895 

Federal Aviation Administration, DOT 

Pt. 187, App. C 

amount of FAA paid hours needed to produce 
one hour of direct billable inspector time. 

(h) Certifications and approvals for which 

there are fixed times, such as airman tests, 
are determined by multiplying the time used 
in the Flight Standards Staffing Standard or 
airman test guidelines by the inspector hour-
ly billing rate. 

(i) Certifications and approvals for which 

there are no fixed work rates, such as airman 
and repair station facilities (air agencies), 
are billed at the hourly inspector billing 
rate. 

(j) Actual transportation and subsistence 

expenses incurred in certification or ap-
proval actions will be billed in addition to 
the hourly inspector billing rate, where such 
expenses are incurred. 

(k) In no event will the fees exceed the ac-

tual costs of providing certification or ap-
proval services. 

(l) The methodology for computing user 

fees is published in this Appendix. The User 
fee schedule is published in an FAA Advisory 
Circular entitled ‘‘Flight Standards Service 
Schedule of Charges Outside the United 
States.’’ A copy of this publication may be 
obtained from: New Orders, Superintendent 
of Documents, P.O. Box 371954, Pittsburgh, 
PA 15250–7954. 

(m) Fees will be reviewed every year, at 

the beginning of the fiscal year, and adjusted 
either upward or downward in order to re-
flect the current costs of performing tests, 
authorizations, certifications, permits, or 
ratings. 

(n) Notice of each change to a fee for a 

service described in the user fee schedule 
will be published in the ‘‘Notices’’ section of 
the F

EDERAL

R

EGISTER

. 

[Amdt. 187–5, 60 FR 19631, Apr. 19, 1995] 

A

PPENDIX

B 

TO

P

ART

187

[R

ESERVED

] 

A

PPENDIX

C 

TO

P

ART

187—F

EES

FOR

 

P

RODUCTION

C

ERTIFICATION

-R

E

-

LATED

S

ERVICES

P

ERFORMED

O

UT

-

SIDE THE

U

NITED

S

TATES

 

(a) 

Purpose. 

This appendix describes the 

methodology for the calculation of fees for 
production certification-related services out-
side the United States that are performed by 
the FAA. 

(b) 

Applicability. 

This appendix applies to 

production approval holders who elect to use 
manufacturing facilities or supplier facilities 
located outside the United States to manu-
facture or assemble aeronautical products 
after September 30, 1997. 

(c) 

Definitions. 

For the purpose of this ap-

pendix, the following definitions apply: 

Manufacturing facility 

means a place where 

production of a complete aircraft, aircraft 
engine, propeller, part, component, or appli-
ance is performed. 

Production certification-related service 

means 

a service associated with initial production 
approval holder qualification; ongoing pro-
duction approval holder and supplier surveil-
lance; designee management; initial produc-
tion approval holder qualification and ongo-
ing surveillance for production certificate 
extensions outside the United States; con-
formity inspections; and witnessing of tests. 

Supplier facility 

means a place where pro-

duction of a part, component, or sub-
assembly is performed for a production ap-
proval holder. 

Production approval holder 

means a person 

who holds an FAA approval for production 
under type certificate only, an FAA approval 
for production under an approved production 
inspection system, a production certificate, 
a technical standard order authorization, or 
a parts manufacturer approval. 

(d) 

Procedural requirements. 

(1) Applicants 

may apply for FAA production certification- 
related services provided outside the United 
States by a letter of application to the FAA 
detailing when and where the particular 
services are required. 

(2) The FAA will notify the applicant in 

writing of the estimated cost and schedule to 
provide the services. 

(3) The applicant will review the estimated 

costs and schedule of services. If the appli-
cant agrees with the estimated costs and 
schedule of services, the applicant will pro-
pose to the FAA that the services be pro-
vided. If the FAA agrees and can provide the 
services requested, a written agreement will 
be executed between the applicant and the 
FAA. 

(4) The applicant must provide advance 

payment for each 12-month period of agreed 
FAA service unless a shorter period is agreed 
to between the Production Approval Holder 
and FAA. 

(e) 

Fee determination. 

(1) Fees for FAA pro-

duction certification-related services will 
consist of: personnel compensation and ben-
efit (PC&B) for each participating FAA em-
ployee, actual travel and transportation ex-
penses incurred in providing the service, 
other agency costs and an overhead percent-
age. 

(2) Fees will be determined on a case-by- 

case basis according to the following general 
formula: 

W

1

H

1

+ W

2

H

2

etc., + T + O 

Where: 

W

1

H

1

= hourly PC&B rate for employee 1, 

times estimated hours 

W

2

H

2

= hourly PC&B rate for employee 2, 

etc., times estimated hours 

T = estimated travel and transportation ex-

penses 

O = other agency costs related to each activ-

ity including overhead. 

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