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 hourly 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 approval 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 actual costs of providing certification or approval 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 reflect 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 FEDERAL REGISTER.
[Amdt. 187-5, 60 FR 19631, Apr. 19, 1995]

APPENDIX B TO PART 187

[RESERVED]

APPENDIX C TO PART 187 - FEES FOR
PRODUCTION
CERTIFICATION-RELATED SERVICES PERFORMED OUTSIDE THE UNITED STATES
(a) Purpose. This appendix describes the
methodology for the calculation of fees for
production certification-related services outside 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 manufacture or assemble aeronautical products
after September 30, 1997.
(c) Definitions. For the purpose of this appendix, the following definitions apply:
Manufacturing facility means a place where
production of a complete aircraft, aircraft
engine, propeller, part, component, or appliance is performed.

Production certification-related service means
a service associated with initial production
approval holder qualification; ongoing production approval holder and supplier surveillance; designee management; initial production approval holder qualification and ongoing surveillance for production certificate
extensions outside the United States; conformity inspections; and witnessing of tests.
Supplier facility means a place where production of a part, component, or subassembly is performed for a production approval 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 certificationrelated 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 applicant agrees with the estimated costs and
schedule of services, the applicant will propose to the FAA that the services be provided. 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 production certification-related services will
consist of: personnel compensation and benefit (PCSectionB) for each participating FAA employee, actual travel and transportation expenses incurred in providing the service,
other agency costs and an overhead percentage.
(2) Fees will be determined on a case-bycase basis according to the following general
formula:
W1H1 + W2H2 etc., + T + O
Where:
W1H1 = hourly PCSectionB rate for employee 1,
times estimated hours
W2H2 = hourly PCSectionB rate for employee 2,
etc., times estimated hours
T = estimated travel and transportation expenses
O = other agency costs related to each activity including overhead.

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