[Federal Register Volume 67, Number 210 (Wednesday, October 30, 2002)]
[Rules and Regulations]
[Page 66071]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-27734]


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DEPARTMENT OF TRANSPORTATION

Transportation Security Administration

49 CFR Part 1511

[Docket No. TSA-2002-11334]
RIN 2110-AA02


Aviation Security Infrastructure Fees

AGENCY: Transportation Security Administration (TSA), DOT.

ACTION: Final waiver of audit submission requirements.

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SUMMARY: TSA is issuing this document to inform all air carriers and 
foreign air carriers that, under certain conditions, it will defer 
enforcement of the independent audit submission deadline set forth in 
the regulations on Aviation Security Infrastructure Fees. This will be 
the final such deferral.

DATES: Under the conditions described in this document, TSA is allowing 
air carriers and foreign air carriers until December 31, 2002 to 
finalize and submit to TSA the independent audits required by 49 CFR 
part 1511.

FOR FURTHER INFORMATION CONTACT: For guidance on technical matters 
contact Randall Fiertz, Acting Director of Revenue, (202) 385-1209. For 
guidance on legal or other matters contact Steven Cohen, Office of 
Chief Counsel, (202) 493-1216.

SUPPLEMENTARY INFORMATION: In order to offset the costs of providing 
civil aviation security services, TSA published in the Federal Register 
an interim final rule (67 FR 7926; February 20, 2002), codified at 49 
CFR part 1511, that imposed the Aviation Security Infrastructure Fee on 
air carriers and foreign air carriers engaged in air transportation, 
foreign air transportation, and intrastate air transportation.
    Sections 1511.5 and 1511.7 require these carriers to provide TSA 
with certain information on their costs related to screening passengers 
and property incurred in 2000. This information was due to be received 
by TSA by May 18, 2002. Section 1511.9 requires each such carrier to 
provide for and submit to TSA an independent audit of these costs, 
which were due to be received by TSA by July 1, 2002.
    As reflected in the public docket on the Aviation Security 
Infrastructure Fee regulation, TSA-2002-11334, as available online at 
http://dms.dot.gov, TSA denied several requests that it alter the audit 
requirement and extend the July 1, 2002 audit deadline.
    However, on three occasions TSA has announced that it would 
temporarily defer enforcement of the audit submission deadline against 
carriers that meet certain criteria related to the fees by certain 
dates. These criteria are that the carriers must make timely and proper 
fee payments, must submit any necessary revisions to their part 1511 
Appendix A submission(s), and must remit all adjusted fee payments 
retroactive to February 18, 2002. The first announcement appeared in 
TSA's ``Guidance for the Aviation Security Infrastructure Fee,'' as 
published in the Federal Register on May 1, 2002 (docket item no. 20). 
The second announcement was in TSA's July 24, 2002, response letter to 
the Air Transport Association (docket item no. 35). The third such 
announcement, which extended this conditional waiver of enforcement of 
the regulation's audit submission deadline until October 31, 2002, was 
published in the Federal Register on September 4, 2002 (docket item no. 
39).
    TSA's motivation in allowing additional time for the carriers to 
provide for and submit independent audits of their Appendix A 
submissions has been twofold. First, the agency was responding to 
numerous public requests for more time to allow the carriers to conduct 
proper audits. Second, TSA was allowing for time for the 107th Congress 
to consider one of the Department of Transportation's proposed 
technical corrections to Section 118 of the Aviation and Transportation 
Security Act (Pub. L. 107-71), codified at 49 U.S.C. 44940. Among other 
changes, this proposed correction would have revised the current fee 
structure by setting the total fee at a flat amount that would then be 
apportioned among air carriers and foreign air carriers by TSA 
according to market share or another appropriate method, beginning in 
fiscal year 2003. This revision would have eliminated the need for each 
carrier to provide TSA with an independent audit of its Appendix A 
submissions regarding their calendar year 2000 costs related to 
screening passengers and property.
    To date, Congress has not acted on this proposal. Because it now 
appears unlikely that this proposed revision will be enacted during the 
current session of Congress, TSA is issuing this document to allow time 
for carriers to finalize and submit to TSA the independent audits 
required by 49 CFR part 1511. By this document, under the above 
conditions, TSA extends the current temporary deferral of enforcement 
for air carriers and foreign air carriers whose independent audits are 
received by TSA on or before December 31, 2002. TSA is neither waiving 
nor deferring enforcement of any other requirement set forth in 49 
U.S.C. 44940 or 49 CFR part 1511. Absent relevant statutory change 
prior to December 15, 2002, please note that TSA will not grant further 
general deferrals or waivers of the independent audit submission 
requirement. Air carriers and foreign air carriers that are not in 
compliance after December 31, 2002, will be subject to civil 
enforcement and other appropriate actions.

    Issued in Washington, DC, on October 28, 2002.
James M. Loy,
Acting Under Secretary of Transportation for Security.
[FR Doc. 02-27734 Filed 10-28-02; 3:04 pm]
BILLING CODE 4910-62-P