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[Federal Register Volume 90, Number 2 (Friday, January 3, 2025)]
[Rules and Regulations]
[Pages 213-215]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-31555]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 3

[Docket No. FAA-2023-1194; Amt. 3-3A]
RIN 2120-AL85

Extension of Compliance Date To Designate a U.S. Agent for 
Service for Individuals With Foreign Addresses Who Apply for Certain 
Certificates, Ratings, or Authorizations

AGENCY: Federal Aviation Administration (FAA), Department of 
Transportation (DOT).

ACTION: Final rule; delay of effective date.

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SUMMARY: On October 8, 2024, the FAA published a final rule that will 
require individuals with foreign addresses and no U.S. physical address 
on file with the FAA who apply for certain certificates, ratings, or 
authorizations to designate a U.S. agent for service. This final rule 
extends the deadline for those individuals to designate a U.S. agent 
for service from January 6, 2025, to April 2, 2025. This final rule 
does not apply to individuals with foreign addresses who currently hold 
certain certificates, ratings, or authorizations, as the compliance 
date for those individuals continues to be July 7, 2025.

DATES: 
    Effective date: As of January 3, 2025, the effective date of 
amendatory 3 in the final rule published on October 8, 2024 (89 FR 
81305), is delayed from January 6, 2025, to April 2, 2025. This final 
rule is effective January 3, 2025, except for amendatory instruction 3 
which is effective April 2, 2025.
    Compliance date: The compliance date for this final rule is April 
2, 2025, for applicants of any certificate, rating, or authorization 
issued under 14 CFR part 47, 61, 63, 65, 67, or 107.

FOR FURTHER INFORMATION CONTACT: Jessica Kabaz-Gomez, Office of the 
Chief Counsel, AVS Deputy Division Counsel, Federal Aviation 
Administration, 800 Independence Avenue SW, Washington, DC 20591; (202) 
267-7395; email [email protected].

SUPPLEMENTARY INFORMATION:

I. Executive Summary

    On October 8, 2024, the FAA published a final rule, U.S. Agents for

[[Page 214]]

Service on Individuals With Foreign Addresses Who Hold or Apply for 
Certain Certificates, Ratings, or Authorizations,\1\ that will require 
individuals with foreign addresses and no U.S. physical address on file 
with the FAA who either hold or apply for certain certificates, 
ratings, or authorizations to designate a U.S. agent for service. This 
final rule revises Sec.  3.303(d)(2) of title 14 of the Code of Federal 
Regulations (14 CFR) to extend the compliance date for individuals who 
have a foreign address and no U.S. physical address of record on file 
with the FAA to designate a U.S. agent for service if they apply for a 
certificate, rating, or authorization issued under 14 CFR part 47, 61, 
63, 65, 67, or 107 from January 6, 2025, to April 2, 2025. The U.S. 
agent for service designation will be required to be in writing in a 
form and manner prescribed by the Administrator, as described in 
Advisory Circular 3-1, through an online system: U.S. Agent for Service 
System (USAS). This final rule provides additional time to establish 
and launch USAS to facilitate the FAA's means of accepting U.S. agent 
for service designations.
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    \1\ 89 FR 81305.
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II. Authority for the Rulemaking

    The FAA's authority to issue rules on aviation safety, such as the 
rules governing service that are referred to in this preamble and 
substantively promulgated in 88 FR 38001, 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, including the 
authority to issue regulations. The final rule this rulemaking amends 
was issued under the authority described in 49 U.S.C. 44701(a)(5), 
which establishes the authority of the Administrator to prescribe 
regulations and minimum standards for other practices, methods, and 
procedures the Administrator finds necessary for safety in air commerce 
and national security. The amended regulations herein are within the 
scope of that authority and are consistent with 49 U.S.C. 46103, which 
governs the FAA's service and provides that the FAA may effectuate 
service on a designated agent.

III. Good Cause for Immediate Adoption

    The Administrative Procedure Act (5 U.S.C. 553(b)(B)) requires an 
agency to conduct notice and comment rulemaking except when the agency 
for good cause finds (and incorporates the finding and a brief 
statement of reasons therefor in the rules issued) that notice and 
public procedure thereon are impracticable, unnecessary, or contrary to 
the public interest. Additionally, section 553(d) permits agencies, 
upon a finding of good cause, to issue rules with an effective date 
less than 30 days from the date of publication. The FAA finds good 
cause under 5 U.S.C. 553(b)(B) to forgo notice and opportunity for 
comment and the 30-day notice requirement to implement this final rule 
as unnecessary.
    First, as discussed herein, applicants will be unable to submit 
information to USAS by the January 6, 2025, deadline due to development 
delays associated with the USAS online portal, which were circumstances 
ultimately beyond the FAA's general control, and which were not fully 
understood until well after publication of the U.S. Agent final rule in 
October of 2024. When FAA became aware of a development delay, it was 
too late to develop an alternate means of compliance in advance of 
January 6, 2025, as further discussed in section IV. of this preamble 
below. Absent a means of compliance, FAA would be unable to issue 
certain certificates, ratings, and authorizations. Accordingly, the FAA 
finds notice and the opportunity to comment unnecessary, as public 
comment would not impact USAS online portal development and the FAA's 
preparedness to accept U.S. agent designations.
    For similar reasons, the FAA finds good cause to forgo the 30 days 
delay of effective date requirement under 5 U.S.C. 553(d) as 
unnecessary. If the FAA does not effectuate this final rule before 
January 6, 2025, which is less than 30 days after its publication, 
applicants would be required to meet certain regulations without an 
available means of compliance and FAA would have to institute a 
moratorium on the issuance of certain certificates, authorizations, and 
ratings. Accordingly, the compliance date must be immediately extended 
to avoid this moratorium and inconsistency between the FAA's 
regulations and the practical means of compliance.

IV. Discussion

    On October 8, 2024, the FAA published a final rule requiring 
individuals with a foreign address and no U.S. physical address of 
record on file with the FAA who apply or hold certificates, ratings, or 
authorizations under 14 CFR part 47, 61, 63, 65, 67, or 107 to 
designate a U.S. agent for service.\2\ That final rule adopted current 
Sec.  3.303(a), requiring these individuals to designate a U.S. agent 
for service in a form and manner prescribed by the Administrator. The 
FAA concurrently published Advisory Circular 3-1 prescribing the form 
and manner for compliance.\3\ Advisory Circular 3-1 provides in Chapter 
3, Paragraph 2 that individuals designating a U.S. agent for service 
under Sec.  3.303 will utilize a new FAA online system, the U.S. Agent 
for Service System (USAS). Currently, USAS is the only form and manner 
of compliance prescribed by the Administrator to meet the requirement 
in Sec.  3.303(a) to designate a U.S. agent for service. The final rule 
also adopted Sec.  3.303(d), which provided a compliance date of 
January 6, 2025, for applicants of certain certificates, ratings, or 
authorizations and a different compliance date of July 7, 2025, for 
individuals who already hold certain certificates, ratings, or 
authorizations. However, the FAA has determined that it will not be 
ready to accept U.S. agent designations in USAS by January 6, 2025. 
Despite early and regular USAS development engagement, unforeseen and 
recent issues with USAS development and integration with existing FAA 
systems have left the agency with insufficient time to develop an 
alternate means to comply with Sec.  3.303(d)(2). An alternate means of 
compliance would necessitate development of new guidance to the public, 
processing procedures for Agency employees, and a separate system to 
temporarily store U.S. agent designations the agency receives from 
applicants pending implementation of USAS. Additionally, the agency 
would be unable to comply with the Paperwork Reduction Act and Privacy 
Act requirements associated with developing an alternative means of 
compliance.
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    \2\ U.S. Agents for Service on Individuals With Foreign 
Addresses Who Hold or Apply for Certain Certificates, Ratings, or 
Authorizations final rule, 89 FR 81305 (Oct. 8, 2024).
    \3\ See Advisory Circular 3-1, U.S. Agents for Service on 
Individuals with Foreign Addresses Who Hold or Apply for Certain 
Certificates, Ratings, or Authorizations https://www.faa.gov/
regulations_policies/advisory_circulars/index.cfm/go/
document.information/documentID/
1042728#:~:text=This%20AC%20explains%20an%20acceptable%20means%20to%2
0designate,information%2C%20and%20submit%20a%20new%20U.S.%20agent%20d
esignation.
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    To avoid a moratorium on the issuance of certain certificates, 
authorizations, and ratings, and to ensure FAA preparedness for the 
collection of U.S. agent designations in USAS, it is necessary to 
extend the

[[Page 215]]

deadline for applicants to designate a U.S. agent for service in 
compliance with Sec.  3.303(a). This final rule revises the compliance 
date in Sec.  3.303(d)(2) from January 6, 2025, to April 2, 2025, for 
applicants of certain certificates, ratings, or authorizations with 
foreign addresses and no U.S. physical addresses to designate a U.S. 
agent for service. The FAA emphasizes that the compliance date to 
designate a U.S. agent for service in Sec.  3.303(d)(1) for holders of 
any certificate, rating, or authorization with foreign addresses and no 
U.S. physical addresses will remain as July 7, 2025. The FAA is 
retaining staggered compliance dates to ensure that USAS and the Agency 
is not overwhelmed by submissions.

V. Regulatory Notices and Analyses

    This final rule is a non-significant rule for the purposes of 
section 3(f) of Executive Order (E.O.) 12866, as amended by E.O. 13563 
and E.O. 14094. Any impacts caused by the three-month delay will be 
minimal as this rule will not impose any significant costs or have 
impacts beyond those analyzed in the October 8, 2024, final rule.
    The Congressional Review Act, 5 U.S.C. 801 et seq., as added by the 
Small Business Regulatory Enforcement Fairness Act of 1996, generally 
provides that before a rule may take effect, the agency promulgating 
the rule must submit a rule report, which includes a copy of the rule, 
to each House of the Congress and to the Comptroller General of the 
United States. The FAA submitted a report for the substantive October, 
2024, final rule (89 FR 81305) and other required information to the 
U.S. Senate, the U.S. House of Representatives, and the Comptroller 
General of the United States. This rule does not constitute a major 
rule as defined in 5 U.S.C. 804(2).

VI. Regulatory Flexibility Act

    The Regulatory Flexibility Act (RFA) of 1980, (Pub. L. 96-354, 94 
Stat. 1164 (5 U.S.C. 601-612)), as amended by the Small Business 
Regulatory Enforcement Fairness Act of 1996 (Pub. L. 104-121, 110 Stat. 
857, Mar. 29, 1996) and the Small Business Jobs Act of 2010 (Pub. L. 
111-240, 124 Stat. 2504 Sept. 27, 2010), requires Federal agencies to 
consider the effects of the regulatory action on small business and 
other small entities and to minimize any significant economic impact. 
The term ``small entities'' comprises small businesses and not-for-
profit organizations that are independently owned and operated and are 
not dominant in their fields, as well as governmental jurisdictions 
with populations of less than 50,000.
    Section 604 of the RFA requires an agency to prepare a final 
regulatory flexibility analysis when an agency issues a final rule 
under 5 U.S.C. 553 after being required to publish a general notice of 
proposed rulemaking. RFA analysis requirements are limited to 
rulemakings for which the agency ``is required by section 553 or any 
other law, to publish a general notice of proposed rulemaking for any 
proposed rule.'' As prior notice and comment under 5 U.S.C. 553 are not 
required for this final rule, the analyses in 5 U.S.C. 603 and 604 are 
also not required.

List of Subjects in 14 CFR Part 3

    Aircraft, Aviation safety, U.S. agent for service.

The Amendment

    In consideration of the foregoing, the Federal Aviation 
Administration amends title 14, Code of Federal Regulations as follows:

PART 3--GENERAL REQUIREMENTS

0
1. The authority citation for part 3 continues to read as follows:

    Authority:  49 U.S.C. 106(f), 106(g), 40113, 44701, 44704, 
46111, and 46103.

Sec.  3.303  [Amended]

0
2. Amend Sec.  3.303(d)(2) by removing the date ``January 6, 2025'' and 
adding in its place ``April 2, 2025''.

0
3. Effective April 2, 2025, further amend Sec.  3.303 by revising 
paragraphs (d) and (e) to read as follows:

Sec.  3.303  Designation of a U.S. agent for service.

* * * * *
    (d) Individuals holding any certificate, rating, or authorization 
issued under part 47, 61, 63, 65, 67, or 107 of this chapter must 
comply with the requirements listed in this subpart no later than July 
7, 2025. These individuals who fail to timely designate a U.S. agent 
for service and comply with the requirements under this subpart may not 
exercise the privileges of any certificate, rating, or authorization 
issued under part 47, 61, 63, 65, 67, or 107, and an individual 
aircraft owner's aircraft registration certificate will be considered 
ineffective.
    (e) No individual shall be issued a certificate, rating, or 
authorization under part 47, 61, 63, 65, 67, or 107 of this chapter 
unless the individual has designated a U.S. agent as required under 
this subpart.

    Issued under authority provided by 49 U.S.C. 106(f), 44701(a), 
and 44703 in Washington, DC.
Michael Gordon Whitaker,
Administrator.
[FR Doc. 2024-31555 Filed 12-30-24; 4:15 pm]
BILLING CODE 4910-13-P
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