Appendix D APPENDIX D. SCRAP OR SALVAGEABLE AIRCRAFT PRODUCTS AND ARTICLES.
D.1 Purpose.
The information provided in this appendix may be used by production approval holders and their suppliers. This information may be— Applied to manufacturers involved in the control, distribution, sale, maintenance, or disposition of scrap or salvageable aircraft engines, aircraft propellers, and aircraft articles.
Used to identify, segregate, and control rejected products and articles to preclude their use in a finished product.
D.2 Background.
Products and articles may be deemed scrap or salvageable once they are determined as unserviceable or ineligible for installation on an aircraft, aircraft engine, or aircraft propeller. In some cases, it has been common practice to dispose of scrapped products and articles by selling, discarding, or transferring the articles. A lack of proper industry controls may result in an article being copied or repaired, reintroduced into the market, and being falsely identified as an approved article. Use of such products and articles can have serious safety implications and liabilities for the manufacturer, aircraft operator, or repair facility. Using an effective system to control scrap or salvageable products and articles will reduce the chances that these articles will be distributed or sold as serviceable.
D.3 Documenting the Process.
Maintaining a well-defined quality program is fundamental to controlling rejected products and articles. One element to be addressed within this program is the control and disposal of scrap and salvageable products and articles. Quality systems without this element could allow products and articles to migrate back into active inventories.
D.4 Preventing Misrepresentation of Scrap Products and Articles.
D.4.1 Manufacturers should dispose of scrap products and articles through mutilation, when appropriate. Proper and thorough mutilation of products and articles will ensure they are unusable for their original application and render them incapable of being reworked or camouflaged to provide the appearance of being serviceable.
D.4.2 Effective mutilation may be accomplished by one or a combination of the following methods: grinding, burning, removal of a major integral feature, permanent distortion of products and articles, cutting a significant size hole with a cutting torch or saw, melting, sawing into many small pieces, and removing manufacturer identification, part, lot, batch, and serial number.
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Appendix D D.5 Disposing of Scrap Products and Articles.
Manufacturers disposing of scrap products and articles may choose to release them for legitimate non-flight use. This non-flight use may include training, education, research and development, tool set up, or non-aviation applications. In such instances, mutilation may not be appropriate.
The following methods may be used to prevent future misrepresentation:
D.5.1 Permanently and clearly mark the products and articles as “Not for Aviation Use” and “Not Serviceable.” Ink stamping is not normally considered an acceptable method unless indelible ink is used and the products and articles are checked to ensure the ink cannot be removed.
D.5.2 Remove part number identification.
D.5.3 Remove identification plate and marking.
D.5.4 Maintain a tracking or accountability system, by serial number or other individualized data, to record transferred scrap products and articles.
D.5.5 In any agreement or contract transferring scrap products and articles, develop written procedures identifying disposition and disposal requirements.
D.5.6 Secure a signed certification statement from the purchaser indicating “the purchaser will not use or convey these products and articles for use in aviation products.”
D.5.7 For those articles determined to be scrap and having no further aviation use, manufacturers should— Establish and maintain procedures requiring documentation (for example, a written contract) from scrap dealers indicating their intent to properly dispose of all products and articles received.
Establish and maintain procedures to audit scrap dealers to their contract requirements.
Maintain records of serial numbers for scrapped life-limited or other critical products and articles. In such cases, the owner who mutilates applicable products and articles is encouraged to provide the original manufacturer with the data plate or serial number and final disposition of the product or article.
D.6 Preventing Misrepresentation of Salvageable Products and Articles.
D.6.1 Manufacturers handling salvageable products and articles should— Establish secure areas to segregate such articles from active serviceable inventories and to prevent unauthorized access.
Develop procedures to address the retention of records for products and articles exceeding current repair criteria and life limits and that are being held in anticipation of future repair methods or extension to life limits. Caution should D-2
Appendix D be exercised to ensure these products and articles receive the appropriate final disposition.
D.6.2 Aviation safety is best served with sound processes that control scrap and salvageable products and articles. Using the practices identified in this document will reduce the potential that these articles will be distributed and sold as serviceable products.
With aviation safety in mind, the aviation community is responsible for preventing misrepresentation of aviation products and articles. The FAA encourages manufacturers to establish a program that controls scrap and salvageable products and articles as an integral part of their quality management systems.
D.6.3 Misrepresented products and articles that are offered for sale, or have been furnished for aviation use, should be reported to the FAA. This may be accomplished by submitting FAA Form 8120-11, Suspected Unapproved Parts Notification, or by calling the Aviation Safety Hotline toll free number, 800-255-1111.
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Appendix E APPENDIX E. ISSUING AUTHORIZED RELEASE DOCUMENTS FOR AIRCRAFT ENGINES, PROPELLERS, AND ARTICLES.
E.1 Purpose.
This appendix provides guidance to any PAH on developing procedures to comply with 14 CFR 21.137(o). These procedures are required before a PAH may issue authorized release documents, using FAA Form 8130-3, for new aircraft engines, propellers, and articles manufactured by the production approval holder, or for used aircraft engines, propellers, and articles when rebuilt or altered pursuant to § 43.3(j).
E.1.1 A PAH may choose to either issue its own authorized release documents or rely on FAA personnel or designees. A PAH is required to have procedures under § 21.137(o) only if the PAH seeks to issue its own authorized release documents. However, after the FAA has approved a PAH’s procedures to allow the PAH to issue authorized release documents, the FAA expects the PAH to use its own approved system, rather than relying on the FAA for Form 8130-3 approval.
E.1.2 Section 21.137(o) requires any PAH issuing authorized release documents to establish quality system procedures providing for the selection, appointment, training, management, and removal of individuals authorized by the PAH to issue authorized release documents. These procedures should ensure that individuals selected to issue authorized release documents meet the qualification requirements for an FAA DMIR with function code 03, as described in FAA Order 8000.95, Designee Management Policy.
E.2 Background, Knowledge, and Experience.
In selecting and appointing individuals authorized to issue authorized release documents, a PAH should ensure those selected individuals possess knowledge of the applicable FAA regulations, policies, guidance, and procedures, and have the technical experience and skills appropriate for the complexity of the product or article for which an authorized release document is to be issued. In addition, a PAH’s selection and appointment records should show that each selected individual’s background, knowledge, and experience demonstrate his or her integrity and ability to apply sound judgment. The FAA strongly suggests any PAH review the knowledge, experience, skill, and training standards described in FAA Order 8000.95 and used by the FAA to select and appoint designees pursuant to 14 CFR part 183, Representatives of the Administrator.
E.3 Authorized Personnel.
A PAH’s FAA-approved procedures should include a current list of all personnel authorized to issue authorized release documents. This list should include each authorized individual member by name, function(s), scope or limitations, and the location at which each authorized individual’s functions are to be conducted. The E-1
Appendix E PAH’s authorized procedures should conform to current FAA policy and, at a minimum, address the following:
E.3.1 A process for determining the number of individuals needed to support the company’s workload.
E.3.2 The specific functions, products, or articles for which the authorized individual will issue authorized release documents, and any locations where those services will be needed. This should include both PAH facilities and approved supplier locations.
E.3.3 The general knowledge, type and length of experience, and technical qualification requirements needed for a specific function, product, or article.
E.3.4 The PAH’s training and testing requirements, including initial, ongoing, and recurrent testing and training, and the required frequencies. Training topics should include:
Initial Engines, Propellers, and Articles Training, recurring every 36 months;
Procedures for completing FAA Form 8130-3 Authorized Release Document;
Complying with requirements of importing countries or jurisdictions when exporting U.S. products, articles, or parts; and Understanding and complying with regulations pursuant to 14 CFR part 21, subparts H and L.
E.3.5 The continuous oversight and monitoring of all authorized individuals and their activities, regardless of location. This includes, for example, the scope of the oversight and its frequency.
E.3.6 Methods for maintaining adequate records for each authorized individual. This includes establishing a record retention period. The records should, at a minimum, contain the following information for each selected individual:
Name,
Date of birth,
Experience,
Verifiable references (technical and character),
Training status,
Scope of the authorization,
Location(s) at which functions are to be conducted,
Date of authorization,
Appointment status,
Expiration date of authorization (as appropriate), and
Identification number of authorization (as appropriate).
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Appendix E E.3.7 A method for withdrawing an authorization from a supplier location.
E.3.8 Evidence of authorization. The method used should make it very clear to the PAH, the authorized individual, and the FAA who is authorized and the overall scope and limitations of their authorization.
E.3.9 A method for auditing the effectiveness of the overall authorized release document program.
E.3.10 A process for removing or revising the scope of an individual’s authorization.
E.3.11 The retention period for records related to the issuance of each authorized release document (that is, FAA Form 8130-3).
E.4 Completing FAA Form 8130-3.
Section 21.137(o) requires any PAH who chooses to issue authorized release documents, to have an established quality system procedure for completing authorized release documents.
E.4.1 These procedures should include requirements for completing FAA Form 8130-3 that meet FAA Order 8130.21 Chapters 1, 2, and 4. When establishing a procedure for completing the authorized release documents, a PAH should incorporate by reference any applicable procedures from FAA Order 8130.21. The latest revision of FAA Order 8130.21 will always have the most up-to-date instructions applicable to any person with authority to complete authorized release documents. Blocks 13b., 13c., 13d., 14b., 14c., and 14d. require information that is specific to each PAH. The following instructions should be included in the procedures for completing the authorized release documents:
E.4.1.1 Block 13.b. Authorized Signature.
This space should be signed by an authorized person. Only a person authorized under a PAH’s approved quality system that includes the procedures pursuant to § 21.137(o) may sign this block.
E.4.1.2 Block 13.c. Approval/Authorization No.
Enter the approval or authorization number of the authorized representative or organization identified in Block 13b. Also, for a PAH, enter the applicable production approval number (for example, PT1234CE or PQ1234NM).
E.4.1.3 Block 13.d. Name (Typed or Printed).
Enter the typed or printed name of the authorized representative or organization whose signature appears in Block 13b.
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Appendix E E.4.1.4 Block 14.b. Authorized Signature.
This space should be signed by an authorized person. Only a person authorized under a PAH’s approved quality system that includes the procedures pursuant to § 21.137(o) may sign this block.
E.4.1.5 Block 14.c. Approval/Authorization No.
Enter the approval/authorization number of the authorized representative/organization identified in Block 13b. Enter the applicable production approval number (for example, PT1234CE or PQ1234NM).
E.4.1.6 Block 14.d. Name (Typed or Printed).
Enter the typed or printed name of the authorized representative or organization whose signature appears in Block 14b.
E.4.2 If a PAH manufactures a product or article for export, the PAH is responsible for ensuring that it complies with applicable bilateral agreements and with §§ 21.331 and 21.335. AC 21-2, Complying with the Requirements of Importing Countries or Jurisdictions When Exporting U.S. Products, Articles, or Parts, provides information and guidance regarding the requirements of importing countries or jurisdictions.
E.4.2.1 If an exporter cannot comply with § 21.331(a) and (c), it must notify the FAA before issuance of FAA Form 8130-3. The FAA will request a written statement from the importing CAA indicating the CAA’s acceptance of the aircraft engine, propeller, or article. Governmental authorities will transmit and receive requests for acceptance before export. The FAA will notify the exporter of the CAA’s written response, at which point the PAH can issue the export documentation.
E.4.2.2 As provided in § 21.331(b) and (d), if the CAA of an importing country or jurisdiction accepts any deviations from § 21.331(a) and (c), the PAH must list as exceptions any differences between the aircraft engine, propeller, or article on the approval or authorized release document. All deviations as exceptions should be noted in the form’s “Remarks” block, referencing the importing CAA’s written statement of acceptance. The form also should be accompanied by a copy of the importing CAA’s statement of acceptance.
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Appendix F APPENDIX F. PRODUCTION APPROVAL HOLDER/SUPPLIER ARRANGEMENT.
The following list comprises elements typically found in the arrangement between the PAH and the supplier, if applicable. Guidance on the content of each element is provided, but this is not intended to be comprehensive.
NOTE: The supplier arrangement may indicate whenever the PAH finds one or more of the elements to be inapplicable.
F.1 Scope.
F.1.1 Identify articles to be provided by the supplier and associated supplier facilities.
F.1.2 Identify any limitation(s) defined by the PAH.
F.2 PAH Evaluation.
Stipulate that the supplier is acting under the PAH quality system and that all of the corrective actions requested by the PAH will be implemented.
F.3 Implementation Procedures.
Attach a quality plan or equivalent documentation to the contract.
F.4 Internal Quality System.
F.4.1 Identify methods for the PAH to evaluate the internal quality system of the supplier.
F.4.2 Describe the interface between the PAH’s quality systems and the supplier in the quality plan.
F.5 Design Data and Configuration Control.
F.5.1 Identify the design data package provided by the PAH, including all pertinent data required for the supplied article(s) to be identified, manufactured, inspected, used, and maintained.
F.5.2 Establish procedures for managing design changes.
F.6 Manufacturing Data.
Identify the manufacturing data developed by the supplier, if any, based on the design data submitted by the PAH. (Refer to paragraph F.5 of this appendix.)
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Appendix F F.7 Test and Inspections (Including Incoming).
F.7.1 Identify procedures to define the necessary test and inspection processes— To ensure and determine the conformity of the supplied article(s) during the supplier’s manufacturing activities, and on receipt by the PAH.
To be performed for qualification of the supplier (including first article inspection) and related documentation requirements.
F.7.2 The PAH may rely on inspections/tests performed by a supplier, provided:
Personnel responsible for these tasks satisfy the quality standards of the PAH, Quality measurements are clearly identified, and The records or reports showing evidence of conformity are available for review and audit.
F.8 Identification and Traceability.
Stipulate that the PAH flows-down to the supplier and any subtier suppliers’ identification and traceability requirements.
F.9 Supplier Personnel Competence.
Identify the PAH’s requirements for the competence of supplier personnel (that is, production, inspection, and quality staff) based on qualifications, education, training, skills, and experience.
F.10 Calibration.
F.10.1 Ensure calibration is traceable to a national standard acceptable to the FAA.
F.10.2 Ensure certificates are submitted where suppliers perform calibration services for the PAH.
F.11 Handling, Storage (Segregation), and Packing.
F.11.1 Identify requirements from the PAH concerning handling, storage, packing, and shelf life to be followed by the supplier.
F.11.2 Address segregation of approved and non-approved articles as well as nonconforming articles.
F.12 Record Completion and Retention.
Identify procedures for document management and retention by the supplier.
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Appendix F F.13 Nonconformities.
Identify procedures for handling and documenting nonconformities between the PAH and the supplier, addressing— The identification, documentation, and classification (major, minor) of nonconformities.
The disposition of nonconformities and the subsequent segregation and control of the nonconforming articles. This includes the secure disposition of scrap articles to avoid reuse (refer to paragraph F.11 of this appendix).
Note: The disposition of nonconformities is generally the responsibility of the design approval holder. Nevertheless, it may be acceptable to the FAA for the design approval holder to delegate the approval of nonconformities to persons located in the organization of the PAH and its suppliers, thus acting as part of the design approval holder.
The immediate notification to the PAH on nonconforming articles that have left the supplier’s quality system.
F.14 Conformity Document.
Specify the document by which the supplier certifies conformity to the applicable design data to the PAH.
F.15 Provisions for Direct Delivery/Direct Shipment.
Identify the authorization and the requirements for direct delivery/direct shipment to end users from the supplier’s facilities, based on relevant regulatory requirements. (For direct shipment requirements, refer to chapter 3, paragraph 3.6.11.5 of this AC.)
F.16 Assistance for Continued Airworthiness.
Identify procedures for supplier assistance to the PAH for continued airworthiness, including methods to notify and act on notification of already delivered nonconforming articles, ensuring proper investigation and implementation of corrective action.
F.17 Subtier Suppliers.
F.17.1 Specify the conditions under which the supplier may subcontract to or obtain supplies from a third party.
F.17.2 Specify procedures for:
A supplier to flow-down the FAA and PAH requirements to subtier suppliers.
Notification to the PAH in case of further subtier supplier activity and/or significant problems encountered during manufacturing.
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Appendix F F.18 Significant change to the Quality System.
Require the PAH be notified, as soon as practical, of any changes to the supplier system (evaluated by the PAH) that may affect the quality of the supply.
F.19 Failures, Malfunctions, and Defects.
Specify to the supplier the necessary requirements for reporting failures, malfunctions, and defects to ensure the PAH can comply with FAA requirements.
F.20 Access for the PAH and FAA.
Ensure access to, and cooperation of, all involved facilities in the supply chain for the PAH and FAA. This will enable— The PAH to verify compliance with the PAH-supplier arrangement and to assess the quality of the contracted articles, and The FAA to investigate the PAH’s compliance with the applicable requirements at the supplier level.
F.21 Language.
Identify the language to be used for the exchange of information (including all working documents, such as technical and quality data) that is acceptable to the FAA.
F.22 Identification of Responsibilities.
Identify responsible office/function/positions in charge for all elements of the PAH-supplier arrangement.
F.23 Duration of the Supplier Arrangement.
Identify the duration of the supplier arrangement in terms of time and/or quantity of supply to be delivered to the PAH.
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Appendix G APPENDIX G. PRODUCTION CERTIFICATION:
MULTINATIONAL/MULTICORPORATE CONSORTIA.
G.1 Purpose.
This appendix provides information and criteria for evaluating and approving the quality system of a multinational or multicorporate consortium seeking a production certificate (PC). This appendix does not apply to a type certificate (TC) holder that enters into a licensing agreement with a manufacturer holding a PC at the time of license. The Federal Aviation Administration (FAA) does not consider such a licensing arrangement the formation of a PC. PC extensions are addressed in AC 21-24, Extending a Production Certificate to a Facility Located in a Bilateral Airworthiness Agreement Country.
G.2 Discussion.
A multinational/multicorporate consortium consists of a United States manufacturer(s) and a manufacturer(s) located outside the United States that have agreed to form a single company for production of a particular product. A consortium company usually exists in name only, in that it does not physically manufacture a product in one location.
The consortium company retains responsibility for the design and quality of the product for which the PC has been issued. However, the consortium company may assign the manufacturing task to other partner companies or suppliers located domestically or in combination with manufacturers located outside the United States.
G.3 Requirements.
G.3.1 Section 21.135 requires any applicant for a PC to provide the FAA with a document describing how its organization will ensure compliance with subpart G, Production Certificates. The FAA considers a multinational or multicorporate consortium company seeking a PC to be the applicant. The applicant must comply with the organizational requirements outlined in section 1.10 of this AC. The accountable manager identified in the organization document serves as the consortium company’s primary contact with the FAA office responsible for issuance of the production approval, or for certificate management of the production approval holder.
G.3.2 Section 21.137, Quality system, requires a PAH to establish and describe in writing a quality system that ensures each product or article conforms to its approved design and is in a condition for safe operation. The FAA considers the consortium company to be the applicant, and the partner companies to be suppliers.
G.3.3 The consortium company will be named on the PC, along with the consortium company address (possibly a corporate office) and the address(es) of the principal and subordinate manufacturing facilities. Extension of a PC to facilities located outside the United States may be authorized when certain criteria are met, as listed in AC 21-24.
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