8/26/13

 

8900.1 CHG 284

Volume 12 INTERNATIONAL AVIATION

Chapter 13 STANDARDIZED Billing For Fees Collected Under Part 187

Section 1 General Policy Guidance

12-684    PURPOSE. This section establishes a standardized method of distributing travel charges associated with billable events under the current edition of Advisory Circular (AC) 187-1, Flight Standards Service Schedule of Charges Outside the United States, including fee billing, tracking, and processing of related payments.

A.    Authority. The user fees specified in Title 14 of the Code of Federal Regulations (14 CFR) part 187 appendix A and AC 187-1 are based on statutory language contained in Title 49 of the United States Code (49 U.S.C.), § 45301, which allows the Federal Aviation Administration (FAA) to charge for the airman and air agency services “provided to any entity obtaining services outside the United States.” The legislative history behind the enabling of statutory authority makes it clear that the intent was to charge for services performed outside the United States. This authority also allows the FAA to charge for desk work completed domestically to support a certificate outside the United States, such as an air agency certificate or renewal of a designated Representative of the Administrator (designee). The FAA may not charge for “one-time event” airman items, such as 14 CFR part 61, § 61.75 or § 61.77 issuances or review of tests, approvals, or ratings given by designated examiners and evaluators when the FAA performs the service inside the United States.

B.    Definition of “the United States.” Title 49 U.S.C., § 40102(a)(46) defines the United States as “the States of the United States, the District of Columbia, and the territories and possessions of the United States, including the territorial sea and the overlying airspace.”

12-685    SCOPE.

A.    Applicability. This section applies to all Flight Standards Service (AFS) offices or units that are required to assess charges for services and approvals performed outside the United States and that are billable under the provisions of part 187, § 187.1. Volume 12, Chapter 13, Section 2, contains instructions on standardized fee preparation, billing, and accounting instructions for AFS offices on fees collected under part 187 appendix A and AC 187-1. Per the regulation, AC 187-1 contains the fee schedule. Generally, these charges refer to:

·     Title 14 CFR Parts 61, 63, and 65, Airman Certification;

·     Title 14 CFR Parts 141, 142, 145, and 147, Air Agency Certification;

·     Title 14 CFR Part 183, Representative of the Administrator; and

·     Title 14 CFR Part 187 Appendix A, Methodology for Computation of Charges.

B.    Activities. AC 187-1 contains 80 activities conducted under the specific regulations in 14 CFR parts 43, 61, 63, 65, 67, 91, 121, 125, 133, 135, 137, 141, 142, 145, 147, and 183. These activities or services require a fee when performed outside the United States. In some instances, a fee can be charged for services performed inside the United States to support a certificate held outside the United States.

1)    Due to the underlying legislative authority, there are some instances where an AFS office located outside the United States may charge for an activity when a domestic AFS office may not be able to charge for performing the same service. Consequently, all AFS offices should use the direction contained in this document to determine when to charge a fee for activities performed under AC 187-1.
2)    The direction provided in this guidance was developed from frequently asked questions from the primary AFS offices involved in the collection of fees under AC 187-1.

C.    Organization. Each section provides the actions to follow in order to assess fees properly. This contains the actual policy that applies to the situation.

1)    Fees are organized as follows:
a)    General direction that applies to all fees;
b)    Application of the hourly inspector rate, flat fees, and the collection of transportation and subsistence;
c)    Airman certification activities;
d)    Air agency certification activities; and
e)    Sample scenarios for assessing fees.
2)    Sample scenarios follow the procedures and policy explanations in AC 187-1. These scenarios present real situations that AFS International Field Offices (IFO), International Field Units (IFU), and Flight Standards District Offices (FSDO) face on a regular basis. A response to the question or situation accompanies each scenario. There is a cross-reference to the policy governing this particular scenario.

D.    Determination of When to Charge a Fee for Airman or Air Agency Services Located Outside the United States. Due to the statutory authority basis for charging fees under AC 187-1, AFS may or may not charge a fee for airman certification services.

1)    This is dependent on:

·    The nature of the service,

·    The physical location of the airman at the time of receipt of the FAA service, and

·    The physical location where the AFS employee performs the work.

2)    Thus, AFS foreign-based offices are able to charge for the full range of services provided by AC 187‑1, while AFS domestic-based offices have limitations on what they can charge.

12-686    POLICY.

A.    Outside the United States. Inspectors based in AFS offices located outside the United States may charge for the full range of services provided in AC 187-1.

B.    Inside the United States. Inspectors based in AFS offices located inside the United States:

1)    May not charge for services physically performed while in their domestic-based office, such as:

·    Approvals of designee work;

·    Issuance of special purpose authorizations; or

·    Issuance of airman certificates based on a foreign license or certificate.

2)    May charge for initial, renewal, and other inspections required to support a certificate of designation or inspections to support an air agency certificate located outside the United States.
3)    May charge for desk work required to support an air agency certificate.
4)    May charge for transportation and subsistence when outside the United States, including leaving from a domestic location, to perform the services listed in AC 187-1.

12-687    CHARGES.

A.    One-Time Event Airman Services.

1)    Charges are permitted for one-time event airman services if the airman is physically located outside the United States when:

·    Receiving the FAA service, and

·    The FAA inspector physically performs the service at a location outside the United States.

NOTE:  A domestic-based FAA inspector may charge for services if the inspector performs the service at a location outside the United States.

2)    Charges are not permitted for one-time event airman services for persons located or living outside the United States when:

·    An individual living outside the United States physically comes into an FAA domestic office to receive a service, or

·    An individual located outside the United States mails paperwork that requires FAA review and approval under the guidelines found in AC 187-1 to an FAA domestic office.

B.    Certificate Support. Charges are permitted for certificate support of certificates held by air agencies or designees located outside the United States, regardless of the home office location of the FAA inspector. This includes:

·    Onsite initial or renewal inspections, and

·    Desk work performed at the office in support of the certificate.

C.    Transportation and Subsistence Charges. Charges are permitted for transportation and subsistence for services physically performed outside the United States, regardless of the home office location of the FAA inspector.

1)    The conduct of an en route inspection when performing services outside the United States for which the AFS office will collect a user fee is not permitted. AFS inspectors are expected to purchase the appropriate ticket(s) to reach the destination of the applicant or certificate holder and include the cost of any ticket(s) and associated travel time in the bill.
2)    Although it might seem practicable from a work standpoint to use an en route when the opportunity is available, doing so would cause an intended subsidy by the U.S. air carrier to the certificate holder in the foreign location. It also gives the appearance of favoritism to the applicant or FAA certificate holder at a foreign location as using an en route as a means to reduce the travel cost to the certificate holder.

12-688    CHARGEABLE EVENTS OUTLINED IN AC 187-1.

A.    Types of Charges. Charges in AC 187-1 are broken into three types:

·    Transportation and subsistence charges,

·    Airman certification, and

·    Air agencies (fixed charges for approvals or authorization for airman or designees and hourly rates for agencies).

B.    Methods of Charging. Of these three areas, two are charged in two different methods:

·    Fixed charges are set in part 187 for airmen.

·    Hourly charges are set in part 187 for air agencies.

12-689    FEE COLLECTION.

b . Per § 187.15, the certificate holder should make a payment by one of the following methods prior to the provision of any service under part 187:

·    Check,

·    Money order,

·    Wire transfer,

·    Draft, or

·    Credit card.

B.    Preferred Method. The preferred method of fee collection is through Pay.gov (http://pay.gov), which is an electronic commerce collection system managed by the U.S. Department of Treasury. All AFS offices collecting user fees should either be using the Pay.gov system or be in transition to its use. The use of Pay.gov allows crediting of user fee receipts to the FAA/AFS operations within a matter of days. The Quality Management System (QMS) Process AFS‑001-000-W2, AFS AC 187-1, As Amended, Fee Payment and Processing, contains instructions for the use of Pay.gov.

C.    When to Collect Fees for Services. The AFS office must collect the fees prior to the service provided to support the initial issuance of an FAA certificate. For air agency actions, the AFS office should collect an advance deposit of approximately half the estimated final bill for the service before the inspection visit, and collect the remainder of the final bill before issuance or reissuance of the air agency certificate. The certificate holder should deposit the fee in accordance with part 187, IFO procedures, and AFS‑001-000-W2.

NOTE:  All activities associated with inspections (sometimes referred to as “surveillance” inspections) related to applicants for initial issuance or certificate holders for renewal are chargeable as part of the certification activity in accordance with part 187. In addition, do not issue the certificate or approval until the AFS office has collected all fees.

1)    If the AFS office does not receive the fee within a reasonable period of time, it should advise the certificate holder in writing that certificate action may be required if the certificate holder does not send the fee as soon as possible.
2)    The AFS office should establish office policy regarding timeframes and procedures for fee payments. The AFS office should be familiar with local mail and electronic transaction timeframes.
Indicates new/changed text.

D.    Renewing a Part 145 Repair Station Located Outside the United States and its Territories and Not Under a Maintenance Implementation Procedure. No fee deposit is required for renewal of a certificate. However, during the certification phase, the inspector will confirm that the appropriate FAA fee has been paid in its entirety in accordance with part 187 and AC 187-1.

12-690    PROCEDURES.

A.    Recording Time Expended. All inspector hours expended in support of certification/renewal or inspection of air agencies/entities are recorded on the SharePoint Single Trip Accounting Form specific to that agency. Each time an individual inspector works on any billable task for a specific agency, he or she must add the time expended to the agency’s specific Air Agency Master Accounting Form. All accumulated time autofills into the Master Accounting Form at the bottom of the page, assuring accurate calculations for billing. This requirement continues throughout the billing cycle until such time as the inspectors complete all tasks and the AFS offices collect all fees. This will result in one of the following completions:

·    Issuance of a certificate and operations specification (OpSpec),

·    A letter to the applicant indicating denial of the certificate (as applicable), or

·    A letter to the applicant confirming termination of the certification process (as applicable).

B.    Instructions for Form Completion. Volume 12, Chapter 13, Section 2, contains instructions for form completion. SharePoint accounting forms are available at https://avssharepoint.faa.gov/afs/50/default.aspx.

C.    Annual Budgeting for User Fees. Return collected fees, by law, to the FAA/AFS operations budget. Each year, in preparation for the next year’s budget submission, the Financial Resources Management Branch (AFS‑120) will request an estimated amount of user fees that AFS offices anticipate collecting in the upcoming fiscal year. The Organizational Resources and Program Management Division (AFS‑100) budget office will advance funding to the regional division for the appropriate field office to perform services outside the United States in accordance with AC 187-1. Once collected, return fees to AFS‑100.

RESERVED. Paragraphs 12-691 through 12-706.