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 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 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 (PC&B) 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-by-case basis according to the following general formula: