AGREEMENT

on civil aviation safety between the European Union and the Government of the People's Republic of China

THE EUROPEAN UNION

and

THE GOVERNMENT OF THE PEOPLE'S REPUBLIC OF CHINA,

hereinafter referred to as "the Parties",

RECOGNISING the continuous trend toward multinational design, production and circulation of Civil Aeronautical Products,

DESIRING to promote civil aviation safety and environmental quality and compatibility and to facilitate the free circulation of Civil Aeronautical Products,

DESIRING to enhance cooperation and increase efficiency in matters relating to civil aviation safety,

CONSIDERING that their cooperation can positively contribute in encouraging greater international harmonisation of standards and processes,

CONSIDERING the possible reduction of the economic burden imposed on the aviation industry by redundant technical inspections, evaluations, and testing,

RECOGNISING that any reciprocal acceptance of findings of compliance and certificates needs to offer an assurance of compliance with applicable technical regulations or standards equivalent to the assurance offered by a Party's own procedures,

RECOGNISING that any such reciprocal acceptance also requires continued confidence by each Party in the reliability of the other Party's compliance finding processes in all domains covered by this Agreement,

RECOGNISING the desire of the Parties for regulatory cooperation in civil aviation safety and environmental testing and certificates based on continuous communication and mutual confidence,

RECOGNISING the respective commitments of the Parties under bilateral, regional and multilateral agreements dealing with civil aviation safety and environmental compatibility,

HAVE AGREED AS FOLLOWS:

Article 1 Objectives The objectives of this Agreement are to: (a) enable the reciprocal acceptance, as provided for in the Annexes to this Agreement, of findings of compliance and certificates issued by either Party's Competent Authorities; (b) facilitate the multinational dimension of the civil aviation industry; (c) facilitate and promote the free circulation of civil aeronautical products and services; (d) promote cooperation in order to achieve a high level of civil aviation safety and environmental compatibility.

Article 2 Definitions For the purposes of this Agreement, the following definitions apply: (a) "Approved organisations" means any legal person certified by the Competent Authority of either Party to exercise privileges related to a subject matter within the scope of this Agreement. (b) "Certificate" means any approval, licence or other document issued as a form of recognition of compliance that a civil aeronautical product, organisation or person complies with the applicable requirements stemming from the respective Parties' relevant legislation. (c) "Civil Aeronautical Product" means any civil aircraft, aircraft engine, or aircraft propeller or sub‐assembly, appliance, or part, installed or to be installed thereon. (d) "Competent Authority" means a government agency or entity that is designated by a Party for the purposes of this Agreement to exercise a legal right to assess the compliance and to monitor the use of Civil Aeronautical Products, services, operations or certificates within a Party's jurisdiction, and that may take enforcement action to ensure they comply with applicable legal requirements within that Party's jurisdiction. (e) "Designated representatives" means any legal or natural person mandated by law to carry out compliance assessment and raise findings on behalf of the Civil Aviation Administration of China. (f) "Monitoring" means the periodic surveillance by a Competent Authority to determine continuing compliance with the appropriate applicable legal requirements. (g) "Technical Agent" means, for the Government of the People's Republic of China, the Civil Aviation Administration of China – CAAC, and for the European Union, the European Aviation Safety Agency – EASA.

Article 3 Scope 1. The scope of cooperation under this Agreement includes the following areas: (a) the airworthiness Certificates and Monitoring of Civil Aeronautical Products; (b) environmental testing and Certificates of Civil Aeronautical Products; (c) the certification and Monitoring of design and production organisations; (d) the certification and Monitoring of maintenance organisations; (e) personnel licensing and training; (f) operation of aircraft; (g) air traffic services and air traffic management; and (h) other areas subject to Annexes to the Convention on International Civil Aviation, signed in Chicago on 7 December 1944 ("the Convention"). 2. For matters within the scope of this Agreement, the Parties shall develop Annexes and associated Implementing Procedures describing the terms, conditions and methods for reciprocal acceptance of findings of compliance and Certificates, including transitional arrangements where necessary, when they agree that their respective civil aviation standards, rules, practices, procedures and systems are sufficiently equivalent or compatible to permit acceptance of Certificates and findings of compliance with agreed upon standards made by one Party on behalf of the other. Technical differences between the Parties' civil aviation systems shall be addressed in the Annexes.

Article 4 General Obligations 1. Each Party shall accept findings of compliance and Certificates made by the other Party's Competent Authorities, in accordance with the terms and conditions set out in the Annexes to this Agreement, including transitional arrangements where necessary, which form an integral part thereof. 2. Except as specified in the Annexes to this Agreement, this Agreement shall not be construed as entailing reciprocal acceptance or recognition of standards or technical regulations of the Parties. 3. The findings made by Designated representatives or Approved organisations, authorised by the applicable legislation of either Party to make the same findings as a Competent Authority, shall be given the same validity as those made by a Competent Authority itself for the purposes of this Agreement. 4. The Parties shall ensure that their Competent Authorities remain capable and fulfil their responsibilities under this Agreement, including its Annexes. 5. To ensure the continued confidence by each Party in the reliability of the other Party's compliance finding processes, each Technical Agent may participate in the other's internal quality assurance activities, in accordance with procedures defined in the Annexes to this Agreement.

Article 5 Preservation of Regulatory Authority and Safeguard Measures 1. Nothing in this Agreement shall be construed as limiting the authority of a Party to: (a) Determine, through its legislative, regulatory and administrative measures, the level of protection it considers appropriate for safety, for the environment, and otherwise with regard to risks within the scope of this Agreement. (b) Take all appropriate and immediate measures whenever there is a reasonable risk that a product, a service or any activity within the scope of this Agreement, may: (i) compromise the health or safety of persons or the environment; (ii) not comply with the applicable legislative, regulatory, or administrative measures of that Party; or (iii) otherwise fail to satisfy a requirement within the scope of the applicable Annex to this Agreement. 2. Where either Party takes measures pursuant to paragraph 1 of this Article, it shall inform the other Party in writing within 15 working days of taking such measures, providing reasons for it. 3. Measures taken under this Article shall not be construed or interpreted by either Party as an infringement of the provisions of this Agreement.

Article 6 Communication 1. Upon signature of this Agreement the Parties shall communicate to each other the relevant contact points for the implementation of this Agreement. 2. All communications related to the implementation of this Agreement between the Parties and / or the Competent Authorities shall be in the English language. 3. Each Party shall notify the other Party of the identity of its Competent Authority or Authorities.

Article 7 Regulatory cooperation, mutual assistance and transparency 1. Each Party shall ensure that the other Party is kept informed of all its relevant laws, regulations, standards, and requirements, and of its system for issuing Certificates. 2. The Parties shall notify each other of their proposed significant revisions to their relevant laws, regulations, standards, and requirements, and to their systems for issuing Certificates, insofar as these revisions may have an impact on this Agreement. To the extent practicable, they shall offer each other an opportunity to comment on such revisions and give due consideration to such comments. 3. The Technical Agents may develop procedures on regulatory cooperation within the scope of this Agreement. 4. For the purpose of investigating and resolving safety issues, the Parties may allow each other to participate as observers in each other's oversight activities as specified in the appropriate Annex. 5. For purposes of surveillance and inspections, each Party's Competent Authorities shall assist the other Party's Competent Authorities with the objective of gaining unimpeded access to regulated entities subject to its jurisdiction.

Article 8 Exchange of safety information The Parties agree, without prejudice to the provisions of Article 10 and subject to their applicable legislation: (a) to provide each other, on request and in a timely manner, information available to their Technical Agents related to accidents or serious incidents or occurrences in relation to products, services or activities covered by the Annexes to this Agreement; and (b) to exchange other safety information in accordance with procedures developed by the Technical Agents.

Article 9 Cooperation in Enforcement Activities The Parties agree, subject to applicable laws and regulations, to provide, when requested and subject to the availability of required resources, through their Technical Agents or Competent Authorities, mutual cooperation and assistance in investigations or enforcement proceedings under the scope of this Agreement. In addition, each Party shall notify the other promptly of any investigation when mutual interests are involved.

Article 10 Confidentiality and Protection of Proprietary Data and Information 1. Each Party agrees to maintain, subject to any limitations imposed under its legislation, the confidentiality of data and information received from the other Party under this Agreement. 2. In particular, subject to their respective legislation, the Parties shall neither disclose to a third party, including the public, nor permit a Competent Authority to disclose to a third party, including the public, any data and information received from each other under this Agreement that constitutes trade secrets, intellectual property, confidential commercial or financial information, proprietary data, or information that relates to an ongoing investigation. To that end, such data and information shall be considered as confidential, proprietary or a trade secret, and shall be clearly marked as such, as appropriate. 3. A Party or a Competent Authority may, upon providing data and information to the other Party or a Competent Authority of the other Party, designate the portions of the data and information that it considers to be exempt from disclosure. 4. If a Party disagrees with the designation by the other Party of provided data and information as confidential, proprietary, or a trade secret, then the Party disagreeing with the designation shall request consultations with the other Party pursuant to the provisions of Article 15 to address the issue. 5. Each Party shall take all reasonable precautions necessary to protect data and information received under this Agreement from unauthorized disclosure. 6. The Party receiving data and information from the other Party under this Agreement shall not acquire any proprietary rights in intellectual or industrial property by reason of its receipt from the other Party.

Article 11 Joint Committee of the Parties 1. A Joint Committee is established, consisting of representatives from each Party. The Joint Committee shall be responsible for the effective functioning of this Agreement and shall meet at regular intervals to evaluate the effectiveness of its implementation. 2. The Joint Committee may consider any matter related to the functioning and implementation of this Agreement. In particular it shall be responsible for: (a) resolving any question relating to the application and implementation of this Agreement including its Annexes; (b) considering ways to enhance the operation of this Agreement and make as appropriate recommendations to the Parties for the amendment of this Agreement pursuant to Article 17; (c) adopting amendments to the Annexes; (d) coordinating the development of and adopting new Annexes pursuant to Article 17; and (e) adopting, as appropriate, working procedures on regulatory cooperation and transparency for all activities referred to in Article 3. 3. The Joint Committee shall draw up and adopt its rules of procedure.

Article 12 Cost recovery Each Party shall endeavour to ensure that any fees or charges imposed by its Technical Agent on a legal or natural person whose activities are regulated under this Agreement shall be just, reasonable and commensurate with the services provided, and shall not create a barrier to trade.

Article 13 Other Agreements 1. Except where otherwise specified in the Annexes to this Agreement, obligations contained in agreements concluded by either Party with a third country not party to this Agreement shall have neither force nor effect with regard to the other Party under this Agreement. 2. Upon entry into force, this Agreement shall supersede any bilateral aviation safety agreements or arrangements between the Government of the People's Republic of China and the Member States of the European Union with respect to any matter covered by this Agreement that has been actioned in accordance with the provisions of Article 3. 3. Upon entry into force of this Agreement, the Technical Agents shall take necessary measures to amend or terminate, as appropriate, prior arrangements between them. 4. Subject to paragraph 2 of this Article, this Agreement shall not affect the rights and obligations of the Parties under any other international agreement.

Article 14 Application 1. This Agreement shall apply, on the one hand, to the civil aviation regulatory system of the People's Republic of China and, on the other hand, to the civil aviation regulatory system of the European Union. 2. The Parties share the goal of maximizing the benefits of this Agreement by its possible extension to include third countries. To that end the Joint Committee, established pursuant to Article 11, shall consider, as appropriate, the conditions and procedures, including any necessary amendments to this Agreement that would be required for third countries to accede to this Agreement.

Article 15 Consultations and Settlement of Disagreements 1. The Parties shall make every effort to resolve any disagreement between them regarding their cooperation under this Agreement at the lowest possible technical level by consultation in accordance with provisions contained in the Annexes to this Agreement. 2. In the event that any disagreement is not resolved as provided for in paragraph 1 of this Article, either Technical Agent may refer the disagreement to the Joint Committee established pursuant to Article 11, which shall consult on the matter. 3. Notwithstanding the provisions of paragraphs 1 and 2 of this Article, either Party may request consultations with the other Party on any matter related to this Agreement. The other Party shall enter into consultations at a time agreed by the Parties within 45 days.

Article 16 Suspension of Reciprocal Acceptance Obligations 1. A Party may suspend, in whole or in part, its acceptance obligations specified under an Annex to this Agreement, when the other Party fails to fulfil its obligations specified under this Agreement, including its Annexes. 2. Before suspending its acceptance obligations, a Party shall request consultations under Article 15. Should consultations not resolve a disagreement that relates to any of the Annexes, either Party may notify the other Party of its intention to suspend the acceptance of findings of compliance and Certificates under the Annex, over which there is disagreement. Such notification shall be in writing and detail the reasons for suspension. 3. Such suspension shall take effect 30 days after the date of the notification, unless, prior to the end of this period, the Party, which initiated the suspension, notifies the other Party in writing that it withdraws its notification. Such suspension shall not affect the validity of findings of compliance and Certificates made by the Party's Competent Authority in question prior to the date the suspension took effect. Any such suspension that has become effective may be rescinded immediately upon an exchange of written correspondence to that effect by the Parties.