[Federal Register: October 5, 2006 (Volume 71, Number 193)]
[Proposed Rules]               
[Page 58913-58952]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr05oc06-23]                         


[[Page 58913]]

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Part II





Department of Transportation





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Federal Aviation Administration



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14 CFR Parts 1, 21, 43, and 45



 Production and Airworthiness Approvals, Part Marking, and 
Miscellaneous Proposals; Proposed Rule


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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Parts 1, 21, 43, and 45

[Docket No. FAA-2006-25877; Notice No. 06-15]
RIN 2120-AI78

 
Production and Airworthiness Approvals, Part Marking, and 
Miscellaneous Proposals

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Notice of proposed rulemaking (NPRM).

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SUMMARY: The FAA is proposing changes to its certification procedures 
and identification requirements for aeronautical products and parts. 
The proposed changes address standardizing requirements for production 
approval holders; requiring production approval holders to issue 
airworthiness approvals for aircraft engines, propellers, and other 
aviation parts; requiring manufacturers to mark all parts and 
components; and revising export airworthiness approval requirements to 
facilitate global manufacturing. The intent of these proposed changes 
is to promote safety by ensuring that aircraft, and parts designed 
specifically for use in aircraft, wherever manufactured, meet 
applicable standards. This action is also necessary to update our 
regulations to reflect the current global aircraft and aircraft parts 
manufacturing environment.

DATES: Send your comments on or before January 3, 2007.

ADDRESSES: You may send comments identified by Docket Number FAA-2006-
25877 using any of the following methods:
     DOT Docket Web site: Go to http://dms.dot.gov and follow 

the instructions for sending your comments electronically.
     Government-wide rulemaking Web site: Go to http://www.regulations.gov
 and follow the instructions for sending your 

comments electronically.
     Mail: Docket Management Facility; U.S. Department of 
Transportation, 400 Seventh Street, SW., Nassif Building, Room PL-401, 
Washington, DC 20590-001.
     Fax: 1-202-493-2251.
     Hand Delivery: Room PL-401 on the plaza level of the 
Nassif Building, 400 Seventh Street, SW., Washington, DC, between 9 
a.m. and 5 p.m., Monday through Friday, except Federal holidays.
    For more information on the rulemaking process, see the 
SUPPLEMENTARY INFORMATION section of this document.
    Privacy: The FAA will post all comments received, without change, 
to http://dms.dot.gov, including any personal information you provide. 

For more information, see the Privacy Act discussion in the 
SUPPLEMENTARY INFORMATION section of this document.
    Docket: To read background documents or comments received, go to 
http://dms.dot.gov at any time or to Room PL-401 on the plaza level of 

the Nassif Building, 400 Seventh Street, SW., Washington, DC, between 9 
a.m. and 5 p.m., Monday through Friday, except Federal holidays.

FOR FURTHER INFORMATION CONTACT: Barbara Capron, Production 
Certification Branch, AIR-220, Federal Aviation Administration, 800 
Independence Avenue, SW., Washington, DC 20591; telephone (202) 267-
3343.

SUPPLEMENTARY INFORMATION:

Table of Contents

I. Comments Invited
II. Availability of Rulemaking Documents
III. Proprietary or Confidential Business Information
IV. Guide to Terms and Acronyms Used in This Document
V. Authority for This Rulemaking
VI. Background
VII. General Discussion of the Proposal
VIII. Subpart-By-Subpart Summary of the Proposal
IX. Description of Specific Changes
X. Proposed Effective Date for Changes
XI. Derivation and Distribution Tables
XII. Regulatory Notices and Analyses

I. Comments Invited

    The FAA invites interested persons to participate in this 
rulemaking by sending written comments, data, or views. We also invite 
comments related to the economic, environmental, energy, or federalism 
impacts that might result from adopting the proposals in this document. 
The most helpful comments reference a specific portion of the proposal, 
explain the reason for any recommended change, and include supporting 
data. We ask that you send two copies of written comments.
    We will file, in the docket, all comments received, as well as a 
report summarizing each substantive public contact with FAA personnel 
concerning this proposed rulemaking. The docket is available for public 
inspection before and after the comment closing date. If you wish to 
review the docket in person, go to the address in the ADDRESSES section 
of this preamble between 9 a.m. and 5 p.m., Monday through Friday, 
except Federal holidays. You may also review the docket using the 
Internet at the Web address in the ADDRESSES section.
    Privacy Act: Using the search function of our docket Web site, 
anyone can find and read the comments received into any of our dockets, 
including the name of the individual sending the comment (or signing 
the comment on behalf of an association, business, labor union, and so 
on.). You may review DOT's complete Privacy Act Statement in the 
Federal Register (65 FR 19477-78, April 11, 2000) or you may visit 
http://dms.dot.gov.

    Before acting on this proposal, we will consider all comments 
received on or before the closing date for comments. We will consider 
comments filed late if it is possible to do so without incurring 
expense or delay. We may change this proposal in light of the comments 
received.
    If you mail your comments and want us to acknowledge receipt of 
your comments on this proposal, include with your comments a pre-
addressed, stamped postcard on which the docket number appears. We will 
stamp the date on the postcard and mail it to you.
    Readers should note that the FAA has posted on its Web site (http://www.faa.gov/
[fxsp0]aircraft/draft--docs/) four draft Advisory 

Circulars (ACs). These ACs describe ways to comply with the 
requirements of this NPRM. We invite you to send comments on the draft 
ACs to reach us by the date specified in the DATES section of this 
NPRM. Send your comments using any of the methods described in the 
ADDRESSES section of this NPRM. Note that the docket for AC comments 
(FAA-2006-25882) is different from the docket for NPRM comments.

II. Availability of Rulemaking Documents

    You can get an electronic copy using the Internet by--
    (1) Searching the Department of Transportation's electronic Docket 
Management System (DMS) Web page (http://dms.dot.gov/search);    (2) Visiting the Office of Rulemaking's Web page at http://

http://www.faa.gov/avr/arm/index.cfm; or

    (3) Accessing the Government Printing Office's Web page at http://www.access.gpo.gov/
[fxsp0]su--docs/aces/[fxsp0]aces140.html.

    You can also get a copy by sending a request to the Federal 
Aviation Administration, Office of Rulemaking, ARM-1, 800 Independence 
Avenue, SW., Washington, DC 20591, or by calling (202) 267-9680. Make 
sure to identify the docket number, notice number, or amendment number 
of this rulemaking.

[[Page 58915]]

III. Proprietary or Confidential Business Information

    Do not file in the docket information that you consider to be 
proprietary or confidential business information. Send or deliver this 
information directly to the person identified in the FOR FURTHER 
INFORMATION CONTACT section of this document. You must mark the 
information that you consider proprietary or confidential. If you send 
the information on a disk or CD ROM, mark the outside of the disk or CD 
ROM and also identify electronically within the disk or CD ROM the 
specific information that is proprietary or confidential.
    Under 14 CFR 11.35(b), when we are aware of proprietary information 
filed with a comment, we do not place it in the docket. We hold it in a 
separate file to which the public does not have access, and place a 
note in the docket that we have received it. If we receive a request to 
examine or copy this information, we treat it as any other request 
under the Freedom of Information Act (5 U.S.C. 552). We process such a 
request under the DOT procedures found in 49 CFR part 7.

IV. Guide to Terms and Acronyms Used in This Document

APIS--Approved Production Inspection System
ARAC--Aviation Rulemaking Advisory Committee
BAA--Bilateral Airworthiness Agreement
BASA--Bilateral Aviation Safety Agreement
EASA--European Aviation Safety Agency
FAA--Federal Aviation Administration
FR--Federal Register
ICAO--International Civil Aviation Organization
NPRM--Notice of Proposed Rulemaking
PAH--Production Approval Holder
PC--Production Certificate
PMA--Parts Manufacturer Approval
STC--Supplemental Type Certificate
TC--Type Certificate
TSO--Technical Standard Order

V. Authority for This Rulemaking

    Under the laws of the United States, the Department of 
Transportation has the responsibility to develop transportation 
policies and programs that contribute to providing fast, safe, 
efficient, and convenient transportation (49 U.S.C. 101). The Federal 
Aviation Administration (FAA or ``we'') is an agency of the Department. 
The FAA has general authority to issue rules regarding aviation safety, 
including minimum standards for appliances and for the design, 
material, construction, quality of work, and performance of aircraft, 
aircraft engines, and propellers (49 U.S.C. 106(g) and 44701). We may 
also prescribe regulations in the interest of safety for registering 
and identifying an aircraft engine, propeller, or appliance (49 U.S.C. 
44104).
    The FAA may issue, among other things, type certificates, 
production certificates and airworthiness certificates (49 U.S.C. 
44702). We issue a production certificate authorizing the production of 
a duplicate of an aircraft, aircraft engine, propeller, or appliance 
for which a type certificate has been issued when we find the duplicate 
will conform to the certificate. We may include in a production 
certificate terms required in the interest of safety. We issue an 
airworthiness certificate for an aircraft when we find the aircraft 
conforms to its type certificate and is in condition for safe 
operation. We may include in an airworthiness certificate terms 
required in the interest of safety (49 U.S.C. 44704).
    In this document, we are proposing changes to our regulations 
governing the certification procedures for products and parts and our 
requirements for identification and registration marking. These changes 
will improve the quality standards applicable to manufacturers, which 
helps ensure that aircraft and aircraft parts are produced as designed 
and are safe to operate. These changes will also make it easier for 
manufacturers to produce and obtain aircraft parts in the global 
marketplace, which should aid the efficiency and competitiveness of the 
industry. We are also proposing to upgrade and standardize our 
requirements for marking parts intended for use in aviation. These 
changes will make it easier to determine whether the correct parts are 
installed, which should contribute to a greater degree of safety. For 
these reasons, this proposal, if adopted, would be a reasonable and 
necessary exercise of the FAA's rulemaking authority and obligations.

VI. Background

    Although 14 CFR part 21 has been amended approximately eighty times 
since it was codified in 1964, the current requirements of part 21 
largely reflect their original form. The origins of many of these 
regulations can be traced back even further to the Civil Air 
Regulations codified in 1937. In contrast, the following table 
summarizes how the aircraft-manufacturing environment has changed 
significantly over the last several decades:

------------------------------------------------------------------------
            In the 1960's--                          Today--
------------------------------------------------------------------------
Most transport category aircraft were    Transport category aircraft are
 manufactured in the U.S..                manufactured in a global
                                          environment.
The typical business model consisted of  The number of suppliers has
 a production certificate holder with a   increased dramatically. These
 relatively small number of suppliers..   suppliers manufacture a
                                          greater percentage of a given
                                          aircraft
These suppliers were mainly located in   Suppliers are located all over
 the U.S..                                the world.
                                         Forming partnerships and risk
                                          sharing agreements are common
                                          approaches to lowering costs,
                                          sharing risks, and opening
                                          markets.
                                         Manufacturers collaborate
                                          globally to reduce duplicate
                                          requirements for shared
                                          suppliers.
Production certificate holders oversaw   The production of replacement
 the manufacture of replacement parts.    parts under parts manufacturer
                                          approvals has increased
                                          dramatically.
The international market for aviation    The international market for
 products was relatively small.           aviation products has
                                          increased dramatically.
The U.S. had few bilateral agreements    The U.S. has approximately 30
 with other countries for the export      bilateral agreements with
 and import of aviation products. These   other countries. These
 agreements were limited in scope.        agreements have, in
                                          comparison, a much broader
                                          scope.
------------------------------------------------------------------------

    In recognition of the need to respond to these changes, the FAA 
gave the Parts Working Group and the Product Certification Working 
Group of the Aviation Rulemaking Advisory Committee the task of 
recommending changes to 14 CFR parts 21 and 45 on March 19, 1993 (58 FR 
16572, 16574). The working groups made their recommendations on 
November 6, 1998. Major concepts proposed by the

[[Page 58916]]

working groups and incorporated into this NPRM include:
     Adding a new class of parts called ``commercial parts;
     Expanding the definition of ``standard parts;''
     Requiring a completed airworthiness approval for each new 
aircraft engine, propeller, part, appliance, or article;
     Giving production approval holders responsibility for 
issuing the airworthiness approval;
     Enhancing and standardizing quality system requirements 
for all production approval holders (PAHs) to reflect industry best 
practices; and
     Requiring components of products, parts, appliances, and 
their components to be marked.
    This NPRM also addresses issues that were not among the working 
groups' recommendations.

VII. General Discussion of the Proposal

    Although part 21 has, so far, provided effective certification 
procedures for products and parts to help foster aviation safety, it 
does not adequately reflect changes in the global aircraft 
manufacturing environment. Accordingly, the changes we are proposing 
would update and standardize requirements related to production 
approvals; promote a safer aviation industry; reflect the global nature 
of manufacturing; and reflect the global acceptance of products and 
parts under bilateral agreements between the United States and other 
countries or jurisdictions.

Standardization

    Part 21 includes procedural rules related to three kinds of 
production approvals:
     Production Certificates (PC) in subpart G.
     Parts Manufacturer Approvals (PMA) in subpart K.
     Technical Standard Order (TSO) authorizations in subpart 
O.
    The rules pertaining to each of these production approvals are 
different. For example, subparts G and O require each applicant for a 
PC and TSO authorization respectively to establish a quality system. 
The applicants must also provide, for FAA approval, data describing the 
inspection and test procedures necessary to ensure that each article 
produced conforms to its type design and is in a condition for safe 
operation. Applicants have typically met this requirement by providing 
the necessary information in the form of a manual. In contrast, subpart 
K requires each PMA applicant to provide a statement certifying that 
the applicant has established the fabrication and inspection system 
that meets the requirements of the subpart. Subpart K does not require 
a quality manual or any other documentation of the fabrication and 
inspection system. These differences can be confusing. They also 
support an industry perception that the quality of products or articles 
produced under different types of production approvals is different. 
This proposal would revise subparts G, K, and O to harmonize 
requirements for production approval holders. It would also keep 
industry from having to maintain, and the FAA from having to oversee, 
multiple systems and procedures caused by these regulatory differences.

Production Approval Holder's Organization

    This proposal would require each applicant for, or holder of, a PC, 
PMA, or TSO authorization to provide the FAA with a description of the 
applicant's management organization and how that organization would 
ensure compliance with the provisions of subpart G, K, or O, 
respectively. At a minimum, the description would include assigned 
responsibilities and delegated authority, and the functional 
relationship of those responsible for quality to management and other 
organizational components. This requirement already applies to PC 
holders under existing Sec.  21.143(a)(1), but the proposal would 
extend it to PMA and TSO authorization holders also. Refer to proposed 
Sec. Sec.  21.135, 21.305, and 21.605.
    The FAA understands the need for various business models and 
organizational structures and, therefore, would not mandate a 
particular structure to address quality system requirements. The intent 
of this requirement is for the top management of the production 
approval holder to establish and continually improve a quality system 
that ensures each product and article conforms to its approved design 
and is in a condition for safe operation.
    A quality system is widely recognized as necessary for continual 
improvement in manufacturing. This recognition is reflected in industry 
best practices and the global trend toward implementing the following 
international quality standards:
     International Organization for Standardization (ISO) 9001, 
``Quality Management Systems--Requirements;'' and
     Society of Automotive Engineers, Inc., International 
AS9100, ``Quality Systems--Aerospace--Model for Quality Assurance in 
Design, Development, Production, Installation, and Servicing.''
    The FAA believes adhering to these standards will enable the PAH to 
meet its responsibilities under proposed part 21. The intent of this 
proposal is also to ensure that--
     These international quality standards are communicated to 
PC, PMA, and TSO authorization holders;
     Responsibility, authority, and interrelation of personnel 
who manage, perform, and verify work affecting quality are commensurate 
with these commitments and are clearly defined and communicated within 
the organization; and
     Decisions with regard to quality and airworthiness are not 
unduly influenced by other considerations (for example, cost and 
schedule); and that the quality system is free to comply with 
applicable regulations and the FAA approved quality manual.
    If this proposal is adopted, the FAA will develop guidance material 
on these issues.

Production Approval Holder's Quality System

    Currently, the quality system requirements for holders of PMAs are 
different from quality system requirements for holders of PCs and TSO 
authorizations. This proposal would standardize the quality system 
requirements for all PAHs. This proposal would also enhance and 
modernize quality system requirements to reflect the industry best 
practices and the global trend toward implementing the international 
quality standards listed above.
    A quality system consists of the organizational structure, 
responsibilities, procedures, processes, and resources for ensuring the 
overall quality of products through the actions of management and 
individuals. A quality system incorporates quality assurance and 
quality control, both of which support the quality system. Quality 
assurance refers to planned or systematic actions necessary to provide 
confidence that a product will satisfy given requirements for quality. 
Quality control refers to operational techniques and activities used to 
fulfill requirements for quality.
    This proposal would require that the quality system include 
elements as defined in proposed Sec.  21.137(a) through (o) of subpart 
G. These requirements would be incorporated by reference into subparts 
K and O (proposed Sec. Sec.  21.307 and 21.607). The FAA would develop 
guidance materials, such as an Advisory Circular, to provide guidance 
to PAHs for showing compliance with these

[[Page 58917]]

requirements. The FAA expects that the quality systems of most PAHs 
already meet the majority of these proposed requirements, as most of 
these proposals are already industry best practices.

Quality Manual

    This proposal would require each applicant for a PC, PMA, or TSO 
authorization to provide a quality manual describing its quality system 
to the FAA for approval. Currently, subparts G and O require each 
applicant for a PC or TSO authorization to establish a quality system 
and provide for FAA approval data describing the inspection and test 
procedures necessary to ensure that each article produced conforms to 
its type design and is in a condition for safe operation. Applicants 
have typically met this requirement by providing the necessary 
information in the form of a manual. Subpart K, however, does not 
explicitly require documentation of the PMA holder's fabrication and 
inspection system in the form of a manual. Just as other proposals in 
this NPRM would standardize quality system requirements for all PAHs, 
the intent of this proposal is also to standardize the requirements for 
documenting the quality system in a quality manual. The quality manual 
must address each of the requirements related to the quality system in 
subparts G, K, or O for an applicant for a PC, PMA, or TSO 
authorization. The quality manual must also address revisions to the 
manual, and a means of tracking revisions to the manual, that is 
acceptable to the FAA. In addition, this proposal would require the 
quality manual to be in the English language and retrievable in a form 
acceptable to the FAA. The intent of this proposal is to ensure that 
regardless of the media used, the quality manual is easily available to 
PAH and FAA personnel who need to use this documentation for performing 
their duties. The quality manual may be in a digital, computer-based 
medium.

Location of or Change to Manufacturing Facilities

    This proposal would standardize the language of current Sec. Sec.  
21.137, 21.303(g), and 21.601(c) pertaining to the location of 
manufacturing facilities for a holder of a PC, PMA, and TSO 
authorization. In addition, this proposal would add a requirement that 
the holder of each type of production approval obtain advance approval 
from the FAA for any change to its manufacturing facilities that could 
affect the inspection or airworthiness of its products or articles, 
including changes to the location of any of its manufacturing 
facilities. See proposed Sec. Sec.  21.139(b), 21.309(b), and 
21.609(b). Examples of changes that could affect the inspection or 
airworthiness of a product or article include (1) A significant 
increase in production capacity and (2) a substantial rearrangement of 
space within the present location. These are some of the types of 
change that would require FAA approval in advance to verify the change 
is in compliance with subpart G, K, or O, as applicable.
    Currently, under Sec.  21.159, a PC is no longer effective if the 
location of the manufacturing facility is changed. The holder of a PMA 
only needs to notify the FAA of a change in location of its 
manufacturing facilities. Subpart O is silent regarding a change in the 
location of manufacturing facilities for the holder of a TSO 
authorization.
    The intent of this proposal is to standardize the requirements 
applicable to changes in manufacturing facilities for all PAHs. A 
change in a manufacturing facility would use an approval process 
instead of a certificate termination and re-application process under 
the current requirements of Sec. Sec.  21.159 and 21.143. This approval 
process would enhance safety by ensuring an appropriate level of FAA 
oversight of changes to manufacturing facilities of all PAHs. This 
requirement does not apply to suppliers. The FAA approves the supplier 
control procedures a PAH would use in selecting and controlling its 
suppliers. A change in the supply base would not require FAA approval.

Inspections and Tests

    This proposal would standardize the language of current Sec. Sec.  
21.157, 21.303(e) introductory text, and 21.615 pertaining to 
inspections and tests for an applicant for, or a holder of, a PC, PMA, 
and TSO authorization. In addition, the proposal would amend these 
requirements to clarify that they apply to supplier facilities. The 
intent of this proposal is to ensure the FAA has the requisite access 
to facilities and cooperation of the manufacturer to administer 
applicable requirements of Title 49 U.S.C. and this subchapter.

Issuance of a Production Approval

    This proposal would standardize the language of current 
requirements pertaining to the issuance of a PC, PMA, and TSO 
authorization in Sec. Sec.  21.135, 21.303(d), and 21.605(c). In 
addition, this proposal would remove the detailed description of FAA 
responsibilities related to issuance. This information is better placed 
in internal directives.

Transferability of a Production Approval

    This proposal would standardize the language and format of 
requirements pertaining to transferability of a PC, PMA, and TSO 
authorization currently in Sec. Sec.  21.155, 21.303(i), and 21.621. 
This change would make the language of subparts G, K, and O consistent.

Responsibility of Production Approval Holder

    This proposal would establish requirements for the holder of a PC, 
PMA, or TSO authorization as set forth in paragraphs (a) through (g) of 
Sec. Sec.  21.146, 21.316, and 21.616. All holders of a production 
approval would have the same responsibilities under this part.

Changes in Quality System

    Currently, Sec.  21.147 requires the holder of a PC to notify the 
FAA of any change that may affect the inspection, conformity, or 
airworthiness of the product. This proposal would include ``articles'' 
as well as products in the requirement. As discussed later in this 
preamble, the proposal would define ``article'' as ``material, part, 
component, process, or appliance.'' We are also proposing to add this 
expanded notification requirement to subparts K and O, which are 
applicable to holders of PMA and TSO authorizations respectively. The 
intent of this proposal is to standardize requirements for all PAHs.

Export Airworthiness Approvals

    Subpart L contains regulations that apply to the export of a 
product or article. It is important to note that even though an export 
airworthiness approval is required only when requested by an importing 
authority, such documents have become increasingly valued within the 
aviation industry. The primary purpose of an export airworthiness 
approval is to notify the importing authority, and ultimately the end-
user, of the airworthiness status (i.e., conformity of design 
requirements and condition for safe operation) of the subject product 
or article.
    Such airworthiness notifications serve the needs of both the civil 
airworthiness authority approving the product or article for import, 
and the end-user who intends to place it into operation. Products and 
articles having original airworthiness approvals upon export, even 
though not specifically required by the importing civil airworthiness 
authority, have increased sales potential when destined for use outside 
the U.S.

[[Page 58918]]

    This proposal would revise this subpart to:
     Relieve U.S. manufacturers and exporters of burdens 
presently associated with obtaining export airworthiness approvals by:
     Permitting production approval holders, under privileges 
extended through their approved quality system(s), to issue export 
airworthiness approvals for the aircraft engines, propellers, 
appliances, and parts they manufacture (this is presently only 
accomplished by individual or organizational designees of the FAA);
     Permitting production approval holders to issue export 
approvals for products and articles they manufacture regardless of 
their location (this is presently limited to products and articles 
located in the United States only); and
     Removing the requirement, unless specifically mandated by 
an importing civil airworthiness authority, that used aircraft engines, 
propellers, appliances, and parts be newly overhauled before their 
export;
     Relegate the detailed procedures pertaining to the export 
process presently contained in the regulation to FAA policy/directives; 
and
     Implement a definition of ``product'' which would be 
consistent with the terminology in the rest of Part 21 and with 
Bilateral Aviation Safety Agreement Implementation Procedures for 
Airworthiness.

Part Marking

    The regulations currently require marking of aircraft, aircraft 
engines and propellers, critical and life-limited parts, PMA parts, and 
TSO articles. The regulations do not currently require that individual 
components or spare components of the above items be individually 
marked, although most manufacturers do so for their own quality 
assurance and traceability purposes. Under this proposal, manufacturers 
would have to mark each component of an aircraft, aircraft engine, or 
propeller; each part and each component of that part; and each 
appliance and each component of that appliance.
    The lack of marking requirements down to the component level has 
sometimes hindered field identification when articles must be replaced, 
serviced, or removed from service, and during accident investigations. 
This proposal would also standardize minimum part-marking requirements 
to include an identification of the person who produced the part and a 
part number. In addition, TSO articles would still have to be marked 
with the markings required by the applicable TSO. The intent of these 
proposals is to reduce the potential for installing unapproved parts on 
FAA type-certificated products, facilitate airworthiness 
determinations, standardize part-marking requirements, facilitate the 
international delivery of parts, and provide information to accident 
investigators that may help prevent future accidents. This change would 
also simplify the regulations by consolidating all detailed marking 
requirements in part 45.

VIII. Subpart-by-Subpart Summary of the Proposal

    The following table summarizes the major proposals included in this 
NPRM:

------------------------------------------------------------------------
  This NPRM proposes to amend 14
               CFR--                                To--
------------------------------------------------------------------------
Part 1............................  Expand the definition of
                                     ``Approved.''
Part 21 Subpart A--General........  Add definitions of the following
                                     terms: ``airworthiness approval,''
                                     ``article,'' ``commercial part,''
                                     ``design approval,'' ``production
                                     approval,'' ``standard part,''
                                     ``State of Design,'' and ``State of
                                     Manufacture.''
                                    Amend Sec.   21.3(f) to require all
                                     PAHs, instead of just TSO
                                     authorization holders, to report
                                     the results of their investigations
                                     into certain accidents or service
                                     difficulty reports.
Part 21 Subpart B--Type             Require an applicant for a TC or STC
 Certificates.                       to provide a statement certifying
                                     the applicant has shown compliance
                                     with applicable requirements.
                                    Amend requirements related to
                                     domestic and international
                                     transfers of TCs.
Part 21 Subpart D--Changes to Type  Require an applicant for a major
 Certificates.                       change in type design to provide a
                                     statement certifying the applicant
                                     has shown compliance with
                                     applicable requirements.
Part 21 Subpart F--Production       Require a person producing under a
 under Type Certificate.             TC to obtain an airworthiness
                                     approval (FAA Form 8130-3), issued
                                     by the FAA or its designee, for
                                     each engine, propeller, and article
                                     produced under that TC.
                                    Delete reference to an approved
                                     production inspection system
                                     (APIS). A person who is producing
                                     under a TC would be required to
                                     obtain a PC in accordance with
                                     subpart G within 6 months of the
                                     date the TC was issued or the
                                     effective date of the final rule,
                                     whichever is later.
Part 21 Subpart G--Production       Enhance quality system requirements
 Certificates.                       to reflect current industry
                                     standards and best practices.
                                    Require that an airworthiness
                                     approval (FAA Form 8130-3) be
                                     issued by the PAH for each engine,
                                     propeller, or article manufactured
                                     under this subpart.
Part 21 Subpart H--Airworthiness    Allow for issuing an airworthiness
 Certificates.                       certificate for an aircraft
                                     imported to the U.S. via an export
                                     certificate of airworthiness if--
                                        Type certificated in
                                        accordance with Sec.  Sec.
                                        21.21, 21.25, or 21.29; and
                                        Produced under the
                                        authority of another State of
                                        Manufacture.
                                    Allow FAA to accept performance
                                     standards equivalent to the 100-
                                     hour inspection requirement and
                                     expand provisions governing who may
                                     perform these inspections.
Part 21 Subpart K--Parts            Revise subpart K, using proposed
 Manufacturer Approvals.             subpart G as a model, to reduce the
                                     scope of subpart K to PMAs only:
                                       Move Sec.  Sec.   21.303(a) and
                                        (b) (Replacement and
                                        modification parts) to part 21
                                        subpart A and amend these
                                        sections to--
                                       Add ``commercial parts'' as
                                        acceptable replacement and
                                        modification parts.
                                       Prohibit a person who produces a
                                        replacement or modification part
                                        for sale from representing that
                                        part as suitable for
                                        installation on a type-
                                        certificated product unless that
                                        part is a commercial part, a
                                        standard part, or produced under
                                        part 21 subpart F, G, K, or O.
                                      Move Sec.   21.305 (Approval of
                                       materials, parts, processes, and
                                       TSO articles) to part 21 subpart
                                       A.
                                    Impose the same quality system and
                                     quality manual requirements as for
                                     PCs.
                                    Require that an airworthiness
                                     approval (FAA Form 8130-3) be
                                     issued by the PAH for each part
                                     manufactured under this subpart.

[[Page 58919]]


                                    Add a statement of compliance
                                     requirement for PMA applicants.
Part 21 Subpart L--Export           Completely revise subpart L to
 Airworthiness Approvals.            facilitate global acceptance and
                                     movement of products and articles
                                     and remove prescriptive language.
                                    Delete definitions and use of the
                                     terms, ``Class I,'' ``Class II,''
                                     and ``Class III'' products.
                                    Remove Sec.   21.323(b) restrictions
                                     related to who may obtain an export
                                     airworthiness approval for Class
                                     III products.
                                    Remove Sec.   21.325(b)(3)
                                     requirement that Class II and III
                                     products be located in the U.S.
                                    Limit the use of an Export
                                     Certificate of Airworthiness (FAA
                                     Form 8130-4) to aircraft.
Part 21 Subpart N--Acceptance of    Correct subpart N and its title to
 Aircraft Engines, Propellers, and   replace ``approval'' with
 Articles for Import.                ``acceptance.'' Design approvals
                                     are not issued under part 21
                                     subpart N. Mark each article in
                                     accordance with part 45.
Part 21 Subpart O--Technical        Rewrite subpart O using proposed
 Standard Order Approvals.           subpart G as a model.
                                    Impose the same quality system and
                                     quality manual requirements as for
                                     PCs.
                                    Require an airworthiness approval
                                     (FAA Form 8130-3) be issued by the
                                     PAH for each article manufactured
                                     under this subpart.
Part 45 Subpart B--Identification   Add requirements governing who must
 of Products, Parts, Appliances,     mark products, parts, appliances,
 and TSO Articles.                   and TSO articles. Add exceptions
                                     for the aircraft identification
                                     plate location requirement for
                                     aircraft operated under part 121,
                                     commuter aircraft, and for gliders.
                                    Consolidate part-marking
                                     requirements to part 45.
                                    Require identification of the
                                     manufacturer and part number for
                                     each component of each product,
                                     part, appliance, and TSO article
                                     manufactured by a PAH.
                                    Delete ``FAA-PMA'' and
                                     ``installation eligibility''
                                     requirements for PMA parts.
------------------------------------------------------------------------

    In addition to the substantive changes discussed in detail below, 
we are also proposing editorial changes to the language of parts 21 and 
45 for the purposes of clarity and consistency. These editorial changes 
include updating the terminology used in cross referencing other 
regulations, using consistent terms to describe duties and obligations, 
and eliminating gender bias. This proposal includes a reorganization of 
portions of parts 21 and 45, including changes to several section 
headings. For further details, refer to the derivation and distribution 
tables provided later in this preamble.

IX. Description of Specific Changes

14 CFR Part 1--Definitions and Abbreviations

Section 1.1 General Definitions
    This proposal would expand the definition of ``Approved'' to 
include approvals under the provisions of a bilateral agreement between 
the United States and a foreign country or jurisdiction. For decades, 
the United States has had BAAs, and, more recently, BASA Implementation 
Procedures for Airworthiness with other countries. Before making these 
agreements, the FAA thoroughly reviews the certification and production 
systems of the foreign country or jurisdiction, including its processes 
and regulations. The FAA does not sign an agreement unless the FAA has 
confidence in the system of that country or jurisdiction for certifying 
aviation products and overseeing the design organizations and 
manufacturers under their authority. These agreements are intended to 
eliminate redundant processes and allow the FAA to treat data approved 
by that country or jurisdiction as data approved by the FAA. 
Accordingly, the intent of this proposal is to clarify that data 
approved by a foreign country or jurisdiction under a bilateral 
agreement does not require further FAA approval. Furthermore, the 
intent of ``jurisdiction'' is to provide similar clarification for 
agreements with entities, such as the European Union (EU), that are not 
countries.
Section 1.2 Abbreviations and Symbols
    This proposal would add the following definitions of abbreviations:
     PMA means parts manufacturer approval.
     TSO means technical standard order.
    The intent of this proposal is to adopt long-standing and widely 
used acronyms to simplify and clarify the language of the regulations.

14 CFR Part 21--Certification Procedures for Products and Parts

Subpart A--General

Section 21.1 Applicability and Definitions
    This proposal would revise paragraph (a)(1) of this section to 
provide a complete list of the types of approvals that part 21 
addresses--Design approvals, Production approvals, Airworthiness 
certificates, and Airworthiness approvals. The only production approval 
listed in the current paragraph is the PC. Definitions for the three 
``approvals'' would be added to paragraph (b) of this section.
    This proposal would revise paragraph (a)(2) of this section to 
clarify that part 21 contains rules that apply to both applicants for 
and holders of any approval or certificate specified in paragraph 
(a)(1) of this section.
    This proposal would define ``airworthiness approval'' in paragraph 
(b)(1) as an export certificate of airworthiness issued for an 
aircraft; or a document issued for an aircraft engine, propeller or 
article certifying that the aircraft engine, propeller, or article 
meets its approved design and is in a condition for safe operation. An 
export certificate of airworthiness is currently issued and would 
continue to be issued using FAA Form 8130-4 to certify that an aircraft 
to be exported conforms to its type design and is in a condition for 
safe operation. FAA Form 8130-3 would be used to certify that an 
aircraft engine, propeller, or article conforms to its approved design 
and is in a condition for safe operation. FAA Form 8130-3 would be used 
domestically as regulated by subparts F, G, K, and O. In addition, FAA 
Form 8130-3 would be used for export of an aircraft engine, propeller, 
or article as regulated by subpart L. The intent of this proposal is to 
provide a simpler way to refer to these types of approvals.
    This proposal would define ``article'' in paragraph (b)(2) as a 
``material, part, component, process, or appliance'' to simplify the 
regulatory language. This proposal would add a new classification of 
parts, called ``commercial parts,'' defined in paragraph (b)(3) as a 
part that the FAA design approval holder designates a commercial part. 
The FAA must find the part is not specifically designed or produced for 
applications

[[Page 58920]]

on aircraft and is produced only under the commercial part 
manufacturer's specification and marked only with the commercial part 
manufacturer's markings. The FAA makes this finding when it reviews an 
application for a design approval or changes to an existing design 
approval.
    For years, industry has used the term, ``commercial parts,'' in 
referring to parts that are not designed or manufactured specifically 
for aviation use such as light bulbs, fire axes, smoke detectors, and 
so on. Whereas a standard part specification is developed by a 
consensus standards organization and is publicly available, the design 
for a commercial part is developed privately.
    The FAA recognizes that it is unrealistic to expect manufacturers 
making thousands of non-aviation parts per day and relatively few 
aviation parts to obtain a PMA. Enforcement of PMA violations is 
difficult because the FAA has often been unable to show that these 
manufacturers are producing with the intent to sell their parts for 
installation on a type-certificated product. The intent of this 
proposal is to create a replacement parts classification for commercial 
parts, allowing an operator to install commercial parts on a type-
certificated product without having to obtain parts manufactured under 
a PMA. This proposal will also allow manufactures to continue to use 
parts now categorized as commercial parts in their type designs. The 
added benefit of the proposal is to now have the manufacturers 
specifically identify for FAA approval the commercial parts they intend 
to use.
    This proposal would define ``design approval'' in paragraph (b)(4) 
as a type certificate (including amended and supplemental type 
certificates) or the approved design under a PMA, TSO authorization, 
letter of TSO design approval, or other approved design. The intent of 
this proposal is to provide a convenient way to refer to all types of 
design approvals. This definition, in conjunction with the definition 
for ``production approval,'' helps to clarify that PMA and TSO 
authorizations are dual approvals consisting of both a design approval 
and a production approval. In addition, ``other approved design'' is 
intended to include approvals that meet the proposed definition of 
``approved'' in 14 CFR part 1.
    Proposed paragraph (b)(5) would delete the special definition of 
``product'' for subpart L. This revised definition eliminates the need 
for defining ``classes'' of products in subpart L. The intent of this 
proposal is to allow use of the term ``product'' consistently 
throughout part 21 and to harmonize with the use of this term in 
Bilateral Aviation Safety Agreement Implementation Procedures for 
Airworthiness and Annex Part 21 of European Union regulations.
    This proposal would define ``production approval'' in paragraph 
(b)(6) to mean a production certificate, an approval to produce an 
article under a TSO authorization, or an approval to produce a part or 
appliance under a PMA. The intent of this proposal is to provide a 
convenient way to refer to all types of production approvals. In 
addition, this definition, in conjunction with the definition of 
``design approval,'' helps to clarify that a PMA and a TSO 
authorization are dual approvals consisting of both a design approval 
and a production approval.
    Proposed paragraph (b)(7) would redesignate and expand the 
definition of ``standard parts'' in existing Sec.  21.303(b)(4) to 
include parts conforming to a specification established by a foreign 
government agency or a consensus standards organization. In addition, 
this proposal would indicate that a ``specification'' may include 
design, manufacturing, test, and acceptance criteria, and uniform 
marking requirements; or performance criteria and uniform marking 
requirements that have been found by the FAA to be adequate for making 
a finding of airworthiness for that part. This reflects our current 
interpretation of the word ``specification'' (62 FR 9923, March 5, 
1997).
    Certain discrete (non-programmable) electrical and electronic parts 
meeting an accepted performance standard would be classified as 
standard parts. These parts conform not on the basis of their physical 
configuration, but by meeting the specified performance criteria.
    This proposal would define ``State of Design'' in paragraph (b)(8) 
to mean the State having jurisdiction over the organization responsible 
for the type design or other approved design, including those entities 
who are not ICAO contracting States but who exercise authority over an 
organization responsible for the type design or other approved design. 
Examples of other approved designs include PMAs or TSO authorizations.
    This proposal would also define ``State of Manufacture'' in 
paragraph (b)(9) to mean the State having jurisdiction over the 
organization responsible for the production, final assembly, and final 
determination of airworthiness of the product or article, including 
those entities who are not ICAO contracting States but who exercise 
authority over an organization responsible for the production, final 
assembly, and final determination of airworthiness of the product or 
article.
    The intent of these proposals is to harmonize our regulations with 
ICAO standards and recommended practices. Therefore, we have 
incorporated modified versions of the definitions of ``State of 
Design'' and ``State of Manufacture'' from Annex 8 to the Convention on 
International Civil Aviation (Ninth Ed., July 2001). We are proposing 
to modify these definitions to include those countries or organizations 
who are not ICAO members, but who exercise authority over organizations 
that are responsible for design and manufacturing approvals. This would 
allow the regulations to accommodate those entities, like EASA, who are 
not contracting ``States'' to the Convention on International Civil 
Aviation (Chicago Convention), 61 Stat. 1180. For the purposes of this 
proposal, the word ``State'' does not refer to one of the United 
States, but to a country that is a signatory to the Chicago Convention 
and a member of ICAO.
Section 21.2 Falsification of Applications, Reports, or Records
    This proposal would amend Sec.  21.2(a)(1) and (2) to prohibit 
persons from making misleading statements on applications for 
certificates or approvals or in any record or report that is required 
to be kept, made, or used to show compliance with any requirement of 
this part.
    We are proposing this amendment because the installation of 
products or articles that are mistakenly believed to be airworthy or 
suitable for installation on type-certificated products poses an 
unacceptable risk to aviation safety. Under FAA regulations, the person 
installing a product or article on an aircraft is responsible for 
determining its airworthiness. Because these individuals cannot 
determine airworthiness simply by inspecting the item, they often rely 
on the information provided by whoever sold them the product or article 
to support their airworthiness decisions. There have been cases in 
which false or misleading statements have led persons installing 
aviation products or articles to believe that they were suitable for a 
particular use when, in fact, they were not.
    Records containing misleading statements about the quality of 
aviation products or articles have a potentially large impact on the 
safety of the flying public. The existing rule only covers fraudulent 
and intentionally false statements. The FAA has determined

[[Page 58921]]

that including a prohibition against misleading statements would be a 
more comprehensive solution.
    This proposal would adopt the ``misleading'' standard set forth at 
14 CFR 3.5(c) and discussed in the FAA final rule on False and 
Misleading Statements Regarding Aircraft Products, Parts, Appliances 
and Materials. (70 FR 54822, Sept. 16, 2005) For the purposes of this 
proposal, a misleading statement requires a material representation or 
omission that is likely to mislead the consumer, and the consumer 
acting with reasonable reliance under the circumstances. Misleading 
statements include misrepresentations as well as failures to disclose 
material information.
    In determining whether the statement or omission is misleading, the 
FAA would examine the overall impression created by the representation 
before taking enforcement action. We would contact the person making 
the statement to discuss why the statement appears misleading and would 
consider that honest mistakes are made. However, if the statement is 
not corrected so as to remove its misleading character, or the mistake 
is one of a series of such mistakes, the FAA will presume knowledge on 
the part of the person sufficient to take enforcement action.
    In addition, existing Sec.  21.2(a)(2) currently refers to an--

    Entry in any record or report that is required to be kept, made, 
or used to show compliance with any requirement for the issuance or 
the exercise of the privileges of any certificate or approval issued 
under this part.

    This proposal would change this to an--

    Entry in any record or report that is kept, made, or used to 
show compliance with any requirement of this part.

    The term record includes all forms of records, including paper, 
microfilm, identification plates, stamped marks on parts, bar codes, 
and electronic records. In general, part 21 does not require a 
particular type of records or reports to be kept, made, or used. 
Accordingly, industry uses various types of records and reports to show 
compliance with this part. This proposal would increase the scope of 
records and reports used to show compliance with any requirements ``for 
the issuance and exercise of the privileges of any certificate or 
approval'' to those records and reports used to show compliance with 
any part 21 requirement. These proposals are intended to strengthen the 
ability of the FAA to ensure that design, production, and airworthiness 
certifications and approvals are based on truthful and complete 
information.
    Currently, Sec.  21.2(b) addresses only suspension and revocation 
of existing certificates and approvals, and does not define 
consequences for prohibited actions that occur before a certificate or 
approval is issued. This proposal would expand the consequences of 
committing prohibited actions in paragraph (b) to include denying 
issuance of any certificate or approval under this part. This change is 
intended to clarify the FAA's right to deny issuance of certificates or 
approvals when the prohibited actions occur before the FAA issues the 
certificate or approval.
Section 21.3 Reporting of Failures, Malfunctions, and Defects
    This proposal would amend Sec.  21.3(d)(2) to clarify that 
approvals, not type certificates, are issued under proposed Sec.  
21.621.
    This proposal would amend Sec.  21.3(e)(3) to replace specific 
product and part identification requirements with a reference to part 
45 where these part-marking requirements are defined. The intent of 
this proposal is to--
     Consolidate detailed part-marking requirements in part 45; 
and
     Expand reporting requirements to include all applicable 
product and part identification information required by part 45 to 
enhance the FAA's ability to respond to service difficulty reports.
    Currently, Sec.  21.3(f) requires only holders of TSO 
authorizations to report the results of their investigations and 
corresponding corrective actions. However, holders of TSO 
authorizations represent less than 20% of all PAHs. The current 
regulation inhibits the FAA's oversight of investigations and 
corrective actions for the great majority of the industry. This 
proposal would amend Sec.  21.3(f) to expand this reporting requirement 
to apply to all PAHs. The intent of this change is to enhance the FAA's 
ability to respond to service difficulty reports for all products and 
articles manufactured under this part.
Section 21.7 Approval of Articles
    This proposal would relocate current Sec.  21.305 from subpart K to 
allow us to limit subpart K to PMA requirements only. It would also 
amend Sec.  21.305(b) to remove the second and third sentences since 
these sentences are advisory in nature.
Section 21.9 Replacement and Modification Parts
    This proposal would relocate existing Sec.  21.303(a) and (b) from 
subpart K and combine them into one paragraph as Sec.  21.9(a). The 
intent of this proposal is to apply these requirements to all 
production approval holders and to limit subpart K to PMA requirements 
only.
    Proposed Sec.  21.9(a)(4) would allow manufacturers to produce 
``commercial parts,'' as defined in proposed Sec.  21.1(b), for use in 
aviation without PMA. To use a ``commercial part'' in the design of a 
product or part, a design approval holder would provide a list of 
proposed commercial parts to the appropriate FAA aircraft certification 
office (ACO) for approval. The design approval holder would identify 
the application or use of the commercial part and verify that the 
failure of the part would not degrade the safety of the product. A 
design approval holder would be responsible for preparing separate 
lists, for each product or article it manufactures, identifying all 
commercial parts by part number and nomenclature. The design approval 
holder would also be responsible for including the list of approved 
commercial parts, and any approved replacements for those commercial 
parts, in the manufacturer's maintenance instructions or Instructions 
for Continued Airworthiness. In addition, a design approval holder who 
would designate commercial parts would have to establish a system 
that--
     Provides for the review of the intended use and failure 
consequences of the commercial part on airplane safety;
     Maintains a list of all commercial parts incorporated into 
each FAA approved product type, TSO article, or PMA part as applicable;
     Furnishes the lists (and changes to the lists) to persons 
in accordance with existing Sec.  21.50;
     Maintains current commercial parts lists to reflect design 
changes; and
     Records FAA approval of both the lists and their 
revisions.
    Proposed Sec.  21.9(b) would prohibit a person who produces a 
replacement or modification part for sale from representing that part 
as suitable for installation on a type-certificated product, except 
under the provisions of proposed Sec.  21.9(a)(1) through (a)(4). 
Owners, operators, producers, and maintainers rely on these 
representations to determine the airworthiness of an aircraft, or the 
acceptability of products and parts for a given application; therefore 
these representations must be truthful. Likewise, there is a strong 
public interest in ensuring that replacement and modification parts 
meet applicable airworthiness standards and are produced under a 
quality system that ensures conformity to an approved design.

[[Page 58922]]

    The meaning of the regulatory language, ``for sale * * * as 
suitable for installation on a type certificated product'' has been 
contested in FAA enforcement actions. In 1993, the FAA Administrator 
rendered a decision and order regarding the interpretation of Sec.  
21.303(a) in the case, In the Matter of Pacific Sky Supply, Inc., FAA 
Order No. 93-19. The issue in the case was whether certain aircraft 
parts, produced without benefit of a parts manufacturer approval, were 
produced for sale for installation on type-certificated products. The 
Administrator held that the standard for determining whether there was 
a violation of the rule is that the Agency must show that the producer 
knew or should have known (at the time of production) that it was 
substantially certain that the parts produced without PMA would be 
installed on type-certificated products. The Administrator determined 
that this standard appropriately balances the FAA's duty to promote 
aviation safety by controlling the spread of unapproved parts and the 
producers' right to produce parts without FAA approval when it is 
insufficiently probable that the parts will end up on type-certificated 
aircraft.
    The FAA needs to strengthen our ability to take compliance and 
enforcement action against producers of unapproved parts. Many parts 
used on type-certificated products can also be used on other types of 
aircraft, such as military or experimental aircraft, or in non-aviation 
applications. While a producer may be fully aware, and even intend, the 
parts will be used on type-certificated aircraft, proving that it was 
``substantially certain'' that they would be so used can be impossible. 
In many cases, parts are sold to distributors, who then sell them to 
end-users without any inquiry as to where they will be ultimately 
installed. Once producers place parts into the stream of commerce, they 
can rightly claim that they have no knowledge of how the part is 
ultimately used. This makes proving ``substantially certain'' very 
difficult.
    Because of the importance of ensuring that aviation parts are safe 
to use, we think a different standard is necessary. If manufacturers 
engage in business where it is reasonably likely that parts they 
produce will be installed on type-certificated products, then these 
manufacturers must not produce the parts, unless they meet one of the 
conditions of proposed Sec.  21.9(a).
    In evaluating whether a parts producer is violating this 
requirement, the FAA will look at all the relevant circumstances, 
including not only the actual purchaser of the parts, but also how the 
producer has marketed them (for example, catalogs, advertisements, 
claims of acceptability for FAA approval, installation instructions for 
type-certificated aircraft, shipping documents, and so on). If it 
appears that a producer outside the provisions of proposed Sec.  
21.9(a) has identified type-certificated products as a target market or 
that a producer represented its parts as suitable for installation on 
these products, the FAA will consider that to be strong evidence of a 
violation of proposed Sec.  21.9(b). The FAA intends to interpret the 
term ``suitable'' broadly to cover any statement that expresses or 
implies that the product or article is acceptable for use on a type-
certificated product. The following examples are some of the type of 
statements that can reasonably be interpreted to mean that FAA 
requirements for use on a specific type-certificated product have been 
met:
     ``Aviation quality.''
     ``Direct replacement for aircraft XX.''
     ``Ready to use in your aircraft.''
     ``Reproduction of (approved) part number XX.''
     ``Fits aircraft model XX.''
     ``Eligible for FAA approval.''
    Under proposed Sec.  21.9(b), such statements would be prohibited 
if they were false or misleading.
    This proposal would also add new Sec.  21.9(c) to allow a person to 
sell or represent a part as suitable for installation on a type-
certificated aircraft if the part was declared surplus by the U.S. 
military, was intended for use on that model of U.S. military aircraft, 
and the person determines the part is in a condition for safe 
operation. The military owns all the data for its aircraft and provides 
this data to vendors in order to produce parts to support their 
aircraft. Surplus military aircraft certificated under Sec. Sec.  
21.25(a)(2) or 21.27 typically have supporting data for all parts. 
However, additional data can be obtained through the Freedom of 
Information Act (FOIA) process. Paragraph (c) falls under the processes 
and practices currently used and therefore presents no significant 
increase in cost to the FAA or an applicant.

Subpart B--Type Certificates

Section 21.20 Compliance With Applicable Requirements
    This proposal would amend subpart B by adding Sec.  21.20(a) to 
require an applicant for a TC, including an amended or supplemental 
type certificate (STC), to show compliance with all applicable 
requirements and to provide the FAA the means by which such compliance 
has been shown. Current Sec.  21.33(a)(1) specifies that no aircraft, 
aircraft engine, propeller, or part thereof may be presented to the 
Administrator for test unless compliance with paragraphs (b)(2) through 
(b)(4) of that section has been shown. The intent of this proposal is 
to emphasize that the applicant is responsible for satisfying all 
applicable requirements.
    The FAA has long-standing policy (FAA Order 8110.4, Type 
Certification Process) that stresses the applicant is responsible for 
performing an adequate review and assuring that all certification 
regulations have been complied with in the course of a product design 
approval project. This proposal would allow the FAA to exercise greater 
discretion in prioritizing its review of applications, to more 
effectively assign resources supporting the application process, and to 
select which aspects of an application to review more closely.
    Proposed paragraph (b) would require an applicant for a TC, 
including an amended or supplemental TC, to provide a statement 
certifying that the applicant has complied with the applicable 
requirements. The FAA would still exercise its discretionary function 
to evaluate an application for compliance, but the statement of 
compliance would focus the applicant on its responsibility to comply 
with applicable requirements. A statement of compliance would be 
subject to the proposed Sec.  21.2 requirements related to fraudulent, 
intentionally false, or misleading statements.
Section 21.47 Transferability
    This proposal would revise this section to change the requirement 
for the timing of the notification for TC transfers, where the State of 
Design remains the same, and for TC licensing agreements. Currently, 
the regulation requires each grantor to notify the FAA within 30 days 
after the transfer of a certificate or execution or termination of a 
licensing agreement. This proposal would require notification before 
the transfer or before executing or terminating a licensing agreement 
to provide the FAA time to coordinate between affected FAA offices and 
to inform the prospective applicant of the responsibilities under this 
subchapter.
    This proposal would also revise this section to require a grantor 
to notify the FAA of TC transfer where the State of Design is changing 
before the transfer occurs. When the current regulations were written, 
the FAA did not consider the need to address these types of TC 
transfers. However, TC transfers where the State of Design is changing 
have become commonplace and are

[[Page 58923]]

addressed in our bilateral agreements with other countries and 
jurisdictions. Transferring a TC where the State of Design is changing 
requires FAA coordination with the prospective State of Design to 
identify the detailed requirements in support of the transfer and to 
reduce any burden on the FAA for managing the certificate. This change 
is intended to provide the FAA time to coordinate with a prospective 
State of Design to support and execute a TC transfer. This is 
consistent with the ICAO Airworthiness Manual, Volume II, Section 2.6.

Subpart C--Provisional Type Certificates

Section 21.75 Application
    This proposal would revise this section to remove detailed 
requirements related to where an applicant must apply for a provisional 
type certificate and, instead, to require filing with the appropriate 
aircraft certification office. The intent of this proposal is to 
provide flexibility to the FAA in managing the provisional type 
certification process and to enable more efficient and effective use of 
FAA resources. It is consistent with the open application process used 
for other design approvals.

Subpart D--Changes to Type Certificates

Section 21.97 Approval of Major Changes in Type Design
    This proposal would revise paragraph (a) of this section to require 
an applicant for approval of a major change in type design to--
     Show that the changed product complies with the applicable 
requirements of this subchapter;
     Provide the FAA the means by which such compliance has 
been shown; and
     Provide a statement certifying that the applicant has 
complied with the applicable requirements.
    The intent of this proposal is discussed under proposed Sec.  
21.20.

Subpart E--Supplemental Type Certificates

Section 21.117 Issue of Supplemental Type Certificates
    This proposal would amend Sec.  21.117 by removing the words ``if 
he'' from paragraph (a) and adding in their place the words ``if the 
FAA finds that the applicant.'' The intent of this change is to clarify 
that issuance of an STC occurs only after the FAA makes a finding of 
compliance to the applicable regulations.
Section 21.119 Privileges
    This proposal would revise Sec.  21.119(c) to clarify that the 
holder of an STC may obtain a production certificate for the change in 
the type design approved by that STC only if the STC holder meets the 
requirements of subpart G pertaining to the issuance of PCs. The FAA 
plans to issue guidance material concurrent with the final rule aimed 
at ensuring that any PCs issued meet the requirements of subpart G.
    In accordance with 49 U.S.C. 44704(c), the FAA may include in a PC 
terms required in the interest of safety. These terms may limit the 
scope of activities authorized by the PC depending on the STC holder's 
quality system and the complexity of the design changes approved by the 
STC.

Subpart F--Production Under Type Certificate

Section 21.122 Location of or Change to Manufacturing Facilities
    This proposal would amend subpart F by adding Sec.  21.122(a) to 
clarify and relieve requirements related to location of manufacturing 
for production under a TC. Amendment 21-25 (Sept. 5, 1969, 34 FR 14068) 
clarified that subpart F is intended only for domestic production as 
follows:

    Section 21.130 comes under Subpart F which governs the 
production of products under a TC only. That subpart contains 
requirements that are not applicable to aircraft, aircraft engines 
and propellers manufactured in a foreign country.''

    However, this intent is not clearly specified in subpart F. We 
considered amending subpart F to clarify that it does not apply to 
manufacturing in a foreign country, but decided instead to allow 
manufacturing under a TC in a foreign country as long as it causes ``no 
undue burden'' on the FAA. This proposal would facilitate global 
manufacturing under certain circumstances. The FAA would not allow 
production under a TC in a foreign country for a first-time applicant. 
However, if an applicant has a PC and produces major aircraft or engine 
components outside the U.S., the FAA would allow production under a TC 
for a new model if it determined that there would be no undue burden on 
the FAA in administering the applicable requirements of Title 49 U.S.C. 
and this subchapter.
    This proposal would amend subpart F by adding Sec.  21.122(b) to 
require FAA approval before making any changes to its manufacturing 
facilities that would affect the inspection or airworthiness of its 
products or articles, including changes to the location of any of its 
manufacturing facilities. These types of changes require FAA approval 
before they are implemented to ensure that the change is in compliance 
with this subpart. We are proposing a similar requirement for each type 
of production approval holder in proposed subparts G, K, and O.
Section 21.123 Production under type certificate
    This proposal would revise the introductory text to include 
manufacturers of articles to clarify that the holder of a TC is 
authorized to manufacture articles for its type-certificated products.
    Proposed paragraph (a) is based on existing paragraph (b) and 
removes language requiring technical data and drawings to be maintained 
at the place of manufacture and replaces it with references to sections 
where that information is defined more thoroughly. The intent of this 
proposal is to provide a more logical sequence of requirements and to 
remove duplicate requirements from the regulations.
    Proposed paragraph (b) is based on existing paragraph (a) and would 
add the requirement that a TC holder must make each article available 
to the FAA for inspection. This is in addition to the existing 
requirement to make each product available.
    Proposed Sec.  21.123(c) is based on existing Sec.  21.125(b)(10) 
and would require each manufacturer of a product or article under a TC 
to maintain completed inspection and test records for specified periods 
of time. These records would enable the manufacturer to prove to the 
FAA that it has properly completed and documented all inspections and 
tests required to ensure compliance with this subpart. This would place 
a requirement on manufacturers under a TC that already applies to other 
PAHs. The intent of this proposal is to ensure that manufacturers 
maintain evidence that indicates conformance or nonconformance of a 
product or article with regard to required inspections and tests.
    In 1991, the FAA issued Notice 8120.13, Verification of 
Completeness, Accuracy, and Traceability of Manufacturing and Quality 
Records. This notice required a one-time evaluation of certain FAA PAHs 
to assess their record keeping and related internal audit procedures 
used in the production of civil aviation products and parts under part 
21. This evaluation concluded that, although all PAHs were in 
compliance with the regulations, the current regulations do not ensure 
that the quality inspection records are

[[Page 58924]]

available at all PAHs when they are needed.
    To resolve this issue, this proposal would increase the record 
retention requirements for all PAHs and for persons producing under a 
TC from two to five years for the products and articles manufactured 
under the approval and to at least ten years for critical components 
identified under proposed Sec.  45.15(c) of this chapter. The intent of 
this proposal is to retain these records to support any future 
investigations related to failures, malfunctions, or defects that may 
occur or be discovered after the producer releases the product or 
article. This proposal is consistent with current industry best 
practices. The beginnings of these five-year and ten-year periods for a 
given product or article would correspond to the issuance of an 
airworthiness approval for that product or article. We specifically 
request comments on whether the proposed ten-year minimum record 
retention requirement is adequate for critical components.
    This proposal would add new Sec.  21.123(d) to require each 
manufacturer of a product or article being manufactured under a TC to 
allow the FAA to make any inspection or test, including any inspection 
or test at a supplier facility, necessary to determine compliance with 
this subchapter. ``Allowing'' means that the manufacture must--
     Give free and full access to facilities and information 
relevant to show compliance with this subchapter; and
     Provide appropriate assistance to the FAA to enable us to 
perform these inspections and tests.
    Inspections and tests include audits, inquiries, questions, 
discussions, monitoring, witnessing, checks, flight and ground tests, 
and inspections of completed products and articles. The intent of this 
proposal is to ensure that the FAA has the requisite access to 
administer applicable requirements of Title 49 U.S.C. and this 
subchapter.
    This proposal would add new Sec.  21.123(e) to require each 
manufacturer under a TC to obtain an airworthiness approval, FAA Form 
8130-3, from an FAA designee for each aircraft engine, propeller, or 
article produced under that TC as evidence or proof that it conforms to 
its approved design and is in a condition for safe operation. The FAA 
expects the TC holder to obtain this approval from a FAA designee. Only 
under exceptional circumstances would the FAA issue these approvals. 
The intent of this proposal is discussed under the description of 
proposed Sec.  21.146(d) later in this preamble.
    This proposal would remove current Sec.  21.123(c) and (d) and 
replace them with proposed Sec.  21.123(f) to eliminate production 
under an APIS and require TC holders to obtain a PC for that product in 
accordance with subpart G of this part within 6 months after the date 
of issuance of the TC. Under the current subpart F regulations, the FAA 
issues an APIS provided certain requirements are met. The APIS is a 
production approval for producing the same products that can be 
produced under a PC. Although APIS and PC quality system descriptions 
use different terms, they contain the same basic controls. For this 
reason, and the fact that there are very few APIS holders (3 APIS 
holders as of January 2005), the FAA proposes to eliminate APIS 
approvals and make all changes effective 18 months after publication of 
the final rule in the Federal Register.
    Eighteen months after publication of the final rule, the FAA will 
rescind all existing APIS approvals. Persons manufacturing under an 
APIS would be expected to surrender their letter of APIS approval, 
manufacture under a TC if they choose to continue manufacturing, and 
have 6 months to obtain a PC under part 21 subpart G.
Section 21.130 Statement of Conformity
    Under existing Sec.  21.130, a statement of conformity is required 
only for products manufactured in the United States. This proposal 
would extend the applicability of this statement of conformity 
requirement to products manufactured outside the United States and to 
all articles. The intent of this proposal is to reflect the global 
manufacturing environment for aviation products and parts. We propose 
to include ``articles'' to facilitate the issuance of an airworthiness 
approval required under proposed Sec.  21.123(e) for each aircraft 
engine, propeller, or article produced under subpart F.
    This section currently requires a manufacturer under a TC to 
provide the FAA a statement that each product conforms to its type 
certificate and is in a condition for safe operation. Currently, 
manufacturers under a PC, PMA, or TSO authorization are not required to 
provide a statement that the products or articles they manufacture 
conform to the approved design and are in a condition for safe 
operation. This proposal would enhance safety by extending the 
statement of conformity requirements of existing Sec.  21.130 to those 
producing under a PC, PMA, or TSO authorization, in the form of an 
airworthiness approval requirement. See proposed Sec. Sec.  21.146(d), 
21.316(d), and 21.616(d), respectively.
    The statement required under existing Sec.  21.130 must include, 
for aircraft, that the aircraft has been flight checked; and for each 
aircraft engine or variable-pitch propeller, a statement that the 
engine or propeller has been subjected to a final operational check. 
This proposal would remove the flight and operational check 
requirements of existing Sec.  21.130 that are redundant to those 
currently found in Sec. Sec.  21.127(a), 21.128, and 21.129, while 
retaining the conformity statement requirement in proposed Sec.  
21.130.
    This proposal would also require that the statement of conformity 
be provided in a form and manner prescribed by the FAA. The intent of 
this proposed change is to place details related to particular FAA 
forms, form content, and form use in policy documents that are more 
easily adjusted to reflect future changes in procedures.
    Existing Sec.  21.130(c) currently exempts a manufacturer from 
providing a statement of conformity for products manufactured for the 
Armed Forces if they have accepted the product. This proposal would 
remove this exemption. TC holders who manufacture products for the 
Armed Forces would be required to give the FAA Form 8130-2, Conformity 
Certificate--Military Aircraft. The intent of this proposal is to make 
it simpler for a future applicant to obtain a standard airworthiness 
certificate under existing Sec.  21.183(d) for surplus military 
aircraft. Having a conformity certificate for that aircraft would 
satisfy existing Sec.  21.183(d)(1).

Subpart G--Production Certificates

Section 21.137 Quality system
    Proposed Sec.  21.137(a) is based on current Sec.  21.143(a)(5) and 
would require that a manufacturer's quality system include procedures 
for controlling design data and subsequent changes to ensure that only 
current, correct, and approved data is used.
    Proposed Sec.  21.137(b) would require that the quality system 
include procedures for controlling quality system documents and data 
and subsequent changes to ensure that only current, correct, and 
approved documents and data are used.
    Proposed Sec.  21.137(c) is based on current Sec.  21.143(a)(2) and 
(b) and Sec.  21.303(h)(1) and (2) and would require manufacturers to 
establish procedures to control conformity of each supplier-furnished 
product or article to its approved design before release for 
installation. For the purposes of this NPRM, a ``supplier'' is any 
person or

[[Page 58925]]

organization contracted to furnish products, articles, or services (at 
any tier) to a PAH. FAA certificate management activities consistently 
reveal shortcomings in supplier control across the industry.
    Proposed paragraph Sec.  21.137(c)(1) would require procedures to 
ensure that each supplier-furnished product or article conforms to its 
approved design. The intent of this proposal is to clarify that the PAH 
is responsible for ensuring the conformity of supplier-furnished items 
and to emphasize supplier control requirements to strengthen the 
effectiveness of this segment of the industry.
    Proposed paragraph Sec.  21.137(c)(2) would require each supplier 
to report to the PAH if a product or article has been released from 
that supplier and subsequently found not to conform to the applicable 
design data. The intent of this proposal is to ensure that the PAH is 
informed if non-conforming items make it through the quality system so 
it can initiate appropriate corrective action and reporting.
    Proposed Sec.  21.137(d) is based on current Sec.  21.143(a)(3) and 
would require the quality system to include procedures for controlling 
manufacturing processes to ensure that each product and article 
conforms to its approved design. The term, ``manufacturing process,'' 
is intended to include special processes such as plating or heat-
treating. Process controls typically include the following: Documented 
procedures for production, use of suitable production equipment, 
monitoring and controlling process parameters and product 
characteristics, accountability of all products during manufacture, and 
evidence that all manufacturing and inspection operations have been 
completed.
    Proposed Sec.  21.137(e) would require the quality system to 
include procedures for inspections and tests to ensure that a product 
or article conforms to its approved design. This proposal is based on 
existing Sec. Sec.  21.143(a)(3) and 21.325(b)(1) and is intended to 
clarify that the purpose of inspections and tests is to verify that 
each product and article conforms to its approved design and is in a 
condition for safe operation. In addition, these inspection and test 
procedures must include a flight test of each aircraft produced, unless 
that aircraft will be exported as an unassembled aircraft, and a 
functional test of each aircraft engine and each propeller produced.
    Proposed Sec.  21.137(f) is new and would require the quality 
system to include procedures to ensure that all inspection, measuring, 
and test equipment used in determining conformity of products and 
articles to their respective approved designs is calibrated and 
controlled. Each calibration standard must be traceable to a standard 
acceptable to the FAA. The intent of this proposal is to ensure that 
the PAH performs conformity verifications using equipment having the 
necessary capability and reliability to preclude nonconforming items 
from being accepted and conforming items from being rejected.
    Proposed Sec.  21.137(g) is new and would require the quality 
system to include procedures for documenting the inspection and test 
status of products and articles supplied or manufactured to the 
approved design. The intent of this proposal is to have PAHs maintain 
evidence to indicate conformity or nonconformity of a product with 
regard to required inspections and tests.
    Proposed Sec.  21.137(h) is new and would require each 
organization's quality system to include procedures for establishing 
and maintaining certifying staff responsible for issuing airworthiness 
approvals for aircraft engines, propellers, and articles, including the 
issuance of export airworthiness approvals. The intent of proposed 
Sec.  21.137(h) is to ensure that only qualified personnel issue these 
airworthiness approvals. An evaluation of certifying staff 
qualifications would need to include an assessment of the individual's 
knowledge, background, experience, and training. Qualifications must be 
commensurate with the complexity and type of product or article to be 
released. The FAA plans to place guidance regarding certifying staff 
qualifications in policy documents to be issued if this proposal is 
adopted. This proposal is based on the European Commission regulations, 
Annex Part 21, Certification of aircraft and related products, parts 
and appliances, and of design and production organisations.
    Proposed Sec.  21.137(i)(1) is based on current Sec.  21.143(a)(4) 
and would require the quality system to include procedures to ensure 
that only products or articles that conform to their approved design 
are installed on a type-certificated product. These procedures must 
provide for identification, documentation, evaluation, segregation, and 
disposition of a nonconforming product or article. Only authorized 
individuals with the appropriate qualifications may make determinations 
regarding the disposition of products and articles. The intent of this 
proposal is to prevent a nonconforming product or article from being 
installed on a type-certificated product. This proposal is not intended 
to prevent, for example, temporary installation of nonconforming 
products or articles to facilitate assembly or testing (as accepted by 
the FAA), their use as a shop or training aid, or sale for non-aviation 
purposes.
    Proposed Sec.  21.137(i)(2) is new and would require the quality 
system to include procedures to ensure that discarded articles are 
rendered unusable. The intent of this proposal is to ensure that 
discarded articles are not erroneously placed into service on aircraft.
    Proposed Sec.  21.137(j) is new and would require the quality 
system to include procedures for implementing corrective and preventive 
actions to eliminate the causes of an actual or potential nonconformity 
to the approved design, or noncompliance with the approved quality 
system. This proposal is intended to address issues that may occur 
before products are shipped to customers. Corrective actions are 
intended to include root cause analysis and any other analyses 
necessary to correct known nonconformities and noncompliances with the 
quality system. Preventive actions require proactive measures to ensure 
that nonconformities and noncompliances do not occur. Corrective and 
preventive actions would promote continuous improvement of the quality 
system and the products and articles produced under that quality 
system.
    Proposed Sec.  21.137(k) is new and would require the quality 
system to include procedures to prevent damage or deterioration of 
products and articles during handling, storage, preservation, 
packaging, and delivery. The intent of this proposal is to ensure that 
a product or article continues to conform to its approved design and 
remains in a condition for safe operation during handling, storage, 
preservation, packaging, and delivery.
    Proposed Sec.  21.137(l) is a new requirement for PC holders (and 
by cross reference for holders of PMAs and TSO approvals at proposed 
Sec. Sec.  121.307 and 121.607) and would require the quality system to 
include procedures for identifying, storing, protecting, retrieving, 
and retaining quality records. Quality system records include records 
such as inspection and test records, material review board records, and 
work orders. The intent of this proposal is to require documented 
evidence of compliance with applicable regulations and the approved 
quality system. Currently, subparts K and O require that these quality 
records be retained for two years. Subpart G does not have a quality 
system record retention requirement.

[[Page 58926]]

This proposal would require an applicant for and a holder of a 
production approval to retain these records for at least five years for 
the products and articles manufactured under the approval, and at least 
ten years for those parts that are identified as critical components 
under Sec.  45.15(c) of this chapter. The intent of this proposal is to 
retain these records to support any future investigations related to 
failures, malfunctions, or defects that may occur or be discovered 
after the product or article is released from the PAH's quality system. 
The beginnings of these five- and ten-year periods for a given product 
or article would correspond to the issuance of an airworthiness 
approval for that product or article. This proposal is consistent with 
current industry best practices. We specifically request comments on 
whether the proposed ten-year minimum record retention requirement is 
adequate for critical components.
    Proposed Sec.  21.137(m) is new and would require the quality 
system to include procedures for planning and conducting internal 
audits for the purpose of assuring compliance with the approved quality 
system. ``Internal'' is relative to a PAH's quality system. Audits of 
suppliers, therefore, would fall within the scope of internal audits 
since a supplier is under the PAH's quality system. FAA certificate 
management data indicates that facilities with internal audit programs 
experience a lower probability of nonconformances. The results of these 
audits would be reported to applicable management personnel and to 
those personnel responsible for taking corrective actions for 
deficiencies found during the audit.
    Proposed paragraph 21.137(n) is new and would require each 
manufacturer's quality system to include procedures for receiving and 
processing feedback from operators on in-service failures, 
malfunctions, and defects of products or articles. These procedures 
must describe how the manufacturer will assist the design approval 
holder (if different) to address in-service problems involving design 
changes and determine if any changes to the Instructions for Continued 
Airworthiness are necessary. The intent of this proposal is to provide 
feedback to ensure operational safety and facilitate continuous 
improvements to the manufacturer's quality system.
    Proposed paragraph 21.137(o) is based on Annex Part 21 of European 
Union regulations and would require that the quality system include 
procedures for identifying, analyzing, and initiating appropriate 
corrective action for products or articles that have been released from 
the quality system and that do not conform to the applicable design 
data or quality system requirements (``quality escapes''). The intent 
of this proposal is to ensure that the PAH tracks, evaluates, 
categorizes, and initiates the appropriate corrective action for all 
nonconforming articles, including actions to correct deficiencies in 
the quality system that allowed for the quality escape and to assist 
the FAA in its certificate management and oversight of a PAH's quality 
system. This proposal would help promote continuous operational safety 
and improvement of a PAH's quality system.
Section 21.142 Production Limitation Record
    This proposal is based on existing Sec.  21.151 and would clarify 
that the PC holder, not the applicant for a PC, is the one who is 
authorized to manufacture the products listed on the production 
limitation record.
Section 21.146 Responsibility of Holder
    This proposal would establish requirements for the holder of a PC, 
PMA, or TSO authorization in Sec. Sec.  21.146, 21.316, and 21.616. The 
holders of production approvals would have the same responsibilities, 
as described below.
    Proposed paragraph (a) would make each PAH responsible for updating 
the document required by Sec. Sec.  21.135, 21.305, and 21.605. This 
would keep the FAA informed of changes in the PAH's organization and 
how that organization will ensure compliance with this part.
    Proposed paragraph (b) would make each PAH responsible for 
maintaining its quality system in compliance with the data and 
procedures approved for that production approval. This is currently 
required for a holder of a PC in Sec.  21.165(a) and for a holder of a 
TSO authorization in Sec.  21.607(b). This would be a new requirement 
for a holder of a PMA.
    Proposed paragraph (c) would make each PAH responsible for ensuring 
that each product or article conforms to its approved design and is in 
a condition for safe operation. This is currently required for a holder 
of a PC in Sec.  21.165(b), a PMA in Sec.  21.303(k), and a TSO 
authorization in Sec.  21.607(a). This proposal would also retain other 
current requirements in Sec.  21.165(b) for the holder of a PC related 
to primary category aircraft assembled from a kit. It would also retain 
the current requirement in Sec.  21.607(a) for the holder of a TSO 
authorization that the TSO article meets the applicable TSO.
    Proposed paragraph (d) would require an airworthiness approval for 
each aircraft engine, propeller, or article or each shipment of 
aircraft engines, propellers, or articles produced under that 
production approval that conforms to its approved design and is in a 
condition for safe operation. This airworthiness approval would be in 
the form of a completed FAA Form 8130-3. Although current regulations 
do not require issuance of an airworthiness approval for shipping 
aircraft engines, propellers, and articles, there has been a growing 
demand within the U.S. aviation industry to require this form to 
improve identification and tracking of these items.
    The proposed regulation is also consistent with the 1998 
recommendations of the Industry Suspected Unapproved Parts Steering 
Group. (We have placed a copy of these recommendations in the docket 
for this rulemaking.) This group determined that the establishment of a 
standardized, end-to-end, FAA-approved documentation process would--
     Provide a common, easily recognizable form with all 
aircraft engine, propeller, and article shipments so that the receiver 
could easily verify the airworthiness of the products, articles, and 
authority of the producer;
     Make a major contribution towards eliminating unapproved 
parts;
     Enhance the probability of success in prosecuting a 
manufacturer of unapproved parts, by challenging unauthorized and 
fraudulent use of an FAA document; and
     Provide greater confidence for non-U.S. air agencies and 
domestic users if the form used for export and domestic purposes is 
standardized for all shipments of aircraft engines, propellers, and 
articles.
    The intent of this proposal is to provide evidence of the 
airworthiness approval status of an aircraft engine, propeller, and 
article; and help an installer make accurate airworthiness 
determinations.
    An airworthiness approval is not intended for use within a PAH's 
quality system; that is, a supplier will not use an airworthiness 
approval to ship articles to the PAH. Only airworthiness approvals 
issued under subpart L of this part would be eligible for use as export 
airworthiness approvals; however, if the PAH issues the original 
airworthiness approval as an export airworthiness approval under 
subpart L of this part, that export airworthiness approval would also 
satisfy the requirement for an airworthiness approval under subpart G, 
K, or O; that is, only one airworthiness approval document

[[Page 58927]]

would be required for export. Currently, if a domestic part already has 
an airworthiness approval and the PAH wants to export that same part, 
the existing regulations require a second airworthiness approval be 
issued for export. Under this proposal, only one airworthiness approval 
document would be required.
    Proposed paragraph (d) would also make the PAH responsible for 
issuing these airworthiness approvals for aircraft engines, propellers, 
and articles. A holder of a PC, PMA, and TSO authorization already has 
responsibility under Sec. Sec.  21.165(b), 21.303(k), and 21.607(a) for 
determining that an aircraft engine, propeller, or article, as 
applicable, conforms to its approved design and is in a condition for 
safe operation. This proposal would now make the PAH responsible for 
documenting that determination via an airworthiness approval.
    As discussed above for proposed Sec.  21.137(h), the quality system 
for each PAH would include procedures for establishing and maintaining 
a certifying staff responsible for issuing these airworthiness 
approvals. The FAA (or its designees) would retain discretion to issue 
these airworthiness approvals as appropriate. This proposal is intended 
to give the PAH the same flexibility and responsiveness available to 
European and Canadian manufacturers who already issue these approvals.
    Proposed paragraph (e) would require each holder of a PC, PMA, or 
TSO authorization to maintain complete and current design data for each 
product and article produced under its production approval. This is 
currently required for a holder of a PMA in Sec.  21.303(h)(6) and a 
TSO authorization in Sec.  21.607(c). This change would standardize 
requirements for all PAHs.
    Proposed paragraph (f) would require each holder of a PC, PMA, or 
TSO authorization to retain the document(s) granting that certificate, 
approval, or authorization, respectively, and make it available to the 
FAA upon request. The intent of this proposal is to relieve the PAH 
from the current Sec.  21.161 requirement to display the production 
certificate, and, instead, allow the holder to retain it in a manner it 
deems appropriate. In addition, this would standardize requirements for 
all PAHs.
    Proposed paragraph (g) would require each holder of a PC, PMA, or 
TSO authorization to make available to the FAA information regarding 
all delegation of authority to suppliers. A holder of a PC already is 
required to do this under Sec.  21.143(b). These delegations would 
include, for example, delegations of authority related to performing 
major inspections, direct ship authorization, and materials review. For 
the purposes of this NPRM, a direct ship authorization is a written 
authorization granted by a PAH to a supplier to ship completed and 
marked articles directly to end users, without the articles being 
processed through the PAH's own facility. This change would standardize 
requirements for all PAHs.

Subpart H Airworthiness Certificates

Section 21.183 Issue of Standard Airworthiness Certificates for Normal, 
Utility, Acrobatic, Commuter, and Transport Category Aircraft; Manned 
Free Balloons; and Special Classes of Aircraft
    Currently, to manufacture an aircraft outside the United States and 
be entitled to a standard airworthiness certificate, that aircraft must 
be type certificated under Sec.  21.21 and manufactured under a PC 
extension. At present, an applicant may obtain approval to manufacture 
under a PC extension only if the FAA finds no undue burden in 
administering the applicable requirements of Title 49 U.S.C. and this 
subchapter. This proposal would revise Sec.  21.183(c) to entitle a 
person to a standard airworthiness certificate for an aircraft that is 
imported to the United States via an export certificate of 
airworthiness provided the aircraft is type certificated under Sec.  
21.21 or Sec.  21.29, the aircraft is manufactured under the authority 
of another State of Manufacture, and there is no undue burden on the 
FAA. The State of Manufacture would be required to certify, in 
accordance with the provisions of an agreement with the United States 
for import and export of that aircraft that the aircraft conforms to 
its type design and is in condition for safe operation. The FAA would 
have to find that the aircraft conforms to its type design and is in 
condition for safe operation.
    The intent of this proposal is to facilitate global manufacturing. 
A bilateral agreement with the State of Manufacture signifies that the 
FAA has confidence in the aircraft certification system of that country 
or jurisdiction for products within the scope of that agreement. 
Therefore, the FAA may accept their airworthiness determinations.
    Currently, Sec.  21.183(d)(2) entitles an applicant to a standard 
airworthiness certificate for a used aircraft if certain requirements 
are met. One of these requirements is that the aircraft be inspected in 
accordance with the performance rules for 100-hour inspections set 
forth in Sec.  43.15 of this chapter. This proposal would revise 
paragraph (d)(2) to allow aircraft to be inspected in accordance with 
the performance rules for 100-hour inspections set forth in Sec.  43.15 
of this chapter, or an equivalent performance standard acceptable to 
the FAA. Similarly, this proposal would add paragraph (d)(2)(v) to 
accept a finding of airworthiness determined by the holder of a license 
or certificate to perform aircraft maintenance issued by a country or 
jurisdiction that has an agreement with the United States for the 
acceptance of used aircraft.
    The intent of these proposals is to provide flexibility to accept 
equivalent inspection standards of a country or jurisdiction and the 
corresponding airworthiness determinations from those countries and 
jurisdictions with which the United States has a bilateral agreement. 
This proposal could also reduce the cost of importing a used aircraft 
if duplicate inspection requirements are eliminated.
Section 21.185 Issue of Airworthiness Certificates for Restricted 
Category Aircraft
    Currently, to manufacture an aircraft outside the United States and 
be entitled to a restricted category airworthiness certificate, that 
aircraft must be type certificated under Sec.  21.25 and manufactured 
under a PC extension. At present, an applicant may obtain approval to 
manufacture under a PC extension only if the FAA finds no undue burden 
on the FAA in administering applicable requirements of Title 49 U.S.C. 
and this subchapter. This proposal would revise Sec.  21.185(c) to 
entitle a person to a special airworthiness certificate for a 
restricted category aircraft that is imported to the United States 
under an export certificate of airworthiness provided the aircraft is 
type certificated under Sec.  21.25 or Sec.  21.29, the aircraft is 
manufactured under the authority of another State of Manufacture, and 
there is no undue burden on the FAA. The State of Manufacture would be 
required to certify, in accordance with the provisions of an agreement 
with the United States for import and export of that aircraft that the 
aircraft conforms to its type design and is in condition for safe 
operation. The FAA would have to find that the aircraft conforms to its 
type design and is in condition for safe operation.
    The intent of this proposal is to facilitate global manufacturing. 
A bilateral agreement with the State of Manufacture signifies that the 
FAA has confidence in the aircraft certification

[[Page 58928]]

system of that State for products within the scope of that agreement. 
Accordingly, the FAA could accept airworthiness determinations from 
that State as a basis for issuing airworthiness certificates for 
restricted category aircraft.
Section 21.195 Experimental Certificates: Aircraft To Be Used for 
Market Surveys, Sales Demonstrations, and Customer Crew Training
    Existing paragraph (d) entitles an applicant to an experimental 
airworthiness certificate if certain requirements are met. One of these 
requirements, as specified in paragraph (d)(2), is that the applicant 
must show that the aircraft has been flown for at least 50 hours, or 
for at least 5 hours if it is a type-certificated aircraft that has 
been modified. This proposal would add language to allow the FAA to 
reduce these operational requirements when the FAA determines it is 
safe to do so and harmonize with the corresponding Annex Part 21 of the 
European Union regulations.
Section 21.197 Special Flight Permits
    Under this proposal, existing paragraphs 21.197(c)(1) and (c)(2) 
would be combined into a single requirement, proposed Sec.  
21.197(c)(1), for all carriers certificated under part 119. The 
requirement for operators to maintain their aircraft under a continuous 
airworthiness maintenance program (CAMP) would be changed to ``an 
approved program for continuing flight authorization.'' This gives 
operators options for developing their programs, as well as allowing 
operators that do not have a CAMP, but do have the necessary quality 
system and infrastructure to support this authorization, to also be 
eligible.
    This proposal would allow certificate holders under existing Sec.  
135.411, with an approved program, to be eligible for a continuing 
authorization to issue special flight permits for the purpose of 
maintenance. The intent of this proposal is to provide relief to 
operators who periodically require the issuance of special flight 
permits, and to the FAA, which would no longer have to issue these 
permits or oversee Designated Airworthiness Representatives issuing 
these permits.
    The undesignated paragraph between existing 21.197(c)(2) and (3) 
would be removed, because the statement is redundant to a statement in 
the introductory language of existing paragraph (c).

Subpart J--Delegation Option Authorization Procedures

Section 21.293 Current Records
    This proposal would revise paragraph (a)(2) to increase the record 
retention requirements for manufacturers from 2 to 5 years, consistent 
with the proposed changes to subparts G, K, and O.

Subpart K--Parts Manufacturer Approvals

Section 21.301 Applicability
    This proposal would revise this section to clarify that the scope 
of subpart K is limited to parts manufacturer approvals.
Section 21.303 Application
    This proposal would require a part to conform to its ``approved 
design'' instead of ``drawings in the design'' in recognition of the 
fact that the approved design may consist of more than drawings. It 
would also replace ``fabrication processes'' with ``manufacturing 
processes'' to reflect that PMAs would have to adhere to quality system 
requirements common to all PAHs. A holder of a PMA would no longer have 
a fabrication inspection system.
    This proposal would also add Sec.  21.303(a)(5), a new requirement 
for PMA applicants to provide a statement certifying that the applicant 
has complied with the airworthiness requirements of this subchapter. 
The intent of this proposal is discussed under proposed Sec.  21.20.
Section 21.310 Inspections and Tests
    This proposal would expand the FAA's ability to conduct inspections 
and tests to include supplier facilities. For the purposes of this 
NPRM, a supplier is any person or organization contracted to furnish 
products, articles, or services (at any tier) to a PAH. The intent of 
this proposal is to ensure the FAA has the requisite access to 
facilities and cooperation of the manufacturer to administer applicable 
requirements of Title 49 U.S.C. and this subchapter.
Section 21.319 Design Changes
    This proposal would add requirements for classifying and approving 
PMA design changes that are parallel and comparable to both TSO and TC 
design change regulations. Currently, PMA design changes are classified 
and approved using the corresponding TC design change processes even 
though part 21 does not specifically address PMA design changes. The 
intent of this proposal is to fill this void in the regulations.

Subpart L--Export Airworthiness Approvals

Section 21.321 Applicability
    This proposal would delete the definitions of Class I, Class II, 
and Class III products and of ``newly overhauled'' in existing 
paragraphs (b)(1) through (4) respectively. The intent of this proposal 
is to harmonize the definition of ``product'' in subpart L with the 
rest of part 21 and with the BASA Implementation Procedures for 
Airworthiness; that is, a ``product'' is an aircraft, aircraft engine, 
or propeller. In addition, since other proposals in this NPRM for 
subpart L would remove all occurrences of and requirements related to 
the term ``newly overhauled,'' the definition for this term is no 
longer required.
Section 21.325 Export Airworthiness Approvals
    Proposed paragraph (a) would still require that an export 
airworthiness approval for an aircraft be issued in the form of an 
export certificate of airworthiness. The FAA would continue to use FAA 
Form 8130-4, Export Certificate of Airworthiness, for issuing these 
approvals. An export certificate of airworthiness form would no longer 
be issued for aircraft engines and propellers. See proposed paragraph 
(b) below. This proposal is intended to provide U.S. exporters the same 
flexibility and responsiveness available to foreign exporters.
    This proposal would also relocate requirements related to flight-
testing new aircraft from existing Sec.  21.325(b)(1) to proposed Sec.  
21.137(e). The purpose of this change is to place all production-
related requirements in subpart G. Section 21.325(b)(1) currently 
allows export from the United States of certain types of unassembled 
aircraft, including small airplanes, small rotorcraft, and gliders, 
without flight testing. The FAA is proposing to remove these references 
to specific types of aircraft. Proposed Sec.  21.329(b) would allow the 
importing country or jurisdiction to define what types of unassembled 
aircraft may be imported without a flight test. This would facilitate 
the export of U.S.-manufactured aircraft to customers in foreign 
countries.
    Proposed Sec.  21.325(b) would require that an export airworthiness 
approval for an aircraft engine, propeller, or article be issued in a 
form and manner prescribed by the FAA. The FAA would continue to use 
FAA Form 8130-3 for articles and proposes using this form for issuing 
export airworthiness approvals for aircraft engines and propellers. The 
intent of this proposal is to standardize

[[Page 58929]]

the format of the export airworthiness approval. This will facilitate 
export of aircraft engines and propellers in a global manufacturing 
environment.
    Currently, export airworthiness approvals may only be issued for 
used products located in another country if the FAA finds no undue 
burden on the FAA in administering the provisions of this regulation. 
Under existing Sec.  21.325(b)(3), export airworthiness approvals may 
only be issued for Class II or Class III products manufactured and 
located in the United States. The FAA has granted numerous exemptions 
to those manufacturers whose suppliers are located in countries that 
have a BAA or BASA with the United States. These exemptions permit the 
issuance of export airworthiness approvals for Class II and Class III 
products so that these products would not have to be first shipped to 
the United States before export. When Sec.  21.325(b)(3) was adopted 
(30 FR 8465, Jul. 2, 1965), the international market in aviation 
products was minimal compared with today's international market; 
additionally, FAA resources were limited for issuing export 
airworthiness approvals outside the United States. However, FAA 
designees are now available to issue export airworthiness approvals for 
PAHs and other exporters. In addition, if the United States has a 
bilateral agreement with another country or jurisdiction, that country 
or jurisdiction is typically in a position to assist the FAA in the 
monitoring and surveillance of U.S. PAHs located in that country or 
jurisdiction.
    Proposed paragraph (c) would relieve these current restrictions and 
the burden on the public of petitioning for exemptions by allowing 
export airworthiness approvals to be issued for any product or article 
located in another country as long as the FAA finds no undue burden on 
the FAA in administering applicable requirements. Certificate 
management and designee oversight responsibilities are examples of 
potential burdens on the FAA. For PAHs, the assessment of undue burden 
related to issuing an export airworthiness approval would be performed 
during the FAA's undue burden assessment of a prospective production 
facility located outside the United States. See FAA Order No. 8100.11 
for a description of the undue burden assessment process. The order is 
available through the FAA Internet Web site, http://www.faa.gov.

    The FAA may permit a PAH to issue export airworthiness approvals at 
a supplier facility in a foreign country or jurisdiction if the PAH has 
established and implemented supplier control procedures that are 
acceptable to the FAA. Using a designated representative of the 
Administrator to issue these approvals could mitigate any burden on the 
FAA from other exporters. In addition, as discussed under proposed 
Sec.  21.331(a), the PAH would be authorized to issue an export 
airworthiness approval for a new aircraft engine, propeller, or article 
on behalf of the FAA.
    In summary,

------------------------------------------------------------------------
                                 Is in a foreign       Is in a foreign
                                location, may an      location, may an
                              export airworthiness  export airworthiness
           If a--               approval be issued    approval be issued
                               for that item under   for that item under
                                  the  current          the  proposed
                                   regulation?           regulation?
------------------------------------------------------------------------
New aircraft................  No.                   ....................
New engine or propeller.....  No.                   ....................
Used aircraft...............  Yes, if no undue      Yes, if no undue
                               burden on the FAA.    burden on the FAA.
Used engine or propeller....  Yes, if no undue      ....................
                               burden on the FAA.
New article.................  No.                   ....................
Used article................  No.                   ....................
------------------------------------------------------------------------

Section 21.327 Application
    This proposal would shift detailed application procedures of this 
section to FAA policy and clarify that any person may apply for an 
export airworthiness approval. An applicant would use FAA Form 8130-1, 
Application for Export Certificate of Airworthiness, to apply for an 
export certificate of airworthiness. A PAH would not have to apply for 
an export airworthiness approval for a new aircraft engine, propeller, 
or article.
    This proposal would remove existing Sec.  21.327(e), which requires 
a written statement from the importing country that will validate an 
export airworthiness approval if the product being exported meets any 
of four conditions listed in paragraphs (e)(1) through (4). Paragraph 
(e)(1) requires this written statement for aircraft manufactured 
outside the United States and being exported to a country with which 
the United States has a reciprocal agreement concerning the validation 
of export certificates. A written statement is not required if an 
agreement with the importing country or jurisdiction already includes 
provisions for import and export of ``third country'' aircraft. If 
these provisions do not exist, then the FAA, not the exporter, would 
coordinate with the importing country or jurisdiction to determine if 
that country or jurisdiction would ``validate'' or accept an FAA export 
certificate of airworthiness. The intent of this proposal to remove 
paragraph (e)(1) is to clarify that the exporter does not have 
responsibility for obtaining this written statement from the importing 
country or jurisdiction. Paragraphs (e)(2) through (4) would be removed 
and addressed under proposed Sec.  21.329.
Section 21.329 Issuance of Export Certificates of Airworthiness
    This proposal would revise this section to provide requirements 
related to issuance of export certificates of airworthiness for 
aircraft. Paragraph (a) would provide specific requirements for 
issuance of these certificates and paragraph (b) would include 
provisions for exceptions to these requirements.
    Proposed paragraph (a)(1) would expand current paragraph (a) to 
allow an export certificate of airworthiness to be issued for new or 
used aircraft manufactured under subparts F or G of this part, 
including aircraft manufactured outside of the United States. 
Currently, paragraph (a) requires that the aircraft be manufactured in 
the United States. The intent of this proposal is to clarify that this 
requirement is addressing the regulatory authority under which the 
aircraft was manufactured, not the physical location of manufacture. 
Requirements related to the physical location of the aircraft would be 
addressed by proposed Sec.  21.325(c). This proposal would also allow 
an aircraft that meets the requirements under subpart H of this part 
for a special airworthiness certificate in either the ``primary'' or 
``restricted'' category to receive an export certificate of 
airworthiness. An export certificate of airworthiness represents a 
statement from the FAA that a given aircraft conforms to its type 
design and is in a condition for safe operation. Since an aircraft in 
either the ``primary'' or ``restricted'' category has a type design, 
adequate basis exists for issuing an export certificate of

[[Page 58930]]

airworthiness for such an aircraft that conforms to its type design and 
is in a condition for safe operation. The intent of this proposal is to 
facilitate exporting such aircraft.
    Proposed paragraph (a)(2) would revise current paragraph (b) to 
clarify that an export certificate of airworthiness may be issued for a 
new or used aircraft not manufactured under subpart F or G of this 
part. Currently, paragraph (b) applies to ``aircraft manufactured 
outside the United States.'' The intent of this proposal is to clarify 
that this requirement addresses the regulatory authority under which 
the aircraft was manufactured, not the physical location of 
manufacture. This proposal would also allow aircraft that have a 
special airworthiness certificate in the ``primary'' category or the 
``restricted'' category to receive an export certificate of 
airworthiness. The intent of this proposal is to facilitate exporting 
such aircraft.
    Proposed paragraph (a)(3) would require that each requirement of 
the importing country or jurisdiction be met. This requirement is the 
same as current Sec.  21.329(f).
    This proposal would remove existing paragraphs (c) and (e) that 
require, for an export certificate of airworthiness--
     Used aircraft to undergo an annual type inspection and be 
approved for return to service; and
     Used engines and propellers not exported as part of a 
certificated aircraft to be newly overhauled.
    Under regulations in effect since 1965, the requirements for export 
airworthiness approvals have helped to assure the export of quality 
products that meet safety standards at least as high as those 
applicable to products for domestic use. Currently, an aircraft or 
other product not having been inspected or newly overhauled is not 
issued an export airworthiness approval. Under this proposal, importing 
airworthiness authorities may choose to accept a product without being 
inspected or newly overhauled. The decision to accept aircraft or other 
products that have not been inspected or overhauled would rest with the 
airworthiness authority of the importing country or jurisdiction. This 
would result in cost savings without compromising aviation safety since 
the importing airworthiness authority would continue to apply the 
appropriate safety standards.
Section 21.331 Issuance of Export Airworthiness Approvals for Aircraft 
Engines, Propellers, and Articles
    Proposed paragraph (a) would permit a PAH to issue an export 
airworthiness approval for a new aircraft engine, propeller, or article 
it manufactured under this part. Only airworthiness approvals issued 
under subpart L of this part would be eligible for use as export 
airworthiness approvals; however, if the PAH issues the original 
airworthiness approval as an export airworthiness approval under 
subpart L of this part, that export airworthiness approval would also 
satisfy the requirements for issuing an airworthiness approval under 
subparts G, K, or O. Under this proposal, the FAA would retain 
discretion to issue export airworthiness approvals for new aircraft 
engines, propellers, and articles for a PAH.
    Proposed paragraph (b) would combine the requirements of existing 
Sec.  21.331(b) and Sec.  21.325(c) to put exceptions to proposed Sec.  
21.331(a) in one place.
    Under proposed paragraph (c), the FAA or its designees may also 
issue an export airworthiness approval for a new aircraft engine, 
propeller, or article for a person who is not a PAH. This proposal 
expands current subpart L provisions by allowing a U.S. exporter who is 
not a PAH to export what are currently referred to as Class III 
products. Currently, Sec.  21.323(b) allows only a manufacturer who has 
in his employ a designated representative of the Administrator to 
obtain an export airworthiness approval for Class III products. The 
intent of these proposals is to facilitate the global movement and 
acceptance of new aircraft engines, propellers, and articles.
    Under proposed paragraph (d), the FAA or its designees may also 
issue an export airworthiness approval for a used aircraft engine, 
propeller, or article. The FAA would only issue these approvals for 
items that--
     Conform to their approved designs and are in a condition 
for safe operation; and
     Meet each requirement of the importing country or 
jurisdiction.
    Subpart L currently has no provision for issuing export 
airworthiness approvals for used articles. The intent of this proposal 
is to make provision for the export of these items. In addition, used 
aircraft engines and propellers not exported as part of a certificated 
aircraft would no longer be required to be newly overhauled as 
discussed in the preamble for proposed Sec.  21.329.
Section 21.335 Responsibilities of Exporters
    Rather than listing specific documents that the exporter must 
forward to the importing authority as in current paragraphs (a) and 
(b