[Federal Register Volume 70, Number 1 (Monday, January 3, 2005)]
[Rules and Regulations]
[Pages 240-247]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-28388]



[[Page 239]]

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Part IV





Department of Transportation





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Federal Aviation Administration



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14 CFR Parts 47 and 49



Cape Town Treaty Implementation; Final Rule

  Federal Register / Vol. 70, No. 1 / Monday, January 3, 2005 / Rules 
and Regulations  

[[Page 240]]


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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Parts 47 and 49

[Docket No. FAA-2004-19944; Amendment Nos. 47-27 and 49-10]
RIN 2120-AI48


Cape Town Treaty Implementation

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Final rule with opportunity to comment on information 
collection requirements.

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SUMMARY: The FAA is revising the regulations concerning registering 
aircraft and recording security documents. The Cape Town Treaty 
establishes a new International Registry for registering interests 
against certain aircraft and aircraft engines. Section 4 of the Cape 
Town Treaty Implementation Act of 2004 requires the FAA to make certain 
changes. This action will enable persons to transmit information to the 
new International Registry concerning certain aircraft and aircraft 
engines by making the FAA Aircraft Registry the U.S. authorizing entry 
point to the International Registry. We are also making unrelated 
technical changes to other portions of the regulations in this 
document.

DATES: These amendments become effective concurrent with the date the 
Cape Town Treaty enters into force with respect to the United States, 
except for subpart F of part 49 which contains information collection 
requirements that are not effective until approved by the Office of 
Management and Budget. FAA will publish a document announcing the 
effective date of this final rule.
    Send your comments on the information collection requirements on or 
before March 4, 2005.

ADDRESSES: You may send comments on the information collection 
requirements [identified by Docket Number FAA-2004-19944] using any of 
the following methods:
     DOT Docket Web site: Go to http://dms.dot.gov and follow 
the instructions for sending your comments electronically.
     Government-wide rulemaking Web site: Go to http://www.regulations.gov and follow the instructions for sending your 
comments electronically.
     Mail: Docket Management Facility; U.S. Department of 
Transportation, 400 Seventh Street, SW., Nassif Building, Room PL-401, 
Washington, DC 20590-001.
     Fax: 1-202-493-2251.
     Hand Delivery: Room PL-401 on the plaza level of the 
Nassif Building, 400 Seventh Street, SW., Washington, DC, between 9 
a.m. and 5 p.m., Monday through Friday, except Federal holidays.
     Mail: Office of Information and Regulatory Affairs, OMB, 
New Executive Building, Room 10202, 725 17th Street, NW., Washington, 
DC 20053, Attention: Desk Officer for FAA.
    For more information on the rulemaking process, see the 
SUPPLEMENTARY INFORMATION section of this document.
    Privacy: We will post all comments we receive, without change, to 
http://dms.dot.gov, including any personal information you provide. For 
more information, see the Privacy Act discussion in the SUPPLEMENTARY 
INFORMATION section of this document.
    Docket: To read background documents or comments received, go to 
http://dms.dot.gov at any time or to Room PL-401 on the plaza level of 
the Nassif Building, 400 Seventh Street, SW., Washington, DC, between 9 
a.m. and 5 p.m., Monday through Friday, except Federal holidays.

FOR FURTHER INFORMATION CONTACT: Mr. Mark D. Lash, Civil Aviation 
Registry, Mike Monroney Aeronautical Center, 6500 South MacArthur 
Blvd., Oklahoma City, OK 73169, telephone (405) 954-4331.

SUPPLEMENTARY INFORMATION:

Availability of Rulemaking Documents

    You can get an electronic copy using the Internet by:
    (1) Searching the Department of Transportation's electronic 
DocketManagement System (DMS) Web page (http://dms.dot.gov/search);
    (2) Visiting the Office of Rulemaking's Web page at http://www.faa.gov/avr/arm/index.cfm; or
    (3) Accessing the Government Printing Office's Web page at http://www.access.gpo.gov/su_docs/aces/aces140.html.
    You can also get a copy by submitting a request to the Federal 
Aviation Administration, Office of Rulemaking, ARM-1, 800 Independence 
Avenue SW., Washington, DC 20591, or by calling (202) 267-9680. Make 
sure to identify the amendment number or docket number of this 
rulemaking.
    Anyone is able to search the electronic form of all comments 
received into any of our dockets by the name of the individual 
submitting the comment (or signing the comment, if submitted on behalf 
of an association, business, labor union, etc.). You may review DOT's 
complete Privacy Act statement in the Federal Register published on 
April 11, 2000 (Volume 65, Number 70; Pages 19477-78) or you may visit 
http://dms.dot.gov.

Small Business Regulatory Enforcement Fairness Act

    The Small Business Regulatory Enforcement Fairness Act (SBREFA) of 
1996 requires FAA to comply with small entity requests for information 
or advice about compliance with statutes and regulations within its 
jurisdiction. If you are a small entity and you have a question 
regarding this document, you may contact your local FAA official, or 
the person listed under FOR FURTHER INFORMATION CONTACT. You can find 
out more about SBREFA on the Internet at http://www.faa.gov/avr/arm/sbrefa.cfm.

The Cape Town Treaty

    The Cape Town Treaty \1\ (the Treaty) creates a new international 
legal framework to give greater security to those who finance the 
purchase of aircraft, aircraft engines and certain helicopters. The 
financing provisions of the Treaty are fully consistent with current 
U.S. law under the Uniform Commercial Code. The Treaty establishes an 
International Registry where rights in aircraft, aircraft engines, and 
helicopters may be registered. The sole purpose of this registry is to 
establish the priorities between competing interests against certain 
aircraft and aircraft engines. There are no safety, oversight, or other 
regulatory implications. The existing FAA Aircraft Registry will be 
preserved and work in tandem with the new International Registry.
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    \1\ The full name of the Treaty is the Convention on 
International Interests in Mobile Equipment and the Protocol on 
Matters Specific to Aircraft Equipment. We have placed a copy of the 
Treaty in the docket for this rulemaking.
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    The Treaty represents an advance in international aviation 
financing and will be beneficial to U.S. aviation and aerospace 
interests. Key Federal agencies concerned with civil aviation and U.S. 
exports, including the FAA, the Export-Import Bank of the United 
States, and the Departments of Commerce, State, and Transportation, 
support the Treaty.
    An important difference between the FAA Aircraft Registry and the 
new International Registry is that parties having recordable interests 
in U.S. aircraft and related equipment file their complete documents 
relating to the interest with the FAA Registry, while they will file 
only electronic notices of such interests with the International 
Registry.
    The Treaty enters into force three months after the eighth country 
deposits

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formal instruments with the International Institute for the Unification 
of Private Law (Unidroit) depositary in Rome. To date, five countries, 
including the United States, have deposited instruments of 
ratification. The United States Senate approved the Treaty on July 21, 
2004. On October 28, 2004, the United States deposited its instruments 
of ratification and adoption with Unidroit in Rome. It is anticipated 
that ratification by at least three more countries will follow shortly.

The Cape Town Treaty Implementation Act

    On August 9, 2004, the President signed the Cape Town Treaty 
Implementation Act of 2004, Public Law 108-297, which requires 
conforming changes to the regulations concerning registration and 
deregistration of aircraft. The Act designates the FAA Aircraft 
Registry as the U.S. entry point to the International Registry relating 
to civil aircraft of the United States, aircraft for which a United 
States identification has been assigned (but only with respect to 
notices of prospective assignments, interests, and sales), and aircraft 
engines.
    The Act also provides for the filing of notices of prospective 
interests. Under the Treaty, priority is established by the date of the 
filing of the notice of prospective interest. The FAA must establish a 
system for filing such notices and authorizing the parties to transmit 
information to the International Registry. Under section 3 of the Act, 
the filing of a notice of prospective assignment, interest or sale with 
the FAA Aircraft Registry and registration with the International 
Registry is not valid unless the parties subsequently file with the 
FAA, within 60 days, their recordable documents relating to the notice.
    The Act also makes conforming amendments to existing law to 
recognize the application of the Treaty. It allows recording with the 
FAA against slightly less powerful engines to be consistent with the 
threshold requirements of the Treaty. It directs the FAA to immediately 
prescribe regulations for the registration and deregistration of 
aircraft according to the terms of the Treaty. The FAA is to complete 
the rulemaking by December 31, 2004 under an expedited process without 
preparing an economic analysis of the cost and benefits associated with 
the rule. To provide legal certainty and clarity during the rulemaking 
process, the Act expressly provides that the Treaty applies to those 
matters covered by the rulemaking until the final rule is effective, or 
December 31, 2004, whichever is earlier.
    The amendments made by the Act are effective when the Treaty comes 
into force with respect to the U.S., and do not apply retroactively. 
The Act does not affect any existing rights.

Section-by-Section Analysis of the Final Rule

Section 47.13 Signatures and Instruments Made by Representatives

    The final rule amends paragraph (d), which sets forth the signature 
requirements applicable when a corporation files an application for 
aircraft registration or a request for registration cancellation. Under 
existing Sec.  47.13(d)(3), a corporation must file a copy of the 
authorization from the board of directors to sign for the corporation 
with the application or cancellation request, unless the signer is a 
corporate officer or other person in a managerial position or a valid 
authorization to sign is already on file at the FAA Aircraft Registry. 
This final rule adds paragraph (d)(4), which creates an exception to 
the provisions of paragraph (d)(3) for an irrevocable deregistration 
and export request authorization prepared under the terms of the 
Treaty. The purpose of this change is to allow the FAA Aircraft 
Registry to accept and process documents consistent with the Treaty.

Section 47.37 Aircraft Last Previously Registered in a Foreign Country

    The final rule amends paragraph (a)(3) to require the owner(s) of 
aircraft last previously registered in a foreign country in which the 
Treaty is in effect to submit evidence satisfactory to the FAA that all 
holders of priority interests have been satisfied or have consented to 
the deregistration and export of the aircraft. Currently paragraph 
(a)(3) does not contain any reference to the Treaty. By requiring 
evidence that all holders of priority interests have been satisfied, 
the final rule conforms to the Treaty.

Section 47.47 Cancellation of Certificate for Export Purpose

    Section 47.47 sets forth the requirements applicable to 
cancellation of U.S. aircraft registration for the purpose of export. 
The final rule expands the scope of paragraph (a) to include holders of 
authorizations recognized under the Treaty. The final rule also adds 
the specific information that the FAA must receive for aircraft subject 
to the Treaty, including a certification that all priority interests 
have been discharged or consented to.

Section 49.41 Applicability

    Section 49.41 currently applies to the recording of leases, tax 
liens, and other kinds of conveyances that affect title to, or any 
interest in, any specifically identified aircraft engine of 750 or more 
rated takeoff horsepower, or equivalent horsepower. This final rule 
lowers the horsepower threshold for aircraft engines from 750 to 550. 
The purpose of this change is to conform our regulations to the 
provisions of the Treaty. Horsepower rating for propellers remains 
unchanged since the Treaty does not pertain to propellers.

Subpart F--Transmission of Information to the International Registry

    The final rule adds subpart F, consisting of Sec. Sec.  49.61 and 
49.63, to establish a procedure for getting authorization from the FAA 
Aircraft Registry to send information to the International Registry.

Section 49.61 Applicability

    This new section designates the FAA Aircraft Registry as the U.S. 
entry point for transmitting information to the International Registry 
with respect to civil aircraft of the United States, aircraft assigned 
a U.S. identification number, and aircraft engines with a rated takeoff 
horsepower of at least 550. This change will preserve the recordation 
function of the FAA Aircraft Registry and allow it to work in tandem 
with the new International Registry.

Section 49.63 Eligibility for Authorization for Transmission to the 
International Registry: General Requirements

    This new section sets forth the requirements for obtaining a unique 
authorization code from the FAA Aircraft Registry. The authorization 
code will enable requesters to electronically send information, 
including information about prospective interests, directly to the 
International Registry. To get an authorization code, a requester must 
file a completed AC Form 8050-135 with the FAA Aircraft Registry. On 
the form, requesters will provide their identification and contact 
information, as well as a limited amount of other relevant information.
    In addition to filing the form, anyone requesting an authorization 
code must also file any recordable documents relating to their interest 
with the FAA Aircraft Registry. For civil aircraft of the United 
States, this means documents recordable under part 49, subpart C, 
including the conveyances identified in Sec.  49.31. For aircraft 
engines, this means documents recordable under part 49,

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subpart D, including the conveyances identified in Sec.  49.41. For 
aircraft that have been assigned a U.S. identification number but are 
not civil aircraft of the United States, the requester only has to file 
the AC Form 8050-135.
    Readers should note that while the final rule requires requesters 
to file recordable documents relating to an interest with the FAA 
Aircraft Registry, it does not require them to file the recordable 
documents with the International Registry. The International Registry 
is an electronic, notice-based system. Readers should also note that, 
consistent with the Treaty, Sec.  49.63(b) of the final rule does not 
require use of the FAA Aircraft Registry as the entry point to the 
International Registry for aircraft engines.

Technical Amendments

    In addition to the changes we are adopting to implement the Treaty, 
discussed above, we are also adopting a series of non-substantive 
changes to parts 47 and 49. These technical amendments, which are 
described in more detail below, are primarily editorial in nature and, 
in many cases, are simply intended to update references to the United 
States Code.

Part 47--Aircraft Registration

    We are replacing all references to the Federal Aviation Act of 1958 
with current United States Code citations according to the following 
table:

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          Existing reference                   Amended to                        Section affected
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Section 501 of the Federal Aviation     49 U.S.C. 44101-44104...  14 CFR 47.1.
 Act of 1958 (49 U.S.C. 1401).
Section 501(b) of the Federal Aviation  49 U.S.C. 44102.........  14 CFR 47.3(a).
 Act of 1958 (49 U.S.C. 1401(b)).
Section 501 of the Federal Aviation     49 U.S.C. 44101-44104...  14 CFR 47.3(b).
 Act of 1958.
Section 501(f) of the Act (49 U.S.C.    49 U.S.C. 44103(c)......  14 CFR 47.5(c).
 1401(f)).
Section 501(b)(1)(A)(i) of the Act....  49 U.S.C. 44102.........  14 CFR 47.7(b), (c), and (d).
Section 101(16) of the Act............  49 U.S.C. 40102(a)(15)..  14 CFR 47.8(a)(2)(i).
Section 501(b)(2)(A)(ii) of the Act...  49 U.S.C. 44102.........  14 CFR 47.9(a), (e), and (f).
Federal Aviation Act of 1958..........  49 U.S.C. 44101-44104...  14 CFR 47.33(a).
Federal Aviation Act of 1958..........  49 U.S.C. 44101-44104...  14 CFR 47.35(a).
Section 501 of the Federal Aviation     49 U.S.C. 44101-44104...  14 CFR 47.43(a)(4).
 Act of 1958 (49 U.S.C. 1401).
Section 101(13) of the Federal          49 U.S.C. 40102(a)(15)..  14 CFR 47.65.
 Aviation Act of 1958 (49 U.S.C. 1301).
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We are also amending Sec.  47.2, Definitions, to remove the definition 
of the Act of 1958. We are amending Sec.  47.3, Registration required, 
to refer to the requirements for registration as stated in 49 U.S.C. 
44103. We are amending Sec.  47.19, FAA Aircraft Registry, to reflect 
the current address of the FAA Aircraft Registry. And, in newly 
redesignated paragraph (c) of Sec.  47.47, Cancellation of certificate 
for export purpose, we are removing references to older means of 
communication by which FAA notifies the country to which the aircraft 
is to be exported of the cancellation of registration.

Part 49--Recording of Aircraft Titles and Security Documents

    We are replacing all references to the Federal Aviation Act of 1958 
with current United States Code citations according to the following 
table:

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          Existing reference                   Amended to                        Section affected
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Section 501 of the Federal Aviation     49 U.S.C. 44101-44104...  14 CFR 49.1(a)(1).
 Act of 1958 (49 U.S.C. 1401).
Section 604(b) of the Federal Aviation  49 U.S.C. 44705.........  14 CFR 49.1(a)(4).
 Act of 1958 (49 U.S.C. 1424(b)).
Section 503(e) of the Federal Aviation  49 U.S.C. 44107(c)......  14 CFR 49.13(c).
 Act of 1958 (49 U.S.C. 1403(e)).
Section 101(17) of the Federal          49 U.S.C. 40102(a)(19)..  14 CFR 49.17(a).
 Aviation Act of 1958 (49 U.S.C. 1301).
Section 101(19) of the Federal          49 U.S.C. 40102(a)(18)..  14 CFR 49.17(d)(6).
 Aviation Act of 1958 (49 U.S.C.
 1301(19)).
Section 501 of the Federal Aviation     49 U.S.C. 44101-44104...  14 CFR 49.33(d).
 Act of 1958 (49 U.S.C. 1401).
Section 604(b) of the Federal Aviation  49 U.S.C. 44705.........  14 CFR 49.51(a).
 Act of 1958 (49 U.S.C. 1424(b)).
Section 604(b) of the Federal Aviation  49 U.S.C. 44705.........  14 CFR 49.53(a)(1).
 Act of 1958 (49 U.S.C. 1424(b)).
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    We are also amending Sec.  49.11, FAA Aircraft Registry, to reflect 
the current delivery address and include the nine-digit zip code for 
the post office box. And, we are amending paragraph (a) of Sec.  49.17, 
Conveyances Recorded, to define the term, ``conveyance,'' consistent 
with 49 U.S.C. Sec.  40102(a)(19).

Justification for Expedited Rulemaking

    Section 553 of the Administrative Procedure Act, 5 U.S.C. 553(b), 
provides that when an agency for good cause finds that the notice and 
public comment procedure is impracticable, unnecessary, or contrary to 
the public interest, the agency may issue a rule without providing 
notice and an opportunity for public comment. For the changes we are 
adopting to implement the Treaty, we find the notice and public comment 
procedure is unnecessary. Given the non-controversial nature of the 
rulemaking, the clear content of the rules adopted based on express 
provisions in the Treaty, the fact that the development of the Treaty 
had broad participation by the international aviation industry and 
Government agencies, and the potential economic benefits, we find that 
no public purpose would be served by unnecessary delay. In addition, 
section 4 of the Cape Town Treaty Implementation Act (Pub. L. 108-297, 
Aug. 9, 2004) requires the FAA to publish a final rule by December 31, 
2004. It does not require FAA to prepare an analysis of the cost and 
benefits of the final rule. For the technical amendments, we also find 
the notice and public comment procedure is unnecessary. The technical 
amendments are minor procedural and editorial changes that do not 
affect the substance of the existing rules.

Paperwork Reduction Act

    This proposal contains the following new information collection 
requirements. As required by the Paperwork Reduction Act of 1995 (44 
U.S.C. 3507(d)), the FAA has submitted the information requirements 
associated

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with this final rule to the Office of Management and Budget with a 
request for clearance.
    Title: FAA Entry Point Filing Form--International Registry, AC Form 
8050-135.
    Summary: The FAA Civil Aviation Registry was designated by Congress 
as the exclusive entry point for transmitting information to the 
International Registry as provided for in the Treaty. The Cape Town 
Treaty Implementation Act of 2004 (Pub. L. 108-297) directed the FAA to 
establish a system for filing notices of international and prospective 
international interests, and authorizing parties to transmit 
information to the International Registry.
    To implement these requirements, the FAA Civil Aviation Registry 
will require the submission of a completed FAA Entry Point Filing 
Form--International Registry, AC Form 8050-135, to issue an 
authorization code. This code allows for the transmission of 
information to the International Registry with respect to civil 
aircraft of the United States, aircraft assigned a U.S. identification 
number, and aircraft engines with a rated takeoff horsepower of at 
least 550.
    Use of Information Collected: The FAA has no specific use for the 
information collected. The disclosure activities include information 
being transmitted to the International Registry, consisting of party 
name(s), collateral description(s), and the type of interest being 
filed. Additionally, the name of the submitter, address and telephone 
number will also be on the AC Form 8050-135. The party name(s), 
collateral description(s), and the authorization code will be entered 
into the FAA Civil Aviation Registry's existing database system, as 
search criteria. The FAA expects that interested parties will access 
the information to determine if an authorization code was issued. The 
user may then request a copy of the completed AC Form 8050-135, or 
check the International Registry to determine if an interest has been 
registered there.
    Respondents: The respondents to this information collection are 
persons who want to file an interest with the International Registry. 
We estimate the number of security agreements that would likely be 
filed with the Registry under the rule would total 15,000 per year.
    Frequency: The respondents would file AC Form 8050-135 with the FAA 
Civil Aviation Registry on an as-needed basis determined by the 
respondent.
    Annual Burden Estimate: We estimate the time to complete the 
single-page AC Form 8050-135 is 30 minutes or less. Therefore, 
respondents would spend approximately 7,500 hours annually completing 
the required form.
    The agency is soliciting comments to--
    (1) Evaluate whether the information requirement is necessary for 
the proper performance of the functions of the agency, including 
whether the information will have practical utility;
    (2) Evaluate the accuracy of the agency's estimate of the burden;
    (3) Enhance the quality, utility, and clarity of the information to 
be collected; and
    (4) Minimize the burden of the collection of information on those 
who are to respond, including through the use of appropriate automated, 
electronic, mechanical, or other technological collection techniques or 
other forms of information technology.
    Individuals and organizations may provide comments on the 
information collection requirement by March 4, 2005, and should direct 
them to the address listed in the ADDRESSES section of this document. 
Comments also should be sent to the Office of Information and 
Regulatory Affairs, OMB, New Executive Building, Room 10202, 725 17th 
Street, NW., Washington, DC 20053, Attention: Desk Officer for FAA.
    According to the 1995 amendments to the Paperwork Reduction Act (5 
CFR 1320.8(b)(2)(vi)), an agency may not collect or sponsor the 
collection of information, nor may it impose an information collection 
requirement unless it displays a currently valid OMB control number. 
The FAA will publish the OMB control number for this collection in the 
Federal Register, after the Office of Management and Budget approves 
it.

International Compatibility

    In keeping with U.S. obligations under the Convention on 
International Civil Aviation, it is FAA policy to comply with 
International Civil Aviation Organization (ICAO) Standards and 
Recommended Practices to the maximum extent practicable. The FAA has 
reviewed the corresponding ICAO Standards and Recommended Practices and 
has identified no differences with them. In fact, ICAO will likely be 
the Supervisory Authority for the International Registry.

Economic Assessment, Regulatory Flexibility Determination, 
International Trade Impact Assessment, and Unfunded Mandates Assessment

    Changes to Federal regulations must undergo several economic 
analyses. First, Executive Order 12866 directs each Federal agency to 
propose or adopt a regulation only upon a reasoned determination that 
the benefits of the intended regulation justify its costs. Second, the 
Regulatory Flexibility Act of 1980 requires agencies to analyze the 
economic impact of regulatory changes on small entities. Third, the 
Trade Agreements Act (19 U.S.C. 2531-2533) prohibits agencies from 
setting standards that create unnecessary obstacles to the foreign 
commerce of the United States. In developing U.S. standards, this Trade 
Act requires agencies to consider international standards and, where 
appropriate, that they be the basis for U.S. standards. Fourth, the 
Unfunded Mandates Reform Act of 1995 (Pub. L. 104-4) requires agencies 
to prepare a written assessment of the costs, benefits, and other 
effects of proposed or final rules that include a Federal mandate 
likely to result in the expenditure by State, local, or tribal 
governments, in the aggregate, or by the private sector, of $100 
million or more annually (adjusted for inflation).
    If it is determined that the expected impact is so minimal that the 
final rule does not warrant a full cost-benefit evaluation, Department 
of Transportation Order DOT 2100.5 permits a statement to that effect 
and the basis for it to be included in the preamble and a full cost-
benefit evaluation need not be prepared. Moreover, section 4 of the 
Cape Town Treaty Implementation Act (Pub. L. 108-297) states that the 
FAA is not required to prepare an economic analysis of the cost and 
benefits of the final rule.

Regulatory Flexibility Determination

    The Regulatory Flexibility Act of 1980 (RFA) establishes ``as a 
principle of regulatory issuance that agencies shall endeavor, 
consistent with the objective of the rule and of applicable statutes, 
to fit regulatory and informational requirements to the scale of the 
business, organizations, and governmental jurisdictions subject to 
regulation.'' To achieve that principle, the RFA requires agencies to 
solicit and consider flexible regulatory proposals and to explain the 
rationale for their actions. The RFA covers a wide range of small 
entities, including small businesses, not-for-profit organizations and 
small governmental jurisdictions.
    Agencies must perform a review to determine whether a proposed or 
final rule will have a significant economic impact on a substantial 
number of small entities. If the agency determines that it will, the 
agency must prepare a regulatory flexibility analysis as described in 
the RFA.

[[Page 244]]

    However, if an agency determines that a proposed or final rule is 
not expected to have a significant economic impact on a substantial 
number of small entities, section 605(b) of the RFA provides that the 
head of the agency may so certify and a regulatory flexibility analysis 
is not required. The certification must include a statement providing 
the factual basis for this determination, and the reasoning should be 
clear.
    This final rule will help promote the export of U.S.-manufactured 
products by reducing aircraft and engine financing costs, thus 
facilitating the acquisition of newer, safer aircraft. Therefore, the 
final rule will have a positive impact (or, at worst, no impact) on 
small aviation operators and on small aviation manufacturers. 
Consequently, the FAA certifies that the final rule will not have a 
significant economic impact on a substantial number of small entities.

International Trade Impact Assessment

    The Trade Agreement Act of 1979 prohibits Federal agencies from 
establishing any standards or engaging in related activities that 
create unnecessary obstacles to the foreign commerce of the United 
States. Legitimate domestic objectives, such as safety, are not 
considered unnecessary obstacles. The statute also requires 
consideration of international standards and, where appropriate, that 
they be the basis for U.S. standards. This final rule implements in the 
United States minor technical changes necessary to support the Treaty, 
particularly with respect to the relationship between the International 
Registry and the FAA Aircraft Registry. Thus, the FAA has assessed the 
potential effect of this rulemaking and has determined that it will 
accept international registration standards defined by the Treaty as a 
basis for U.S. regulation and promote free trade.

Unfunded Mandates Assessment

    The Unfunded Mandates Reform Act of 1995 (the Act) is intended, 
among other things, to curb the practice of imposing unfunded Federal 
mandates on State, local, and tribal governments. Title II of the Act 
requires each Federal agency to prepare a written statement assessing 
the effects of any Federal mandate in a proposed or final agency rule 
that may result in an expenditure of $100 million or more (adjusted 
annually for inflation) in any one year by State, local, and tribal 
governments, in the aggregate, or by the private sector; such a mandate 
is deemed to be a ``significant regulatory action.'' The FAA currently 
uses an inflation-adjusted value of $120.7 million in lieu of $100 
million.
    This final rule does not contain such a mandate. The requirements 
of title II of the Act, therefore, do not apply.

Executive Order 13132, Federalism

    The FAA has analyzed this final rule under the principles and 
criteria of Executive Order 13132, Federalism. We determined that this 
action will not have a substantial direct effect on the States, or the 
relationship between the National Government and the States, or on the 
distribution of power and responsibilities among the various levels of 
government, and therefore does not have federalism implications.

Environmental Analysis

    FAA Order 1050.1E identifies FAA actions that are categorically 
excluded from preparation of an environmental assessment or 
environmental impact statement under the National Environmental Policy 
Act in the absence of extraordinary circumstances. The FAA has 
determined this rulemaking action qualifies for the categorical 
exclusion identified in paragraph 307(f) and involves no extraordinary 
circumstances.

Regulations That Significantly Affect Energy Supply, Distribution, or 
Use

    The FAA has analyzed this final rule under Executive Order 13211, 
Actions Concerning Regulations that Significantly Affect Energy Supply, 
Distribution, or Use (May 18, 2001). We have determined that it is not 
a ``significant energy action'' under the executive order because it is 
not a ``significant regulatory action'' under Executive Order 12866, 
and it is not likely to have a significant adverse effect on the 
supply, distribution, or use of energy.

List of Subjects

14 CFR Part 47

    Aircraft, Reporting and recordkeeping requirements.

14 CFR Part 49

    Aircraft, Reporting and recordkeeping requirements.

The Amendments

0
In consideration of the foregoing, the Federal Aviation Administration 
amends chapter I of title 14, Code of Federal Regulations as follows:

PART 47--AIRCRAFT REGISTRATION

0
1. Revise the authority citation for part 47 to read as follows:

    Authority: 4 U.S.T. 1830; Pub. L. 108-297, 118 Stat. 1095 (49 
U.S.C. 40101 note, 49 U.S.C. 44101 note); 49 U.S.C. 106(g), 40113-
40114, 44101-44108, 44110-44113, 44703-44704, 44713, 45302, 46104, 
46301.


0
2. Revise Sec.  47.1 to read as follows:


Sec.  47.1  Applicability.

    This part prescribes the requirements for registering aircraft 
under 49 U.S.C. 44101-44104. Subpart B applies to each applicant for, 
and holder of, a Certificate of Aircraft Registration. Subpart C 
applies to each applicant for and holder of, a Dealers' Aircraft 
Registration Certificate.


Sec.  47.2  [Amended]

0
3. Amend Sec.  47.2 by removing the definition of ``Act'' entirely.

0
4. Amend Sec.  47.3 by revising paragraph (a) and the introductory 
language of paragraph (b) to read as follows:


Sec.  47.3  Registration required.

    (a) An aircraft may be registered under 49 U.S.C. 44103 only when 
the aircraft is--
    (1) Not registered under the laws of a foreign country and is owned 
by--
    (i) A citizen of the United States;
    (ii) An individual citizen of a foreign country lawfully admitted 
for permanent residence in the United States; or
    (iii) A corporation not a citizen of the United States when the 
corporation is organized and doing business under the laws of the 
United States or a State, and the aircraft is based and primarily used 
in the United States; or
    (2) An aircraft of--
    (i) The United States Government; or
    (ii) A State, the District of Columbia, a territory or possession 
of the United States, or a political subdivision of a State, territory, 
or possession.
    (b) No person may operate an aircraft that is eligible for 
registration under 49 U.S.C. 44101-44104, unless the aircraft--
* * * * *

0
5. Amend Sec.  47.5 by revising the first sentence of paragraph (c) to 
read as follows:


Sec.  47.5  Applicants.

* * * * *
    (c) 49 U.S.C. 44103(c), provides that registration is not evidence 
of ownership of aircraft in any proceeding in which ownership by a 
particular person is in issue. * * *
* * * * *


Sec.  47.7  [Amended]

0
6. Amend Sec.  47.7 paragraphs (b), (c), and (d) by revising the 
references to ``section 501(b)(1)(A)(i) of the Act'' in the

[[Page 245]]

first sentence of each paragraph to read ``49 U.S.C. 44102.''

0
7. Amend Sec.  47.8 by revising paragraph (a)(2)(i) to read as follows:


Sec.  47.8  Voting trusts.

    (a) * * *
    (1) * * *
    (2) * * *
    (i) That each voting trustee is a citizen of the United States 
within the meaning of 49 U.S.C. 40102(a)(15).
* * * * *


Sec.  47.9  [Amended]

0
8. Amend Sec.  47.9 paragraphs (a), (e), and (f) by revising the 
references to ``section 501(b)(1)(A)(ii) of the Act'', in the first 
sentence of each paragraph to read 49 U.S.C. 44102.

0
9. Amend Sec.  47.13 by adding paragraph (d)(4) to read as follows:


Sec.  47.13  Signatures and instruments made by representatives.

* * * * *
    (d) * * *
    (4) The provisions of paragraph (d)(3) do not apply to an 
irrevocable deregistration and export request authorization when an 
irrevocable deregistration and export request authorization under the 
Cape Town Treaty is signed by a corporate officer and is filed with the 
FAA Aircraft Registry.
* * * * *

0
10. Revise Sec.  47.19 to read as follows:


Sec.  47.19  FAA Aircraft Registry.

    Each application, request, notification, or other communication 
sent to the FAA under this Part must be mailed to the FAA Aircraft 
Registry, Department of Transportation, Post Office Box 25504, Oklahoma 
City, Oklahoma 73125-0504, or delivered to the Registry at 6425 S. 
Denning Ave., Oklahoma City, Oklahoma 73169.

0
11. Amend Sec.  47.33 by revising paragraph (a) introductory text to 
read as follows:


Sec.  47.33  Aircraft not previously registered anywhere.

    (a) A person who is the owner of an aircraft that has not been 
registered under 49 U.S.C. 44101-44104, under other law of the United 
States, or under foreign law, may register it under this part if he--
* * * * *

0
12. Amend Sec.  47.35 by revising paragraph (a) to read as follows:


Sec.  47.35  Aircraft last previously registered in the United States.

    (a) A person who is the owner of an aircraft last previously 
registered under 49 U.S.C. Sections 44101-44104, or under other law of 
the United States, may register it under this part if he complies with 
Sec. Sec.  47.3, 47.7, 47.8, 47.9, 47.11, 47.13, 47.15, and 47.17, as 
applicable and submits with his application an Aircraft Bill of Sale, 
AC Form 8050-2, signed by the seller or an equivalent conveyance, or 
other evidence of ownership authorized by Sec.  47.11.
* * * * *

0
13. Amend Sec.  47.37 by revising the introductory language of 
paragraph (a) and paragraphs (a)(2) and (a)(3) to read as follows:


Sec.  47.37  Aircraft last previously registered in a foreign country.

    (a) A person who is the owner of an aircraft last previously 
registered under the law of a foreign country may register it under 
this part if the owner--
* * * * *
    (2) Submits with his application a bill of sale from the foreign 
seller or other evidence satisfactory to the FAA that he owns the 
aircraft; and
    (3) Submits evidence satisfactory to the FAA that--
    (i) If the country in which the aircraft was registered has not 
ratified the Convention on the International Recognition of Rights in 
Aircraft (4 U.S.T. 1830), (the Geneva Convention), or the Convention on 
International Interests in Mobile Equipment, as modified by the 
Protocol to the Convention on International Interests in Mobile 
Equipment on Matters Specific to Aircraft Equipment (the Cape Town 
Treaty), the foreign registration has ended or is invalid; or
    (ii) If that country has ratified the Geneva Convention, but has 
not ratified the Cape Town Treaty, the foreign registration has ended 
or is invalid, and each holder of a recorded right against the aircraft 
has been satisfied or has consented to the transfer, or ownership in 
the country of export has been ended by a sale in execution under the 
terms of the Geneva Convention; or
    (iii) If that country has ratified the Cape Town Treaty and the 
aircraft is subject to the Treaty, that the foreign registration has 
ended or is invalid, and that all interests ranking in priority have 
been discharged or that the holders of such interests have consented to 
the deregistration and export of the aircraft.
    (iv) Nothing under (a)(3)(iii) affects rights established prior to 
the Treaty entering into force with respect to the country in which the 
aircraft was registered.
* * * * *

0
14. Amend Sec.  47.43 by revising paragraph (a)(4) to read as follows:


Sec.  47.43  Invalid registration.

    (a) * * *
    (4) The interest of the applicant in the aircraft was created by a 
transaction that was not entered into in good faith, but rather was 
made to avoid (with or without the owner's knowledge) compliance with 
49 U.S.C. 44101-44104.
* * * * *

0
15. Amend Sec.  47.47 by revising it to read as follows:


Sec.  47.47  Cancellation of Certificate for export purpose.

    (a) The holder of a Certificate of Aircraft Registration or the 
holder of an irrevocable deregistration and export request 
authorization recognized under the Cape Town Treaty and filed with FAA 
who wishes to cancel the Certificate for the purpose of export must 
submit to the FAA Aircraft Registry--
    (1) A written request for cancellation of the Certificate 
describing the aircraft by make, model, and serial number, stating the 
U.S. identification number and the country to which the aircraft will 
be exported;
    (2)(i) For an aircraft not subject to the Cape Town Treaty, 
evidence satisfactory to the FAA that each holder of a recorded right 
has been satisfied or has consented to the transfer; or
    (ii) For an aircraft subject to the Cape Town Treaty, evidence 
satisfactory to the FAA that each holder of a recorded right 
established prior to the date the Treaty entered into force with 
respect to the United States has been satisfied or has consented to the 
transfer; and
    (3) A written certification that all registered interests ranking 
in priority to that of the requestor have been discharged or that the 
holders of such interests have consented to the cancellation for export 
purposes.
    (b) If the aircraft is subject to the Cape Town Treaty and an 
irrevocable deregistration and export request authorization has been 
filed with the FAA Aircraft Registry, the FAA Registry will honor a 
request for cancellation only if an authorized party makes the request.
    (c) The FAA Aircraft Registry notifies the country to which the 
aircraft is to be exported of the cancellation.

0
16. Revise Sec.  47.65 to read as follows:


Sec.  47.65  Eligibility.

    To be eligible for a Dealer's Aircraft Registration Certificate, a 
person must have an established place of business in the United States, 
must be substantially

[[Page 246]]

engaged in manufacturing or selling aircraft, and must be a citizen of 
the United States, as defined by 49 U.S.C. 40102(a)(15).

PART 49--RECORDING OF AIRCRAFT TITLES AND SECURITY DOCUMENTS

0
17. Revise the authority citation for part 49 to read as follows:

    Authority: 4 U.S.T. 1830; Pub. L. 108-297, 118 Stat. 1095 (49 
U.S.C. 40101 note, 49 U.S.C. 44101 note); 49 U.S.C. 106(g), 40113-
40114, 44101-44108, 44110-44113, 44704, 44713, 45302, 46104, 46301.


0
18. Amend Sec.  49.1 by revising paragraphs (a)(1) and (a)(4) to read 
as follows:


Sec.  49.1  Applicability.

    (a) * * *
    (1) Any aircraft registered under 49 U.S.C. 44101-44104;
* * * * *
    (4) Any aircraft engine, propeller, or appliance maintained by or 
for an air carrier certificated under 49 U.S.C. 44705, for installation 
or use in an aircraft, aircraft engine, or propeller, or any spare 
part, maintained at a designated location or locations by or for such 
an air carrier.
* * * * *

0
19. Revise Sec.  49.11 to read as follows:


Sec.  49.11  FAA Aircraft Registry.

    To be eligible for recording, a conveyance must be mailed to the 
FAA Aircraft Registry, Department of Transportation, Post Office Box 
25504, Oklahoma City, Oklahoma 73125-0504, or delivered to the Registry 
at 6425 S. Denning Ave., Oklahoma City, Oklahoma 73169.

0
20. Revise Sec.  49.13(c) to read as follows:


Sec.  49.13  Signatures and acknowledgements.

* * * * *
    (c) No conveyance or other instrument need be acknowledged, as 
provided in 49 U.S.C. 44107(c), in order to be recorded under this 
part. The law of the place of delivery of the conveyance determines 
when a conveyance or other instrument must be acknowledged in order to 
be valid for the purposes of that place.
* * * * *

0
21. Amend Sec.  49.17 by revising paragraphs (a) and (d)(6) to read as 
follows:


Sec.  49.17  Conveyances recorded.

    (a)(1) Each instrument recorded under this part is a ``conveyance'' 
within the following definition in 49 U.S.C. 40102(a)(19):

    ``Conveyance'' means an instrument, including a conditional 
sales contract, affecting title to, or an interest in, property.

    (2) A notice of Federal tax lien is not recordable under this part, 
since it is required to be filed elsewhere by the Internal Revenue Code 
(26 U.S.C. 6321, 6323; 26 CFR 301.6321-1, 301.6323-1).
* * * * *
    (d) * * *
    (6) A contract of conditional sale, as defined in 49 U.S.C. 
40102(a)(18), must be signed by all parties to the contract.

0
22. Amend Sec.  49.33 by revising paragraph (d) to read as follows:


Sec.  49.33  Eligibility for recording: general requirements.

* * * * *
    (d) It affects aircraft registered under 49 U.S.C. 44101-44104; and
* * * * *

0
23. Amend Sec.  49.41 by revising paragraph (a) to read as follows:


Sec.  49.41  Applicability.

* * * * *
    (a) Any lease, a notice of tax lien or other lien (except a notice 
of Federal tax lien referred to in Sec.  49.17(a)), and any mortgage, 
equipment trust, contract of conditional sale, or other instrument 
executed for security purposes, which affects title to, or any interest 
in, any specifically identified aircraft engine of 550 or more rated 
takeoff horsepower, or the equivalent of that horsepower, or a 
specifically identified aircraft propeller capable of absorbing 750 or 
more rated takeoff shaft horsepower.
* * * * *

0
24. Amend Sec.  49.51 by revising paragraph (a) to read as follows:


Sec.  49.51  Applicability.

* * * * *
    (a) Any lease, a notice of tax lien or other lien (except a notice 
of Federal tax lien referred to in Sec.  49.17 (a), and any mortgage, 
equipment trust, contract of conditional sale, or other instrument 
executed for security purposes, which affects title to, or any interest 
in, any aircraft engine, propeller, or appliance maintained by or on 
behalf of an air carrier certificated under 49 U.S.C. 44705 for 
installation or use in aircraft, aircraft engines, or propellers, or 
any spare parts, maintained at a designated location or locations by or 
on behalf of such an air carrier.
* * * * *

0
25. Revise Sec.  49.53(a)(1) to read as follows:


Sec.  49.53  Eligibility for recording: general requirements.

    (a) * * *
    (1) It affects any aircraft engine, propeller, appliance, or spare 
part, maintained by or on behalf of an air carrier certificated under 
49 U.S.C. 44705;
* * * * *

0
26. Add new subpart F to read as follows:

Subpart F--Transmission of Information to the International 
Registry

Sec.
49.61 Applicability.
49.63 Eligibility for Authorization for Transmission to the 
International Registry: General Requirements.


Sec.  49.61  Applicability.

    The FAA Civil Aviation Registry is designated under Section 3 of 
the Cape Town Treaty Implementation Act of 2004, as the entry point for 
authorizing the transmission of information to the International 
Registry affecting United States civil aircraft, aircraft assigned a 
U.S. registration number and engines with a rated shaft horsepower of 
550 or the equivalent thereof. This subpart applies to the transmission 
of information to the International Registry; the filing of the Entry 
Point filing form, AC Form 8050-135; and the filing of documents 
eligible for recording under subparts C and D of part 49.


Sec.  49.63  Eligibility for Authorization for Transmission to the 
International Registry: general requirements.

    (a) To send information to the International Registry with respect 
to a civil aircraft of the United States, an aircraft for which a U.S. 
identification number has been assigned, or an aircraft engine, a 
person requesting a unique authorization code from the FAA Aircraft 
Registry must comply with the following:
    (1) File a completed AC Form 8050-135 with the FAA Aircraft 
Registry; and
    (2) For civil aircraft of the United States, file with the FAA 
Aircraft Registry any documents representing the transaction that meet 
the requirements of subpart C of this part; or
    (3) For aircraft engines, file with the FAA Aircraft Registry any 
documents representing the transaction that meet the requirements of 
subpart D of this part.
    (b) Nothing in this section requires transmittal of information 
relating to aircraft engines to the International

[[Page 247]]

Registry through the FAA Aircraft Registry.

Marion C. Blakey,
Administrator.
[FR Doc. 04-28388 Filed 12-28-04; 11:37 am]
BILLING CODE 4910-13-P