Proposal for a COUNCIL DECISION on the conclusion of an agreement between the European Union and the Government of the People's Republic of China on civil aviation safety

EXPLANATORY MEMORANDUM

• Reasons for and objectives of the proposal

  1. On 7 March 2016 the Council granted an authorisation to the Commission to conduct negotiations with the Government of the People's Republic of China on civil aviation safety to facilitate trade and investment between the EU and China in aeronautical products, parts and appliances. The Council addressed a set of negotiating directives to the Commission to carry out the negotiations and appointed a special committee to be consulted in this task.

• Consistency with existing policy provisions in the policy area

  1. The Agreement reflects the structure of the existing Bilateral Aviation Safety Agreements ("BASAs") between the Union and third countries (USA, Canada and Brazil).

• Consistency with other Union policies

  1. The Agreement will serve a fundamental objective of the external aviation policy of the Union by enhancing civil aviation safety and facilitate trade and investment in aeronautical products.

• Legal basis

  1. Treaty on the Functioning of the European Union, in particular Article 100(2) in conjunction with Article 218(5).

• Subsidiarity (for non-exclusive competence)

  1. Not applicable.

• Proportionality

  1. Not applicable.

• Choice of instrument

  1. The Agreement between the Union and People's Republic of China is the most efficient instrument to achieve the goal of enabling enhanced cooperation in the area of certification and monitoring of aeronautical products, parts and appliances and the production oversight and environmental certification.

• Ex-post evaluations/fitness checks of existing legislation

1. Not applicable.

   • Stakeholder consultations

2. In line with Article 218(4) TFEU, the Commission has conducted the negotiations in consultation with a special committee. Industry has equally been consulted during the negotiations. Comments made in this process have been taken into account.

   • Collection and use of expertise

3. Not applicable.

   • Impact assessment

4. Not applicable.

   • Regulatory fitness and simplification

5. Not applicable.

   • Fundamental rights

6. Not applicable.

1. Not applicable.

• Implementation plans and monitoring, evaluation and reporting arrangements

  1. Not applicable.

• Explanatory documents (for directives)

  1. Not applicable.

• Detailed explanations of the specific provisions of the proposal

  1. On 29 September 2017, after 4 rounds of negotiations between the Commission (DG MOVE) and the Civil Aviation Authority of China (CAAC), the two negotiating teams agreed on a draft text for the Agreement and its annex on airworthiness and environmental certification. The text was initialled on 8 December 2017.

1. As in the case of the existing BASAs, the Agreement is based on mutual trust of each other’s system and on the comparison of regulatory differences. Hence, it entails obligations and methods to cooperate between the authorities and technical agents so that the latter can issue their own certificate on the aeronautical product, part or appliance without duplicating all the assessments done by the other authority.

2. The draft stipulates that each party shall accept findings of compliance as results of specified procedures of the other Party's Competent Authority (Article 4.1). The means how to do so, i.e. how to cooperate and mutually accept each other's certification findings in the area of airworthiness and environmental certification (methods, scope in terms of products or services and regulatory differences), are set out in the Annexes to the Agreement.

3. The draft Agreement also ensures that confidence is maintained in each other through the appropriate mechanism. It provides for a system of continual cooperation and consultation that is put in place by means of enhanced cooperation in the framework of audits, inspections, timely notifications and consultations on all matters falling within its scope (Articles 4.5, 7, 8 and 9).

4. The draft Agreement also gives the possibility to the Parties to consider ways to further enhance the functioning of the Agreement and make recommendations for modifications including addition of new annexes to the Agreement via the Joint Committee (Article 3).

5. Key Provisions of the Agreement:

6. The draft Agreement covers from the outset all aeronautical products. However, a provision in the Annex 1 (paragraph 4.4.2.2.) will ensure, for new Chinese products entering the EU market, that EASA will exercise special procedures and scrutiny during the first validation of a given product category and that any following validation would then follow the 'Level of Involvement' principle. Annex 1 (paragraph 4.4.2.1.) contains a detailed list of factors for how the 'Level of Involvement' should be set.

7. Regarding the accepting of certificates issued by each party, an Appendix has been added to the Annex 1, which describes and defines the modalities of acceptance and validation of certificates. To take account of the different levels of maturity of the regulatory systems implemented in the EU and in China, the Appendix states that the modalities for EU certificates and for certificates issued by CAAC are different. The provisions in the Appendix are substantially reducing and limiting the involvement of CAAC in the validation of EASA certificates and therefore will save time and costs for European industry. On the other side, for CAAC certificates, there will be a reduction in the Level of Involvement of EASA only for minor changes and repairs (automatic acceptance) and for some Technical Standard Order.

8. Regarding Chinese production of aeronautical products for export to the EU, it was further agreed that EASA will produce a list of Chinese Production Certificate Holders, whose production is accepted by the European Union (Annex, paragraph 4.5.9.). This list will be published on the EASA website. The CAAC will not be formally involved in the creation or maintenance of this list, nor can CAAC veto the content of the list. This provision was included in the Agreement, due to the findings of the confidence building exercise by EASA, resulting in a number of observations.

9. Regarding EU manufacturing sites in China, the Agreement foresees that an EASA Production Certificate can be extended to include manufacturing sites in China (Annex, paragraph 4.5.4), which is in particular important for EU industry with production sites in China. Existing arrangements cannot be changed without the approval of both sides (Annex, paragraph 4.5.5.).

10. In comparison with existing BASAs, the Agreement includes in Article 3 (scope) already a wide scope of cooperation, covering potential future areas of cooperation, in particular on personnel licensing and training, operation of aircraft and air traffic services and air traffic management.

11. The Agreement further creates the framework for regulatory cooperation, mutual assistance and transparency (Article 7) as well as provisions on the exchange of safety information (Article 8). The Agreement includes specific provisions that reinforce the protection of confidentiality and protection of proprietary data and information (Article 10 and Annex paragraph 4.3) and the possibility of participation of third countries (Article 14.2).

12. Finally, the Agreement establishes a joint committee for the administration of the Agreement (Article 11) and a first joint sub-committee related to airworthiness and environmental certification (Annex, paragraph 3.1).

COUNCIL DECISION

on the conclusion of an agreement between the European Union and the Government of the People's Republic of China on civil aviation safety

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the Functioning of the European Union, and in particular Article 100(2), in conjunction with Article 218(6)(a)(v) thereof,

Having regard to the proposal from the European Commission,

Having regard to the consent of the European Parliament,

Whereas:

(1)    The Commission has negotiated on behalf of the European Union an Agreement on civil aviation safety with the People's Republic of China in accordance with the Council Decision authorising the Commission to open negotiations;

(2)    In accordance with Council Decision [ ] the Agreement was signed on …….. 2018, subject to its conclusion at a later date.

(3)    The Agreement should be approved.

(4)    It is necessary to lay down procedural arrangements for the participation of the Union in the joint bodies established by the Agreement, as well as for the adoption of certain decisions concerning, in particular, the amendment of the Agreement and its Annexes, the addition of new annexes, the termination of individual annexes, consultations and dispute resolution and the adoption of safeguard measures.

HAS ADOPTED THIS DECISION:

Article 1

1.    The Agreement between the European Union and the Government of People's Republic of China on civil aviation safety is hereby approved on behalf of the Union.

2.    The text of the Agreement is attached to this Decision.

Article 2

The President of the Council shall designate the person empowered to proceed, on behalf of the Union, to give the notification provided for in Article 17.1 of the Agreement, in order to express the consent of the European Union to be bound by the Agreement.

Article 3

1.    The Union shall be represented in the Joint Committee of the Parties established in Article 11 of the Agreement by the European Commission assisted by the European Aviation Safety Agency and accompanied by the Aviation Authorities as representatives of the Member States.

2.    The Union shall be represented in the Certification Oversight Board established in paragraph 3.1.1 of Annex 1 to the Agreement by the European Aviation Safety Agency assisted by the Aviation Authorities directly concerned by the agenda of each meeting.

Article 4

1.    The Commission shall determine the position to be taken by the Union in the Joint Committee of the Parties with respect to the following matters:

• the adoption or amendment of the rules of procedure of the Joint Committee of the Parties provided for in Article 11 of the Agreement.

2.    The Commission, after consultation with the special committee appointed by the Council, may take the following action:

• adopt safeguard measures in accordance with Article 5 of the Agreement,

• request consultations in accordance with Article 15 of the Agreement,

• take measures for suspension in accordance with Article 16 of the Agreement,

• any amendments to the annexes to the Agreement in accordance with Article 17.6 of the Agreement in so far as such amendments are consistent with, and do not entail any modification of, relevant Union legal acts,

• any other action to be taken by a Party as provided for in the Agreement, subject to paragraph 3 of this Article and EU law.

3.    The Council shall decide, acting by qualified majority, on a proposal from the Commission and in accordance with the provisions of the Treaty, with respect to any other amendments to the Agreement not falling within the scope of paragraph 2 of this Article, including the termination of individual Annexes in accordance with Article 17.4 of the Agreement.

Article 5

This Decision shall enter into force on the date of its adoption.

Done at Brussels,

   For the Council

   The President

AGREEMENT

ON CIVIL AVIATION SAFETY

BETWEEN THE EUROPEAN UNION AND THE GOVERNEMENT OF THE PEOPLE'S REPUBLIC OF CHINA

The EUROPEAN UNION and the GOVERNMENT OF THE PEOPLE'S REPUBLIC OF CHINA (hereinafter referred to individually as a "Party" and collectively as “the Parties”),

RECOGNISING the continuous trend toward multinational design, production and circulation of Civil Aeronautical Products;

DESIRING to promote civil aviation safety and environmental quality and compatibility and to facilitate the free circulation of Civil Aeronautical Products;

DESIRING to enhance co-operation and increase efficiency in matters relating to civil aviation safety;

CONSIDERING that their co-operation can positively contribute in encouraging greater international harmonisation of standards and processes;

CONSIDERING the possible reduction of the economic burden imposed on the aviation industry by redundant technical inspections, evaluations, and testing;

RECOGNISING that any reciprocal acceptance of findings of compliance and certificates needs to offer an assurance of compliance with applicable technical regulations or standards equivalent to the assurance offered by a Party’s own procedures;

RECOGNISING that any such reciprocal acceptance also requires continued confidence by each Party in the reliability of the other Party’s compliance finding processes in all domains covered by this Agreement;

RECOGNISING the desire of the Parties for regulatory cooperation in civil aviation safety and environmental testing and certificates based on continuous communication and mutual confidence;

RECOGNISING the respective commitments of the Parties under bilateral, regional and multilateral agreements dealing with civil aviation safety and environmental compatibility,

HAVE AGREED AS FOLLOWS:

Article 1

Objectives

The objectives of this Agreement are to:

1. enable the reciprocal acceptance, as provided in the Annexes to this Agreement, of findings of compliance and certificates issued by either Party’s Competent Authorities.

2. facilitate the multinational dimension of the civil aviation industry.

3. facilitate and promote the free circulation of civil aeronautical products and services.

4. promote cooperation toward a high level of civil aviation safety and environmental compatibility.

Article 2

Definitions

For the purposes of this Agreement, the following definitions apply:

1. “Approved organisations” means any legal person certified by the Competent Authority of either Party to exercise privileges related to a subject matter within the scope of this Agreement.

2. "Certificate" means any approval, licence or other document issued as a form of recognition of compliance that a civil aeronautical product, organisation or person complies with the applicable requirements stemming from the respective Parties' relevant legislation.

3. “Civil Aeronautical Product” means any civil aircraft, aircraft engine, or aircraft propeller or sub-assembly, appliance, or part, installed or to be installed thereon.

4. “Competent Authority” means a government agency or entity that is designated by a Party for the purposes of this Agreement to exercise a legal right to assess the compliance and to monitor the use of Civil Aeronautical Products, services, operations or certificates within a Party’s jurisdiction, and that may take enforcement action to ensure they comply with applicable legal requirements within that Party’s jurisdiction.

5. “Designated representatives” means any legal or natural person mandated by law to carry out compliance assessment and raise findings on behalf of the Civil Aviation Administration of China.

6. “Monitoring” means the periodic surveillance by a Competent Authority to determine continuing compliance with the appropriate applicable legal requirements.

7. “Technical Agent” means, for the Government of the People's Republic of China, the Civil Aviation Administration of China – CAAC, and for the European Union, the European Aviation Safety Agency – EASA.

Article 3

Scope

1. The scope of cooperation under this Agreement includes the following areas:

   1. The airworthiness Certificates and Monitoring of Civil Aeronautical Products;

   2. Environmental testing and Certificates of Civil Aeronautical Products;

   3. The certification and Monitoring of design and production organisations;

   4. The certification and Monitoring of maintenance organisations;

   5. Personnel licensing and training;

6. Operation of aircraft;

7. Air traffic services and air traffic management; and

8. Other areas subject to Annexes to the Convention on International Civil Aviation, signed in Chicago on 7 December 1944 (hereinafter referred to as 'the Convention').

   2. For matters within the scope of this Agreement, the Parties shall develop Annexes and associated Implementing Procedures describing the terms, conditions and methods for reciprocal acceptance of findings of compliance and Certificates, including transitional arrangements where necessary, when they agree that their respective civil aviation standards, rules, practices, procedures and systems are sufficiently equivalent or compatible to permit acceptance of Certificates and findings of compliance with agreed upon standards made by one Party on behalf of the other. Technical differences between the Parties' civil aviation systems shall be addressed in the Annexes.

Article 4

General Obligations

1. Each Party shall accept findings of compliance and Certificates made by the other Party's Competent Authorities, in accordance with the terms and conditions set forth in the Annexes to this Agreement, including transitional arrangements where necessary, which form an integral part thereof.

2. Except as specified in the Annexes to this Agreement, this Agreement shall not be construed to entail reciprocal acceptance or recognition of standards or technical regulations of the Parties.

3. The findings made by Designated representatives or Approved organisations, authorised by the applicable legislation of either Party to make the same findings as a Competent Authority, shall be given the same validity as those made by a Competent Authority itself for the purposes of this Agreement.

4. The Parties shall ensure that their Competent Authorities remain capable and fulfil their responsibilities under this Agreement, including its Annexes.

5. To ensure the continued confidence by each Party in the reliability of the other Party’s compliance finding processes, each Technical Agent may participate in the other's internal quality assurance activities, in accordance with procedures defined in the Annexes to this Agreement.

Article 5

Preservation of Regulatory Authority and Safeguard Measures

1. Nothing in this Agreement shall be construed to limit the authority of a Party to: 

   1. Determine, through its legislative, regulatory and administrative measures, the level of protection it considers appropriate for safety, for the environment, and otherwise with regard to risks within the scope of this Agreement.

   2. Take all appropriate and immediate measures whenever there is a reasonable risk that a product, a service or any activity within the scope of this Agreement, may:

      1. compromise the health or safety of persons or the environment;

      2. not comply with the applicable legislative, regulatory, or administrative measures of that Party; or

      3. otherwise fail to satisfy a requirement within the scope of the applicable Annex to this Agreement.

2. Where either Party takes measures pursuant to Paragraph 1 of this Article, it shall inform the other Party in writing within 15 working days of taking such measures, providing reasons for it.

3. Measures taken under this Article shall not be construed or interpreted by either Party as an infringement of the provisions of this Agreement.

Article 6

Communication

1. Upon signature of this Agreement the Parties will communicate to each other the relevant contact points for the implementation of this Agreement.

2. All communications related to the implementation of this Agreement between the Parties and / or the Competent Authorities shall be in the English language.

3. Each Party shall notify the other Party of the identity of its Competent Authority or Authorities.

Article 7

Regulatory cooperation, mutual assistance and transparency

1. Each Party shall ensure that the other Party is kept informed of all its relevant laws, regulations, standards, and requirements, and of its system for issuing Certificates.

2. The Parties shall notify each other of their proposed significant revisions to their relevant laws, regulations, standards, and requirements, and to their systems for issuing Certificates, insofar as these revisions may have an impact on this Agreement. To the extent practicable, they shall offer each other an opportunity to comment on such revisions and give due consideration to such comments.

3. The Technical Agents may develop procedures on regulatory co-operation within the scope of this Agreement.

4. For the purpose of investigating and resolving safety issues, the Parties may allow each other to participate as observers in each other’s oversight activities as specified in the appropriate Annex.

5. For purposes of surveillance and inspections, each Party's Competent Authorities shall assist the other Party's Competent Authorities with the objective of gaining unimpeded access to regulated entities subject to its jurisdiction.

Article 8

Exchange of safety information

The Parties agree, without prejudice to the provisions of Article 10 and subject to their applicable legislation:

1. to provide each other, on request and in a timely manner, information available to their Technical Agents related to accidents or serious incidents or occurrences in relation to products, services or activities covered by the Annexes to this Agreement, and

2. to exchange other safety information in accordance with procedures developed by the Technical Agents.

Article 9

Cooperation in Enforcement Activities

The Parties agree, subject to applicable laws and regulations, to provide, when requested and subject to the availability of required resources, through their Technical Agents or Competent Authorities, mutual cooperation and assistance in investigations or enforcement proceedings under the scope of this Agreement. In addition, each Party shall notify the other promptly of any investigation when mutual interests are involved.

Article 10

Confidentiality and Protection of Proprietary Data and Information

1. Each Party agrees to maintain, subject to any limitations imposed under its legislation, the confidentiality of data and information received from the other Party under this Agreement.

2. In particular, subject to their respective legislation, the Parties shall neither disclose to a third party, including public, nor permit a Competent Authority to disclose to a third party, including public, any data and information received from each other under this Agreement that constitutes trade secrets, intellectual property, confidential commercial or financial information, proprietary data, or information that relates to an ongoing investigation. To this end, such data and information shall be considered as confidential, proprietary or a trade secret, and shall be clearly marked as such, as appropriate.

3. A Party or a Competent Authority may, upon providing data and information to the other Party or a Competent Authority of the other Party, designate the portions of the data and information that it considers to be exempt from disclosure.

4. If a Party disagrees with the designation by the other Party of provided data and information as confidential, proprietary, or a trade secret, then the Party disagreeing with the designation shall request consultations with the other Party pursuant to the provisions of Article 15 to address the issue.

5. Each Party shall take all reasonable precautions necessary to protect data and information received under this Agreement from unauthorized disclosure.

6. The Party receiving data and information from the other Party under this Agreement shall not acquire any proprietary rights in intellectual or industrial property by reason of its receipt from the other Party.

Article 11

Joint Committee of the Parties

1. A Joint Committee is established, consisting of representatives from each Party. The Joint Committee shall be responsible for the effective functioning of this Agreement and shall meet at regular intervals to evaluate the effectiveness of its implementation.

2. The Joint Committee may consider any matter related to the functioning and implementation of this Agreement. In particular it shall be responsible for:

   1. resolving any question relating to the application and implementation of this Agreement including its Annexes,

   2. considering ways to enhance the operation of this Agreement and make as appropriate recommendations to the Parties for the amendment of this Agreement pursuant to Article 17,

   3. adopting amendments to the Annexes,

   4. coordinating the development of and adopting new Annexes pursuant to Article 17; and

   5. adopting, as appropriate, working procedures on regulatory cooperation and transparency for all activities referred to in Article 3.

3. The Joint Committee shall draw up and adopt its rules of procedure.

Article 12

Cost recovery

Each Party shall endeavour to ensure that any fees or charges imposed by its Technical Agent on a legal or natural person whose activities are regulated under this Agreement shall be just, reasonable and commensurate with the services provided, and shall not create a barrier to trade.

Article 13

Other Agreements

1. Except where otherwise specified in the Annexes, obligations contained in agreements concluded by either Party with a third country not party to this Agreement shall have neither force nor effect with regard to the other Party under the Agreement.

2. Upon entry into force, this Agreement shall supersede any bilateral aviation safety agreements or arrangements between the Government of the People's Republic of China and the Member States of the European Union with respect to any matter covered by this Agreement that has been actioned in accordance with the provisions of Article 3.

3. Upon entry into force of this Agreement, the Technical Agents shall take necessary measures to amend or terminate, as appropriate, prior arrangements between them.

4. Subject to Paragraph 2 of this Article, this Agreement shall not affect the rights and obligations of the Parties under any other international agreement.

Article 14

Application

1. This Agreement shall apply, on the one hand, to the civil aviation regulatory system of the People’s Republic of China and, on the other hand, to the civil aviation regulatory system of the European Union.

2. The Parties share the goal of maximizing the benefits of this Agreement by its possible extension to include third countries. To this end the Joint Committee, established pursuant to Article 11, shall consider, as appropriate, the conditions and procedures, including any necessary amendments to this Agreement that would be required for third countries to accede to this Agreement.

Article 15

Consultations and Settlement of Disagreements

1. The Parties shall make every effort to resolve any disagreement between them regarding their cooperation under this Agreement at the lowest possible technical level by consultation in accordance with provisions contained in the Annexes to this Agreement.

2. In the event that any disagreement is not resolved as provided for in Paragraph 1 of this Article, either Technical Agent may refer the disagreement to the Joint Committee established pursuant to Article 11, which shall consult on the matter.

3. Notwithstanding the provisions of Paragraphs 1 and 2 of this Article, either Party may request consultations with the other Party on any matter related to this Agreement. The other Party shall enter into consultations at a time agreed by the Parties within 45 days.

Article 16

Suspension of Reciprocal Acceptance Obligations

1. A Party may suspend, in whole or in part, its acceptance obligations specified under an Annex to this Agreement, when the other Party fails to fulfil its obligations specified under the Agreement, including its Annexes.

2. Before suspending its acceptance obligations, a Party shall request consultations under Article 15. Should consultations not resolve a disagreement that relates to any of the Annexes, either Party may notify the other Party of its intention to suspend the acceptance of findings of compliance and Certificates under the Annex, over which there is disagreement. Such notification shall be in writing and detail the reasons for suspension.

3. Such suspension shall take effect 30 days after the date of the notification, unless, prior to the end of this period, the Party, which initiated the suspension, notifies the other Party in writing that it withdraws its notification. Such suspension shall not affect the validity of findings of compliance and Certificates made by the Party’s Competent Authority in question prior to the date the suspension took effect. Any such suspension that has become effective may be rescinded immediately upon an exchange of written correspondence to that effect by the Parties.

Article 17

Entry into Force, Termination and Amendment

1. This Agreement, including its Annexes, shall enter into force on the first day of the second month following the date on which the Parties have exchanged diplomatic notes confirming the completion of their respective procedures for entry into force of this Agreement.

2. The Agreement, including its Annexes, is binding on both Parties and shall remain in force until terminated by either Party.

3. A Party may terminate this Agreement at any time upon six months written notification to the other Party, unless the said notice of termination has been withdrawn by mutual consent of the Parties before the expiry of this period.

4. Following notice of termination of this Agreement in its entirety or of any Annexes thereto, the Parties shall continue to meet their obligations under the Agreement or any Annexes thereto until the effective date of termination.

5. Termination of this Agreement shall not affect the validity of any certificates granted by the Parties under the terms of this Agreement, including its Annexes.

6. The Parties may amend this Agreement by mutual written consent. An amendment to this Agreement shall enter into force on the date of the latest written notification by one Party to the other Party that its internal procedures for entry into force have been completed. Amendments of the Annexes shall be effected by a decision of the Joint Committee established pursuant to Article 11.

7. Where a Party seeks to amend the Agreement by removing or adding one or more Annexes and preserving the other Annexes, the Parties shall seek to amend this Agreement by consensus, in accordance with the procedures in this Article. Failing consensus to preserve the other Annexes, the Agreement shall terminate at the end of six months from the date of notice unless otherwise agreed by the Parties.

8. Any individual Annex developed after the date of entry into force of this Agreement in accordance with the provisions of Article 3, shall enter into force upon a decision of the Joint Committee established pursuant to Article 11.

IN WITNESS WHEREOF, the undersigned duly authorized to that effect, have signed this Agreement Done, in duplicate, in XX, this XX day of XXX 201X, in the Bulgarian, Czech, Croatian, Danish, Dutch, English, Estonian, Finnish, French, German, Greek, Hungarian, Italian, Latvian, Lithuanian, Maltese, Polish, Portuguese, Romanian, Slovakian, Slovenian, Spanish, Swedish and Chinese languages, each version being equally authentic. In case of divergence of interpretation, the English version shall prevail.

FOR THE EUROPEAN UNION / FOR THE GOVERNMENT OF THE PEOPLE'S REPUBLIC OF CHINA

ANNEX 1

AIRWORTHINESS AND ENVIRONMENTAL CERTIFICATION

1. airworthiness and continued airworthiness of civil aeronautical products (hereinafter referred to as "products");

2. design and production organisations; and

3. noise, fuel venting, and exhaust emissions, including carbon dioxide emissions when applicable.

1. ‘Aircraft Evaluation Report’ means the report developed by Aircraft Evaluation Group under Chapter 15 of CCAR-21-R4. Aircraft Evaluation Report is not directly covered by the CAAC type certificate or validation of type certificate, but is assessed under an Aircraft Evaluation Group in the CAAC system to support type specific operational aspects for which the type certificate holder is responsible.

2. ‘Airworthiness Approval Tag’ means a declaration by a person or organisation under the regulatory oversight of the Exporting Party that a new Civil Aeronautical Product, other than a complete aircraft, conforms to an approved design and is in a condition for safe operation. CAAC Form AAC-038 and EASA Form 1 are Airworthiness Approval Tags.

3. ‘Certificating Authority’ means the Authority that issued a Design Certificate in its capacity as Authority discharging the State of Design responsibilities for a Product.

4. Changes in type design are classified as minor and major. A ‘minor change’ is one that has no appreciable effect on the mass, balance, structural strength, reliability, operational characteristics, noise, fuel venting, exhaust emission, or other characteristics affecting the airworthiness of the product. All other changes are ‘major changes’.

5. ‘Design Certificate’ means a form of recognition by a Party that the design or change to a design of a civil aeronautical product meets airworthiness standards and, as applicable, environmental protection requirements in particular concerning noise, fuel venting or exhaust emissions, established by the legislation in force in that Party.

6. ‘Design-related Operational Requirements’ means the operational, including environmental, requirements affecting either the design features of the product or data on the design relating to the operations or maintenance of the product that make it eligible for a particular kind of operation.

7. ‘Export’ means the process by which a Civil Aeronautical Product is released from one regulatory system to another.

8. ‘Export Certificate of Airworthiness’ means an export declaration by the Exporting Party – or, for used aircraft, by the Competent Authority of the State of Registry from which the product is exported – that a complete aircraft conforms to the airworthiness and environmental requirements notified by the Importing Party.

9. ‘Exporting Party’ means the Party from whose production oversight system a Civil Aeronautical Product is exported.

10. ‘Import’ means the process by which an exported civil aeronautical product is introduced into a regulatory system.

11. ‘Importing Party’ means the Party in which a Civil Aeronautical Product is imported.

12. ‘Modification design approval’ means a design certificate issued by the Civil Aviation Administration of China to approve minor changes made by an organisation or person other than the type design approval holder, to an approved type design.

13. ‘Operational Suitability Data’ means the set of data required to be established by aircraft manufacturers and approved under EASA Part 21.A.15 d) of Regulation (EU) No 748/2012. Operational Suitability Data is approved as part of the type certificate issued by the European Union Technical Agent to support type specific operational aspects for which the type certificate holder is responsible.

14. 'Production Certificate' means a certificate issued by one Party to an organisation compliant with applicable production regulation in force in that Party.

15. ‘Validating Authority’ means the Technical Agent that automatically accepts or validates, as specified in this Annex, a Certificate issued by the Certificating Authority.

1. Contributing to minimise the differences in the regulatory systems, standards and certification processes of the Parties;

2. Developing, approving, and revising the Technical Implementation Procedures referred to in paragraph 4.2;

3. Sharing information on major safety concerns and, where appropriate, developing action plans to address them;

4. Resolving technical issues falling within the responsibilities of the Competent Authorities affecting the implementation of this Annex;

5. Where appropriate, developing effective means for cooperation, technical support and exchange of information regarding safety and environmental requirements, certification systems, and quality management and standardisation systems;

6. Proposing amendments regarding this Annex to the Joint Committee of the Parties.

7. In accordance with the provisions of paragraph 5.2.2, defining procedures to ensure the continued confidence by each Party in the reliability of the other Party’s compliance finding processes;

8. Analysing, and taking action on, the implementation of the procedures referred to in (g) .

1. for the Government of the People's Republic of China: the Civil Aviation Administration of China (CAAC); and

2. for the European Union: the European Aviation Safety Agency (EASA).

1. for the Government of the People's Republic of China: the Civil Aviation Administration of China (CAAC); and

2. for the European Union: the European Aviation Safety Agency (EASA) and the Competent Authorities of the Member States of the European Union.

1. Type certificates, including, as applicable, operational suitability data;

2. Supplemental type certificates, including, as applicable, operational suitability data;

3. Modification Design Approvals;

4. Repair design approvals;

5. Parts and appliances approvals.

1. In the European regulatory system, the demonstration of capability of any design organisation to assume its responsibilities is sufficiently controlled through a system of design organisation certification.

2. In the Chinese regulatory system, the demonstration of capability of a design organisation is ensured through a design assurance system and direct controls performed by the Technical Agent. This system provides for an equivalent independent level of checking of compliance.

1. the experience and records of the Competent Authority of the other Party as Certificating Authority;

2. the experience already gained by this Validating Authority during previous validation exercises with the Competent Authority of the other Party;

3. the nature of the validated design, the performance and experience of the applicant with the Validating Authority; and

4. the outcome of initial and continued qualification requirements assessments, defined in paragraph 5.2.

1. exemption to the applicable standards;

2. deviation from the applicable standards;

3. compensating factors that provide an equivalent level of safety when applicable standards are not complied with.

1. the product has novel or unusual design features relative to the design practices on which the applicable airworthiness code is based; or

2. the intended use of the product is unconventional; or

3. experience from other similar products in service or products having similar design features, has shown that unsafe conditions may develop.

1. the Certificating Authority has issued its own certificate;

2. the Certificating Authority certifies to the Validating Authority that the product complies with the certification basis as set out in paragraph 4.4.3;

3. all issues raised during the validation process conducted by the Validating Authority have been resolved; and

4. additional administrative requirements, as defined in the Technical Implementation Procedures, have been met by the applicant.

5. For certificates subject to validation, the Validating Authority issues its own Certificate through a validation process implying a commensurate level of involvement, defined in accordance with the principles of paragraph 4.4.2. and as detailed in the Technical Implementation Procedures.

6. For certificates subject to automatic acceptance, the Validating Authority recognises and accepts the Certificating Authority’s certificates without any technical investigation or validation exercise. In this case, the certificate issued by the Certificating Authority is recognised by the Validating Authority as equivalent to its own certificate issued in accordance with its legislation and procedures. The validating Authority does not issue its own corresponding certificate.

1. if the State of Design responsibilities are exercised by a third country, provided that the Competent Authority of the Exporting Party has established and implemented procedures with the Authority of the State of Design to control the interface between the Design Certificate holder and the Production Certificate holder;

2. to the production of parts and appliances by a holder of a stand-alone Production Certificate, primarily located outside of the territories of the Parties;

3. subject to a review between the Technical Agents on a case-by-case basis, to the production of engines and propellers by a holder of a stand-alone Production Certificate, primarily located outside of the territories of the Parties.

1. When the Exporting Party is China: CAAC Form AAC-157 for new and used aircraft, and Form AAC-038 for other new products.

2. When the Exporting Party is the European Union: EASA Form 27 for new and used aircraft, and EASA Form 1 for other new products.

1. conforms to a type design approved by the Importing Party in accordance with this Annex;

2. is in a condition for safe operation, including compliance with the applicable airworthiness directives of the Importing Party, as notified by that Party; and

3. meets all additional requirements prescribed by the Importing Party, as notified by that Party.

1. conforms to a type design approved by the Importing Party in accordance with this Annex;

2. is in a condition for safe operation, including compliance with all applicable airworthiness directives of the Importing Party, as notified by that Party;

3. has been properly maintained using approved procedures and methods during its service life, as evidenced by logbooks and maintenance records; and

4. meets all additional requirements prescribed by the Importing Party, as notified by that Party.

1. the configuration of the aircraft at the time it left the manufacturer; and

2. subsequent changes and repairs applied to the aircraft, that it has approved.

1. Notify the Competent Authority of the Importing Party;

2. Coordinate, with the Competent Authority of the Importing Party as specified in the Technical Implementation Procedures, their acceptance or rejection of the exceptions to the applicable requirements; and

3. Document any accepted exceptions when exporting the product.

1. conforms to design data approved by the Importing Party;

2. is in a condition for safe operation; and

3. meets all additional requirements prescribed by the Importing Party, as notified by that Party.

1. A legal and regulatory structure, ensuring in particular regulatory powers over regulated entities;

2. An organisational structure, including a clear description of responsibilities;

3. Sufficient resources, including appropriately qualified staff with sufficient knowledge, experience and training;

4. Adequate processes documented in policies and procedures;

5. Documentation and records;

6. An established inspection programme ensuring uniform level of implementation of the regulatory framework among the various components of the oversight system.

1. Determination of compliance;

2. Monitoring and oversight.

1. the general configuration or the principles of construction are not retained;

2. the assumptions used for certification of the product to be changed do not remain valid.