Volume 12 INTERNATIONAL AVIATION
Chapter 13 STANDARDIZED Billing For Fees Collected Under Part
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
61.75 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
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.”
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
187.1. 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
65, Airman Certification;
Title 14 CFR Parts
147, Air Agency Certification;
14 CFR Part
183, Representative of the Administrator; and
14 CFR Part
187 Appendix A, Methodology for Computation of Charges.
AC 187-1 contains 80 activities conducted under the specific regulations
in 14 CFR parts
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
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
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,
· 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
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
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
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
· Receiving the FAA service, and
· The FAA inspector physically performs the service at a location outside the
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
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
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
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
· 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.
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
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),
· A letter to the applicant confirming termination of the certification process
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.