Federal Register / Vol. 78, No. 180 / Tuesday, September 17, 2013 / Proposed Rules 57101 

fiscal period; (2) the Committee needs to 

have sufficient funds to pay its expenses 

which are incurred on a continuous 

basis; and (3) handlers are aware of this 

action which was unanimously 

recommended by the Committee at a 

public meeting and is similar to other 

assessment rate actions issued in past 

years. 

List of Subjects in 7 CFR Part 915 

Avocados, Reporting and 

recordkeeping requirements. 

For the reasons set forth in the 

preamble, 7 CFR part 915 is proposed to 

be amended as follows: 

PART 915—AVOCADOS GROWN IN 

SOUTH FLORIDA 

■ 1. The authority citation for 7 CFR 

part 915 continues to read as follows: 

Authority: 7 U.S.C. 601–674. 

■ 2. Section 915.235 is revised to read 

as follows: 

§ 915.235 Assessment rate. 

On and after April 1, 2013, an 

assessment rate of $0.30 per 55-pound 

container or equivalent is established 

for avocados grown in South Florida. 

Dated: September 11, 2013. 

Rex A. Barnes, 

Associate Administrator, Agricultural 

Marketing Service. 

[FR Doc. 2013–22539 Filed 9–16–13; 8:45 am] 

BILLING CODE 3410–02–P 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 984 

[Doc. No. AMS–FV–13–0056; FV13–984–1 

PR] 

Walnuts Grown in California; Increased 

Assessment Rate 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Proposed rule. 

SUMMARY: This proposed rule would 

increase the assessment rate established 

for the California Walnut Board (Board) 

for the 2013–14 and subsequent 

marketing years from $0.0175 to $0.0189 

per kernelweight pound of 

merchantable walnuts. The Board 

locally administers the marketing order 

which regulates the handling of walnuts 

grown in California. Assessments upon 

walnut handlers are used by the Board 

to fund reasonable and necessary 

expenses of the program. The marketing 

year begins September 1 and ends 

August 31. The assessment rate would 

remain in effect indefinitely unless 

modified, suspended, or terminated. 

DATES: Comments must be received by 

October 17, 2013. 

ADDRESSES: Interested persons are 

invited to submit written comments on 

this proposed rule. Comments must be 

sent to the Docket Clerk, Marketing 

Order and Agreement Division, Fruit 

and Vegetable Program, AMS, USDA, 

1400 Independence Avenue SW., STOP 

0237, Washington, DC 20250–0237; Fax: 

(202) 720–8938; or Internet: http://

www.regulations.gov. Comments should 

reference the document number and the 

date and page number of this issue of 

the Federal Register and will be 

available for public inspection in the 

Office of the Docket Clerk during regular 

business hours, or can be viewed at: 

http://www.regulations.gov. All 

comments submitted in response to this 

proposed rule will be included in the 

record and will be made available to the 

public. Please be advised that the 

identity of the individuals or entities 

submitting comments will be made 

public on the Internet at the address 

provided above. 

FOR FURTHER INFORMATION CONTACT: 

Andrea Ricci, Marketing Specialist, or 

Martin Engeler, Regional Director, 

California Marketing Field Office, 

Marketing Order and Agreement 

Division, Fruit and Vegetable Program, 

AMS, USDA; Telephone: (559) 487– 

5901, Fax: (559) 487–5906, or Email: 

Andrea.Ricci@ams.usda.gov or 

Martin.Engeler@ams.usda.gov. 

Small businesses may request 

information on complying with this 

regulation by contacting Jeffrey Smutny, 

Marketing Order and Agreement 

Division, Fruit and Vegetable Program, 

AMS, USDA, 1400 Independence 

Avenue SW., STOP 0237, Washington, 

DC 20250–0237; Telephone: (202) 720– 

2491, Fax: (202) 720–8938, or Email: 

Jeffrey.Smutny@ams.usda.gov. 

SUPPLEMENTARY INFORMATION: This 

proposed rule is issued under Marketing 

Order No. 984, as amended (7 CFR part 

984), regulating the handling of walnuts 

grown in California, hereinafter referred 

to as the ‘‘order.’’ The order is effective 

under the Agricultural Marketing 

Agreement Act of 1937, as amended (7 

U.S.C. 601–674), hereinafter referred to 

as the ‘‘Act.’’ 

The Department of Agriculture 

(USDA) is issuing this proposed rule in 

conformance with Executive Order 

12866. 

This proposed rule has been reviewed 

under Executive Order 12988, Civil 

Justice Reform. Under the marketing 

order now in effect, California walnut 

handlers are subject to assessments. 

Funds to administer the order are 

derived from such assessments. It is 

intended that the assessment rate as 

proposed herein would be applicable to 

all assessable walnuts beginning on 

September 1, 2013, and continue until 

amended, suspended, or terminated. 

The Act provides that administrative 

proceedings must be exhausted before 

parties may file suit in court. Under 

section 608c(15)(A) of the Act, any 

handler subject to an order may file 

with USDA a petition stating that the 

order, any provision of the order, or any 

obligation imposed in connection with 

the order is not in accordance with law 

and request a modification of the order 

or to be exempted therefrom. Such 

handler is afforded the opportunity for 

a hearing on the petition. After the 

hearing, USDA would rule on the 

petition. The Act provides that the 

district court of the United States in any 

district in which the handler is an 

inhabitant, or has his or her principal 

place of business, has jurisdiction to 

review USDA’s ruling on the petition, 

provided an action is filed not later than 

20 days after the date of the entry of the 

ruling. 

This proposed rule would increase 

the assessment rate established for the 

Board for the 2013–14 and subsequent 

marketing years from $0.0175 to $0.0189 

per kernelweight pound of 

merchantable walnuts. 

The California walnut marketing 

order provides authority for the Board, 

with the approval of USDA, to formulate 

an annual budget of expenses and 

collect assessments from handlers to 

administer the program. The members 

of the Board are growers and handlers 

of California walnuts. They are familiar 

with the Board’s needs and with the 

costs of goods and services in their local 

area and are therefore in a position to 

formulate an appropriate budget and 

assessment rate. The assessment rate is 

formulated and discussed in a public 

meeting. Thus, all directly affected 

persons have an opportunity to 

participate and provide input. 

For the 2011–12 and subsequent 

marketing years, the Board 

recommended, and USDA approved, an 

assessment rate of $0.0175 per 

kernelweight pound of merchantable 

walnuts that would continue in effect 

from year to year unless modified, 

suspended, or terminated by USDA 

upon recommendation and information 

submitted by the Board or other 

information available to USDA. 

The Board met on June 6, 2013, and 

unanimously recommended 2013–14 

expenditures of $10,166,860 and an 

assessment rate of $0.0189 per 


tkelley on DSK3SPTVN1PROD with PROPOSALS
57102 Federal Register / Vol. 78, No. 180 / Tuesday, September 17, 2013 / Proposed Rules 

kernelweight pound of merchantable 

walnuts. In comparison, last year’s 

budgeted expenditures were $8,840,000. 

The assessment rate of $0.0189 is 

$0.0014 per pound higher than the rate 

currently in effect. The quantity of 

assessable walnuts for the 2013–14 

marketing year is estimated at 486,000 

tons (inshell), which is 6,000 tons 

higher than last year’s. At the 

recommended higher assessment rate of 

$0.0189 per kernelweight pound, the 

Board should collect approximately 

$8,266,860 in assessment income. 

Assessment income plus funds from the 

Board’s authorized prior year’s carry-in 

financial reserve and Foreign 

Agricultural Service (FAS) funding 

would be adequate to cover its 2013–14 

anticipated expenditures of 

$10,166,860. 

The major expenditures 

recommended by the Board for the 

2013–14 marketing year includes 

$830,000 for employee expenses, 

$146,500 for office expenses, $225,000 

for operating expenses, and $8,965,360 

for program expenses which include 

domestic market development, 

production research, post-harvest 

research, and industry communications. 

In comparison, budgeted expenses for 

these items for the 2012–13 marketing 

year were $797,000, $119,000, $219,000, 

and $7,705,000, respectively. 

The assessment rate recommended by 

the Board was derived by evaluating 

expected shipments of California 

walnuts certified as merchantable, 

budgeted expenses, the level of 

available prior year’s carry-in financial 

reserve, and the desired 2013–14 ending 

financial reserve. The Board met on 

June 6, 2013, and unanimously 

approved using a three prior years’ 

average to formulate the 2013–14 

estimate of 486,000 tons (inshell) for 

merchantable shipments. Pursuant to 

§ 984.51(b) of the order, this figure is 

converted to a merchantable 

kernelweight basis using a factor of 0.45 

(486,000 tons × 2,000 pounds per ton × 

0.45), which yields 437,400,000 

kernelweight pounds. The Board 

determined that it could utilize $1.9 

million from its carry-in financial 

reserve and still maintain an adequate 

2013–2014 ending financial reserve. The 

remaining $8,266,860 needed to meet 

budgeted expenses would need to be 

raised through assessments. Dividing 

the $8,266,860 in necessary assessment 

revenue by 2013 estimated 

merchantable shipments of 437,400,000 

kernelweight pounds, results in an 

assessment rate of $0.0189. Income 

derived from handler assessments, 

combined with funds from the Board’s 

authorized prior year’s carry-in financial 

reserve, plus FAS funding for the last 

year of a three year project would 

adequately cover budgeted expenses. 

Reserve funds by the end of the 2013– 

14 marketing year are projected to be 

$6,234,895, which is well within the 

maximum permitted by the order of 

approximately two marketing years’ 

expenses. Section 984.69 of the order 

authorizes the Board to maintain a 

financial reserve of not more than two 

years’ budgeted expenses. Excess 

assessment funds may be retained in the 

reserve or may be used temporarily to 

defray expenses of the subsequent 

marketing year, but if so used, must be 

made available to the handlers from 

whom they were collected within five 

months after the end of the marketing 

year. 

The proposed assessment rate would 

continue in effect indefinitely unless 

modified, suspended, or terminated by 

USDA upon recommendation and 

information submitted by the Board or 

other available information. 

Although this assessment rate is 

effective for an indefinite period, the 

Board will continue to meet prior to or 

during each marketing year to 

recommend a budget of expenses and 

consider recommendations to modify 

the assessment rate. The dates and times 

of Board meetings are available from the 

Board or USDA. Board meetings are 

open to the public and interested 

persons may express their views at these 

meetings. USDA would evaluate Board 

recommendations and other available 

information to determine whether 

modification of the assessment rate is 

needed. Further rulemaking would be 

undertaken as necessary. The Board’s 

2013–14 budget and those for 

subsequent marketing years would be 

reviewed and, as appropriate, approved 

by USDA. 

Initial Regulatory Flexibility Analysis 

Pursuant to requirements set forth in 

the Regulatory Flexibility Act (RFA) (5 

U.S.C. 601–612), the Agricultural 

Marketing Service (AMS) has 

considered the economic impact of this 

proposed rule on small entities. 

Accordingly, AMS has prepared this 

initial regulatory flexibility analysis. 

The purpose of the RFA is to fit 

regulatory actions to the scale of 

businesses subject to such actions in 

order that small businesses will not be 

unduly or disproportionately burdened. 

Marketing orders issued pursuant to the 

Act, and the rules issued thereunder, are 

unique in that they are brought about 

through group action of essentially 

small entities acting on their own 

behalf. 

There are approximately 4,100 

growers of California walnuts in the 

production area and approximately 90 

handlers subject to regulation under the 

marketing order. Small agricultural 

producers are defined by the Small 

Business Administration (SBA) as those 

having annual receipts of less than 

$750,000, and small agricultural service 

firms are defined as those whose annual 

receipts are less than $7,000,000. (13 

CFR 121.201) 

Current census data from the USDA’s 

National Agricultural Statistics Service 

(NASS), indicates that approximately 90 

percent of California’s walnut farms are 

smaller than 100 acres. 

NASS reports that the average yield 

for the 2011–12 crop was 1.88 tons per 

acre and the average price received for 

the 2011–12 crop was $2,900 per ton. 

A 100-acre farm with an average yield 

of 1.88 tons per acre would therefore 

have been expected to produce about 

188 tons of walnuts during the 2011–12 

season. At $2,900 per ton, that farm’s 

production would have had an 

approximate value of $545,200. 

Assuming that the majority of 

California’s walnut farms are smaller 

than 100 acres, it could be concluded 

that the majority of the growers had 

receipts of less than $545,200 in 2011– 

12, which is well below the SBA 

threshold of $750,000. Thus, the 

majority of California’s walnut growers 

would be classified as small growers 

according to SBA’s definition. 

According to information supplied by 

the industry, approximately 40 percent 

of California’s walnut handlers shipped 

merchantable walnuts valued under 

$7,000,000 during the 2011–12 

marketing year and would therefore be 

considered small handlers according to 

the SBA definition. 

This proposed rule would increase 

the assessment rate established for the 

Board and collected from handlers for 

the 2013–14 and subsequent marketing 

years from $0.0175 to $0.0189 per 

kernelweight pound of merchantable 

walnuts. The Board unanimously 

recommended 2013–14 expenditures of 

$10,166,860 and an assessment rate of 

$0.0189 per kernelweight pound of 

merchantable walnuts. The proposed 

assessment rate of $0.0189 is $0.0014 

higher than the 2012–13 rate. The 

quantity of merchantable walnuts for 

the 2013–14 marketing year is estimated 

at 486,000 tons inshell weight, or 

437,400,000 pounds kernelweight. 

Thus, the $0.0189 rate should provide 

$8,266,860 in assessment income. 

Assessment income, along with funds 

from the Board’s authorized prior year’s 

carry-in financial reserve, plus FAS 

funding for the last year of a three year 


tkelley on DSK3SPTVN1PROD with PROPOSALS
Federal Register / Vol. 78, No. 180 / Tuesday, September 17, 2013 / Proposed Rules 57103 

project would adequately cover its 

2013–14 anticipated expenditures of 

$10,166,860. 

The major expenditures 

recommended by the Board for the 

2013–14 marketing year includes 

$830,000 for employee expenses, 

$146,500 for office expenses, $225,000 

for operating expenses, and $8,965,360 

for program expenses which include 

domestic market development, 

production research, post-harvest 

research, and industry communications. 

In comparison, budgeted expenses for 

these items for the 2012–13 marketing 

year were $797,000, $119,000, $219,000, 

and $7,705,000, respectively. 

The Board reviewed and unanimously 

recommended 2013–14 expenditures of 

$10,166,860. Prior to arriving at this 

budget, the Board considered alternative 

expenditure levels but ultimately 

decided that the recommended levels 

were reasonable to properly administer 

the order. The assessment rate 

recommended by the Board was derived 

by evaluating expected shipments of 

California walnuts certified as 

merchantable, budgeted expenses, the 

level of available prior year’s carry-in 

financial reserve, and the desired 2013– 

14 ending financial reserve. The Board 

met on June 6, 2013, and unanimously 

approved using a three prior years’ 

average to formulate the 2013–14 

estimate of 486,000 tons (inshell) for 

merchantable shipments. Pursuant to 

§ 984.51(b) of the order, this figure is 

converted to a merchantable 

kernelweight basis using a factor of 0.45 

(486,000 tons × 2,000 pounds per ton × 

0.45), which yields 437,400,000 

kernelweight pounds. The Board 

determined that it could utilize $1.9 

million from its carry-in financial 

reserve and still maintain an adequate 

2013–2014 ending financial reserve. The 

remaining $8,266,860 necessary to meet 

budgeted expenses would need to be 

raised through assessments. Thus, 

dividing the $8,266,860 in necessary 

assessment revenue by 2013 estimated 

shipments of 437,400,000 kernelweight 

pounds results in an assessment rate of 

$0.0189. 

Based on the crop estimate of 486,000 

tons inshell weight, or 437,400,000 

pounds kernelweight, the Board 

determined that the revenue generated 

from an assessment rate of $0.0189 per 

kernelweight pounds of merchantable 

walnuts, combined with funds from the 

prior years’ carry-in financial reserve, 

plus FAS funding for the last year of a 

three year project would adequately 

cover budgeted expenses while 

providing an adequate 2013–14 ending 

financial reserve. 

According to NASS, the season 

average grower prices for the years 2010 

and 2011 were $2,040 and $2,900 per 

ton, respectively. These prices provide a 

range within which the 2013–14 season 

average prices could fall. Dividing these 

average grower prices by 2,000 pounds 

per ton provides an inshell price per 

pound range of $1.02 to $1.45. Dividing 

these inshell prices per pound by the 

0.45 conversion factor (inshell to 

kernelweight) established in the order, 

yields a 2013–14 price range estimate of 

$2.27 to $3.22 per kernelweight pound 

of merchantable walnuts. 

Utilizing these estimates and the 

assessment rate of $0.0189 per 

kernelweight pound, estimated 

assessment revenue as a percentage of 

total estimated grower revenue should 

likely range between 0.59 and 0.83 

percent for the 2013–14 marketing year 

(assessment rate divided by price per 

kernelweight pound). Thus, the 

assessment revenue should be well 

below one percent of estimated grower 

revenue for the 2013–14 marketing year. 

This proposal would increase the 

assessment obligation imposed on 

handlers. While assessments impose 

some additional costs on handlers, the 

costs are minimal and uniform on all 

handlers. Some of the additional costs 

may be passed on to growers. However, 

these costs would be offset by the 

benefits derived from the operation of 

the marketing order. In addition, the 

Board’s meeting was widely publicized 

throughout the California walnut 

industry. All interested persons were 

invited to attend the meeting and 

participate in Board deliberations on all 

issues. Like all Board meetings, the June 

6, 2013, meeting was a public meeting. 

All entities, both large and small, were 

able to express their views on this issue. 

Finally, interested persons are invited to 

submit comments on this proposed rule, 

including the regulatory and 

informational impacts of this action on 

small businesses. 

In accordance with the Paperwork 

Reduction Act of 1995, (44 U.S.C. 

Chapter 35), the order’s information 

collection requirements have been 

previously approved by the Office of 

Management and Budget (OMB) and 

assigned OMB No. 0581–0178 (Walnuts 

Grown in California). No changes in 

those requirements as a result of this 

action are necessary. Should any 

changes become necessary, they would 

be submitted to OMB for approval. 

This proposed rule would impose no 

additional reporting or recordkeeping 

requirements on either small or large 

California walnut handlers. As with all 

Federal marketing order programs, 

reports and forms are periodically 

reviewed to reduce information 

requirements and duplication by 

industry and public sector agencies. 

AMS is committed to complying with 

the E-Government Act, to promote the 

use of the Internet and other 

information technologies to provide 

more opportunities for citizens to access 

Government information and services, 

and for other purposes. 

USDA has not identified any relevant 

Federal rules that duplicate, overlap, or 

conflict with this action. 

A small business guide on complying 

with fruit, vegetable, and specialty crop 

marketing agreements and orders may 

be viewed at: www.ams.usda.gov/

MarketingOrderSmallBusinessGuide. 

Any questions about the compliance 

guide should be sent to Jeffery Smutny 

at the previously mentioned address in 

the FOR FURTHER INFORMATION CONTACT

section. 

A 30-day comment period is provided 

to allow interested persons to respond 

to this proposed rule. Thirty days is 

deemed appropriate because: (1) The 

2013–14 marketing year begins on 

September 1, 2013, and the marketing 

order requires that the rate of 

assessment for each marketing year 

apply to all merchantable walnuts 

handled during the year; (2) the Board 

needs to have sufficient funds to pay its 

expenses, which are incurred on a 

continuous basis; and (3) handlers are 

aware of this action, which was 

unanimously recommended by the 

Board at a public meeting and is similar 

to other assessment rate actions issued 

in past years. 

List of Subjects in 7 CFR Part 984 

Marketing agreements, Nuts, 

Reporting and recordkeeping 

requirements, Walnuts. 

For the reasons set forth in the 

preamble, 7 CFR part 984 is proposed to 

be amended as follows: 

PART 984—WALNUTS GROWN IN 

CALIFORNIA 

■ 1. The authority citation for 7 CFR 

part 984 continues to read as follows: 

Authority: 7 U.S.C. 601–674. 

■ 2. Section 984.347 is revised to read 

as follows: 

§ 984.347 Assessment rate. 

On and after September 1, 2013, an 

assessment rate of $0.0189 per 

kernelweight pound is established for 

California merchantable walnuts. 


tkelley on DSK3SPTVN1PROD with PROPOSALS
57104 Federal Register / Vol. 78, No. 180 / Tuesday, September 17, 2013 / Proposed Rules 

Dated: September 11, 2013. 

Rex A. Barnes, 

Associate Administrator, Agricultural 

Marketing Service. 

[FR Doc. 2013–22571 Filed 9–16–13; 8:45 am] 

BILLING CODE 3410–02–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2013–0812; Directorate 

Identifier 2013–CE–023–AD] 

RIN 2120–AA64 

Airworthiness Directives; Diamond 

Aircraft Industries Airplanes 

AGENCY: Federal Aviation 

Administration (FAA), Department of 

Transportation (DOT). 

ACTION: Notice of proposed rulemaking 

(NPRM). 

SUMMARY: We propose to adopt a new 

airworthiness directive (AD) for 

Diamond Aircraft Industries Model DA 

40 and DA 40 F Airplanes. This 

proposed AD results from mandatory 

continuing airworthiness information 

(MCAI) originated by an aviation 

authority of another country to identify 

and correct an unsafe condition on an 

aviation product. The MCAI describes 

the unsafe condition as fatigue strength 

found in the aft main spar does not 

ensure unlimited lifetime structural 

integrity. We are issuing this proposed 

AD to require actions to address the 

unsafe condition on these products. 

DATES: We must receive comments on 

this proposed AD by November 1, 2013. 

ADDRESSES: You may send comments by 

any of the following methods: 

• Federal eRulemaking Portal: Go to 

http://www.regulations.gov. Follow the 

instructions for submitting comments. 

• Fax: (202) 493–2251. 

• Mail: U.S. Department of 

Transportation, Docket Operations, M– 

30, West Building Ground Floor, Room 

W12–140, 1200 New Jersey Avenue SE., 

Washington, DC 20590. 

• Hand Delivery: U.S. Department of 

Transportation, Docket Operations, M– 

30, West Building Ground Floor, Room 

W12–140, 1200 New Jersey Avenue SE., 

Washington, DC 20590, between 9 a.m. 

and 5 p.m., Monday through Friday, 

except Federal holidays. 

For service information identified in 

this proposed AD, contact Diamond 

Aircraft Industries GmbH, N.A. OttoStr.5, A–2700 Wiener Neustadt, Austria; 

telephone: +43 2622 26700; fax: +43 

2622 26780; email: office@diamondair.at; Internet: http://

www.diamondaircraft.com/contact/

technical.php. You may review copies 

of the referenced service information at 

the FAA, Small Airplane Directorate, 

901 Locust, Kansas City, Missouri 

64106. For information on the 

availability of this material at the FAA, 

call (816) 329–4148. 

Examining the AD Docket 

You may examine the AD docket on 

the Internet at http://

www.regulations.gov; or in person at the 

Docket Management Facility between 9 

a.m. and 5 p.m., Monday through 

Friday, except Federal holidays. The AD 

docket contains this proposed AD, the 

regulatory evaluation, any comments 

received, and other information. The 

street address for the Docket Office 

(telephone (800) 647–5527) is in the 

ADDRESSES section. Comments will be 

available in the AD docket shortly after 

receipt. 

FOR FURTHER INFORMATION CONTACT: 

Mike Kiesov, Aerospace Engineer, FAA, 

Small Airplane Directorate, 901 Locust, 

Room 301, Kansas City, Missouri 64106; 

telephone: (816) 329–4144; fax: (816) 

329–4090; email: mike.kiesov@faa.gov. 

SUPPLEMENTARY INFORMATION: 

Comments Invited 

We invite you to send any written 

relevant data, views, or arguments about 

this proposed AD. Send your comments 

to an address listed under the 

ADDRESSES section. Include ‘‘Docket No. 

FAA–2013–0812; Directorate Identifier 

2013–CE–023–AD’’ at the beginning of 

your comments. We specifically invite 

comments on the overall regulatory, 

economic, environmental, and energy 

aspects of this proposed AD. We will 

consider all comments received by the 

closing date and may amend this 

proposed AD because of those 

comments. 

We will post all comments we 

receive, without change, to http://

regulations.gov, including any personal 

information you provide. We will also 

post a report summarizing each 

substantive verbal contact we receive 

about this proposed AD. 

Discussion 

The European Aviation Safety Agency 

(EASA), which is the Technical Agent 

for the Member States of the European 

Community, has issued EASA AD No.: 

2013–0145, dated July 15, 2013 (referred 

to after this as ‘‘the MCAI’’), to correct 

an unsafe condition for the specified 

products. The MCAI states: 

Structural fatigue testing of the DA 40 

aeroplane carried out for an extension of the 

Major Structural Inspection (MSI) interval 

has shown that the fatigue strength of the aft 

main spar in the cabin area does not ensure 

unlimited lifetime. 

This condition, if not corrected, could 

adversely affect the structural integrity of the 

aeroplane. 

Diamond Aircraft Industries (DAI) issued 

Mandatory Service Bulletin (MSB) 40–074/

MSB D4–094/MSB F4–028, including Work 

Instruction (WI) WI–MSB 40–074/WI–MSB 

D4–094/WI–MSB F4–028 (published as a 

single document), providing instructions to 

reinforce the aft main spar in the cabin area. 

For the reasons described above, this AD 

requires modification of the aft main spar in 

the cabin area. 

Note: Aeroplanes with modified aft main 

spar are eligible for an increased MSI 

threshold of 6000 flight hours (FH) since first 

flight of the aeroplane and increased MSI 

intervals not to exceed 4000 FH thereafter. 

You may obtain further information 

by examining the MCAI in the AD 

docket. 

Relevant Service Information 

Diamond Aircraft Industries GmbH 

has issued Mandatory Service Bulletin 

MSB 40–074, MSB D4–094, and MSB 

F4–028 (co-published as a single 

document), dated May 10, 2013; and 

Diamond Aircraft Industries GmbH 

Work Instructions WI–MSB 40–074, 

WI–MSB D4–094, and WI–MSB F4–028, 

(co-published as a single document), 

dated May 10, 2013. The actions 

described in this service information are 

intended to correct the unsafe condition 

identified in the MCAI. 

FAA’s Determination and Requirements 

of the Proposed AD 

This product has been approved by 

the aviation authority of another 

country, and is approved for operation 

in the United States. Pursuant to our 

bilateral agreement with this State of 

Design Authority, they have notified us 

of the unsafe condition described in the 

MCAI and service information 

referenced above. We are proposing this 

AD because we evaluated all 

information and determined the unsafe 

condition exists and is likely to exist or 

develop on other products of the same 

type design. 

Costs of Compliance 

We estimate that this proposed AD 

will affect 747 products of U.S. registry. 

We also estimate that it would take 

about 6 work-hours per product to 

comply with the basic requirements of 

this proposed AD. The average labor 

rate is $85 per work-hour. Required 

parts would cost about $100 per 

product. 

Based on these figures, we estimate 

the cost of the proposed AD on U.S. 


tkelley on DSK3SPTVN1PROD with PROPOSALS