[Federal Register Volume 68, Number 64 (Thursday, April 3, 2003)]
[Proposed Rules]
[Pages 16217-16220]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 03-8124]


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Proposed Rules
                                                Federal Register
________________________________________________________________________

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

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Federal Register / Vol. 68, No. 64 / Thursday, April 3, 2003 / 
Proposed Rules

[[Page 16217]]



DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 21

[Docket No. FAA-2003-14825; Notice No. 03-06]
RIN 2120-AH90


Standard Airworthiness Certification of New Aircraft

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Advance notice of proposed rulemaking.

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SUMMARY: The FAA seeks public comments in advance of a specific 
proposal to amend the regulations for issuing a standard airworthiness 
certificate to certain new aircraft manufactured in the United States. 
The proposal would address a concern that under the current 
regulations, certain new aircraft are eligible for a standard 
airworthiness certificate without meeting the requirements of a type 
certificate and without having been manufactured under an FAA 
production approval. The intended effect is to increase efficiency by 
ensuring that all new aircraft manufactured in the United States 
receive a standard airworthiness certificate only after the aircraft 
have been type certificated and manufactured under an FAA production 
approval.

DATES: Send your comments to reach us by June 2, 2003.

ADDRESSES: Address your comments to the Docket Management System, U.S. 
Department of Transportation, Room Plaza 401, 400 7th Street, SW., 
Washington, DC 20590-0001. You must identify the docket number at the 
beginning of your comments, and you should send two copies of your 
comments. If you wish to receive confirmation that the FAA received 
your comments, include a self-addressed, stamped postcard.
    You may also send comments through the Internet to http://
dms.dot.gov. You may review the public docket containing comments to 
these proposed regulations in person in the Dockets Office between 9 
a.m. and 5 p.m., Monday through Friday, except Federal holidays. The 
Dockets Office is on the plaza level of the NASSIF Building at the 
Department of Transportation at the above address. Also, you may review 
public dockets on the Internet at http://dms.dot.gov.

FOR FURTHER INFORMATION CONTACT: Frank P. Paskiewicz, Production and 
Airworthiness Division, AIR-200, Federal Aviation Administration, 800 
Independence Avenue, SW., Washington, DC 20591, telephone (202) 267-
8361.

SUPPLEMENTARY INFORMATION:

Comments Invited

    The FAA invites interested people to take part in this rulemaking 
by sending written comments, data, or views. We also invite comments 
about 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 this advance notice, 
explain the reason for any recommendation, and include supporting data. 
We ask that you send us two copies of written comments.
    We will file in the docket all comments we receive, as well as a 
report summarizing each substantive public contact with FAA personnel 
about this advance notice. 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 advance notice. The docket is open 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.
    Before issuing a notice of proposed rulemaking or taking other 
rulemaking action, we will consider all comments we receive 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 because of the comments we receive.
    If you want the FAA to acknowledge receipt of your comments on this 
advance notice, include with your comments a preaddressed, stamped 
postcard on which the docket number appears. We will stamp the date on 
the postcard and mail it back to you.

Availability of Rulemaking Documents

    You can get an electronic copy using the Internet by:
    [sbull] Searching the Department of Transportation's electronic 
Docket Management System (DMS) web page (http://dms.dot.gov/search);
    [sbull] Visiting the Office of Rulemaking's web page at http://
www.faa.gov/avr/arm/index.cfm; or
    [sbull] Accessing the Government Printing Office's web page at 
http://www.access.gpo.gov/su_docs/aces/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 or notice number of this advance 
notice.

Background

14 CFR 21.183(d), Other aircraft

    Section 21.183(d) applies to applicants for standard airworthiness 
certificates for aircraft not covered by Sec.  21.183(a), (b), or (c). 
An applicant under Sec.  21.183(d) is entitled to a standard 
airworthiness certificate if he or she presents evidence the aircraft 
conforms to a type design approved under a type certificate or a 
supplemental type certificate and to applicable Airworthiness 
Directives. The Administrator must also find, after inspection, that 
the aircraft conforms to the type design and is in condition for safe 
operation. The aircraft covered by paragraphs (a) and (b) of Sec.  
21.183 are (a) new aircraft manufactured under a production certificate 
and (b) new aircraft manufactured under a type certificate only.\1\
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    \1\ Section 21.183(c) applies to airworthiness certificates for 
import aircraft. Although such aircraft are not produced under a 
U.S. type certificate/production certificate process, they are 
produced under similar regulations and processes enacted by the 
countries in which the aircraft were manufactured, which establishes 
similar assurances of compliance with airworthiness standards.
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    The requirements of Sec.  21.183(d) were originally adopted in 1959 
as an amendment to Sec.  1.67(d) of the Civil Air Regulations (CAR), 
which were issued by the FAA's predecessor, the Federal Aviation 
Agency. CAR Amendment 1-2,

[[Page 16218]]

dated September 1, 1959 (24 FR 7065), added a new paragraph (d), 
entitled ``Other aircraft.'' Amendment 1-2 provided for the 
airworthiness certification of aircraft that were used in military 
service and later released for civil use, and for other aircraft that 
had not had their airworthiness status maintained. The amendment stated 
that the regulation was created for other than newly manufactured 
aircraft. Section 21.183(d) has remained substantially unchanged since 
1959.
    The plain language of the regulation, however, does not limit the 
applicability of Sec.  21.183(d) to surplus military aircraft, aircraft 
that have not had their airworthiness status maintained, or other than 
newly manufactured aircraft. Limited data and historical records show 
that, until recently, only a few newly manufactured aircraft have 
received standard airworthiness certificates on a case-by-case basis 
under Sec.  21.183(d). These newly manufactured aircraft ``arrive'' at 
the airworthiness certification process as new aircraft that were not 
produced under an FAA production approval. On the other hand, the 
practice of issuing standard airworthiness certificates to surplus 
military aircraft released for civil use and aircraft that have not had 
their airworthiness status maintained has been ongoing for many years. 
Surplus military aircraft and aircraft that have not had their 
airworthiness status maintained ``arrive'' at the airworthiness 
certification process as used aircraft (those that have had time in 
service).
    In 1966, the FAA proposed to amend Sec.  21.183 by separating newly 
manufactured aircraft not manufactured under a type certificate or a 
production certificate from paragraph (d). See 31 FR 8075, June 8, 
1966. Public comments received in response to the proposal showed a 
misunderstanding of the proposal's intent. Commenters mistakenly 
believed the FAA intended a broad change to past certification 
practices of issuing airworthiness certificates to surplus military 
aircraft and aircraft that had not had their airworthiness status 
maintained. Since the FAA did not intend such a broad change, and since 
few new aircraft fell within the intended scope of the change, the FAA 
decided to abandon the proposed change. See 32 FR 14925, Oct. 28, 1967. 
The FAA did state that although we would not adopt the proposed change, 
we would continue to issue standard airworthiness certificates to newly 
manufactured aircraft under Sec.  21.183(d).

The System for Production of New Duplicate Aircraft

    For the FAA to have confidence in the certification system of new 
aircraft manufactured in the United States, and the authenticity of 
their production, the FAA has created a three-step system of type 
certification, production certification, and airworthiness 
certification based on Title 49 of the United States Code. Type 
certification examines the basic design of the aircraft against the 
applicable airworthiness standards. Issuance of a type certificate (TC) 
is FAA approval that the design meets the applicable airworthiness 
standards of the Code of Federal Regulations. Production certification 
examines whether the system used to produce duplicate aircraft will 
result in products \2\ that meet the design provisions of the pertinent 
TC. Issuance of a production certificate (PC) is a finding by the FAA 
that the quality control system of a manufacturer will reliably produce 
duplicate versions of a product that conforms to an approved type 
design. The FAA issues a standard airworthiness certificate to 
individual aircraft after finding that the aircraft conforms to the 
type design and is in condition for safe operation.
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    \2\ The term ``products'' means aircraft, engines, propellers, 
or appliances.
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Safety Benefits Assumed by the Linkage of the Type Certificate and the 
Production Certificate

    A connection between the TC and the PC provides an individual and a 
cumulative benefit. The individual benefit applies to an aircraft 
produced for initial airworthiness certification. For these aircraft, 
any deviation from the approved type design that is found during the 
conformity inspection can be evaluated by comparison to the supporting 
data that supports issuance of the TC and any changes made after the 
initial TC issuance. This evaluation assures the standard airworthiness 
certificate means the individual aircraft satisfies all the 
airworthiness standards identified by the TC.
    The cumulative benefit applies to evaluating the cumulative effect 
of changes made after the initial issuance of the TC. The linkage of 
the PC to the TC supporting data enables the aircraft manufacturer to 
evaluate the cumulative effect of many changes made over time. The 
manufacturer can also determine that a changed aircraft presented for 
original airworthiness certification continues to comply with the 
airworthiness standards identified in the TC. The FAA requests comments 
from manufacturers on how, for an aircraft presented for original 
standard airworthiness certification, they evaluate the interactive and 
cumulative effect of changes on the aircraft's compliance with all the 
airworthiness standards identified in the TC.

The Level of Safety Assumed for Newly Manufactured Aircraft

    Nearly all new aircraft manufactured in the United States are 
eligible for airworthiness certificates since they are produced under 
the TC and PC processes that ensure the aircraft conform to a type 
design and are in condition for safe operation. The FAA, the 
manufacturer, civil aviation authorities of other countries, and the 
public rely on the TC and PC processes to accurately produce multiple 
copies of an aircraft that meet airworthiness standards. Paragraphs (a) 
and (b) of Sec.  21.183 recognize this process in issuing standard 
airworthiness certificates to aircraft produced in this manner. Also, 
as stated in the next section of this advance notice, entitled 
``Discussion,'' the TC and PC holders have certain responsibilities 
connected with holding these privileges.
    New aircraft presented for standard airworthiness certification 
under Sec.  21.183(d) do not have the same level of certitude as newly 
manufactured aircraft produced under the TC and PC processes. Section 
21.183(d) aircraft presented for airworthiness certification do not 
have the advantage of prior examination and approval by the FAA of a 
production quality system, and a finding by the FAA of accurate 
reproduction is difficult. The applicant for an airworthiness 
certificate must make a detailed, aircraft-by-aircraft showing to 
support the entitlement to individual airworthiness certificates, 
placing a great burden on both the applicant and the FAA.

Discussion

    Readers should note that we are directing this Discussion section 
and the issues and proposals described in this advance notice at 
aircraft that are issued standard airworthiness certificates. We do not 
intend for this advance notice to apply to the proposed category of 
light-sport aircraft, which is the subject of a recent notice of 
proposed rulemaking (67 FR 5368, February 5, 2002).
    The FAA's Aircraft Certification Service has recently learned that 
people are, or plan to be, engaged in manufacture or assembly of new 
aircraft, intending to obtain standard airworthiness certificates under 
14 CFR 21.183(d). The builders of these aircraft do not hold a TC, 
supplemental type certificate (STC), or a PC, nor would

[[Page 16219]]

they have authorization from the original TC holder to use the TC in 
the manufacture of new aircraft. These people intend to build aircraft 
that match a type design under a previously approved TC, but without 
the permission of the TC holder to use the design, and without a PC.
    Because these aircraft builders do not hold a PC, the FAA has no 
assurance preceding issuance of a standard airworthiness certificate 
that the individual aircraft produced conforms to the type design. Each 
aircraft must be individually evaluated, compared to type design data, 
and determined to be in condition for safe operation, which is often 
difficult to do. Even assuming the builder can meet this burden for 
each aircraft produced, the resulting burden on the FAA to make the 
evaluations is significant. Given the limited resources available to 
the FAA, such a process is unworkable.
    Also, since the builder does not hold a TC, several of the 
regulatory responsibilities of a TC holder do not apply. For example, 
without a TC, builders of new aircraft who apply for standard 
airworthiness certificates under paragraph (d) do not have to:
    1. Have access to the supporting data originally used to show 
compliance to the airworthiness standards;
    2. Provide instructions for continued airworthiness;
    3. Establish and maintain an FAA production approval;
    4. Report failures, malfunctions, or defects; and
    5. Develop design changes to address safety issues identified by an 
Airworthiness Directive.

As a result, safety may be compromised, or an undue burden placed on 
the FAA to oversee or independently fulfill these functions which 
legitimately should remain with the builder of the aircraft.
    Obtaining type and production certificates for manufacturing new 
products is a fundamental concept in the regulatory framework. Inherent 
in this concept is the entitlement for a PC holder to obtain a standard 
airworthiness certificate without further showing to the FAA. However, 
building new aircraft for the issuance of standard airworthiness 
certificates under Sec.  21.183(d) is not consistent with the 
regulatory framework or with the requirements for obtaining standard 
airworthiness certificates under Sec.  21.183(a), New aircraft 
manufactured under a production certificate or Sec.  21.183(b), New 
aircraft manufactured under type certificate only.
    As mentioned in the ``Background'' discussion, the FAA recognized 
this issue in 1966 when it first proposed a change to Sec.  21.183(d) 
to remove newly manufactured aircraft from its scope. In part, the FAA 
ended the 1966 rulemaking because the size of the problem was 
insignificant. But recent applications for standard airworthiness 
certificates for newly built aircraft under Sec.  21.183(d) show that 
the FAA must now address the issue.
    Lastly, another issue involves Annex 8 to the Convention on 
International Civil Aviation (ICAO Annex 8). Each standard 
airworthiness certificate issued to an aircraft contains the statement 
that the aircraft meets ICAO Annex 8 requirements allowing them to be 
eligible for export. ICAO Annex 8, Section 2.2.3, states, ``When 
approving production of aircraft or aircraft parts, a Contracting State 
shall ensure that it is performed in a controlled manner including the 
use of a quality system so that construction and assembly are 
satisfactory.'' The FAA is considering whether production and standard 
airworthiness certification of new aircraft under Sec.  21.183(d) meets 
ICAO quality system requirements. A change to Sec.  21.183(d), using 
the formal FAA production approval process, might be necessary to 
definitively ensure new aircraft production tracks this ICAO provision 
and the aircraft produced are eligible for export.

Proposed Definitions, Regulations, and Policy Changes

    This advance notice proposes the following new definitions and 
regulation and policy changes:

Definitions

    The FAA seeks public comments on the definitions of the following 
terms:
    Manufacturer means the person who holds (or has a license or 
similar rights to) the approved type certificate and who controls the 
quality of the product (aircraft, engine, propeller, or appliance) or 
article produced (or to be produced, in the case of an application), 
including the parts of them or any processes or services related to 
them that are procured from an outside source; and who holds a 
production approval issued by the FAA.
    New aircraft means an aircraft may be considered new as long as the 
manufacturer, distributor, or dealer retains ownership; if there are no 
intervening private owner, lease, or time-sharing arrangements; and the 
aircraft has not been used in any Armed Force, pilot school, or air 
taxi operation. Aircraft operated for conducting flight tests to meet 
the requirements for production flight testing are considered new.
    Spare part means an accessory, appurtenance, or part of an 
aircraft, aircraft engine, propeller, or appliance that is to be 
installed at a later time in an aircraft, aircraft engine, propeller, 
or appliance. An aircraft engine, propeller, or appliance is not 
considered a spare part to the next higher level assembly. A spare part 
must be produced under an appropriate FAA production approval.
    Surplus part means an accessory, appurtenance, or part of an 
aircraft, aircraft engine, propeller, or appliance that has been 
released as surplus by the military, manufacturer, owner/operator, 
repair facility, or any other parts supplier. An aircraft engine, 
propeller, or appliance is not considered a surplus part to the next 
higher level assembly. A surplus part must be produced under an 
appropriate FAA production approval or have been produced under 
contract to the Armed Forces.
    Used aircraft means aircraft with ``time in service'' that have 
held an airworthiness certificate or have been operated by the Armed 
Forces. ``Time in service'' does not include operations for the purpose 
of conducting production flight testing. Used aircraft do not include 
aircraft that have been classified as ``demolished'' on the National 
Transportation Safety Board (NTSB) Form 6120.1/2, Pilot/Operator 
Aircraft Accident Report.

Regulations and Policy Changes

    The FAA seeks public comments on the following possible changes. 
The FAA also seeks suggestions on other methods to address the problem.
    1. Amend 14 CFR part 21 to require a person to hold a TC (or 
license to it) and a production approval to be eligible for a standard 
airworthiness certificate for new aircraft manufactured in the United 
States. Standard airworthiness certificates will only be issued to 
these aircraft under existing Sec.  21.183(a), New aircraft 
manufactured under a production certificate, or Sec.  21.183(b), New 
aircraft manufactured under type certificate only.
    2. Amend 14 CFR part 21 to specify that only used aircraft will be 
eligible for standard airworthiness certificates under Sec.  21.183(d). 
Used aircraft that are eligible and would continue to be eligible under 
Sec.  21.183(d) include: a. Surplus military aircraft; and b. Used 
aircraft that have not had their airworthiness status maintained, which 
includes aircraft reassembled from spare and surplus parts.
    3. Revise the associated FAA policy and guidance to reflect the 
proposed changes in 1 and 2 above.
    These proposed changes would ensure the proper assignment of type

[[Page 16220]]

certificate and production approval holder responsibilities to the 
manufacturers of new aircraft produced in the United States. This 
advance notice does not propose any changes to Sec.  21.183(a), New 
aircraft manufactured under a production certificate, Sec.  21.183(b), 
New aircraft manufactured under type certificate only, or Sec.  
21.183(c), Import aircraft.

Economic Impact

    Proposed changes to Federal regulations must undergo several 
economic analyses. Executive Order 12866 directs each Federal agency to 
propose or adopt a regulation only if the agency makes a reasoned 
determination that the benefits of the intended regulations justify its 
cost. In addition, the Regulatory Flexibility Act of 1980, as amended, 
required agencies to analyze the economic impact of regulatory changes 
on small entities. Other analyses are also required.
    To aid the FAA in performing these analyses in the event that we 
propose a regulation, we request responses to the following questions:
    1. If you are manufacturing or assembling in the United States new 
aircraft that received standard airworthiness certification under Sec.  
21.183(d), or if you expect to apply for airworthiness certification 
under Sec.  21.183(d) to produce new aircraft'
    [sbull] What is the name of your company?
    [sbull] How many people does your company employ?
    [sbull] How many new aircraft certificated under Sec.  21.183(d) do 
you expect to produce in the future? If possible, give annual 
production estimates.
    2. If you are producing or plan to produce new aircraft that are or 
would be airworthiness certificated under Sec.  21.183(d), what do you 
estimate the cost of airworthiness certification under Sec.  21.183(a) 
or (b) would be relative to airworthiness certification under Sec.  
21.183(d)? Please be as specific as possible in identifying additional 
required tests, analyses, and demonstrations and their estimated costs.
    3. If you are producing or plan to produce new aircraft 
airworthiness certificated under Sec.  21.183(d), what do you estimate 
the cost of manufacture (per aircraft) would be if the aircraft were 
airworthiness certificated under Sec.  21.183(a) or (b) compared with 
airworthiness certification under Sec.  21.183(d)? Please be as 
specific as possible in identifying required changes in equipment, 
materials, and manufacturing methods and their estimated costs.
    4. If you are producing or plan to produce new aircraft 
airworthiness certificated under Sec.  21.183(d), and you had to wait 
for the FAA to issue the airworthiness certificate for each aircraft, 
what do you estimate the cost would be (per day) once the aircraft was 
ready for certification?
    5. Please provide any other specific information, data, or analyses 
that you believe may be useful in estimating the costs associated with 
a potential rulemaking action to preclude the standard airworthiness 
certification of new aircraft under Sec.  21.183(d).

    Issued in Washington, DC, on March 31, 2003.
John J. Hickey,
Director, Aircraft Certification Service, AIR-1.
[FR Doc. 03-8124 Filed 4-2-03; 8:45 am]
BILLING CODE 4910-13-P