Document ID: FAA-2018-1052-0001
Agency: faa
Document Type: Proposed Rule
Title: Foreign Civil Aviation Authority Certifying Statements
Posted Date: 2019-02-22T05:00Z

[Federal Register Volume 84, Number 36 (Friday, February 22, 2019)]
[Proposed Rules]
[Pages 5605-5608]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-02634]

 ========================================================================
 Proposed Rules
                                                 Federal Register
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 This section of the FEDERAL REGISTER contains notices to the public of 
 the proposed issuance of rules and regulations. The purpose of these 
 notices is to give interested persons an opportunity to participate in 
 the rule making prior to the adoption of the final rules.
 
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 

  Federal Register / Vol. 84, No. 36 / Friday, February 22, 2019 / 
Proposed Rules  

[[Page 5605]]

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 21

[Docket No.: FAA-2018-1052; Notice No. 18-09]
RIN 2120-AL10

Foreign Civil Aviation Authority Certifying Statements

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Notice of proposed rulemaking (NPRM).

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SUMMARY: The FAA proposes to revise a regulation that imposes a 
duplicative requirement on foreign applicants for type certificates of 
import products. Existing FAA regulations require all applicants to 
submit two documents: A compliance listing to document the means of 
compliance with applicable standards; and a corresponding statement of 
compliance from the applicant certifying that all the requirements in 
the certification basis have been complied with. These compliance 
documents are duplicative and redundant to the certifying statement 
that the FAA already requires from the foreign civil aviation authority 
of the country or jurisdiction having State of Design responsibility 
for the design approval holder of the product. The FAA proposes to no 
longer require either the compliance listing or the accompanying 
statement of compliance from the foreign applicant.

DATES: Send comments on or before April 23, 2019.

ADDRESSES: Send comments identified by docket number FAA-2018-1052 
using any of the following methods:
     Federal eRulemaking Portal: Go to http://www.regulations.gov and follow the online instructions for sending your 
comments electronically.
     Mail: Send comments to Docket Operations, M-30; U.S. 
Department of Transportation (DOT), 1200 New Jersey Avenue SE, Room 
W12-140, West Building Ground Floor, Washington, DC 20590-0001.
     Hand Delivery or Courier: Take comments to Docket 
Operations in Room W12-140 of the West Building Ground Floor at 1200 
New Jersey Avenue SE, Washington, DC, between 9 a.m. and 5 p.m., Monday 
through Friday, except Federal holidays.
     Fax: Fax comments to Docket Operations at 202-493-2251.
    Privacy: The FAA will post all comments it receives, without 
change, to http://www.regulations.gov, including any personal 
information the commenter provides. Using the search function of the 
docket website, anyone can find and read the electronic form of all 
comments received into any FAA docket, including the name of the 
individual sending the comment (or signing the comment for an 
association, business, labor union, etc.). DOT's complete Privacy Act 
Statement can be found in the Federal Register published on April 11, 
2000 (65 FR 19477), as well as at http://DocketsInfo.dot.gov.
    Docket: Background documents or comments received may be read at 
http://www.regulations.gov at any time. Follow the online instructions 
for accessing the docket or go to the Docket Operations in Room W12-140 
of the West Building Ground Floor at 1200 New Jersey Avenue SE, 
Washington, DC, between 9 a.m. and 5 p.m., Monday through Friday, 
except Federal holidays.

FOR FURTHER INFORMATION CONTACT: For questions concerning this action, 
contact Steve Flanagan, Policy and Innovation Division Certification 
Procedures Branch (AIR-6C0), Aircraft Certification Service, Federal 
Aviation Administration, 800 Independence Ave. SW, Washington, DC 
20027; telephone (202) 267-1602; email steve.flanagan@faa.gov.

SUPPLEMENTARY INFORMATION:

Authority for This Rulemaking

    The FAA's authority to issue rules 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 
Subtitle VII, Part A, Subpart III, Section 44701. Under that section, 
the FAA is charged with promoting safe flight of civil airplanes in air 
commerce by prescribing minimum standards required in the interest of 
safety for the design and performance of airplanes. The FAA also has 
the authority to prescribe regulations for other practices, methods, 
and procedures it finds necessary for safety in air commerce. This 
rulemaking is within the scope of that authority because the proposed 
rule would eliminate duplication and promote efficiency in the issuance 
of type certificate approvals for import products certified by 
bilateral partners of the FAA, while continuing to meet the FAA's 
charge to promote safe flight.

I. Overview of the Proposal

    The FAA proposes to amend 14 CFR 21.20, ``Compliance with 
applicable requirements,'' to exclude its applicability to import 
products that have been type certificated outside of the United States 
by a bilateral partner civil aviation authority (``CAA''). These 
products are validated by the FAA consistent with the requirements in 
14 CFR 21.29, ``Issue of type certificate: import products.'' This 
proposed rule change would eliminate the necessity for redundant 
compliance documents to the FAA by both the CAA and the foreign 
applicant. The FAA would no longer require the foreign applicant to 
submit either the means of compliance listing or the accompanying 
statement of compliance because the FAA already requires that the 
applicant provide technical data to show compliance and for the 
bilateral partner CAA to provide a certifying statement of compliance. 
In addition to streamlining the application process for import 
products, this proposal would eliminate a burden to the FAA of 
accepting and reviewing redundant and duplicative information. This 
rule does not propose any changes to substantive type certification 
requirements applicable to foreign applicants. bnm

II. Background

    The United States has bilateral aviation agreements with numerous 
foreign countries for the acceptance of aeronautical products for 
export and import. The FAA and the foreign civil aviation authority 
(CAA) are responsible for implementing these agreements. Before making 
an agreement, the FAA thoroughly reviews the certification and 
production systems of the foreign

[[Page 5606]]

authority, including its organization, personnel, processes and 
regulations. Approval of the bilateral agreement makes the foreign 
authority (the CAA) a bilateral partner. The FAA does not sign an 
agreement unless the FAA has confidence in the CAA's system for 
certifying aviation products and overseeing the design organizations 
and manufacturers under its authority. Under these bilateral 
agreements, the CAA's type certification of a product is accepted by 
the FAA for import through a ``validation'' process to ensure all 
applicable requirements are met, including the procedural requirements 
in Sec.  21.29, ``Issue of type certificate: import products.'' \1\
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    \1\ For additional information on the validation process, see 
FAA Order 8110.52B, Type Validation and Post-type Validation 
Procedures, available online at https://www.faa.gov/regulations_policies/orders_notices/index.cfm/go/document.information/documentid/1031946.
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    Section 21.29(a)(1) provides in pertinent part that the FAA may 
issue a type certificate (``TC'') for an import product if the 
applicable State of Design (i.e. the bilateral partner) ``certifies 
that the product has been examined, tested, and found to meet,'' 
applicable requirements for aircraft noise, fuel venting, exhaust 
emissions, and airworthiness. Therefore, in order for a product to 
receive a validated TC from the FAA for import of the product, the 
applicable foreign CAA must submit to the FAA a certifying statement 
that the product complies with the requirements and standards which are 
identified in the product's certification basis.
    In accordance with Sec.  21.29(a)(2), the FAA requires further that 
the foreign applicant provide to the CAA technical data to show that 
the product meets the applicable airworthiness and environmental 
requirements. In practice, this requirement is accomplished when the 
applicant submits to its CAA the technical data necessary for the CAA 
to certificate the product. Through the typical terms of a bilateral 
agreement, the FAA has access to this compliance data upon request to 
the CAA.
    Section 21.20, ``Compliance with applicable requirements,'' was 
issued in 2009 rule (74 FR 53385, October 16, 2009). That provision 
requires an applicant for a type certificate, including an amended or 
supplemental type certificate, to show and certify compliance with all 
applicable requirements by submitting to the FAA two different 
compliance documents: A compliance listing (Sec.  21.20(a)); and a 
corresponding applicant statement of compliance \2\ (Sec.  21.20(b)) 
certifying the applicant complies with the applicable requirements in 
its certification basis. In most cases, the Sec.  21.20(a) statement 
takes the form of a compliance listing to document the means of 
compliance, as described in Advisory Circular (AC) No. 21-51, 
Applicant's Showing of Compliance and Certifying Statement of 
Compliance (Sep. 28, 2011). At a minimum, the compliance listing 
contains the following information: The design data; all the 
requirements to be complied with; the means of compliance, whether by 
analysis, test (flight, ground, or other), design similarity, 
equivalent level of safety, or exemption, etc.; and a reference to the 
substantiating data and documentation used to show compliance.
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    \2\ The FAA has previously referred to the statement required 
under Sec.  21.20(b) as the applicant ``certifying statement.'' 
However, in order to distinguish between the foreign CAA 
``certifying statement'' under Sec.  21.29(a), the FAA now refers to 
the Sec.  21.20(b) statement as the applicant ``statement of 
compliance.''
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    Section 21.20(b) establishes the FAA requirement for the TC 
applicant's statement of compliance with applicable requirements, the 
second of the two documents required by Sec.  21.20 from an applicant 
for an FAA TC. An FAA TC applicant typically submits this statement of 
compliance upon completion of its FAA TC program.\3\ Like the Sec.  
21.29(a)(1) certifying statement from the foreign CAA, the Sec.  
21.20(b) applicant statement of compliance contributes to product 
safety and compliance by the FAA applicant's certification document 
stating that the product being certified complies with minimum safety, 
environmental, and other requirements identified in the product's FAA 
certification basis.
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    \3\ For additional information on type certification programs, 
see FAA Order 8110.4C, Type Certification, available online at 
https://www.faa.gov/regulations_policies/orders_notices/index.cfm/go/document.information/documentid/15172.
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    As written, Sec.  21.20 requires compliance documents from all 
applicants for type certificates, including foreign applicants seeking 
validation by the FAA of the foreign CAA's TC of the import product 
under Sec.  21.29. Section 21.20, therefore, requires foreign 
applicants to generate and submit to the FAA the two applicant 
compliance documents described above. These redundant and duplicative 
data are in addition to the Sec.  21.29(a)(1) and (2) requirements 
which request the same information.

III. Discussion of the Proposal

    The FAA proposes to eliminate the requirement on foreign applicants 
of import products to submit the compliance listing and applicant 
statement of compliance. Both of these documents are duplicative and 
redundant of the foreign CAA certifying statement. The FAA is amending 
Sec.  21.20 to specifically exclude its applicability to those 
applicants seeking FAA validation TCs for import products under Sec.  
21.29.
    The foreign CAA's certifying statement required in Sec.  
21.29(a)(1) and the applicant's statement of compliance required in 
Sec.  21.20(b) are substantively the same and duplicative. They both 
provide certification that a product complies with the applicable 
airworthiness, environmental, and other requirements in its 
certification basis. Whether it is the foreign applicant or the CAA 
that makes the statement is of no regulatory or legal significance. 
Regardless of which person submits the statement, a fraudulent, 
intentionally false, or misleading statement is a basis for denying 
issuance of a type certificate and suspending or revoking an existing 
type certificate. See 14 CFR 21.2, ``Falsification of applications, 
reports, or records.'' Moreover, as stated above, the FAA enters into a 
bilateral aviation agreement only if it has confidence in the foreign 
CAA's certification system. This confidence extends to that CAA's 
capability to certify that an import product has been examined, tested, 
and found to meet applicable requirements. The additional statement of 
compliance to the FAA by the foreign applicant is superfluous in light 
of the bilateral partner's responsibilities.
    The compliance listing required under Sec.  21.20(a) is also 
unnecessary for foreign applicants of type certificates of import 
products. When a foreign applicant seeks type certification through the 
validation process set forth in Sec.  21.29, it will have already 
acquired, or is concurrently applying for, type certification through 
its own CAA. As required by Sec.  21.29(a)(2), the foreign applicant 
must have provided, or is concurrently providing, technical data to its 
own CAA to show that the product meets all applicable airworthiness, 
environmental, and other requirements documented in the certification 
basis of the TC issued by the CAA. This information is available to the 
FAA during validation if needed under the terms of the bilateral 
agreement. Therefore, an additional compliance listing from the foreign 
applicant is redundant in light of the requirements

[[Page 5607]]

in Sec.  21.29(a) and the CAA's work during its TC program.
    This proposed rule would eliminate the burden on foreign applicants 
to produce and submit redundant documentation and would relieve the FAA 
from the administrative burden associated with processing this 
redundant paperwork. This proposal would apply to all type certificate 
applications under Sec.  21.29, including product type, amended type, 
supplemental, and amended supplemental type certificates. This proposal 
would streamline the TC process for import products, thereby 
facilitating U.S. industry access to aeronautical products.

IV. Regulatory Notices and Analyses

    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), 
as codified in 5 U.S.C. 603 et seq., requires agencies to analyze the 
economic impact of regulatory changes on small entities. Third, the 
Trade Agreements Act of 1979 (Pub. L. 96-39), as amended, 19 U.S.C. 
Chapter 13, prohibits agencies from setting standards that create 
unnecessary obstacles to the foreign commerce of the United States. In 
developing U.S. standards, the Trade Agreements 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), as codified in 2 U.S.C. 1532, requires 
agencies to prepare a written assessment of the costs, benefits, and 
other effects 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 a base year of 
1995). This portion of the preamble summarizes the FAA's analysis of 
the economic impacts of this proposed rule.
    In conducting these analyses, the FAA has determined that this 
proposal is not a ``significant regulatory action,'' as defined in 
section 3(f) of Executive Order 12866. The rule is also not 
``significant'' as defined in the Department of Transportation's 
(DOT's) Regulatory Policies and Procedures. The proposed rule will not 
have a significant economic impact on a substantial number of small 
entities, will not create unnecessary obstacles to international trade, 
and will not impose an unfunded mandate on State, local, or tribal 
governments, or on the private sector.

A. Regulatory Evaluation

    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 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 proposed rule. The reasoning for 
this determination follows:
    By adding rule language which excludes the applicability of 14 CFR 
21.20 ``Compliance with applicable requirements'' to products type 
certificated outside of the United States by a bilateral partner, this 
proposed rule will result in minor cost savings to the FAA.
    The FAA may issue a type certificate for a product that is type 
certificated outside of the United States by a foreign CAA with which 
the United States has a bilateral agreement. Validation of the CAA's TC 
allows import of the product into the U.S. if the applicant and its CAA 
complies with 14 CFR 21.29. These applicants have also been required to 
comply with Sec.  21.20,\4\ which requires the applicant show 
compliance with all applicable requirements and provide its statements 
to the FAA showing and certifying compliance. Changing the rule to 
exclude applications for type certificates of import products under 
Sec.  21.29 from having to comply with Sec.  21.20 will have a small 
reduction in burden on the FAA and on the manufacturer of such 
products.
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    \4\ While the current Sec.  21.20 does not specify whether the 
applicants who must comply with that section are domestic, foreign, 
or both, AC 21-51 indicates that foreign applicants need to comply 
with 21.20 and make a statement directly to the FAA. AC 21-51 is 
being revised, and will reflect this proposed rule change.
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    These manufacturers will not have to submit documentation to the 
FAA under Sec.  21.20, which is redundant to documentation provided by 
the CAA to the FAA under Sec.  21.29. This will result in small cost 
savings to the FAA, which will no longer have to accept and review the 
documentation.

B. Regulatory Flexibility Determination

    The Regulatory Flexibility Act of 1980 (Pub. L. 96-354, ``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 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-for-profit 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.
    As discussed above, this proposed rule would result in minor cost 
savings to foreign applicants and to the FAA. Because savings to 
foreign entities are not relevant to this analysis and the FAA is not a 
small entity there are no small entities affected and the impacts are 
minor cost savings.
    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, 
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 this Act, 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.

[[Page 5608]]

    The FAA has assessed the potential effect of this proposed rule and 
has determined that the rule is in accord with the Trade Agreements Act 
as to the rule expectations and responsibilities for domestic and 
foreign persons engaged in aviation activities under 14 CFR.

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 million in lieu of $100 
million.
    This proposed 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 proposed rule.

F. International Compatibility

    In keeping with U.S. obligations under the Convention on 
International Civil Aviation, it is FAA policy to conform to 
International Civil Aviation Organization (ICAO) 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 this regulation.

C. barcasEnvironmental 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 categorical 
exclusion identified in paragraph 5-6.6(d), which covers the issuance 
of regulatory documents covering administrative or procedural 
requirements and involves no extraordinary circumstances.

V. Executive Order Determinations

A. Executive Order 13132, Federalism

    The FAA has analyzed this proposed rule under the principles and 
criteria of Executive Order 13132, ``Federalism.'' The agency 
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, does not have 
Federalism implications.

B. Executive Order 13211, Regulations That Significantly Affect Energy 
Supply, Distribution, or Use

    The FAA analyzed this proposed 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 is not a ``significant energy action'' under the 
executive order and it is not likely to have a significant adverse 
effect on the supply, distribution, or use of energy.

C. Executive Order 13609, International Cooperation

    Executive Order 13609, ``Promoting International Regulatory 
Cooperation,'' 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 would have 
no adverse effect on international regulatory cooperation.

D. Executive Order 13771, Reducing Regulation and Controlling 
Regulatory Costs

VI. This Proposed Rule Is Not Expected To Be an E.O. 13771 Regulatory 
Action Because This Proposed Rule Is Not Significant Under E.O. 12866. 
How To Obtain Additional Information

A. Rulemaking Documents

    An electronic copy of a rulemaking document may be obtained from 
the internet by--
    1. Searching the Federal eRulemaking Portal (http://www.regulations.gov);
    2. Visiting the FAA's Regulations and Policies web page at http://www.faa.gov/regulations_policies/; or
    3. Accessing the Government Printing Office's web page at http://www.gpo.gov/fdsys/.
    Copies may also be obtained by sending a request (identified by 
notice, amendment, or docket number of this rulemaking) to the Federal 
Aviation Administration, Office of Rulemaking, ARM-1, 800 Independence 
Avenue SW, Washington, DC 20591, or by calling (202) 267-9680.

B. Small Business Regulatory Enforcement Fairness Act

    The Small Business Regulatory Enforcement Fairness Act (SBREFA) of 
1996 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 21

    Aircraft, Aviation safety, Exports, Imports, Reporting and 
recordkeeping requirements.

The Proposed Amendment

    In consideration of the foregoing, the Federal Aviation 
Administration proposes to amend chapter I of title 14, Code of Federal 
Regulations as follows:

PART 21--CERTIFICATION PROCEDURES FOR PRODUCTS AND ARTICLES

0
1. The authority citation for part 21 continues to read as follows:

    Authority:  42 U.S.C. 7572; 49 U.S.C. 106(f), 106(g), 40105, 
40113, 44701-44702, 44704, 44707, 44709, 44711, 44713, 44715, 45303.

0
2. Amend Sec.  21.20 by revising the introductory text to read as 
follows:

Sec.  21.20   Compliance with applicable requirements.

    Except for applications for type certificates of import products 
under Sec.  21.29, the applicant for a type certificate, including an 
amended or supplemental type certificate, must--
* * * * *

    Issued under authority provided by 49 U.S.C. 106(f) and 44701(a) 
in Washington, DC, on February 7, 2019.
Earl Lawerence,
Executive Director, Aircraft Certification Service.
[FR Doc. 2019-02634 Filed 2-21-19; 8:45 am]
 BILLING CODE 4910-13-P