Source: EURLEX
Language: en
Format: md

**Council of the**
**European Union**

**Interinstitutional File:**

**2018/0156 (NLE)**

**PROPOSAL**

**Brussels, 23 May 2018**
**(OR. en)**

**9137/18**
**ADD 1**

**AVIATION 72**
**RELEX 431**
**CHINE 3**

From: Secretary-General of the European Commission,
signed by Mr Jordi AYET PUIGARNAU, Director

date of receipt: 18 May 2018

To: Mr Jeppe TRANHOLM-MIKKELSEN, Secretary-General of the Council of
the European Union

No. Cion doc.: COM(2018) 309 final - ANNEX

Subject: ANNEX to the Proposal for a Council Decision on the signature of an
Agreement between the European Union and the Government of the
People's Republic of China on civil aviation safety

Delegations will find attached document COM(2018) 309 final - ANNEX.

Encl.: COM(2018) 309 final - ANNEX

9137/18 ADD 1 ML/el

## DGE 2A EN

EUROPEAN

COMMISSION

**ANNEX**

**to the**

Brussels, 18.5.2018
COM(2018) 309 final

ANNEX

**Proposal for a Council Decision**

**on the signature of an Agreement between the European Union and the Government of**

**the People's Republic of China on civil aviation safety**

# **EN EN**

**AGREEMENT**

**ON CIVIL AVIATION SAFETY**

**BETWEEN THE EUROPEAN UNION AND THE GOVERNEMENT OF THE**

**PEOPLE'S REPUBLIC OF CHINA**

The EUROPEAN UNION and the GOVERNMENT OF THE PEOPLE'S REPUBLIC
OF CHINA (hereinafter referred to individually as a "Party" and collectively 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 co-operation and increase efficiency in matters relating to civil
aviation safety;

CONSIDERING that their co-operation 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 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.

# EN 1 EN

(d) promote cooperation toward 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

# EN 2 EN

(h) Other areas subject to Annexes to the Convention on International Civil
Aviation, signed in Chicago on 7 December 1944 (hereinafter referred to as '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 forth 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 to entail 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 to limit 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:

(a) compromise the health or safety of persons or the environment;

# EN 3 EN

(b) not comply with the applicable legislative, regulatory, or
administrative measures of that Party; or

(c) 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 will 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 co-operation
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**

# EN 4 EN

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 public, nor permit a Competent Authority to
disclose to a third party, including 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 this 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.

# EN 5 EN

_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, 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 the 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.

# EN 6 EN

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 this 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 the 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

# EN 7 EN

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.

_Article 17_

**Entry into Force, Termination and Amendment**

1. This Agreement, including its Annexes, shall enter into force on the first day of
the second month following the date on which the Parties have exchanged
diplomatic notes confirming the completion of their respective procedures for
entry into force of this Agreement.

2. The Agreement, including its Annexes, is binding on both Parties and shall
remain in force until terminated by either Party.

3. A Party may terminate this Agreement at any time upon six months written
notification to the other Party, unless the said notice of termination has been
withdrawn by mutual consent of the Parties before the expiry of this period.

4. Following notice of termination of this Agreement in its entirety or of any
Annexes thereto, the Parties shall continue to meet their obligations under the
Agreement or any Annexes thereto until the effective date of termination.

5. Termination of this Agreement shall not affect the validity of any certificates
granted by the Parties under the terms of this Agreement, including its Annexes.

6. The Parties may amend this Agreement by mutual written consent. An
amendment to this Agreement shall enter into force on the date of the latest
written notification by one Party to the other Party that its internal procedures
for entry into force have been completed. Amendments of the Annexes shall be
effected by a decision of the Joint Committee established pursuant to Article 11.

7. Where a Party seeks to amend the Agreement by removing or adding one or
more Annexes and preserving the other Annexes, the Parties shall seek to amend
this Agreement by consensus, in accordance with the procedures in this Article.
Failing consensus to preserve the other Annexes, the Agreement shall terminate
at the end of six months from the date of notice unless otherwise agreed by the
Parties.

8. Any individual Annex developed after the date of entry into force of this
Agreement in accordance with the provisions of Article 3, shall enter into force
upon a decision of the Joint Committee established pursuant to Article 11.

IN WITNESS WHEREOF, the undersigned duly authorized to that effect, have signed
this Agreement Done, in duplicate, in XX, this XX day of XXX 201X, in the Bulgarian,
Czech, Croatian, Danish, Dutch, English, Estonian, Finnish, French, German, Greek,
Hungarian, Italian, Latvian, Lithuanian, Maltese, Polish, Portuguese, Romanian,
Slovakian, Slovenian, Spanish, Swedish and Chinese languages, each version being
equally authentic. In case of divergence of interpretation, the English version shall
prevail.

FOR THE EUROPEAN UNION / FOR THE GOVERNMENT OF THE PEOPLE'S

REPUBLIC OF CHINA

# EN 8 EN

**ANNEX 1**

AIRWORTHINESS AND ENVIRONMENTAL CERTIFICATION

**1.** **SCOPE**

1.1. This Annex covers 1) the reciprocal acceptance of findings of compliance,
certificates, and documentation, and 2) technical support regarding:

(a) airworthiness and continued airworthiness of civil aeronautical products
(hereinafter referred to as "products");

(b) design and production organisations; and

(c) noise, fuel venting, and exhaust emissions, including carbon dioxide emissions
when applicable.

1.2. Used or rebuilt engines, propellers, parts and appliances are not within the scope of
this Annex when considered individually. Used aircraft are within the scope of this
Annex.

1.3. The Parts Manufacturer Approvals issued under the airworthiness oversight system
of China are not within the scope of this Annex.

**2.** **DEFINITIONS**

2.1. For the purposes of this Annex, the following definitions apply:

(a) ‘Aircraft Evaluation Report’ means the report developed by Aircraft
Evaluation Group under Chapter 15 of CCAR-21-R4. Aircraft Evaluation
Report is not directly covered by the CAAC type certificate or validation of
type certificate, but is assessed under an Aircraft Evaluation Group in the
CAAC system to support type specific operational aspects for which the type
certificate holder is responsible.

(b) ‘Airworthiness Approval Tag’ means a declaration by a person or organisation
under the regulatory oversight of the Exporting Party that a new Civil
Aeronautical Product, other than a complete aircraft, conforms to an approved
design and is in a condition for safe operation. CAAC Form AAC-038 and
EASA Form 1 are Airworthiness Approval Tags.

(c) ‘Certificating Authority’ means the Authority that issued a Design Certificate
in its capacity as Authority discharging the State of Design responsibilities for
a Product.

(d) Changes in type design are classified as minor and major. A ‘minor change’ is
one that has no appreciable effect on the mass, balance, structural strength,
reliability, operational characteristics, noise, fuel venting, exhaust emission, or
other characteristics affecting the airworthiness of the product. All other
changes are ‘major changes’.

(e) ‘Design Certificate’ means a form of recognition by a Party that the design or
change to a design of a civil aeronautical product meets airworthiness
standards and, as applicable, environmental protection requirements in
particular concerning noise, fuel venting or exhaust emissions, established by
the legislation in force in that Party.

# EN 9 EN

(f) ‘Design-related Operational Requirements’ means the operational, including
environmental, requirements affecting either the design features of the product
or data on the design relating to the operations or maintenance of the product
that make it eligible for a particular kind of operation.

(g) ‘Export’ means the process by which a Civil Aeronautical Product is released
from one regulatory system to another.

(h) ‘Export Certificate of Airworthiness’ means an export declaration by the
Exporting Party – or, for used aircraft, by the Competent Authority of the State
of Registry from which the product is exported – that a complete aircraft
conforms to the airworthiness and environmental requirements notified by the
Importing Party.

(i) ‘Exporting Party’ means the Party from whose production oversight system a
Civil Aeronautical Product is exported.

(j) ‘Import’ means the process by which an exported civil aeronautical product is
introduced into a regulatory system.

(k) ‘Importing Party’ means the Party in which a Civil Aeronautical Product is
imported.

(l) ‘Modification design approval’ means a design certificate issued by the Civil
Aviation Administration of China to approve minor changes made by an
organisation or person other than the type design approval holder, to an
approved type design.

(m) ‘Operational Suitability Data’ means the set of data required to be established
by aircraft manufacturers and approved under EASA Part 21.A.15 d) of
Regulation (EU) No 748/2012. Operational Suitability Data is approved as part
of the type certificate issued by the European Union Technical Agent to
support type specific operational aspects for which the type certificate holder is
responsible.

(n) 'Production Certificate' means a certificate issued by one Party to an
organisation compliant with applicable production regulation in force in that
Party.

(o) ‘Validating Authority’ means the Technical Agent that automatically accepts
or validates, as specified in this Annex, a Certificate issued by the Certificating
Authority.

# EN 10 EN

**3.** **C** **ERTIFICATION** **O** **VERSIGHT** **B** **OARD**

**3.1.** **Establishment and Composition of the Certification Oversight Board**

3.1.1. A technical coordination body called the Certification Oversight Board, accountable
to the Joint Committee of the Parties, is hereby established under the joint leadership
of the Technical Agents. It shall include representatives from each Technical Agent.

3.1.2. The Certification Oversight Board shall establish its own rules of procedure.

3.1.3. The joint leadership may invite additional participants to facilitate the fulfilment of
the mandate of the Certification Oversight Board.

**3.2.** **Mandate**

3.2.1. The Certification Oversight Board shall meet at regular intervals to ensure the
effective functioning and implementation of this Annex. Its functions shall include in
particular:

(a) Contributing to minimise the differences in the regulatory systems, standards
and certification processes of the Parties;

(b) Developing, approving, and revising the Technical Implementation Procedures
referred to in paragraph 4.2;

(c) Sharing information on major safety concerns and, where appropriate,
developing action plans to address them;

(d) Resolving technical issues falling within the responsibilities of the Competent
Authorities affecting the implementation of this Annex;

(e) Where appropriate, developing effective means for cooperation, technical
support and exchange of information regarding safety and environmental
requirements, certification systems, and quality management and
standardisation systems;

(f) Proposing amendments regarding this Annex to the Joint Committee of the
Parties.

(g) In accordance with the provisions of paragraph 5.2.2, defining procedures to
ensure the continued confidence by each Party in the reliability of the other
Party’s compliance finding processes;

(h) Analysing, and taking action on, the implementation of the procedures referred
to in (g).

# EN 11 EN

3.2.2. The Certification Oversight Board shall report unresolved issues to the Joint
Committee of the Parties and ensure the implementation of decisions reached by the
Joint Committee of the Parties regarding this Annex.

**4.** **IMPLEMENTATION**

**4.1.** **Competent authorities**

4.1.1. Competent authorities as regards Design Certification are:

(a) for the Government of the People's Republic of China: the Civil Aviation
Administration of China (CAAC); and

(b) for the European Union: the European Aviation Safety Agency (EASA).

4.1.2. Competent authorities as regards Production Certification are:

(a) for the Government of the People's Republic of China: the Civil Aviation
Administration of China (CAAC); and

(b) for the European Union: the European Aviation Safety Agency (EASA) and
the Competent Authorities of the Member States of the European Union.

# EN 12 EN

**4.2.** **Technical Implementation Procedures**

4.2.1. The Certification Oversight Board shall develop working procedures called
‘Technical Implementation Procedures’ to facilitate the implementation of this
Annex, notably by defining the interface requirements and activities between the
Competent Authorities.

4.2.2. These Technical Implementation Procedures will address the differences between the
Parties' airworthiness and environmental certification systems.

**4.3.** **Exchange and protection of confidential and proprietary data and information**

4.3.1. Data and information exchanged in the framework of activities within the scope of
this Annex are subject to the provisions of Article 10 of the Agreement.

4.3.2. Data and information exchanged during validation activities shall be limited in nature
and content to that which is necessary for the purpose of compliance demonstration
with applicable technical requirements, as detailed in the Technical Implementation
Procedures.

4.3.3. Any disagreement with regard to a data and information request by a Competent
Authority or Technical Agent should be handled through a gradual escalation
process, as detailed in the Technical Implementation Procedures. Any Party retains
the right to refer the disagreement to the Certification Oversight Board for resolution.

**4.4.** **Design**

4.4.1. General Provisions

4.4.1.1. This Annex addresses all Design Certificates and changes thereof within the scope
defined in paragraph 1 of this annex, and in particular:

(a) Type certificates, including, as applicable, operational suitability data;

(b) Supplemental type certificates, including, as applicable, operational suitability
data;

(c) Modification Design Approvals;

(d) Repair design approvals;

(e) Parts and appliances approvals.

4.4.1.2. Restricted type certificates issued by the European Technical Agent and type
certificates for the restricted category aircraft issued by the Chinese Technical Agent
will be addressed on a case-by-case basis by the Technical Agents as detailed in the
Technical Implementation Procedures.

4.4.1.3. For the implementation of this Annex, the Parties agree that, subject to the continued
qualification requirements defined in paragraph 5 of this Annex:

(a) In the European regulatory system, the demonstration of capability of any
design organisation to assume its responsibilities is sufficiently controlled
through a system of design organisation certification.

(b) In the Chinese regulatory system, the demonstration of capability of a design
organisation is ensured through a design assurance system and direct controls

# EN 13 EN

performed by the Technical Agent. This system provides for an equivalent
independent level of checking of compliance.

4.4.1.4. An application for a Design Certificate shall be made to the Validating Authority
through the Certificating Authority, where appropriate and as detailed in the
Technical Implementation Procedures.

4.4.2. Level of involvement of the Validating Authority

4.4.2.1. The level of involvement of the Validating Authority during validation processes
defined in paragraph 4.4.5 of this Annex and detailed in the Technical
Implementation Procedures shall be mainly determined by:

(a) the experience and records of the Competent Authority of the other Party as
Certificating Authority;

(b) the experience already gained by this Validating Authority during previous
validation exercises with the Competent Authority of the other Party;

(c) the nature of the validated design, the performance and experience of the
applicant with the Validating Authority; and

(d) the outcome of initial and continued qualification requirements assessments,
defined in paragraph 5.2.

4.4.2.2. The Validating Authority will exercise special procedures and scrutiny, in particular
on the Certificating Authority’s processes and methods, during the first validation of
a given product category, as detailed in Technical Implementation Procedures. For
any additional application in a given product category, which is received before the
first validation has been completed, the Validating Authority will determine on a
case-by-case basis whether the special procedures and scrutiny will be exercised and
to what extent.

4.4.2.3. The effective implementation of the above principles will be regularly measured,
monitored and reviewed by the Certification Oversight Board, using metrics defined
in the Technical Implementation Procedures.

4.4.3. Certification Basis

4.4.3.1. For the purpose of issuing a type certificate, the Validating Authority shall refer to
the airworthiness standards for a similar product of its own that were in effect on the
effective certification application date established by the Certificating Authority,
complemented when applicable by additional technical conditions, as defined in the
Technical Implementation Procedures.

4.4.3.2. The environmental protection requirements used during the validation process of a
type certificate shall be the applicable requirements in effect in the Party of the
Validating Authority on the date of application for validation to the Validating
Authority.

4.4.3.3. The Validating Authority shall specify, when applicable, any:

(a) exemption to the applicable standards;

(b) deviation from the applicable standards;

(c) compensating factors that provide an equivalent level of safety when applicable
standards are not complied with.

# EN 14 EN

4.4.3.4. The Validating Authority shall specify any special condition applied or intended to
be applied if the related airworthiness code does not contain adequate or appropriate
safety standards for the product, because:

(a) the product has novel or unusual design features relative to the design practices
on which the applicable airworthiness code is based; or

(b) the intended use of the product is unconventional; or

(c) experience from other similar products in service or products having similar
design features, has shown that unsafe conditions may develop.

4.4.3.5. When specifying exemptions, deviations, compensating factors or special conditions,
the Validating Authority shall give due consideration to those of the Certificating
Authority and shall not be more demanding for the products to be validated than it
would be for similar products of its own. The Validating Authority shall notify the
Certificating Authority of any such exemptions, deviations or special conditions.

4.4.4. Design Certification Process

4.4.4.1. The Certificating Authority shall ensure that the Validating Authority receives all the
relevant data and information, as defined in the Technical Implementation
Procedures, necessary for the Validating Authority to become and remain familiar
with the design and certification of the Civil Aeronautical Products that are subject to
validation.

4.4.4.2. The Validating Authority shall issue its type certificate for an aircraft, engine or
propeller when:

(a) the Certificating Authority has issued its own certificate;

(b) the Certificating Authority certifies to the Validating Authority that the product
complies with the certification basis as set out in paragraph 4.4.3;

(c) all issues raised during the validation process conducted by the Validating
Authority have been resolved; and

(d) additional administrative requirements, as defined in the Technical
Implementation Procedures, have been met by the applicant.

4.4.4.3. In order to obtain and maintain a Validated Design Certificate as per the provisions
of this Annex, the applicant shall hold and retain at the disposal of the Certificating
Authority all relevant design information, drawings and test reports, including
inspection records for the certified product, in order to provide the information
necessary to ensure the continued airworthiness and compliance with applicable
environmental protection requirements of the product.

4.4.5. Validation and automatic acceptance processes

4.4.5.1. Design Certificates that have been, or are in the process of being, issued by the
Certificating Authority, are either automatically accepted or validated by the
Validating Authority:

(a) For certificates subject to validation, the Validating Authority issues its own
Certificate through a validation process implying a commensurate level of
involvement, defined in accordance with the principles of paragraph 4.4.2 and
as detailed in the Technical Implementation Procedures.

(b) For certificates subject to automatic acceptance, the Validating Authority
recognises and accepts the Certificating Authority’s certificates without any

# EN 15 EN

technical investigation or validation exercise. In this case, the certificate issued
by the Certificating Authority is recognised by the Validating Authority as
equivalent to its own certificate issued in accordance with its legislation and
procedures. The validating Authority does not issue its own corresponding
certificate.

# EN 16 EN

4.4.5.2. Subject to the provisions of paragraph 4.4.2, the validation process, as detailed in the
Technical Implementation Procedures, shall be based to the maximum extent
practicable on the technical evaluations, tests, inspections, and compliance
certifications made by the other Technical Agent.

4.4.5.3. The modalities of acceptance and validation of certificates are presented in paragraph
9 of this Annex (Appendix 1 – Modalities of acceptance and validation of
certificates).

4.4.6. Transfer of Certificate

4.4.6.1. In the event that a Design Certificate holder transfers its Certificate to another entity,
the Technical Agent responsible for the Design Certificate shall promptly notify the
other Technical Agent of the transfer and apply the agreed procedure related to the
transfer of certificates as defined in the Technical Implementation Procedures.

4.4.7. Design-related operational requirements

4.4.7.1. The Technical Agents shall ensure that, where necessary, data and information
related to design-related operational requirements is exchanged during the validation

process.

4.4.7.2. Subject to agreement between the Technical Agents, for some design-related
operational requirements the Validating Authority may accept the compliance
statement of the Certificating Authority.

4.4.8. Operational documents and data related to the Type

4.4.8.1. Some Type-specific sets of operational documents and data, including Operational
Suitability Data in the European Union system and the Aircraft Evaluation Reports in
the Chinese system, and provided by the type certificate holder, are approved or
accepted by the Certificating Authority.

4.4.8.2. These operational documents and data may be either automatically accepted or
validated by the Validating Authority as detailed in the Technical Implementation
Procedures.

4.4.9. Concurrent certification

4.4.9.1. When mutually agreed by the applicant and both Technical Agents, a concurrent
certification process may be used, where appropriate and as detailed in the Technical
Implementation Procedures. Both Technical Agents recognise the possible benefits
of such a process.

**4.5.** **Production**

4.5.1. As the Parties' systems for production of civil aeronautical products are considered
sufficiently comparable, the Importing Party shall accept the other Party’s production
certification and oversight system within the scope of this Annex, subject to the
provisions of paragraphs 4.5.2 to 4.5.10.

4.5.2. Subject to the provisions of paragraph 4.5.4 and 4.5.5 and unless otherwise agreed
between the Technical Agents, the Technical Agent of the Importing Party shall not
issue a production approval for a manufacturer primarily located in the Exporting
party.

4.5.3. The provisions of paragraph 4.5.1 also apply:

# EN 17 EN

(a) if the State of Design responsibilities are exercised by a third country, provided
that the Competent Authority of the Exporting Party has established and
implemented procedures with the Authority of the State of Design to control
the interface between the Design Certificate holder and the Production
Certificate holder;

(b) to the production of parts and appliances by a holder of a stand-alone
Production Certificate, primarily located outside of the territories of the Parties;

(c) subject to a review between the Technical Agents on a case-by-case basis, to
the production of engines and propellers by a holder of a stand-alone
Production Certificate, primarily located outside of the territories of the Parties.

4.5.4. The Parties agree that a Production Certificate issued by the Competent Authority of
the Exporting Party to organisations primarily located in the territory of that Party
and accepted under the provisions of paragraph 4.5.1 can be extended to include
manufacturing sites and facilities located in the territory of the other Party or in the
territory of a third country, irrespective of the legal status of these manufacturing
sites and facilities, and irrespective of the type of aeronautical product manufactured
in these sites. In this case, the Competent Authority of the Exporting Party shall
remain responsible for the oversight of these manufacturing sites and facilities and
the importing Party shall not issue its own certificate for the same product.

4.5.5. The arrangements between the Technical Agents covering production oversight of
manufacturing sites and facilities located in the territory of the other Party at the time
of entry into force of the Agreement shall not be modified without the consent of
both Technical Agents.

4.5.6. The stand-alone Production Certificates issued by the Technical Agent of one Party
to Production Organisations located in the territory of the other Party, still in force at
the time of entry into force of the Agreement, shall be reviewed on a case-by-case
basis by the Technical Agents. In consultation with the Production Certificate
holders, some Production Certificates may be terminated within a reasonable
timeframe.

4.5.7. In cases where the Production Certificate holder is regulated by a Competent
Authority of one Party, and the Design Certificate holder is regulated by a
Competent Authority of the other Party, the Technical Agents shall establish
procedures to define the responsibilities of each Party to control the interface
between the Design Certificate holder and the Production Certificate holder.

4.5.8. For the purpose of export of Civil Aeronautical Products in the framework of this
Annex, when the Design Certificate holder and the Production Organisation are not
the same legal entity, the Design Certificate holder shall establish proper
arrangements with the Production Organisation to ensure satisfactory coordination
between production and design and the proper support of the continued airworthiness
of the Civil Aeronautical Product.

4.5.9. A list of Chinese Production Certificate holders, including holders of Chinese
Technical Standard Order Approvals, whose production is accepted by the European
Union, will be published and regularly updated on the Official Publication of the
Technical Agent of the European Union.

4.5.10. Products manufactured in accordance with the “production under type certificate”
requirements in the Chinese aviation regulatory system, or in accordance with the
“production without Production Organisation Approval” procedure in the European

# EN 18 EN

Union aviation regulatory system, will be considered on a case-by-case basis by the
Technical Agents.

**4.6.** **Export certificates and forms**

4.6.1. Forms

4.6.1.1. The Exporting Party’s forms are:

(a) When the Exporting Party is China: CAAC Form AAC-157 for new and used
aircraft, and Form AAC-038 for other new products.

(b) When the Exporting Party is the European Union: EASA Form 27 for new and
used aircraft, and EASA Form 1 for other new products.

4.6.2. New aircraft

4.6.2.1. As detailed in the Technical Implementation Procedures, the Competent Authority of
the Exporting Party, or the approved production organisation, as applicable, shall
issue an Export Certificate of Airworthiness (CAAC Form-157 or EASA Form 27),
certifying that such aircraft:

(a) conforms to a type design approved by the Importing Party in accordance with
this Annex;

(b) is in a condition for safe operation, including compliance with the applicable
airworthiness directives of the Importing Party, as notified by that Party; and

(c) meets all additional requirements prescribed by the Importing Party, as notified
by that Party.

4.6.2.2. Subject to the provisions of paragraph 4.5 of this Annex, the Importing Party shall
accept, for new aircraft, the Exporting Party's Export Certificates of Airworthiness.

4.6.3. Used aircraft

4.6.3.1. For a used aircraft for which a Design Certificate was granted by the Importing
Party, the Competent Authority of the State of Registry from which the product is
exported shall issue an Export Certificate of Airworthiness certifying that the
aircraft:

(a) conforms to a type design approved by the Importing Party in accordance with
this Annex;

(b) is in a condition for safe operation, including compliance with all applicable
airworthiness directives of the Importing Party, as notified by that Party;

(c) has been properly maintained using approved procedures and methods during
its service life, as evidenced by logbooks and maintenance records; and

(d) meets all additional requirements prescribed by the Importing Party, as notified
by that Party.

# EN 19 EN

4.6.3.2. Used aircraft may be exported only if a holder of either a type certificate or a
restricted type certificate/type certificate for restricted category exists to support
continued airworthiness of that aircraft.

4.6.3.3. For used aircraft manufactured under its production oversight system, each Party
agrees to assist, upon request, the other Party in obtaining data and information
regarding:

(a) the configuration of the aircraft at the time it left the manufacturer; and

(b) subsequent changes and repairs applied to the aircraft, that it has approved.

4.6.3.4. The Importing Party may request inspection and maintenance records as detailed in
the Technical Implementation Procedures.

4.6.3.5. If, in the process of assessing the airworthiness status of a used aircraft considered
for export, the Competent Authority of the Exporting Party is unable to satisfy all of
the requirements specified in paragraph 4.6.3.1 or 4.6.3.3, it shall:

(a) Notify the Competent Authority of the Importing Party;

(b) Coordinate, with the Competent Authority of the Importing Party as specified
in the Technical Implementation Procedures, their acceptance or rejection of
the exceptions to the applicable requirements; and

(c) Document any accepted exceptions when exporting the product.

4.6.4. New Civil Aeronautical Product excluding complete aircraft

4.6.4.1. As detailed in the Technical Implementation Procedures, the Competent Authority of
the Exporting Party, or the approved production organisation, as applicable, shall
issue an Airworthiness Approval Tag (CAAC Form AAC-038 or EASA Form 1),
certifying that a new Civil Aeronautical Product (excluding complete aircraft):

(a) conforms to design data approved by the Importing Party;

(b) is in a condition for safe operation; and

(c) meets all additional requirements prescribed by the Importing Party, as notified
by that Party.

# EN 20 EN

4.6.4.2. Subject to the provisions of paragraph 4.5 of this Annex, the Importing Party shall
accept the exporting Party’s Airworthiness Approval Tag.

**4.7.** **Continuing Airworthiness**

4.7.1. The Technical Agents are committed to take action to address unsafe conditions in
products for which they are the Certificating Authority.

4.7.2. Upon request, a Competent Authority from one Party shall, in respect of civil
aeronautical products designed or manufactured under its design or production
system, assist the Competent Authority of the other Party, in determining any action
considered to be necessary for the continued airworthiness of the products.

4.7.3. When service difficulties or other potential safety issues affecting a product within
the scope of this Annex lead to an investigation conducted by the Certificating
Authority, the Technical Agent of the other Party shall, upon request, support this
investigation and exchange relevant information reported by its respective regulated
entities on failures, malfunctions, defects or other occurrences affecting this product.

4.7.4. The reporting obligations from the certificate holder to the Certificating Authority
and the information exchange mechanism established by this Annex shall be
considered to fulfil the obligation of each certificate holder to report failures,
malfunctions, defects or other occurrences to the Validating Authority.

4.7.5. Actions to address unsafe conditions and exchange of safety information referred to
in paragraph 4.7.1 to 4.7.4 shall be defined in the Technical Implementation
Procedures.

4.7.6. The Technical Agent of one Party shall keep the Technical Agent of the other Party
informed of all mandatory continuing airworthiness information in relation to civil
aeronautical products designed or manufactured under the oversight system of one
Party, and which are within the scope of this Annex.

4.7.7. Any changes to the airworthiness status of a certificate issued by either Party's
Technical Agent shall be timely communicated to the other Party’s Technical Agent.

**5.** **QUALIFICATION** **OF COMPETENT** **A** **UTHORITIES**

**5.1.** **Qualification requirements for the acceptance of findings and certificates**

5.1.1. Each Party shall maintain a structured and effective certification and oversight
system for the various activities within the scope of this Annex, including:

(a) A legal and regulatory structure, ensuring in particular regulatory powers over
regulated entities;

(b) An organisational structure, including a clear description of responsibilities;

(c) Sufficient resources, including appropriately qualified staff with sufficient
knowledge, experience and training;

(d) Adequate processes documented in policies and procedures;

# EN 21 EN

(e) Documentation and records;

(f) An established inspection programme ensuring uniform level of
implementation of the regulatory framework among the various components of
the oversight system.

# EN 22 EN

**5.2.** **Initial and continued qualifications of the Competent Authorities**

5.2.1. Initial qualification of the Competent Authorities

5.2.1.1. Subject to the provisions of paragraph 5.2.1.3, the Competent Authorities listed in
paragraph 4.1 are deemed to meet the requirements specified in paragraph 5.1, as a
result of a confidence building process initiated before the signature of the
Agreement.

5.2.1.2. In particular, initial mutual assessments allowed both Parties to conclude that at the
time of signature of the Agreement, the safety oversight systems of both Parties were
sufficiently compatible to allow the conclusion of this Annex.

5.2.1.3. The Parties agreed that in the design and production domains, the levels of reliance
on certificates, approvals and findings of compliance, during the respective
acceptance and validation processes of the Competent Authorities under this Annex,
will be different during a transitional period.

5.2.1.4. Recurrent mutual assessments shall continue between the Parties as detailed in the
Technical Implementation Procedures.

5.2.2. Continued qualification of the Competent Authorities

5.2.2.1. In order to maintain mutual confidence in each other's systems, the Technical Agents
shall regularly assess the other Party’s Competent Authorities’ compliance with the
qualification requirements set forth in paragraph 5.1.

5.2.2.2. The modalities of such continued mutual assessments shall be defined in the
Technical Implementation Procedures.

5.2.2.3. The Competent Authorities shall submit to such assessments and ensure that
regulated entities provide access to both Technical Agents.

5.2.2.4. If one Technical Agent believes that a Competent Authority's technical competency
is no longer adequate, or that the acceptance of findings or certificates issued by a
Competent Authority should be suspended, the Technical Agents shall consult in
order to identify remedial actions.

5.2.2.5. If confidence is not restored through mutually acceptable means, either Technical
Agent may refer the matter to the Certification Oversight Board.

5.2.2.6. If the matter is not resolved at the level of the Certification Oversight Board, either
Party may refer the matter to the Joint Committee in accordance with Article 15 of
the Agreement, and paragraph 3.2.2 of this Annex.

**6.** **COMMUNICATIONS**

6.1. All communications between the Competent Authorities, including documentation as
detailed in the Technical Implementation Procedures, shall be made in the English
language.

6.2. The Technical Agents may agree to exceptions on a case-by-case basis.

# EN 23 EN

**7.** **TECHNICAL** **CONSULTATIONS**

7.1. In accordance with Article 15 of the Agreement, the Technical Agents shall address
issues associated with implementation of this Annex through consultation.

7.2. The Technical Agents shall make every effort to resolve issues at the lowest possible
technical level using the process outlined in the Technical Implementation
Procedures before elevating the issue to the Joint Committee.

**8.** **SUPPORT** **FOR** **CERTIFICATION** **ACTIVITIES**

8.1. Upon request, after mutual agreement, and as resources permit, the Competent
Authorities may provide technical support, data and information to each other in
certification and continued airworthiness oversight activities related to design,
production and environmental certification. The process for providing such support
shall be described in the Technical Implementation Procedures.

8.2. Support requested and provided under paragraph 8.1 does not affect other data and
information exchange obligations set forth in this Annex.

8.3. As detailed in the Technical Implementation Procedures, support may include, but is
not limited to, the following:

(a) Determination of compliance;

(b) Monitoring and oversight.

8.4. Support may also be requested in relation to the import of used aircraft that were
previously exported from either Party. Each Party's Competent Authority may assist
the other Party's Competent Authority, in obtaining information regarding the
configuration of the aircraft at the time it was exported.

# EN 24 EN

**9.** **A** **PPENDIX** **1** **–** **M** **ODALITIES OF ACCEPTANCE AND VALIDATION OF CERTIFICATES**

**9.1.** **Certificates issued within the European Union regulatory system**

|Certificate|Acceptance / Validation|Comment|
|---|---|---|
|Type<br>certificate<br>issued<br>by<br>the<br>European Union<br>Competent<br>Authority|Validation|Validation in accordance with Level of Involvement<br>principles documented in paragraph 4.4.2 of this Annex<br>and in the Technical Implementation Procedures; some<br>data will be automatically accepted as specified in the<br>Technical Implementation Procedures, which will<br>include in particular, the following:<br>a) Aircraft flight manual;<br>b) Engine installation manual (for engine type<br>certificate);<br>c) Airworthiness limitation requirement (including<br>airworthiness<br>limitation<br>instructions<br>and<br>certification maintenance requirements);<br>d) Structural repair manual;<br>e) Instruction for continued airworthiness of<br>electrical wiring interconnection systems;<br>f) Weight balance manual.<br>|
|Supplemental<br>type<br>certificate<br>issued by the EU<br>Competent<br>Authority,<br>Significant Major<br>changes approved<br>by<br>the<br>EU<br>Competent<br>Authority|Validation|**Significant Supplemental type certificate, significant**<br>**major change**: validation in accordance with Level of<br>Involvement principles documented in paragraph 4.4.2<br>of this Annex and in the Technical Implementation<br>Procedures. Some significant Supplemental type<br>certificates or significant major changes, as detailed in<br>the Technical Implementation Procedures, will be<br>validated under a streamlined validation process limited<br>to technical familiarisation without involvement of the<br>Validating Authority in the showing of compliance<br>activities.<br> <br>**Non-significant**<br>**Supplemental**<br>**type**<br>**certificate:** <br>validation through an administrative process detailed in<br>the Technical Implementation Procedures.|
|Non-significant<br>major<br>changes<br>and major repairs|Automatic acceptance||
|Technical<br>Standard<br>Order|Validation|Validation through an administrative process detailed in|

# EN 25 EN

|Certificate|Acceptance / Validation|Comment|
|---|---|---|
|~~Approval~~<br>~~issued~~<br>by<br>the<br>EU<br>Competent<br>Authority||~~the Technical Implementation Procedures.~~|
|Minor<br>changes<br>and<br>repairs<br>approved by the<br>EU<br>Competent<br>Authority or by<br>an<br>approved<br>organistion under<br>EU law|Automatic acceptance||

**9.2.** **Certificates issued within the Chinese regulatory system**

|Certificate|Acceptance|Comment|
|---|---|---|
|Type<br>certificate<br>issued by the Chinese<br>Technical Agent|Validation|Validation<br>process,<br>in<br>accordance<br>with<br>Level<br>of<br>Involvement principles documented in paragraph 4.4.2 of<br>the Annex and in the Technical Implementation Procedures|
|Supplemental<br>type<br>certificate issued by<br>the Chinese Technical<br>Agent;<br>Major changes and<br>repairs approved by<br>the<br>Chinese<br>Competent Authority|Validation|Validation<br>process,<br>in<br>accordance<br>with<br>Level<br>of<br>Involvement principles documented in paragraph 4.4.2 of<br>the Annex and in the Technical Implementation Procedures|
|Technical<br>Standard<br>Order<br>Approval<br>issued by the Chinese<br>Competent Authority|Validation|Validation<br>process,<br>in<br>accordance<br>with<br>Level<br>of<br>Involvement principles documented in paragraph 4.4.2 of<br>the<br>Annex<br>and<br>in<br>the<br>Technical<br>Implementation<br>Procedures. Some Technical Standard Order Approvals, as<br>detailed in the Technical Implementation Procedures, will<br>be validated under a streamlined validation process limited<br>to technical familiarisation without involvement of the<br>Validating Authority in the showing of compliance<br>activities.|
|Minor changes and<br>repairs approved by<br>the<br>Chinese<br>Competent Authority|Automatic acceptance||

# EN 26 EN

**9.3.** **Implementation provisions**

9.3.1. The administrative process referred to in the above tables entails no technical
investigation: when the complete application package, as detailed in the Technical
Implementation Procedures, has been received by the Validating Authority, the
validated Certificate is issued by the Validating Authority within a maximum of
three (3) to five (5) weeks, depending on the complexity of the product.

9.3.2. The minor / major and significant / non-significant classifications are made by the
Certificating Authority in accordance with the criteria and definitions defined in this
Annex and interpreted in accordance with the applicable rules and procedures of the
Certificating Authority.

9.3.3. In determining whether a specific Supplemental type certificate or major change is
significant or non-significant, the Certificating Authority shall consider the change in
context with all previous relevant design changes and all related revisions to the
applicable certification specifications incorporated in the type certificate for the
product. Changes that meet one of the following criteria are automatically considered
significant:

(a) the general configuration or the principles of construction are not retained;

(b) the assumptions used for certification of the product to be changed do not
remain valid.

# EN 27 EN