@faa.gov.

Date:

Operator or Company Name:

Name of Contact Person:

Address:

Telephone:

Fax:

Aircraft Serial Number:

Aircraft Registration Number:

Estimated average flight hours per year:

T/R Blade Part Number: Serial Number: 

Total Time:

Crack found? (Yes/No): Corrosion Found? 

(Yes/No)

T/R Blade Part Number: Serial Number: 

Total Time:

Crack found? (Yes/No): Corrosion Found? 

(Yes/No)

T/R Blade Part Number: Serial Number: 

Total Time:

Crack found? (Yes/No): Corrosion Found? 

(Yes/No)

T/R Blade Part Number: Serial Number: 

Total Time:

Crack found? (Yes/No): Corrosion Found? 

(Yes/No)

Comments/Additional Information:

Issued in Fort Worth, Texas, on June 3, 

2003. 

Mark R. Schilling, 

Acting Manager, Rotorcraft Directorate, 

Aircraft Certification Service.

[FR Doc. 03–16687 Filed 7–1–03; 8:45 am] 

BILLING CODE 4910–13–P

DEPARTMENT OF THE TREASURY

Internal Revenue Service 

26 CFR Part 1 

[TD 9066] 

RIN 1545–BA79 

Outbound Liquidations Into Foreign 

Corporations

AGENCY: Internal Revenue Service (IRS), 

Treasury.

ACTION: Final regulations.

SUMMARY: This document contains final 

regulations that provide guidance 

regarding the application of section 

367(e)(2) to certain outbound 

liquidations. The regulations amend the 

anti-abuse rule by narrowing the scope 

of the rule to apply only to outbound 

transfers to a foreign corporation in a 

complete liquidation of a domestic 

corporation in which a principal 

purpose of the liquidation is the 

avoidance of U.S. tax. The regulations 

also clarify the application of the antiabuse rule.

DATES: Effective Date: July 2, 2003. 

Applicability Date: These regulations 

apply to distributions occurring on or 

after September 7, 1999, or, if the 

taxpayer has elected to apply the final 

regulations issued pursuant to TD 8834 

to such distributions, to distributions in 

taxable years ending after August 8, 

1999.

FOR FURTHER INFORMATION CONTACT:

Milton M. Cahn, (202) 622–3860 (not a 

toll-free number).

SUPPLEMENTARY INFORMATION: 

Background 

On August 9, 1999, the IRS and 

Treasury published final regulations 

(TD 8834 in the Federal Register at 64 

FR 43072) under section 367(e)(2) 

regarding distributions of property in a 

complete liquidation under section 332 

by a domestic corporation to a foreign 

parent corporation (outbound 

liquidation) and by a foreign 

corporation to a foreign parent 

corporation (foreign-to-foreign 

liquidations). On November 20, 2002, 

the IRS and Treasury published a notice 

of proposed rulemaking (REG–127380–

02 in the Federal Register at 67 FR 

70031) that would amend an anti-abuse 

rule in the final regulations to limit its 

application only to outbound 

liquidations of domestic corporations, 

and to clarify what constitutes a 

principal purpose of tax avoidance for 

purposes of the anti-abuse rule. 

Explanation of Provisions 

The final regulations published in 

1999 included an anti-abuse rule 

providing that the Commissioner may 

require a foreign or domestic liquidating 

corporation to recognize gain (or treat 

the liquidating corporation as if it had 

recognized a loss) on a liquidating 

distribution if a principal purpose of the 

liquidation is the avoidance of U.S. tax. 

§ 1.367(e)–2(d). The notice of proposed 

rulemaking proposed amending the 

anti-abuse rule under § 1.367(e)–2(d) to 

limit the application of this rule to 

outbound liquidations of domestic 

corporations. The notice of proposed 

rulemaking also proposed clarifying 

what constitutes a principal purpose for 

purposes of the anti-abuse rules in 

§ 1.367(e)–2(d) and § 1.367(e)–

2(b)(2)(iii)(C)(1). One written comment 

responding to the notice of proposed 

rulemaking was received, but this 

comment did not request any changes. 

The public hearing was canceled 

because no requests were received to 

speak at the hearing. Accordingly, the 

proposed regulations are adopted by 

this Treasury decision without change. 

Special Analyses 

It has been determined that this 

Treasury decision is not a significant 

regulatory action as defined in 

Executive Order 12866. Therefore, a 

regulatory assessment is not required. It 

has also been determined that section 

553(b) of the Administrative Procedure 

Act (5 U.S.C. chapter 5) does not apply 

to this regulation, and because the 

regulation does not impose a collection 

of information on small entities, the 

Regulatory Flexibility Act (5 U.S.C. 

chapter 6) does not apply. 

Drafting Information 

The principal author of these final 

regulations is Aaron A. Farmer of the 

Office of the Associate Chief Counsel 

(International), IRS. However, other 

personnel from the Treasury and the IRS 

participated in their development.

List of Subjects in 26 CFR Part 1 

Income taxes, Reporting and 

recordkeeping requirements.