A new regulation has changed the destination control statement (“DCS”) that is required on all exports of PMA aircraft parts.
PMA aircraft parts are typically exported under the jurisdiction of the Commerce Department’s Bureau of Industry and Security (BIS). If you export aircraft parts, then the BIS regulations require a DCS. These regulations have been changed to harmonize the DCS to the same language as the ITAR DCS.
Te DCS is placed on each export control document that accompanies an export shipment. The export control documents that are required to show this statement include the invoice, the bill of lading, the air waybill, and any other export control document that accompanies the shipment from its point of origin in the United States to the ultimate consignee or end-user abroad.
This is sometimes known as the ‘non-diversion statement’ because the current version includes language stating that “diversion contrary to U.S. law is prohibited.” The purpose of the DCS was to alert parties outside the United States that the item is subject to the US export regulations.
The rules have always held that compliance with the comparable ITAR requirement was an acceptable means of compliance where the shipment included both ITAR and EAR-controlled articles. The comparable ITAR requirement requires slightly different language. Many people nonetheless found the different language in each regulation to be confusing.
The Commerce Department has changed their DCS language to harmonize it with the ITAR-required-language. This is meant to make compliance easier. Starting on the implementation date of the rule (November 15, 2016), exporters of articles subject to BIS jurisdiction (those with ECCNs) should use the following destination control statement on all exports:
“These items are controlled by the U.S. Government and authorized for export only to the country of ultimate destination for use by the ultimate consignee or end-user(s) herein identified. They may not be resold, transferred, or otherwise disposed of, to any other country or to any person other than the authorized ultimate consignee or end-user(s), either in their original form or after being incorporated into other items, without first obtaining approval from the U.S. government or as otherwise authorized by U.S. law and regulations”
In addition, the DCS should show the Export Commodity Classification Number (ECCN) for any 9×515 or ‘600 series’ (nx6nn) items being exported.
There are exceptions to this DCS requirement for EAR 99 exports and also for exports under license exceptions BAG (baggage) and GFT (gift parcels and humanitarian donations), but typically these do not apply to exports of PMA aircraft parts.
On Wednesday, the FAA sat down with industry to discussed what the next generation of the FAA will look like. The FAA has a very ambitious plan to change the way that aerospace manufacturing operates, and to make concurrent changes to the FAA itself to reflect these new paradigms.
“What we are talking about is a transformation in the way we do business”
— FAA Executive Chris Carter
The FAA’s goal is to have a more efficient way to perform certification. This should allows applicants (for approvals like TCs, STCs, PMAs, TSOAs, etc.) to have more control over the approval/certification schedule. But that control will come at a price – the FAA will expect the applicants to have a greater level of accountability for the design process.
At the root of the FAA’s changes is a transformation from compliance control (in which the FAA acts as a gatekeeper, accepting industry inputs and then judging the inputs for compliance) and moving to compliance assurance model. Companies would have their own compliance assurance systems which would help ensure that the company continues to maintain compliance with each new design. Instead of making a showing to the FAA, the company would make the showing to the resources within its own system, and then its won system would review the data and ensures continued compliance within the system. Under the compliance assurance model, instead of looking at data to assess compliance, the FAA will oversee the compliance systems of the companies. This means that each company would have a self-correcting system and the FAA’s job would be to ensures that the systems work.
One of the challenges facing the FAA is making this scalable. Scalable system will need to be able to fit the needs of the largest and the smallest companies, and will need to fit a range from mature businesses with robust systems to brand new market entries who do not yet have mature systems.
The FAA envisions a system that resembles a multi-lane swimming pool. The lanes will represent new companies that need significant FAA attention, mid-life companies who need FAA support but do not demand the same attention as new companies, and to mature companies with mature systems. The last category will be the “independent lane” and the FAA expects that there will be tremendous incentives to be in that lane, as it would permit a company to more independently pursue projects – without direct FAA involvement in certification that can slow a project down.
Chris Carter of the FAA stressed that industry needs to be a willing participant in order to make this work, because it will require industry to shoulder new burdens. If industry is not a partner then this will not work.
The FAA expects to have headquarters units under the reorganization that have very specific roles, like ensuring that changes are properly managed. Under the concurrent reorganization, it is expected that existing FAA field structure will be replaced with centers of excellence around the country. Those centers will report directly to headquarters. They will feature employees from many or all of the new divisions of aircraft certification. It is possible that PMA applicants may be directed to a center of excellence that is geographically distant from their location, but that robust communications are still expected using modern technologies.
There are many reasons for doing this, but one of them is the FAA’s awareness of the growing globalization of the market. Other countries are entering the market. Nations like Japan and China want to be part of the international discussions. A recent deal among four authorities (ANAC TCCA EASA and FAA) highlights the need for other nations to join the discussion as their citizens begin to develop airframes and engines.
The FAA’s transformation is still a work in progress, but as more ideas become solidified we hope to continue to bring the industr ynews of what the next generation of the FAA will look like.
For years MARPA has talked about opportunities that exist for PMA manufacturers willing to look for non-traditional customers. One of the most under-appreciated possibilities, and one that MARPA President Jason Dickstein has emphasized, is to act as a supplier to OEMs. OEMs are very often massive companies with a need for quality, reliable suppliers, and many MARPA members are ideally positioned to take advantage of OEM purchasing needs with high quality approved parts on the shelf and ready to ship.
The U.S. Department of Commerce is presenting a program on becoming a supplier to Embraer. Because many PMA companies are already manufacturing parts for Embraer aircraft, this may be an excellent opportunity to broaden your customer base for your Embraer parts.
The program will begin with a presentation made by Embraer representatives on how to initiate a relationship with Embraer. This presentation will be made by webinar on October 28, 2016. Participation in this introductory webinar is a mandatory part of the program, so if this is something your company may even be remotely interested in, you should plan to register and participate.
Interested companies will then be asked to fill out an online questionnaire from which Embraer engineers will evaluate companies and select suppliers for a second round of webinar discussions with Embraer’s engineering department. Embraer may then invite select companies for a further in-depth interview.
There is no cost to participate in this program, and it presents an opportunity to potentially expand parts sales. MARPA has often said that OEMs should be thought of as no different than air carriers from a customer perspective: they need parts, and we manufacture and sell great parts. This could be an excellent opportunity for MARPA members to diversify their customer base.
If this opportunity sounds like something your company may be interested in, you can register for the mandatory introductory webinar at the following link: http://2016.export.gov/california/losangelesdowntown/events/embraer/eg_us_ca_102435.asp.
14 C.F.R. 21.137(o) permits Production Approval Holders, like PMA companies, to issue their own 8130-3 tags for new parts (without recourse to a designee).
In order to issue 8130-3 tags, the Production Approval Holder (PAH) must develop and implement procedures addressing the selection, appointment, training, management, and removal of individuals authorized to issue 8130-3 tags. MARPA published a compliance checklist to aid our members last Fall, and it provides suggestions about how to draft the procedures. This was a members-only document so if you are a MARPA member and need a fresh copy of the checklist then please contact us directly.
On June 24, the FAA published additional guidance (Policy Number AIR100-16-110-GM16) to assist industry in using this new rule. Some key points raised in this new guidance include:
a. 14 CFR part 21, subpart L,
b. Applicable bilateral agreements,
c. Advisory Circular 21-2, Special Requirements of Importing Countries, Appendix 2, and
d. Chapters 1, 2, and 4 of FAA Order 8130.21, Procedures for Completion and Use of the Authorized Release Certificate, FAA Form 8130-3, Airworthiness Approval Tag.
e. The training must include potential differences in how the forms are issued for domestic vs. export use.
The revisions to the Maintenance Annex Guidance are requiring repair stations to increase their need for 8130-3 tags so it is important for PMA manufacturers to implement 21.137(o) programs to make those tags available.
If you are having problems implementing 8130-3 tag procedures because the local FAA office is not cooperating, then please let MARPA know so we can assist you.
As part of its ongoing drive to increase the export of U.S.-made PMA parts and increase global knowledge and understanding of PMA, MARPA has in the past few years traveled to Japan to speak with potential customers, government contacts, and manufacturing partners. MARPA is happy to announce that it will continue these efforts this year at the Japan International Aerospace Exhibition 2016, in Tokyo, Japan, October 12-15.
We have worked closely with long-time MARPA member and MARPA supporter Akira “Jay” Kato of JK Tech Consulting to make valuable contacts in Japan and discuss PMA at a very high level with Japanese customers and government officials. These efforts include both explaining and educating air carriers and their purchasing groups about PMA, as well as, importantly, promoting the use of PMA by discussing the safety, value, and reliability PMA provides.
These efforts are one prong of MARPA’s ongoing MDCP efforts supported by the U.S. International Trade Administration.
MARPA hopes to continue to make valuable contacts in the Japanese aviation community, and particularly to make additional inroads on behalf of the PMA industry with customers in Japan.
While MARPA always enthusiastically promotes the benefits of PMA where ever it goes, we would like to be able to provide a more targeted benefit to our members. We would therefore like to offer to our members the opportunity to display your marketing literature in the MARPA booth at the Japan International Aerospace Exhibition. This will allow us to direct visitors at the MARPA booth to those members who can best serve their needs or might be an ideal partner for future business.
If you would like to have your literature displayed in the MARPA booth this October in Tokyo, please contact Senior MARPA Program Manager Katt Brigham at firstname.lastname@example.org no later than September 30.
As our members know, MARPA has been working over the past two years with the U.S. Department of Commerce’s International Trade Administration (ITA) under its Market Development Cooperator Program (MDCP). Under the MDCP the ITA provided MARPA a $300,000 matching grant to help MARPA promote PMA around the world with the ultimate goal of increasing exports of U.S.-made PMA parts, with the additional benefit of potentially adding U.S. jobs.
One of the conditions of MARPA’s receipt of the MDCP grant is that we are required to report back to ITA on the increase in exports our members are seeing. These reports allow the ITA to demonstrate the results of the program to Congress and keep open the funding to support increasing U.S. exports in various industries around the world.
This requirement is why we need our members’ help. We need to hear from you to know if MARPA’s efforts are working, and if the PMA industry is seeing an increase in export sales. MARPA therefore needs your help in gathering data on new exports of PMA parts.
MARPA is always sensitive to its members’ business needs, so we want to assure you that any information provided to us will be kept confidential, and the only information that is shared with ITA will be the country of export and the value of the export, and no other sensitive business information or data.
We are asking that our members fill out the export survey found by following this link. MARPA needs to know the following information: for any exports that are traceable to a MARPA effort under the MDCP–the MARPA Europe Conference, the domestic MARPA Annual Conference, MARPA’s presence and promotion at trade shows around the world–to what country was the export (or contract for future sales), and what was the value of the export or future export?
That’s it! Just country and dollar value. We don’t need to know your customer’s name, the specific parts or product type involved, or any other detail. Even your company’s name will be kept anonymous unless you expressly tell us to release it to ITA.
If you wish to provide MARPA additional information so that we can better focus our efforts, of course we welcome it. But we only need for the sake of our MDCP requirements a report on export country and dollar value.
Please help MARPA fulfill its obligations to ITA under the MDCP. The ITA was generous in supporting MARPA with this grant so that we can increase our efforts to expand the global PMA market. MARPA needs to make good on its requirement to report back on our efforts and help ITA keep this valuable program going!
If you have questions about MARPA’s reporting obligations under the MDCP or wish to report export data directly rather than by using the survey form, feel free to email VP of Government and Industry Affairs Ryan Aggergaard directly at email@example.com. MARPA sincerely thanks our members in advance for their help!
As the MARPA dues year draws to a close at the end of June, it’s time to make sure your company’s MARPA dues are current.
MARPA has sent out notices and invoices for 2016-2017 dues. Additional dues information, such as the dues amount charged for member companies based on their size, is available on the MARPA webpage at http://www.PMAparts.org. You will also find a membership form here to authorize dues renewal by credit card.
If for some reason you did not get a dues invoice, or your invoice was incorrect, please call us and we will fix the problem. Please make sure you update your MARPA membership information and point of contact if necessary, as this information is a part of the Airline Guide to PMA publication that lists MARPA members with a short description of their focus. A number of air carriers have asked for information about where they can go to get PMA parts, and this will be the first step in providing tools for buyers of PMA parts. This MARPA publication is updated twice annually and distributed around the world at events and conferences, as well as to interested parties by request.
Don’t miss out on the great benefits provided by being a member of MARPA— pay your dues invoice today!
MARPA had the opportunity this week to attend the 2016 FAA-EASA International Aviation Safety Conference that was held in Washington, DC. The conference provides an opportunity for the regulatory agencies and industry to get together to discuss emerging issues in aviation safety and strengthen the cooperation between both the regulators themselves as well as the regulators and industry.
One notable panel discussed performance-based regulations (PBR) and their development, implementation and oversight as a part of the ongoing safety management adoption. The goal of PBR is essentially to retain the high level requirements and clearly establish what those high-level regulations are trying to achieve, while clearing out more detailed prescriptive regulations. Those detailed regulations would then be replaced by industry consensus standards.
In theory, this should clear the way for innovation by focusing more on ensuring a satisfactory outcome (that complies with the regulations) is the result, rather than focusing on prescriptive compliance-based rules. (How this exactly squares with a safety management system focused on systems and processes rather than the outcome per se is a conversation for another day.) Performance-based regulations can free the hands of regulated parties and avoid the trap of innovation stagnation in which companies are forced to design or produce in only limited ways in order to comply with the regulations.
Although moving to a PBR approach may be a laudable goal, the next panel demonstrated how challenging it may be for regulators to break free of deeply ingrained compliance-based approaches to oversight. Relevant to PMA manufacturers, the “fast-moving technologies” panel spent a significant amount of time discussing certification of projects using additive manufacturing techniques.
In theory, a PBR approach would be ideal for approving parts manufactured using emerging technology like additive manufacturing (AM). If a part can be produced using AM techniques (like 3D printing) that meets all the design requirements (dimensions, material composition, durability, etc) of a part that is traditionally machined, an outcome-focused approach like PBR claims to be should have no problem approving that part. Conversely, if a 3D printed part cannot be made to conform to the approved design, our quality assurance systems reject the part and we go back to the drawing board.
However, it became clear during that panel that we can expect to see more of the same compliance based review of processes in seeking to obtain approval of parts manufactured using emerging technologies like AM. Of course to borrow from Captain Renault I was shocked, SHOCKED to find that the OEM panelist expressed skepticism that “sub-tier” suppliers or those in the aftermarket were capable of producing approved parts using these methods. But of greater concern was his statement that the regulators might also question that ability.
Part of this concern on the part of the regulators arises from the fact that the regulators themselves do not fully understand technologies like AM yet. The FAA is currently working with industry to determine what controls will need to be in place and what the oversight requirements will be with respect to AM. It will therefore be very important for any PMA manufacturer seeking to use new techniques to manufacture parts to engage the FAA early in the process and demonstrate to the FAA its competence with the technique. This may involve educating the FAA in some cases (and refuting the implications of some larger OEMs that only they know the “special sauce” of new technology).
This much was supported by FAA AIR-1 Dorenda Baker, when she explained that the key to getting approval when relying on new technology is ensuring an understanding on both sides. The FAA needs to be brought into the process very early on. When the FAA is brought in at the last minute, problems and confusion can arise, because what might seem clear to the applicant, who has been working with the technology for months or even years, can seem confusing to the regulator seeing it in action for the first time. Ms. Baker explained that we don’t want questions being asked for the first time, or engineers trying to understand new processes, at the time of certification. We, as applicants relying on new manufacturing techniques, need to engage the FAA early and often.
Of course this is somewhat inconsistent with a performance-based approach. As we mentioned above, if the goal of PBR is to ensure an outcome that satisfies high-level regulations, it should be less important how we get to the result than that we obtain a satisfactory result. A need on behalf of the regulator to understand fully the processes by which we obtain the result is more consistent with systems oversight (their stated goal) but doesn’t square perfectly with a PBR approach.
Nonetheless, it thus becomes clear that the PMA industry will have to fight this battle of fast moving technology on two fronts: First, we will have to (again) battle against an OEM-driven (mis)perception that only OEMs are capable of understanding and safely applying emerging technologies like additive manufacturing. Second, we will have to work very closely with the regulators to continuously demonstrate our competence and expertise in applying these technologies, and in effectively implementing systems that consistently produce the desired outcome.
There is a lot happening right now; from fundamental shifts in the role regulators play to the way we design and manufacture parts. By frequently engaging with the regulators we are able demonstrate our competence and abilities (simultaneously refuting any implications by competitors to the contrary) and keep the regulators closely engaged so that the certification process moves smoothly and we are able to nimbly adapt to changes as they happen.
MARPA will continue to keep you updated as old regulations change and new regulations emerge.
As readers of this blog and attendees at MARPA events know the FAA, specifically the Engine and Propeller Directorate, has been releasing a significant number of PMA-related advisory circulars of late. Currently open for comment is AC 33.15-3 Parts Manufacturer Approval (PMA) Metallic Part Material Compliance Using Comparative Test and Analysis Method for Turbine Engines or Auxiliary Power Units. This is a highly complex draft advisory circular that has the potential to affect many MARPA members and the PMA industry as a whole.
MARPA plans on submitting comments on this advisory circular, but we need the assistance and expertise of the MARPA community to make sure we identify all the possible issues that may have an adverse effect on the PMA industry.
I know that some of our members have already looked at this and have begun to identify issues. For those who have not yet had the opportunity, please take the time to review the draft language and identify any issues and possible solutions you see. Please provide any comments you identify to MARPA so that we can include them in our comments that we will submit to the FAA.
The AC is fairly lengthy document, so it may take some time to get through. Because of this complexity, we would like to have all of your comments in well in advance of the July 20, 2016 comment due date. MARPA therefore requests that any comments you identify are provided to us as quickly as possible, and in any case no later than July 8. This should give us ample time to compile all of your comments into a single comment submission on behalf of the members. It will also give us time to circulate our comments back to both the MARPA Technical Committee and MARPA Board for review.
This is a complex and weighty document, so if you plan on reviewing and submitting comments to MARPA or submitting comments on behalf of your company, we encourage you not to wait until the last minute to review the draft AC.
Please email your comments to VP of Government and Industry Affairs Ryan Aggergaard at firstname.lastname@example.org.
Don’t forget to register today for the 2016 MARPA PMA Conference! The Super Saver discount for renewing MARPA members expires May 27th, so register today and save!
The 2016 MARPA Conference has a lot of opportunities to offer! Learn about the newest developments in international PMA markets like Japan, Latin America, and Europe. Dive into recent COS updates and Part 21 regulatory changes to educate your company. Find the financial strategy you need to guide your company through the PMA landscape. Take advantage of built-in networking opportunities! Your customers will be there… will you?
To register, just click here for a registration form and hotel information. If you have any questions, contact MARPA by calling (202) 628-6777. We look forward to seeing you at our NEW venue- The B Resort & Spa in Orlando, Florida.