Aircraft Certification Policy Letter (ACPL)

ACPL No.: 19
Issue No.:  1
Issue Date:  1998-01-01
AARD File:  5009-0-19

Aircraft Certification Policy Letter (ACPL)

Subject: CANADIAN AVIATION REGULATIONS PART 1, SUBPART 104 - IMPLEMENTATION

1.0 Background

1.1 Revised Canadian Aviation Regulations (CARs) Part 1, Subpart 104 effective January 1,1998, introduced significant changes with respect to the methodology used to establish the applicable fees for Class 1 aeronautical product type certification programs and the associated collection requirements.

1.2 Fees associated with aircraft/engine/propeller type certification programs will, in most cases, be determined by using an hourly cost base with the total amount not to exceed the maximum fees set out in CAR 104 Schedule V, items 1 to 8 inclusive, plus the payment of incremental costs where applicable. An appropriate software package and administrative procedures have been developed to tabulate specialist hours spent on specific projects which will be used to establish applicable fees associated with domestic and foreign type certification projects.

1.3 Fees associated with the issuance of supplemental certificates with respect to Canadian designed modification and repairs, including issuance of appliance type certificates remain the subject of fixed fees for the present time. Regional Managers Aircraft Certification (RMACs) are, however, urged to implement a time tracking system for the purpose of collecting data which could eventually serve as a tool in fee setting methodology.

1.4 Definitions: For the purpose of this ACPL, the terms "Supplemental Certificates" or "Supplemental Approvals" means a supplemental type certificate, a limited supplemental type certificate or a repair design certificate", as applicable.

2.0 Purpose

The purpose of this ACPL is to provide HQ/Regional Aircraft Certification personnel, including delegates with clarification regarding the implementation of CAR 104. 

3.0 Major Changes

The following provides a summary of major regulatory changes introduced with revised CAR 104, including pertinent clarification:

  1. Supplemental Approvals:
    1. CAR 104.05 specifies that the charge imposed by the subject regulation associated with a supplemental certificate is payable at the time the service is commenced.

      Note:

      This requirement equally applies to fees prescribed for supplemental certificates issued by delegates as outlined under item c) below.
    2. As directed by CAR 104.02, fees are payable where preparatory work has been carried out, whether or not the required certificate is issued.

      Note:

      This means that prescribed fees are still payable should the applicant withdraw his application once the review has been partially completed.
    3. Separate fees have been developed for certificates initially issued, or reissued by a delegate.

      Note:

      These separate fees specifically apply to Schedule V, items 12 and 14.
    4. Prescribed fees now apply to certificates issued for any aeronautical products regardless of their original source of type certification, e.g. Canadian or foreign.

      Note:

      The description outlined in Schedule V for items 11 and 12 no longer differentiates whether a modification or repair applies to Canadian or foreign designed and type certificated aeronautical products, consequently, the exemption criteria pertaining to foreign type certificated products outlined in APL no. 45 no longer applies. The subject APL has therefore been cancelled.
    5. Prescribed fees also apply to supplemental certificates applicable to State aircraft.

      Notes:
      1. As defined in the Aeronautics Act, "state aircraft means a civil aircraft owned by and exclusively used in the service of Her Majesty in right of Canada or in right of any province; (aéronef d'État)". Consistent with the above definition, this would include aircraft registered in the name of a Provincial or Federal Government Department or associated agencies e.g. Transport Canada, Royal Canadian Mounted Police, Environment Canada, Department of National Defence, Aircraft Services Directorate,etc.
      2. The former policy which exempted payment of fees for supplemental certificates on state aircraft has been rescinded. Civil Aviation has, however, recommended that no invoices be raised for supplemental certificates issued in the name of Aircraft Services Directorate (ASD) for modifications/repairs explicitly intended for installation on their own fleet. The responsible Aircraft Certification Office will, however, maintain a record of charges that should have been invoiced to ASD pursuant to CAR 104. Notwithstanding the relief specified above, Aircraft Services Directorate will be invoiced for.
        1. Supplemental certificates issued in its name for state aircraft being maintained by ASD although registered in the name of another department; and
        2. Supplemental certificates issued in its name for modifications/ repairs intended for commercial market or incorporation on non ASD r egistered aircraft.
      3. Organizations other than Transport Canada Aircraft Services Directorate will be invoiced for supplemental certificates issued on aircraft registered in the name of "GOVERNMENT OF CANADA, DEPARTMENT OF TRANSPORT" 
    6. CAR 104.06 specifies that incremental costs, where applicable shall be paid within 30 days after the submission of invoices.
    7. Recovery of incremental costs associated with the "type design examination" (formerly known as familiarization or airworthiness review of a foreign STC) is covered in the Civil Aviation Directive No.3 dated January 1, 1998 (Recovering The Costs Of Providing Non-Fee Services Outside Canada).s
  2. Issue of Two Supplemental Type Certificates Pertaining to the Same Activity
    In the case where the issuance of two separate supplemental certificates is required to satisfy the administrative procedures outlined in ASI No. 22, only the fees associated with the approval of the change in type design is to be collected. No fees are to be charged for the certificate covering the installation of the modified equipment on the selected aircraft.

    Examples
    - A modification made to an engine (STC SE.) and its follow-on installation on a given aircraft (STC SA.).
    - A modification made to a set of aircraft floats (STC SF.) and its follow-on installation on a given aircraft (STC SA.)
  3. Appliance Type Certificate (AP-TC)
    An application for the issue of an AP-TC is also subject to the payment of prescribed fees before the review commences. Since advance payment is still required for other types of type certification programs, the same criteria will apply to Appliance Type Certification projects. Regional recommendations made to HQ for the issue of required AP-TC as per ASI No. 31 should be supported with evidence of payment.

4.0 Airworthiness Review - Foreign Approvals

In light of TC revised acceptance criteria associated with modification/repair originally approved by a foreign airworthiness authority and in order to encourage the submission of data by foreign holders for review by TC, fees are not applicable for certificates issued by TC purposely to record the acceptance of foreign approvals as outlined in ACPL No. 6 (Review of Foreign STCs), ACPL 22 (Review of 337 FAA Field Approvals and ACPL 47 (Other Types of Foreign Approvals). This policy equally applies where additional data may have to be produced by the Canadian aircraft owner. 

5.0 Transition Criteria

5.1 All applications for an appliance type certificate (AP-TC) or a supplemental type certificate (STC) for which the review commenced prior to January 1, 1998 may be completed pursuant to former regulations. The applicable fees will be the lesser of the two amounts set out in the January 1, 1998 Schedule or the previous Schedule. Appendix A provides a listing of Schedule V items where lesser fees would apply.

5.2 Appendix B provides clarification/answers to verbal/e-mail questions raised by regional personnel since the publication of CAR 104. The clarification provided is consistent with the intents and provisions set out in new AWM chapter 513 published under Canada Gazette, Part 1 dated September 13, 1997.

6.0 Deliquent Clients

Applications received no later than December 31, 1997 from STC holders, who may have failed to pay invoices with respect to precedent projects, have to be processed in accordance with regulations in place prior to January 1, 1998. Such cases do not constitute legal grounds, as it might be perceived by some regional staff, to withhold review of additional projects and issuance of required certificates. Given that fees associated with applications received after January 1, 1998 are subject to payment prior to issuing the certificates, the possibility for additional delinquency should be virtually eliminated.

7.0 Collection Procedures

Regional Managers Aircraft Certification are expected to develop and implement a procedure required:

  1. for advising Regional Finance Department of fee collection requirements; and 
  2. to remit payment to Regional Finance Department for crediting in applicable government account, where submitted to the RMACs with the application.

Original signed by:

K.J. Mansfield
Director, Aircraft Certification

 

APPENDIX A

Corresponding Fees

SCHEDULE V  FEE SCHEDULE  FEE SCHEDULE
ITEMS  1 JAN. 98 PREVIOUS VERSION
10  $200 $75
11 (c) $600 $470
11 (d) $470 $600
12 (a) $220 $470
12 (b) $220 $470
12 (c) $220 $600
13 (a) $200 $90
13 (b) $200 $90
13 (c) $200 $90
14 (a) $180 $90
14 (b) $180 $90

REF: CAR 104.07 (1)

Note: 

The selection of the lower fee is only applicable for projects for which the review commenced prior to January 1, 1998. 

APPENDIX B

CAR 104 Schedule V - Itemized Description

ITEM  DESCRIPTION  CLARIFICATION
11  Issuance of the following supplemental approval certificates to record a modification or repair for which the design was approved by an employee of the Department of Transport Means a supplemental certificate issued by Regional or HQ Aircraft Certification representatives, for which the modification or repair is intended for installation on a Canadian registered aircraft or other types of aeronautical products regardless of their source of original type certification, i.e. Canadian or foreign.
11 (a) Issuance of a supplemental type certificate

Means an STC applicable to various types or models of aeronautical products with unlimited serial number applicability, and for which type certification may have been recorded under various TCs (Cdn or foreign) e.g. Cessna 180 (TC 5A6) Cessna 185 TC (3A24), Cessna 172R (DoT TC A-199)

11 (b)

Issuance of a limited supplemental type certificate (single product serial number).

Means an L/STC covering only one specific serial number of a given model or type of aeronautical product, e.g. Cessna Citation Ser. No.123, Reg'n: C-AAAA
11 (c) Issuance of a limited supplemental type certificate several product serial numbers. Means an L/STC covering several serial numbers of a given type or model of aeronautical products, owned or operated by the same person, i.e. a specific operator's fleet, e.g. five DHC-3 Otters operated by company : 19
11 (d) Issuance of a repair design certificate Means an RDC applicable to a specific serial number of a given type or model of aeronautical product, e.g. Cessna 185, Reg'n: C-1919
11 (e) Issuance of a repair design certificate (process repair) Means an RDC covering a repair scheme intended for repeated installation during the overhaul of major components, e.g. repair to turbine blades (see AWM paragraph 513.02 (2) ( c ) Info. Note (b) for further details.)
12 (a) Issuance of a limited STC (single product serial number) by a delegate of the Department of Transport Same application as stated for item 11(b), except that the issuance of the certificate is done by a delegate.

NOTE: DARs do not normally hold delegation to issue STC certificates, only L/STC or RDC

12 (b) A limited supplemental type certificate (several product serial number) Same application as stated for item 11 ( c ) except that the issuance of the L/STC is done by a delegate.
12 (c) Issuance of a repair design certificate Same application as stated for item 11 (d), except that the issuance of the RDC is done by a delegate.
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