Rules and Regulations. Final rule

27,809 words·~126 min read·/register/2007/01/26/07-335

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BILLING CODE 1505-01-D DEPARTMENT OF TRANSPORTATION Federal Aviation Administration 14 CFR Part 39 [Docket No. FAA-2006-26091; Directorate Identifier 2006-NE-28-AD; Amendment 39-14904; AD 2007-02-17] RIN 2120-AA64 Airworthiness Directives; Turbomeca Arriel 1 Series Turboshaft Engines AGENCY: Federal Aviation Administration (FAA), Department of Transportation (DOT). ACTION: Final rule. SUMMARY: We are adopting a new airworthiness directive

(AD)for the products listed above. This AD results from mandatory continuing airworthiness information

(MCAI)issued by an aviation authority of another country to identify and correct an unsafe condition on an aviation product. The MCAI describes the unsafe condition as: In operation, fuel leaks at the level of start electro valve fuel coupling were observed. A lack of power or an uncommanded in-flight shutdown may result from these fuel leaks. The condition described in the MCAI may result in a forced autorotation landing, the inability to continue safe flight, or a fire. We are issuing this AD to require actions to correct the unsafe condition on these products. DATES: This AD becomes effective March 2, 2007. The Director of the Federal Register approved the incorporation by reference of certain publications listed in this AD as of March 2, 2007. ADDRESSES: You may examine the AD docket on the Internet at *http://dms.dot.gov* or in person at the Docket Management Facility, U.S. Department of Transportation, 400 Seventh Street, SW., Nassif Building, Room PL-401, Washington, DC. FOR FURTHER INFORMATION CONTACT: Christopher Spinney, Aerospace Engineer, Engine Certification Office, FAA, Engine and Propeller Directorate, 12 New England Executive Park, Burlington, MA 01803; telephone

(781)238-7175, fax

(781)238-7199; e-mail: *christopher.spinney@faa.gov* . SUPPLEMENTARY INFORMATION: Streamlined Issuance of AD The FAA is implementing a new process for streamlining the issuance of ADs related to MCAI. This streamlined process will allow us to adopt MCAI safety requirements in a more efficient manner and will reduce safety risks to the public. This process continues to follow all FAA AD issuance processes to meet legal, economic, Administrative Procedure Act, and **Federal Register** requirements. We also continue to meet our technical decision-making responsibilities to identify and correct unsafe conditions on U.S.-certificated products. This AD references the MCAI and related service information that we considered in forming the engineering basis to correct the unsafe condition. The AD contains text copied from the MCAI and for this reason might not follow our plain language principles. Discussion We issued a notice of proposed rulemaking

(NPRM)to amend 14 CFR part 39 to include an AD that would apply to the specified products. That NPRM was published in the **Federal Register** on November 29, 2006 (71 FR 69083). That NPRM proposed to correct an unsafe condition for the specified products. The MCAI states that: In operation, fuel leaks at the level of start electro valve fuel coupling were observed. A lack of power or an uncommanded in-flight shutdown may result from these fuel leaks. The condition described in the MCAI may result in a forced autorotation landing, the inability to continue safe flight or a fire. Comments We gave the public the opportunity to participate in developing this AD. We considered the comments received. Claim That AD Is Unnecessary One commenter, NorthStar Trekking, LLC, claims that the AD is unnecessary because the five-year-old service bulletin has been incorporated into the maintenance manual. We do not agree. The inspection is a one-time inspection to address an unsafe condition that was not previously covered in the maintenance manual. The fact that the service bulletin is five years old, or the fact that the inspections have been incorporated into the manual, have no bearing on the unsafe condition. However, if the inspection was done any time in the last five years per the service bulletin, then the AD is complied with, requiring no further action by the operator. Claim That Costs for Inflation Not Included The same commenter states that costs for inflation were not included in the costs of compliance in the proposed AD. We do not agree. The cost analysis in the proposed AD is a conservative assessment. It assumes that all ignition solenoid/start drain valves will have to be replaced. We do not know what percentage of parts will require replacement, but we anticipate that only a small percentage of these parts will actually require replacement. Conclusion We reviewed the available data, including the comments received, and determined that air safety and the public interest require adopting the AD as proposed. Differences Between This AD and the MCAI or Service Information We have reviewed the MCAI and related service information and, in general, agree with their substance. But we might have found it necessary to use different words from those in the MCAI to ensure the AD is clear for U.S. operators and is enforceable. In making these changes, we do not intend to differ substantively from the information provided in the MCAI and related service information. We might also have required different actions in this AD from those in the MCAI in order to follow our FAA policies. Any such differences are described in a separate paragraph of the AD, and take precedence over the actions copied from the MCAI. Costs of Compliance Based on the service information, we estimate that this AD will affect about 790 products of U.S. registry. We also estimate that it will take about 1.5 work-hours per product to comply with this AD. The average labor rate is $80 per work-hour. Required parts will cost about $6,000 per product. Based on these figures, we estimate the cost of the AD on U.S. operators to be $4,834,800, or $6,120 per product. Authority for This Rulemaking Title 49 of the United States Code specifies the FAA's authority to issue rules on aviation safety. Subtitle I, section 106, describes the authority of the FAA Administrator. “Subtitle VII: Aviation Programs,” describes in more detail the scope of the Agency's authority. We are issuing this rulemaking under the authority described in “Subtitle VII, Part A, Subpart III, Section 44701: General requirements.” Under that section, Congress charges the FAA with promoting safe flight of civil aircraft in air commerce by prescribing regulations for practices, methods, and procedures the Administrator finds necessary for safety in air commerce. This regulation is within the scope of that authority because it addresses an unsafe condition that is likely to exist or develop on products identified in this rulemaking action. Regulatory Findings We determined that this AD will not have federalism implications under Executive Order 13132. This AD will not have a substantial direct effect on the States, on the relationship between the national government and the States, or on the distribution of power and responsibilities among the various levels of government. For the reasons discussed above, I certify this AD: 1. Is not a “significant regulatory action” under Executive Order 12866; 2. Is not a “significant rule” under the DOT Regulatory Policies and Procedures (44 FR 11034, February 26, 1979); and 3. Will not have a significant economic impact, positive or negative, on a substantial number of small entities under the criteria of the Regulatory Flexibility Act. We prepared a regulatory evaluation of the estimated costs to comply with this AD and placed it in the AD docket. Examining the AD Docket You may examine the AD docket on the Internet at *http://dms.dot.gov* ; or in person at the Docket Management Facility between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays. The AD docket contains the NPRM, the AD, the regulatory evaluation, any comments received, and other information. The street address for the Docket Office (telephone

(800)647-5227) is in the ADDRESSES section. Comments will be available in the AD docket shortly after receipt. List of Subjects in 14 CFR Part 39 Air transportation, Aircraft, Aviation safety, Incorporation by reference, Safety. Adoption of the Amendment Accordingly, under the authority delegated to me by the Administrator, the FAA amends 14 CFR part 39 as follows: PART 39—AIRWORTHINESS DIRECTIVES 1. The authority citation for part 39 continues to read as follows: Authority: 49 U.S.C. 106(g), 40113, 44701. § 39.13 [Amended] 2. The FAA amends § 39.13 by adding the following new AD: **2007-02-17 Turbomeca:** Amendment 39-14904. Docket No. FAA-2006-26091; Directorate Identifier 2006-NE-28-AD. Effective Date

(a)This airworthiness directive

(AD)becomes effective March 2, 2007. Affected ADs

(b)None. Applicability

(c)This AD applies to Turbomeca Arriel -1A, -1A1, -1A2, -1B, -1B2, -1C, -1C1, -1C2, -1D, -1D, -1D1, -1K1, -1E, -1E2, -1S, and -1S1 series turboshaft engines. These engines are installed on, but not limited to, Augusta A 109 series, Eurocopter AS 350, AS 365, SA 365, EC 155, and BK 117 series, and Sikorsky S-76A and S-76C series helicopters. Reason

(d)European Aviation Safety Agency

(EASA)AD No. 2006-0068, dated March 24, 2006, states: In operation, fuel leaks at the level of start electro valve fuel coupling were observed. A lack of power or an uncommanded in-flight shutdown may result from these fuel leaks. The condition described in the EASA AD may result in a forced autorotation landing, the inability to continue safe flight or a fire. Actions and Compliance

(e)Within 90 days after the effective date of this AD, unless already done, do the following actions:

(1)Check the condition of the three fuel unions and the ignition solenoid valve/start drain valve assembly, and check for their proper assembly.

(2)Correct the installations if necessary.

(3)Use Turbomeca Alert Service Bulletin No. A292 73 0251, Update No. 2, dated February 5, 2001, to do the checks and corrections. AD Differences

(f)None. Other FAA AD Provisions

(g)The following provisions also apply to this AD:

(1)*Alternative Methods of Compliance (AMOCs):* The Manager, Engine Certification Office, FAA has the authority to approve AMOCs for this AD, if requested using the procedures found in 14 CFR 39.19.

(2)*Airworthy Product:* For any requirement in this AD to obtain corrective actions from a manufacturer or other source, use these actions if they are FAA-approved. Corrective actions are considered FAA-approved if they are approved by the State of Design Authority (or their delegated agent). You are required to assure the product is airworthy before it is returned to service.

(3)*Reporting Requirements:* For any reporting requirement in this AD, under the provisions of the Paperwork Reduction Act (44 U.S.C. 3501 *et seq.* ), the Office of Management and Budget

(OMB)has approved the information collection requirements and has assigned OMB Control Number 2120-0056. Related Information

(h)Contact Christopher Spinney, Aerospace Engineer, Engine Certification Office, FAA, Engine and Propeller Directorate, 12 New England Executive Park, Burlington, MA 01803; telephone

(781)238-7175, fax

(781)238-7199; e-mail: *christopher.spinney@faa.gov* for more information about this AD.

(i)Refer to EASA AD No. 2006-0068, dated March 24, 2006, for related information. Material Incorporated by Reference

(j)You must use Turbomeca Alert Service Bulletin No. A292 73 0251, Update No. 2, dated February 5, 2001, to do the checks and corrections required by this AD, unless the AD specifies otherwise.

(1)The Director of the Federal Register approved the incorporation by reference of this service information under 5 U.S.C. 552(a) and 1 CFR part 51.

(2)For service information identified in this AD, contact Turbomeca, 40220 Tarnos, France; telephone 33 05 59 74 40 00, fax 33 05 59 74 45 15.

(3)You may review copies at the National Archives and Records Administration (NARA). For information on the availability of this material at NARA, call

(202)741-6030, or go to: *http://www.archives.gov/federal-register/cfr/ibr-locations.html* . Issued in Burlington, Massachusetts, on January 19, 2007. Robert G. Mann, Acting Manager, Engine and Propeller Directorate, Aircraft Certification Service. [FR Doc. E7-1082 Filed 1-25-07; 8:45 am] BILLING CODE 4910-13-P DEPARTMENT OF TRANSPORTATION Federal Aviation Administration 14 CFR Part 39 [Docket No. FAA-2006-25966; Directorate Identifier 2006-NM-149-AD; Amendment 39-14909; AD 2007-02-22] RIN 2120-AA64 Airworthiness Directives; Airbus Model A310 Airplanes AGENCY: Federal Aviation Administration (FAA), Department of Transportation (DOT). ACTION: Final rule. SUMMARY: The FAA is adopting a new airworthiness directive

(AD)for all Airbus Model A310 airplanes. This AD requires doing repetitive inspections for any missing, damaged, or incorrectly installed wiper rings in the splined couplings of the flap transmission shafts; inspections for any missing, damaged, or incorrectly installed rubber gaiters and straps on the sliding bearing/plunging joints of the flap transmission; and corrective action if necessary. This AD results from reviews in which the manufacturer determined that the splined couplings and sliding bearings of the flap transmission system could be affected by corrosion and wear. We are issuing this AD to detect and correct damaged, missing, or incorrectly installed components of the flap transmission system, which could result in reduced functional integrity of the flap transmission system and consequent reduced control of the airplane. DATES: This AD becomes effective March 2, 2007. The Director of the Federal Register approved the incorporation by reference of a certain publication listed in the AD as of March 2, 2007. ADDRESSES: You may examine the AD docket on the Internet at *http://dms.dot.gov* or in person at the Docket Management Facility, U.S. Department of Transportation, 400 Seventh Street, SW., Nassif Building, Room PL-401, Washington, DC. Contact Airbus, 1 Rond Point Maurice Bellonte, 31707 Blagnac Cedex, France, for service information identified in this AD. FOR FURTHER INFORMATION CONTACT: Tom Stafford, Aerospace Engineer, International Branch, ANM-116, FAA, Transport Airplane Directorate, 1601 Lind Avenue, SW., Renton, Washington 98057-3356; telephone

(425)227-1622; fax

(425)227-1149. SUPPLEMENTARY INFORMATION: Examining the Docket You may examine the airworthiness directive

(AD)docket on the Internet at *http://dms.dot.gov* or in person at the Docket Management Facility office between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays. The Docket Management Facility office (telephone

(800)647-5227) is located on the plaza level of the Nassif Building at the street address stated in the ADDRESSES section. Discussion The FAA issued a notice of proposed rulemaking

(NPRM)to amend 14 CFR part 39 to include an AD that would apply to all Airbus Model A310 airplanes. That NPRM was published in the **Federal Register** on October 3, 2006 (71 FR 58320). That NPRM proposed to require doing repetitive inspections for any missing, damaged, or incorrectly installed wiper rings in the splined couplings of the flap transmissions shafts; inspections for any missing, damaged, or incorrectly installed rubber gaiters and straps on the sliding bearing/plunging joints of the flap transmission; and corrective action if necessary. Comments We provided the public the opportunity to participate in the development of this AD. We have considered the comments received. Request To Revise Inspection Type Airbus requests that the type of inspection specified in paragraph

(f)of the NPRM be revised from general visual inspection to detailed inspection. The commenter states that calling the inspection a detailed inspection would be more relevant because cleaning of the work area is specified in the service bulletin referenced in paragraph

(f)of the NPRM. We agree with the commenter. We have revised this final rule to clarify that our intent is to require a detailed inspection. Additionally, we have added a note to the final rule to define that inspection. Request To Incorporate Service Information The Modification and Replacement of Parts Association (MARPA) states that typically airworthiness directives are based on service information originating with the type certificate holder or its suppliers. MARPA also states that manufacturer's service documents are privately authored instruments generally enjoying copyright protection against duplication and distribution. MARPA contends that when a service document is incorporated by reference pursuant to 5 U.S.C. 552(a) and 1 CFR part 51 into a public document such as an airworthiness directive, it loses its private, protected status and becomes itself a public document. MARPA explains that if a service document is used as a mandatory element of compliance it should not simply be referenced, but should be incorporated into the regulatory document. MARPA states that public laws by definition must be public which means they cannot rely for compliance upon private writings. MARPA is concerned that failure to incorporate essential service information could result in a court decision invalidating the airworthiness directive. MARPA also states that incorporation by reference service documents should be made available to the public by publication in the Docket Management System

(DMS)keyed to the action that incorporates them. MARPA explains that the stated purpose of the incorporation by reference method of the **Federal Register** is brevity; to keep from expanding the **Federal Register** needlessly by publishing documents already in the hands of the affected individuals. MARPA notes that traditionally, “affected individuals” has meant aircraft owners and operators who are generally provided service information by the manufacturer. However, MARPA states that a new class of affected individuals has emerged since the majority of aircraft maintenance is now performed by specialty shops instead of aircraft owners and operators. MARPA states that this new class includes maintenance and repair organizations, component servicing and repair shops, parts purveyors and distributors and organizations manufacturing or servicing alternatively certified parts under section 21.303 (“Replacement and modification parts”) of the Federal Aviation Regulations (14 CFR 21.303). Further, MARPA states that the concept of brevity is now nearly archaic as documents exist more frequently in electronic format than on paper. We understand MARPA's comment concerning incorporation by reference. The Office of the Federal Register

(1)Is not a “significant regulatory action” under Executive Order 12866;

(2)Is not a “significant rule” under DOT Regulatory Policies and Procedures (44 FR 11034, February 26, 1979); and

(3)Will not have a significant economic impact, positive or negative, on a substantial number of small entities under the criteria of the Regulatory Flexibility Act. We prepared a regulatory evaluation of the estimated costs to comply with this AD and placed it in the AD docket. See the ADDRESSES section for a location to examine the regulatory evaluation. List of Subjects in 14 CFR Part 39 Air transportation, Aircraft, Aviation safety, Incorporation by reference, Safety. Adoption of the Amendment Accordingly, under the authority delegated to me by the Administrator, the FAA amends 14 CFR part 39 as follows: PART 39—AIRWORTHINESS DIRECTIVES 1. The authority citation for part 39 continues to read as follows: Authority: 49 U.S.C. 106(g), 40113, 44701. § 39.13 [Amended] 2. The Federal Aviation Administration

(FAA)amends § 39.13 by adding the following new airworthiness directive (AD): **2007-02-22 Airbus:** Amendment 39-14909. FAA-2006-25966; Directorate Identifier 2006-NM-149-AD. Effective Date

(a)This AD becomes effective March 2, 2007. Affected ADs

(b)None. Applicability

(c)This AD applies to all Airbus Model A310 airplanes, certificated in any category. Unsafe Condition

(d)This AD results from reviews in which the manufacturer determined that the splined couplings and sliding bearings of the flap transmission system could be affected by corrosion and wear. We are issuing this AD to detect and correct damaged, missing, or incorrectly installed components of the flap transmission system, which could result in reduced functional integrity of the flap transmission system and consequent reduced control of the airplane. Compliance

(e)You are responsible for having the actions required by this AD performed within the compliance times specified, unless the actions have already been done. Initial and Repetitive Inspections

(f)Within 2,500 flight cycles after the effective date of this AD: Do a detailed inspection for any missing, damaged, or incorrectly installed wiper rings in the splined couplings of the flap transmission shafts; and a detailed inspection for any missing, damaged, or incorrectly installed rubber gaiters and straps on the sliding bearing/plunging joints of the flap transmission; in accordance with the Accomplishment Instructions of Airbus Service Bulletin A310-27-2099, dated February 17, 2006. Repeat the inspections thereafter at intervals not to exceed 2,500 flight cycles. Note 1: For the purposes of this AD, a detailed inspection is: “An intensive examination of a specific item, installation, or assembly to detect damage, failure, or irregularity. Available lighting is normally supplemented with a direct source of good lighting at an intensity deemed appropriate. Inspection aids such as mirror, magnifying lenses, etc., may be necessary. Surface cleaning and elaborate procedures may be required.” Corrective Actions

(g)If any damaged, missing or incorrectly installed wiper rings, rubber gaiters, or straps are found during any inspection required by paragraph

(f)of this AD: Within 400 flight cycles after accomplishing the inspection, replace the applicable component with a serviceable component in accordance with the Accomplishment Instructions of Airbus Service Bulletin A310-27-2099, dated February 17, 2006. Alternative Methods of Compliance (AMOCs) (h)(1) The Manager, International Branch, ANM-116, Transport Airplane Directorate, FAA, has the authority to approve AMOCs for this AD, if requested in accordance with the procedures found in 14 CFR 39.19.

(2)Before using any AMOC approved in accordance with § 39.19 on any airplane to which the AMOC applies, notify the appropriate principal inspector in the FAA Flight Standards Certificate Holding District Office. Related Information

(i)The European Aviation Safety Agency's airworthiness directive 2006-0111, dated May 12, 2006, also addresses the subject of this AD. Material Incorporated by Reference

(j)You must use Airbus Service Bulletin A310-27-2099, dated February 17, 2006, to perform the actions that are required by this AD, unless the AD specifies otherwise. The Director of the Federal Register approved the incorporation by reference of this document in accordance with 5 U.S.C. 552(a) and 1 CFR part 51. Contact Airbus, 1 Rond Point Maurice Bellonte, 31707 Blagnac Cedex, France, for a copy of this service information. You may review copies at the Docket Management Facility, U.S. Department of Transportation, 400 Seventh Street SW., Room PL-401, Nassif Building, Washington, DC; on the Internet at *http://dms.dot.gov;* or at the National Archives and Records Administration (NARA). For information on the availability of this material at the NARA, call

(202)741-6030, or go to *http://www.archives.gov/federal_register/code_of_federal_regulations/ibr/locations.html* . Issued in Renton, Washington, on January 16, 2007. Ali Bahrami, Manager, Transport Airplane Directorate, Aircraft Certification Service. [FR Doc. E7-1080 Filed 1-25-07; 8:45 am] BILLING CODE 4910-13-P DEPARTMENT OF TRANSPORTATION Federal Aviation Administration 14 CFR Part 39 [Docket No. FAA-2006-25219; Directorate Identifier 2005-NM-259-AD; Amendment 39-14907; AD 2007-02-20] RIN 2120-AA64 Airworthiness Directives; Fokker Model F27 Mark 050 and F.28 Mark 0070 and 0100 Airplanes AGENCY: Federal Aviation Administration (FAA), Department of Transportation (DOT). ACTION: Final rule. SUMMARY: The FAA is adopting a new airworthiness directive

(AD)for certain Fokker Model F27 Mark 050 and F.28 Mark 0070 and 0100 airplanes. This AD requires repetitively removing the two existing escape rope assemblies in the flight compartment and installing new escape rope assemblies. This AD results from reports of findings of small cracks in the polyester assembly block in which the cotton escape rope is stored. A test revealed that the escape ropes had deteriorated over time, and the load capability was considerably reduced. We are issuing this AD to ensure that flightcrew members safely reach the ground after exiting the flight compartment window during an emergency evacuation. DATES: This AD becomes effective March 2, 2007. The Director of the Federal Register approved the incorporation by reference of certain publications listed in the AD as of March 2, 2007. ADDRESSES: You may examine the AD docket on the Internet at *http://dms.dot.gov* or in person at the Docket Management Facility, U.S. Department of Transportation, 400 Seventh Street, SW., Nassif Building, Room PL-401, Washington, DC. Contact Fokker Services B.V., P.O. Box 231, 2150 AE Nieuw-Vennep, the Netherlands, for service information identified in this AD. FOR FURTHER INFORMATION CONTACT: Tom Rodriguez, Aerospace Engineer, International Branch, ANM-116, FAA, Transport Airplane Directorate, 1601 Lind Avenue, SW., Renton, Washington 98057-3356; telephone

(425)227-1137; fax

(425)227-1149. SUPPLEMENTARY INFORMATION: Examining the Docket You may examine the airworthiness directive

(800)647-5227) is located on the plaza level of the Nassif Building at the street address stated in the ADDRESSES section. Discussion The FAA issued a notice of proposed rulemaking

(NPRM)to amend 14 CFR part 39 to include an AD that would apply to certain Fokker Model F27 Mark 050 and Model F.28 Mark 0070 and 0100 airplanes. That NPRM was published in the **Federal Register** on June 30, 2006 (71 FR 37510). That NPRM proposed to require repetitively removing the two existing escape rope assemblies in the flight compartment and installing new escape rope assemblies. Comments We provided the public the opportunity to participate in the development of this AD. We have considered the comments received. Request To Change Incorporation of Certain Service Information The Modification and Replacement Parts Association (MARPA) states that, typically, airworthiness directives are based on service information originating with the type certificate holder or its suppliers. MARPA adds that manufacturer service documents are privately authored instruments generally having copyright protection against duplication and distribution. MARPA notes that when a service document is incorporated by reference into a public document, such as an airworthiness directive, it loses its private, protected status and becomes a public document. MARPA adds that if a service document is used as a mandatory element of compliance, it should not simply be referenced, but should be incorporated into the regulatory document; by definition, public laws must be public, which means they cannot rely upon private writings. MARPA adds that incorporated by reference service documents should be made available to the public by publication in the Docket Management System (DMS), keyed to the action that incorporates them. MARPA notes that the stated purpose of the incorporation by reference method is brevity, to keep from expanding the **Federal Register** needlessly by publishing documents already in the hands of the affected individuals; traditionally, “affected individuals” means aircraft owners and operators, who are generally provided service information by the manufacturer. MARPA adds that a new class of affected individuals has emerged, since the majority of aircraft maintenance is now performed by specialty shops instead of aircraft owners and operators. MARPA notes that this new class includes maintenance and repair organizations, component servicing and repair shops, parts purveyors and distributors, and organizations manufacturing or servicing alternatively certified parts under section 21.303 (“Replacement and modification parts”) of the Federal Aviation Regulations (14 CFR 21.303). MARPA adds that the concept of brevity is now nearly archaic as documents exist more frequently in electronic format than on paper. Therefore, MARPA asks that the service documents deemed essential to the accomplishment of the NPRM be incorporated by reference into the regulatory instrument, and published in the DMS. We understand MARPA's comment concerning incorporation by reference. The Office of the Federal Register

(OFR)decides when an agency may incorporate material by reference. As the commenter is aware, the OFR files documents for public inspection on the workday before the date of publication of the rule at its office in Washington, DC. As stated in the Federal Register Document Drafting Handbook, when documents are filed for public inspection, anyone may inspect or copy filed documents during the OFR's hours of business. Further questions regarding publication of documents in the **Federal Register** or incorporation by reference should be directed to the OFR. In addition, regarding the commenter's request to post service bulletins on the Department of Transportation's DMS, we are currently in the process of reviewing issues surrounding the posting of service bulletins on the DMS as part of an AD docket. Once we have thoroughly examined all aspects of this issue and have made a final determination, we will consider whether our current practice needs to be revised. No change to the AD is necessary in response to this comment. Conclusion We have carefully reviewed the available data, including the comments received, and determined that air safety and the public interest require adopting the AD as proposed. Costs of Compliance This AD affects about 2 airplanes of U.S. registry. The removal and installation take about 2 work hours per airplane, at an average labor rate of $80 per work hour. Required parts cost between $387 and $425 per airplane, depending on airplane configuration. Based on these figures, the estimated cost of the AD for U.S. operators is between $1,094 and $1,170, or between $547 and $585 per airplane, per removal and installation. Authority for This Rulemaking Title 49 of the United States Code specifies the FAA's authority to issue rules on aviation safety. Subtitle I, section 106, describes the authority of the FAA Administrator. Subtitle VII, Aviation Programs, describes in more detail the scope of the Agency's authority. We are issuing this rulemaking under the authority described in subtitle VII, part A, subpart III, section 44701, “General requirements.” Under that section, Congress charges the FAA with promoting safe flight of civil aircraft in air commerce by prescribing regulations for practices, methods, and procedures the Administrator finds necessary for safety in air commerce. This regulation is within the scope of that authority because it addresses an unsafe condition that is likely to exist or develop on products identified in this rulemaking action. Regulatory Findings We have determined that this AD will not have federalism implications under Executive Order 13132. This AD will not have a substantial direct effect on the States, on the relationship between the national government and the States, or on the distribution of power and responsibilities among the various levels of government. For the reasons discussed above, I certify that this AD:

(1)Is not a “significant regulatory action” under Executive Order 12866;

(2)Is not a “significant rule” under DOT Regulatory Policies and Procedures (44 FR 11034, February 26, 1979); and

(FAA)amends § 39.13 by adding the following new airworthiness directive (AD): **2007-02-20 Fokker Services B.V.:** Amendment 39-14907. Docket No. FAA-2006-25219; Directorate Identifier 2005-NM-259-AD. Effective Date

(a)This AD becomes effective March 2, 2007. Affected ADs

(b)None. Applicability

(c)This AD applies to Fokker Model F27 Mark 050 and F.28 Mark 0070 and 0100 airplanes, certificated in any category; with escape rope assemblies in the flight compartment. Unsafe Condition

(d)This AD results from reports of findings of small cracks in the polyester assembly block in which the cotton escape rope is stored. A test revealed that the escape ropes had deteriorated over time, and the load capability was considerably reduced. We are issuing this AD to ensure that flightcrew members safely reach the ground after exiting the flight compartment window during an emergency evacuation. Compliance

(e)You are responsible for having the actions required by this AD performed within the compliance times specified, unless the actions have already been done. Replacement

(f)Within 12 months after the effective date of this AD: Remove the two existing escape rope assemblies in the flight compartment and install new escape rope assemblies in accordance with the Accomplishment Instructions of Fokker Service Bulletin SBF50-25-059 (for Model F27 Mark 050 airplanes); and Fokker Service Bulletin SBF100-25-099 (for Model F.28 Mark 0070 and 0100 airplanes); both dated June 28, 2004. Repeat the removal and installation thereafter at intervals not to exceed 72 months. Alternative Methods of Compliance (AMOCs) (g)(1) The Manager, International Branch, ANM-116, Transport Airplane Directorate, FAA, has the authority to approve AMOCs for this AD, if requested in accordance with the procedures found in 14 CFR 39.19.

(h)Dutch airworthiness directive 2004-159, dated December 24, 2004, also addresses the subject of this AD. Material Incorporated by Reference

(i)You must use Fokker Service Bulletin SBF50-25-059, dated June 28, 2004; or Fokker Service Bulletin SBF100-25-099, dated June 28, 2004; as applicable; to perform the actions that are required by this AD, unless the AD specifies otherwise. The Director of the Federal Register approved the incorporation by reference of these documents in accordance with 5 U.S.C. 552(a) and 1 CFR part 51. Contact Fokker Services B.V., P.O. Box 231, 2150 AE Nieuw-Vennep, the Netherlands, for a copy of this service information. You may review copies at the Docket Management Facility, U.S. Department of Transportation, 400 Seventh Street, SW., Room PL-401, Nassif Building, Washington, DC; on the Internet at *http://dms.dot.gov* ; or at the National Archives and Records Administration (NARA). For information on the availability of this material at the NARA, call

(AD)for certain Airbus Model A300 airplanes; and Model A300 B4-600, B4-600R, and F4-600R series airplanes, and Model C4-605R Variant F airplanes (collectively called A300-600 series airplanes). This AD requires replacing the pressure limiter of the parking brake system with a new or modified pressure limiter. This AD results from a report indicating that failure of the parking brake system occurred on a Model A300-600 airplane. We are issuing this AD to prevent failure of the parking brake system and interference with emergency use of the brake pedals, which could lead to airplane collision with surrounding objects or departure from the runway. DATES: This AD becomes effective March 2, 2007. The Director of the Federal Register approved the incorporation by reference of certain publications listed in the AD as of March 2, 2007. ADDRESSES: You may examine the AD docket on the Internet at *http://dms.dot.gov* or in person at the Docket Management Facility, U.S. Department of Transportation, 400 Seventh Street, SW., Nassif Building, Room PL-401, Washington, DC. Contact Airbus, 1 Rond Point Maurice Bellonte, 31707 Blagnac Cedex, France, for service information identified in this AD. FOR FURTHER INFORMATION CONTACT: Tom Stafford, Aerospace Engineer, International Branch, ANM-116, FAA, Transport Airplane Directorate, 1601 Lind Avenue, SW., Renton, Washington 98057-3356; telephone

(425)227-1622; fax

(425)227-1149. SUPPLEMENTARY INFORMATION: Examining the Docket You may examine the airworthiness directive

(800)647-5227) is located on the plaza level of the Nassif Building at the street address stated in the ADDRESSES section. Discussion The FAA issued a notice of proposed rulemaking

(NPRM)to amend 14 CFR part 39 to include an AD that would apply to certain Airbus Model A300 and A310 airplanes; and Model A300 B4-600, B4-600R, and F4-600R series airplanes, and Model C4-605R Variant F airplanes (collectively called A300-600 series airplanes). That NPRM was published in the **Federal Register** on September 26, 2006 (71 FR 56054). That NPRM proposed to require replacing the pressure limiter of the parking brake system with a new or modified pressure limiter. Comments We provided the public the opportunity to participate in the development of this AD. We have considered the comments received. Request To Refer To Revised Service Information Airbus has informed us that the applicable service bulletins identified in the NPRM have all been reissued at Revision 01, and requests that we revise the NPRM to refer to Airbus Service Bulletins A300-32-0448 and A300-32-6094, both Revision 01, both dated October 26, 2006. However, Airbus has determined that the subject modification is incompatible with Model A310 airplanes and informed the European Aviation Safety Agency

(EASA)of this situation. Airbus states that: • EASA intends to revise EASA airworthiness directive 2006-0178, dated June 26, 2006, to remove Model A310 airplanes from the effectivity; • Airbus intends to issue a new revision of Service Bulletin A310-32-2133 with a revised modification for Model A310 airplanes; and • EASA intends to issue a new airworthiness directive to address the revised issue of Service Bulletin A310-32-2133 and to mandate the revised modification for Model A310 airplanes. Airbus therefore requests that we remove all references to Model A310 airplanes from the effectivity of the NPRM and Service Bulletin A310-32-2133, dated February 2, 2006, from the NPRM. We agree for the reasons stated. We have removed all references to Model A310 airplanes and Service Bulletin A310-32-2133 from the summary, estimated costs, applicability, and body of the AD. Further, we have reviewed Service Bulletins A300-32-0448 and A300-32-6094, both Revision 01, both dated October 2, 2006. Certain airplanes have been removed and the operator listings have been updated in the effectivities of the revised service bulletins, but no new work is described. As these changes are relieving in nature and reduce the number of affected airplanes, we have determined that it is not necessary to provide additional time for public comment. Therefore, we have changed Table 1 of paragraph

(f)of the AD to reflect the revised service bulletins. We have also added new paragraph

(g)to the AD to give credit for actions accomplished before the effective date of the AD in accordance with the original issues of the service bulletins and re-identified the subsequent paragraphs of the AD accordingly. In regard to Model A310 airplanes, when Airbus and EASA have issued revised documentation, we may consider further rulemaking then. Request To Refer to EASA Airworthiness Directive One commenter, Lufthansa Technik AG, requests that we refer to EASA airworthiness directive 2006-0178, dated June 26, 2006, in the AD. The commenter states that it would be helpful for European airlines if we specified that the content of the NPRM already appears in the EASA airworthiness directive and that accomplishing the requirements of the EASA airworthiness directive is acceptable for compliance with the requirements of the AD. We partially agree. Paragraph (i), “Related Information,” of the NPRM (paragraph

(j)of the final rule), identifies EASA airworthiness directive 2006-0178, dated June 26, 2006, as being related to the subject of this AD; the NPRM was written to directly reflect the content of the EASA airworthiness directive. While airplanes placed on the U.S. Register must comply with this AD, airplanes placed on European registries must comply with the EASA airworthiness directive. No change to the AD is needed in this regard. Request To Change Incorporation of Certain Information One commenter, the Modification and Replacement Parts Association (MARPA), requests that we revise our procedures for incorporation by reference

(IBR)of service information in ADs. MARPA asserts that ADs are frequently derived from privately-authored, copyright-protected manufacturer service documents, but that when such a document is incorporated by reference into a public document like an AD, it loses its private, protected status and becomes itself a public document. MARPA continues, stating that public laws by definition must be public and cannot rely for compliance upon private writings, and that unless such writings are incorporated by reference, a court of law will not consider them in interpreting the AD and might invalidate the AD. MARPA contends that IBR service documents should be published in the Docket Management System (DMS), keyed to the action that incorporates them. MARPA states that IBR was adopted to relieve the Office of the Federal Register

(OFR)from publishing documents already held by affected individuals, which traditionally meant aircraft owners and operators who received service information from manufacturers. However, MARPA contends that a new affected class of maintenance and repair organizations (MRO), component service and repair shops, parts purveyors and distributors, and organizations that manufacture or service alternatively certified parts under section 21.303 of the Federal Aviation Regulations (14 CFR 21.303) now perform a majority of aircraft maintenance. MARPA continues, stating that service information distributed to owners and operators who are financing or leasing institutions may not reach this class, who may actually be responsible for accomplishing ADs. MARPA therefore requests that service documents deemed essential to accomplishing this proposed action be

(1)incorporated by reference into the regulatory instrument, and

(2)published in the DMS. We understand MARPA's comment and its requests. The OFR requires that documents that are necessary to accomplish the requirements of the AD be incorporated by reference during the final rule phase of rulemaking. This final rule incorporates by reference the documents necessary for the accomplishment of the requirements mandated by this AD. Further, we point out that while documents that are incorporated by reference do become public information, they do not lose their copyright protection. For that reason, we advise the public to contact the manufacturer to obtain copies of the referenced service information. In regard to MARPA's request to post service bulletins on the Department of Transportation's DMS, we are currently in the process of reviewing issues surrounding the posting of service bulletins on the DMS as part of an AD docket. Once we have thoroughly examined all aspects of this issue and have made a final determination, we will consider whether our current practice needs to be revised. No change to the final rule is necessary in response to this comment. Request To Revise Specification of Replacement Parts MARPA requests that we revisit the manner in which replacement parts are addressed in the NPRM. MARPA asserts that type certificate holders, particularly foreign manufacturers, almost universally ignore any possible parts approved under a parts manufacturer approval

(PMA)while frequently specifying replacing a part with a part having a different part number as a corrective action in their service documents. MARPA contends that this runs afoul of 14 CFR 21.303 which permits development, certification, and installation of PMA parts. MARPA continues, stating that mandating only one part is not generally favored and can prevent installing perfectly good parts while prohibiting development of new parts as permitted under 14 CFR 21.303. MARPA expresses concern that this could change the basis of the AD, since prohibiting the development, sale and use of a perfectly airworthy part is an issue of economics rather than safety. MARPA contends that courts might construe such ADs as being outside their statutory basis and, as such, unenforceable; and therefore, as courts lack technical knowledge to rewrite specific portions of rules, the courts may simply void such rules. MARPA believes that identifying specifically numbered parts for installation should be only one of several methods of addressing the problem. MARPA continues, stating that this action, as written, also does not comply with proposed FAA Order 8040.2 which would permit the use of any PMA part and require including such parts in the applicability of the AD. MARPA states that other directorates have published ADs containing language permitting the use of “FAA-approved equivalent parts” or “airworthy parts,” and, because of these differences, the requirements of Executive Order 12866 for all agencies to act uniformly on a given issue are not being met. MARPA therefore requests that the NPRM be modified to consider and permit the use of PMA parts pursuant to existing laws and regulations. We do not agree with this request. The NPRM did not address PMA parts as provided in draft FAA Order 8040.2, because the Order was only a draft that was out for comment at the time. After issuance of the NPRM, the Order was revised and issued as FAA Order 8040.5 with an effective date of September 29, 2006; however, FAA Order 8040.5 does not address PMA parts in ADs. We acknowledge the need to ensure that unsafe PMA parts are identified and addressed in MCAI-related ADs. Further, the FAA recognizes the need for standardizing directorate policies and is currently in the process of reviewing issues that address the use of PMAs in ADs at the national level. Once we have made a final determination, we will consider how our policy regarding PMA parts in ADs needs to be revised. However, the Transport Airplane Directorate considers that to delay this particular AD action would be inappropriate, since we have determined that an unsafe condition exists and that replacement of certain parts must be accomplished to ensure continued safety. Therefore, no change has been made to the final rule in this regard. Conclusion We have carefully reviewed the available data, including the comments received, and determined that air safety and the public interest require adopting the AD with the changes described previously. We have determined that these changes will neither increase the economic burden on any operator nor increase the scope of the AD. Costs of Compliance This AD will affect about 165 airplanes of U.S. registry. The required actions will take about 2 work hours per airplane, at an average labor rate of $80 per work hour. The manufacturer states that it will supply required parts to the operators at no cost. Based on these figures, the estimated cost of the AD for U.S. operators is $26,400, or $160 per airplane. Authority for This Rulemaking Title 49 of the United States Code specifies the FAA's authority to issue rules on aviation safety. Subtitle I, section 106, describes the authority of the FAA Administrator. Subtitle VII, Aviation Programs, describes in more detail the scope of the Agency's authority. We are issuing this rulemaking under the authority described in subtitle VII, part A, subpart III, section 44701, “General requirements.” Under that section, Congress charges the FAA with promoting safe flight of civil aircraft in air commerce by prescribing regulations for practices, methods, and procedures the Administrator finds necessary for safety in air commerce. This regulation is within the scope of that authority because it addresses an unsafe condition that is likely to exist or develop on products identified in this rulemaking action. Regulatory Findings We have determined that this AD will not have federalism implications under Executive Order 13132. This AD will not have a substantial direct effect on the States, on the relationship between the national government and the States, or on the distribution of power and responsibilities among the various levels of government. For the reasons discussed above, I certify that this AD:

(1)Is not a “significant regulatory action” under Executive Order 12866;

(2)Is not a “significant rule” under DOT Regulatory Policies and Procedures (44 FR 11034, February 26, 1979); and

(FAA)amends § 39.13 by adding the following new airworthiness directive (AD): **2007-02-21 Airbus:** Amendment 39-14908. Docket No. FAA-2006-25891; Directorate Identifier 2006-NM-186-AD. Effective Date

(a)This AD becomes effective March 2, 2007. Affected ADs

(b)None. Applicability

(c)This AD applies to Airbus Model A300 airplanes; and Model A300 B4-601, B4-603, B4-620, B4-622, B4-605R, B4-622R, F4-605R, F4-622R, and C4-605R Variant F airplanes; certificated in any category; except for airplanes on which Airbus Modification 12994 has been embodied in production. Unsafe Condition

(d)This AD results from a report indicating that failure of the parking brake system occurred on a Model A300-600 airplane. We are issuing this AD to prevent failure of the parking brake system and interference with emergency use of the brake pedals, which could lead to airplane collision with surrounding objects or departure from the runway. Compliance

(e)You are responsible for having the actions required by this AD performed within the compliance times specified, unless the actions have already been done. Pressure Limiter Replacement

(f)Within 18 months after the effective date of this AD, replace the pressure limiter of the parking brake system with a new or modified pressure limiter having part number (P/N) C24264-303 or C24264004-1, as applicable, in accordance with the Accomplishment Instructions of the applicable service bulletin specified in Table 1 of this AD. Table 1.—Airbus Service Information For all model— Use Airbus Service Bulletin— Revision level— Date— A300 airplanes A300-32-0448 01 October 2, 2006. A300 B4-601, B4-603, B4-620, B4-622, B4-605R, B4-622R, F4-605R, F4-622R, and C4-605R Variant F airplanes A300-32-6094 01 October 2, 2006. Note 1: The Airbus service bulletins refer to Messier-Bugatti Service Bulletin C24264-32-848, dated February 15, 2006, as an additional source of service information for modifying the parking brake pressure limiter. Actions Accomplished According to Previously Issued Service Information

(g)Actions accomplished before the effective date of this AD according to the applicable service bulletin specified in Table 2 of this AD are considered acceptable for compliance with the corresponding action specified in this AD. Table 2.—Previously Issued Service Information Model Airbus Service Bulletin Dated A300 airplanes A300-32-0448 February 22, 2006. A300 B4-601, B4-603, B4-620, B4-622, B4-605R, B4-622R, F4-605R, F4-622R, and C4-605R Variant F airplanes A300-32-6094 February 22, 2006. Parts Installation

(h)As of the effective date of this AD, no person may install, on the parking brake system of any airplane, a pressure limiter having P/N C24264-302 or C24264004. Alternative Methods of Compliance (AMOCs) (i)(1) The Manager, International Branch, ANM-116, FAA, has the authority to approve AMOCs for this AD, if requested in accordance with the procedures found in 14 CFR 39.19.

(j)European Aviation Safety Agency

(EASA)airworthiness directive 2006-0178, dated June 26, 2006, also addresses the subject of this AD. Material Incorporated by Reference

(k)You must use the applicable service information specified in Table 3 of this AD to perform the actions that are required by this AD, unless the AD specifies otherwise. The Director of the Federal Register approved the incorporation by reference of these documents in accordance with 5 U.S.C. 552(a) and 1 CFR part 51. Contact Airbus, 1 Rond Point Maurice Bellonte, 31707 Blagnac Cedex, France, for a copy of this service information. You may review copies at the Docket Management Facility, U.S. Department of Transportation, 400 Seventh Street, SW., Room PL-401, Nassif Building, Washington, DC; on the Internet at *http://dms.dot.gov;* or at the National Archives and Records Administration (NARA). For information on the availability of this material at the NARA, call

(202)741-6030, or go to *http://www.archives.gov/federal_register/code_of_federal_regulations/ibr_locations.html* . Table 3.—Material Incorporated by Reference Airbus Service Bulletin Revision level Date A300-32-0448 01 October 2, 2006. A300-32-6094 01 October 2, 2006. Issued in Renton, Washington, on January 12, 2007. Ali Bahrami, Manager, Transport Airplane Directorate, Aircraft Certification Service. [FR Doc. E7-1079 Filed 1-25-07; 8:45 am] BILLING CODE 4910-13-P DEPARTMENT OF TRANSPORTATION Federal Aviation Administration 14 CFR Part 39 [Docket No. FAA-2006-24891; Directorate Identifier 2006-NM-080-AD; Amendment 39-14910; AD 2007-02-23] RIN 2120-AA64 Airworthiness Directives; Boeing Model 777-200, -300, and -300ER Series Airplanes AGENCY: Federal Aviation Administration (FAA), Department of Transportation (DOT). ACTION: Final rule. SUMMARY: The FAA is adopting a new airworthiness directive

(AD)for certain Boeing Model 777-200, -300, and -300ER series airplanes. This AD requires replacement of the gimbal plates of the left and right outboard trailing edge flaps with improved gimbal plates and other specified actions. This AD results from a broken pivot link found on the inboard support for the outboard trailing edge flap. We are issuing this AD to prevent disconnection of the drive arm from its drive gimbal, due to a broken pivot link on an outboard flap support, which could result in unexpected roll of the airplane and loss of control of the airplane. DATES: This AD becomes effective March 2, 2007. The Director of the Federal Register approved the incorporation by reference of a certain publication listed in the AD as of March 2, 2007. ADDRESSES: You may examine the AD docket on the Internet at *http://dms.dot.gov* or in person at the Docket Management Facility, U.S. Department of Transportation, 400 Seventh Street, SW., Nassif Building, Room PL-401, Washington, DC. Contact Boeing Commercial Airplanes, P.O. Box 3707, Seattle, Washington 98124-2207, for service information identified in this AD. FOR FURTHER INFORMATION CONTACT: Gary Oltman, Aerospace Engineer, Airframe Branch, ANM-120S, FAA, Seattle Aircraft Certification Office, 1601 Lind Avenue, SW., Renton, Washington 98057-3356; telephone

(425)917-6443; fax

(425)917-6590. SUPPLEMENTARY INFORMATION: Examining the Docket You may examine the airworthiness directive

(800)647-5227) is located on the plaza level of the Nassif Building at the street address stated in the ADDRESSES section. Discussion The FAA issued a notice of proposed rulemaking

(NPRM)to amend 14 CFR part 39 to include an AD that would apply to certain Boeing Model 777-200, -300, and -300ER series airplanes. That NPRM was published in the **Federal Register** on May 26, 2006 (71 FR 30338). That NPRM proposed to require replacement of the gimbal plates of the left and right outboard trailing edge flaps with improved gimbal plates and other specified actions. Comments We provided the public the opportunity to participate in the development of this AD. We have considered the comments received. Support for the NPRM Boeing, British Airways, American Airlines, and the Air Transport Association

(ATA)support the intent of the NPRM. Request To Use Existing Gimbal Plates Delta Airlines requests that we either have Boeing revise Alert Service Bulletin 777-27A0073, dated March 30, 2006, or that we revise paragraph

(f)of the NPRM to allow operators to deviate from the referenced service bulletin. The commenter would like to continue to use existing gimbal plates having part numbers (P/Ns) 113W1112-3, 113W1112-4, 113W1212-3, and 113W1212-4. As justification, the commenter states the service bulletin specifies installing improved gimbal plates having P/Ns 113W1112-7, 113W1112-8, 113W1212-7, and 113W1212-8, but it does not specify to replace or remove the existing parts. The commenter also cites paragraph

(g)of the NPRM, which allows installation of the existing parts if an airplane is modified in accordance with paragraph

(f)of the NPRM. We do not agree to allow use of the existing gimbal plates. Although the existing gimbal plate part numbers are not identified explicitly in the service bulletin, we confirmed with Boeing that they are P/Ns 113W1112-3, 113W1112-4, 113W1212-3, and 113W1212-4. Further, the effectivity of Boeing Alert Service Bulletin 777-27A0073 identifies Model 777-200, -300, and -300ER series airplanes that have the existing gimbal plates installed and approved as part of their type design. The intent of the service bulletin is to replace the existing gimbal plates with new, improved gimbal plates having P/Ns 113W1112-7, 113W1112-8, 113W1212-7, and 113W1212-8. These new, improved gimbal plates are identified clearly in the service bulletin and must be installed to adequately address the unsafe condition of this AD. We acknowledge that paragraph

(g)of the NPRM is confusing in that it contains the phrase “* * * unless it has been modified in accordance with paragraph

(f)of this AD.” However, that phrase is not accurate and was inadvertently included in the NPRM. We have deleted that phrase from paragraph

(g)of this AD. Request for Clarification on Improved Gimbal Plates Delta Airlines requests clarification on the new, improved gimbal plates. The commenter states that the NPRM and Boeing Alert Service Bulletin 777-27A0073, dated March 30, 2006, do not appear to be in agreement regarding use of existing gimbal plate P/Ns 113W1112-3, 113W1112-4, 113W1212-3, and 113W1212-4. The commenter also states that these part numbers are not referenced in the service bulletin. The commenter further requests that we provide more information regarding usage of the new, improved P/Ns 113W1112-7, 113W1112-8, 113W1212-7, and 113W1212-8. We acknowledge that paragraph

(g)of the NPRM has caused confusion regarding the existing and new, improved part numbers. As stated previously, we have deleted a certain phrase to clarify that the existing parts may no longer be installed on the affected airplanes. Installation of the new, improved parts is necessary to adequately address the unsafe condition of this AD. No further change has been made to this AD in this regard. Request To Extend Compliance Time British Airways requests that we extend the compliance time of the NPRM to 30 months. The commenter states that the maintenance planning document schedules zonal inspections at intervals of 6,000 flight cycles or 1,125 days, and that the commenter currently performs these inspections at intervals of 750 days (corresponding to just under 25 months). The commenter contends that the proposed compliance time could cause it to accomplish the gimbal replacement during minor maintenance. The commenter states that extending the compliance time would allow it to accomplish the gimbal replacement at a heavy maintenance facility. We do not agree with the commenter's request to extend the compliance time. In developing an appropriate compliance time for this action, we considered the safety implications, parts availability, and normal maintenance schedules for the timely accomplishment of the replacement. In consideration of these items, we have determined that a compliance time of 24 months will ensure an acceptable level of safety and allow the modifications to be done during scheduled maintenance intervals for most affected operators. However, under the provisions of paragraph

(h)of this AD, we may approve requests for adjustments to the compliance time if data are submitted to substantiate that such an adjustment would provide an acceptable level of safety. We have not revised this AD in this regard. Request To Revise Compliance Time to Flight Cycles British Airways requests that we express the compliance time in units of flight cycles. The commenter asserts that calendar time is an inappropriate unit of life control. As justification, the commenter states that flap operations would primarily influence the failure experienced. The commenter proposes 6,000 flight cycles as a more appropriate compliance time. We disagree with revising the compliance time. Although failure of the pivot link is primarily affected by airplane flight cycles, the original design of the flap system was certified to withstand such a failure. A design deficiency exists in the gimbal plate structure within the flap system. This design deficiency is not fatigue related and accordingly not flight-cycle related. Therefore, it is appropriate to use a calendar time to express the compliance time. The compliance time of 24 months was selected to allow replacement of the gimbal plates during a routine maintenance visit. We have not revised this AD in this regard. Request To Revise the Costs of Compliance American Airlines requests that we adjust the costs estimated in the NPRM. American Airlines states that it has accomplished the gimbal plate replacement in accordance with Boeing Alert Service Bulletin 777-27A0073, dated March 30, 2006, on 2 of its 45 affected airplanes. American Airlines estimates that the cost impact for accomplishing the NPRM will be approximately $84,200 per airplane, or $3,789,000 for its entire fleet. We infer the commenter would like us to revise the Cost of Compliance paragraph in this AD. We disagree. The cost information in this AD describes only the direct costs of the specific actions required by this AD. Based on the best data available, the manufacturer provided the number of work hours

(153)necessary to do the required actions. This number represents the time necessary to perform only the actions actually required by this AD. We recognize that, in doing the actions required by an AD, operators may incur incidental costs in addition to the direct costs. The cost analysis in AD rulemaking actions, however, typically does not include incidental costs such as the time required to gain access and close up, time necessary for planning, or time necessitated by other administrative actions. Those incidental costs, which may vary significantly among operators, are almost impossible to calculate. We have not changed this AD in this regard. New Note Added to Paragraph

(f)We have added a note to paragraph

(f)of this AD informing operators to pay particular attention that grease or lubricant is not applied to the gimbal plate bolts, bushings, washers, or nuts. Yielding or failure of the bolts could occur due to overtorquing a lubricated attachment that was intended to be installed without lubricant. Conclusion We have carefully reviewed the available data, including the comments received, and determined that air safety and the public interest require adopting the AD with the changes described previously. We have determined that these changes will neither increase the economic burden on any operator nor increase the scope of the AD. Costs of Compliance There are about 546 airplanes of the affected design in the worldwide fleet. This AD affects about 145 airplanes of U.S. registry. The required actions take about 153 work hours per airplane, at an average labor rate of $80 per work hour. Required parts cost about $69,850 per airplane. Based on these figures, the estimated cost of the AD for U.S. operators is $11,903,050, or $82,090 per airplane. Authority for This Rulemaking Title 49 of the United States Code specifies the FAA's authority to issue rules on aviation safety. Subtitle I, section 106, describes the authority of the FAA Administrator. Subtitle VII, Aviation Programs, describes in more detail the scope of the Agency's authority. We are issuing this rulemaking under the authority described in subtitle VII, part A, subpart III, section 44701, “General requirements.” Under that section, Congress charges the FAA with promoting safe flight of civil aircraft in air commerce by prescribing regulations for practices, methods, and procedures the Administrator finds necessary for safety in air commerce. This regulation is within the scope of that authority because it addresses an unsafe condition that is likely to exist or develop on products identified in this rulemaking action. Regulatory Findings We have determined that this AD will not have federalism implications under Executive Order 13132. This AD will not have a substantial direct effect on the States, on the relationship between the national government and the States, or on the distribution of power and responsibilities among the various levels of government. For the reasons discussed above, I certify that this AD:

(1)Is not a “significant regulatory action” under Executive Order 12866;

(2)Is not a “significant rule” under DOT Regulatory Policies and Procedures (44 FR 11034, February 26, 1979); and

(FAA)amends § 39.13 by adding the following new airworthiness directive (AD): **2007-02-23 Boeing:** Amendment 39-14910. Docket No. FAA-2006-24891; Directorate Identifier 2006-NM-080-AD. Effective Date

(a)This AD becomes effective March 2, 2007. Affected ADs

(b)None. Applicability

(c)This AD applies to Boeing Model 777-200, -300, and -300ER series airplanes, certificated in any category; as identified in Boeing Alert Service Bulletin 777-27A0073, dated March 30, 2006. Unsafe Condition

(d)This AD results from a broken pivot link found on the inboard support for the outboard trailing edge flap. We are issuing this AD to prevent disconnection of the drive arm from its drive gimbal, due to a broken pivot link on an outboard flap support, which could result in unexpected roll of the airplane and loss of control of the airplane. Compliance

(e)You are responsible for having the actions required by this AD performed within the compliance times specified, unless the actions have already been done. Replacement of Gimbal Plates

(f)Within 24 months after the effective date of this AD, replace the gimbal plates of the left and right outboard trailing edge flaps with improved gimbal plates, and do the other specified actions before further flight after the replacement, by accomplishing all the actions specified in the Accomplishment Instructions of Boeing Alert Service Bulletin 777-27A0073, dated March 30, 2006. Note 1: Pay particular attention that grease or lubricant is not applied to the gimbal plate bolts, bushings, washers, or nuts. Yielding or failure of the bolts could occur due to overtorquing a lubricated attachment that was intended to be installed without lubricant. Parts Installation

(g)As of the effective date of this AD, no person may install a gimbal plate, part numbers 113W1112-3, 113W1112-4, 113W1212-3, and 113W1212-4, on any airplane. Alternative Methods of Compliance (AMOCs) (h)(1) The Manager, Seattle Aircraft Certification Office (ACO), FAA, has the authority to approve AMOCs for this AD, if requested in accordance with the procedures found in 14 CFR 39.19.

(3)An AMOC that provides an acceptable level of safety may be used for any repair required by this AD, if it is approved by an Authorized Representative for the Boeing Commercial Airplanes Delegation Option Authorization Organization who has been authorized by the Manager, Seattle ACO, to make those findings. For a repair method to be approved, the repair must meet the certification basis of the airplane, and the approval must specifically refer to this AD. Material Incorporated by Reference

(i)You must use Boeing Alert Service Bulletin 777-27A0073, dated March 30, 2006, to perform the actions that are required by this AD, unless the AD specifies otherwise. The Director of the Federal Register approved the incorporation by reference of this document in accordance with 5 U.S.C. 552(a) and 1 CFR part 51. Contact Boeing Commercial Airplanes, P.O. Box 3707, Seattle, Washington 98124-2207, for a copy of this service information. You may review copies at the Docket Management Facility, U.S. Department of Transportation, 400 Seventh Street, SW., Room PL-401, Nassif Building, Washington, DC; on the Internet at *http://dms.dot.gov;* or at the National Archives and Records Administration (NARA). For information on the availability of this material at the NARA, call

(202)741-6030, or go to *http://www.archives.gov/federal_register/code_of_federal_regulations/ibr_locations.html* . Issued in Renton, Washington, on January 17, 2007. Ali Bahrami, Manager, Transport Airplane Directorate, Aircraft Certification Service. [FR Doc. E7-1081 Filed 1-25-07; 8:45 am] BILLING CODE 4910-13-P DEPARTMENT OF TRANSPORTATION Federal Aviation Administration 14 CFR Part 39 [Docket No. FAA-2006-25087; Directorate Identifier 2006-NM-053-AD; Amendment 39-14882; AD 2007-01-10] RIN 2120-AA64 Airworthiness Directives; Boeing Model 747 Airplanes AGENCY: Federal Aviation Administration (FAA), Department of Transportation (DOT). ACTION: Final rule. SUMMARY: The FAA is superseding an existing airworthiness directive (AD), which applies to all Boeing Model 747 airplanes. That AD currently requires a one-time inspection to determine whether the outer cylinder of the wing landing gear has certain part numbers, and replacement of the outer cylinder of the wing landing gear with a new, improved, or reworked part if necessary. That AD also requires removal of the load evening system, if such a system is installed. This new AD requires, for certain airplanes, an additional one-time inspection to determine whether the outer cylinder has a certain other part number. For those certain airplanes, this new AD also requires replacement of the outer cylinder with a reworked or new, improved part and related investigative and corrective actions, if necessary. This AD results from identification of an additional unsafe part. We are issuing this AD to prevent fracture of the outer cylinder of the wing landing gear, which could result in collapse of the wing landing gear. DATES: This AD becomes effective March 2, 2007. The Director of the Federal Register approved the incorporation by reference of a certain publication listed in the AD as of March 2, 2007. On September 14, 2004 (69 FR 48359, August 10, 2004), the Director of the Federal Register approved the incorporation by reference of Boeing Service Bulletin 747-32-2472, dated November 30, 2000; and Boeing Service Bulletin 747-32-2131, Revision 2, dated March 15, 1974. ADDRESSES: You may examine the AD docket on the Internet at *http://dms.dot.gov* or in person at the Docket Management Facility, U.S. Department of Transportation, 400 Seventh Street, SW., Nassif Building, Room PL-401, Washington, DC. Contact Boeing Commercial Airplanes, P.O. Box 3707, Seattle, Washington 98124-2207, for service information identified in this AD. FOR FURTHER INFORMATION CONTACT: Steve Fox, Aerospace Engineer, Airframe Branch, ANM-120S, FAA, Seattle Aircraft Certification Office, 1601 Lind Avenue, SW., Renton, Washington 98057-3356; telephone

(425)917-6425; fax

(425)917-6590. SUPPLEMENTARY INFORMATION: Examining the Docket You may examine the airworthiness directive

(800)647-5227) is located on the plaza level of the Nassif Building at the street address stated in the ADDRESSES section. Discussion The FAA issued a notice of proposed rulemaking

(NPRM)to amend 14 CFR part 39 to include an AD that supersedes AD 2004-16-05, amendment 39-13761 (69 FR 48359, August 10, 2004). The existing AD applies to all Boeing Model 747 airplanes. That NPRM was published in the **Federal Register** on June 21, 2006 (71 FR 35581). That NPRM proposed to continue to require a one-time inspection to determine whether the outer cylinder of the wing landing gear has certain part numbers, and replacement of the outer cylinder of the wing landing gear with a new, improved, or reworked part if necessary. That NPRM also proposed to require, for certain airplanes, an additional one-time inspection to determine whether the outer cylinder has a certain other part number. For those certain airplanes, that NPRM also proposed to require replacement of the outer cylinder with a reworked or new, improved part and related investigative/corrective actions, if necessary. Comments We provided the public the opportunity to participate in the development of this AD. We have considered the comments that have been received on the NPRM. Request To Delete Compliance Time Boeing requests that we revise paragraph

(j)of the NPRM so that it reads similar to paragraph

(g)of the NPRM. Boeing states that the compliance time of “before further flight after the replacement” is confusing; Boeing is unclear as to whether that phrase applies to a removed outer cylinder or to an airplane on which an outer cylinder has been replaced. Boeing further states that if an affected part has been replaced with a reworked or new, improved part, then no additional work needs to be accomplished on that airplane. We agree that if all affected outer cylinders are replaced with reworked or new, improved parts, no additional work is necessary on that airplane. The related investigative and corrective actions that we described in the NPRM are instructions for reworking an outer cylinder. We have revised paragraph

(j)of this AD to more clearly specify that if a reworked part is installed on an airplane, then the rework must be done by accomplishing all of the related investigative actions and applicable corrective actions in accordance with the referenced service bulletin. We have also deleted the compliance time for accomplishing those actions “before further flight after the replacement.” Request To Clarify Paragraph

(h)Boeing requests that we insert the words “and body” after the word “wing” in paragraph

(h)of the NPRM. Boeing states that the load evening system attaches to both the wing and body landing gears and that it must be removed from both. We agree that the proposed words clarify the requirement to remove the load evening system. We have revised paragraph

(h)of this AD as requested by Boeing. Request To Exempt Certain Airplanes Boeing requests that the NPRM exempt airplanes delivered after the effective date of this AD from the requirements of paragraphs

(f)through (k). As justification, Boeing states that the affected outer cylinders would not be found on newly delivered airplanes during an inspection, since the affected parts are no longer in production and are not currently part of the type design for Model 747 airplanes. Boeing also states that operators have objected to ADs that require inspecting newly delivered airplanes for parts that are known not to exist on those airplanes. Boeing, however, states that because landing gear components are interchangeable among airplanes, paragraph

(l)of the NPRM should still apply to all airplanes. We disagree. The appropriate means of excluding the newly delivered airplanes from the requirements of this AD is to limit the applicability of the AD. However, Boeing has not identified the production date or line number for when it ceased installing the affected outer cylinders in production. Further, as the commenter notes, all airplanes are subject to paragraph

(l)of the AD. To delay this action would be inappropriate, since we have determined that an unsafe condition exists and that an inspection must be conducted to ensure continued safety. However, under the provisions of paragraph

(m)of this AD, we may consider requests for approval of an alternative method of compliance if we are provided with the production date or line number of when affected outer cylinders were no longer installed on airplanes in production. Request To Publish Service Information The Modification and Replacement Parts Association (MARPA) states that, typically, the action stated in the NPRM cannot be accomplished without access to the referenced service information published by the airplane manufacturer. MARPA adds that manufacturer service documents are privately authored instruments generally having copyright protection against duplication and distribution. MARPA notes that when a service document is incorporated by reference into a public document, such as an AD, it loses its private, protected status and becomes a public document. MARPA adds that if a service document is used as a mandatory element of compliance, it should not simply be referenced, but should be incorporated into the regulatory document; by definition, public laws must be public, which means they cannot rely upon private writings. MARPA adds that incorporated by reference service documents should be made available to the public by publication in the Docket Management System (DMS), keyed to the action that incorporates them. MARPA notes that the stated purpose of the incorporation by reference method is brevity, to keep from expanding the **Federal Register** needlessly by publishing documents already in the hands of the affected individuals; traditionally, “affected individuals” means aircraft owners and operators, who are generally provided service information by the manufacturer. MARPA adds that a new class of affected individuals has emerged, since the majority of aircraft maintenance is now performed by specialty shops instead of aircraft owners and operators. MARPA notes that this new class includes maintenance and repair organizations, component servicing and repair shops, parts purveyors and distributors, and organizations manufacturing or servicing alternatively certified parts under section 21.303 (“Replacement and modification parts”) of the Federal Aviation Regulations (14 CFR 21.303). MARPA adds that the concept of brevity is now nearly archaic as documents exist more frequently in electronic format than on paper. Therefore, MARPA asks that the service documents deemed essential to the accomplishment of the NPRM be incorporated by reference into the regulatory instrument, and published in the DMS. We do not agree that documents should be incorporated by reference during the NPRM phase of rulemaking. The Office of the Federal Register

(OFR)requires that documents that are necessary to accomplish the requirements of the AD be incorporated by reference during the final rule phase of rulemaking. This final rule incorporates by reference the document necessary for the accomplishment of the requirements mandated by this AD. Further, we point out that while documents that are incorporated by reference do become public information, they do not lose their copyright protection. For that reason, we advise the public to contact the manufacturer to obtain copies of the referenced service information. In regard to the commenter's request that service documents be made available to the public by publication in the **Federal Register** , we agree that incorporation by reference was authorized to reduce the volume of material published in the **Federal Register** and the Code of Federal Regulations. However, as specified in the Federal Register Document Drafting Handbook, the Director of the OFR decides when an agency may incorporate material by reference. As the commenter is aware, the OFR files documents for public inspection on the workday before the date of publication of the rule at its office in Washington, DC. As stated in the Federal Register Document Drafting Handbook, when documents are filed for public inspection, anyone may inspect or copy file documents during the OFR's hours of business. Further questions regarding publication of documents in the **Federal Register** or incorporation by reference should be directed to the OFR. In regard to the commenter's request to post service bulletins on the Department of Transportation's DMS, we are currently in the process of reviewing issues surrounding the posting of service bulletins on the DMS as part of an AD docket. Once we have thoroughly examined all aspects of this issue and have made a final determination, we will consider whether our current practice needs to be revised. No change to the final rule is necessary in response to this comment. Conclusion We have carefully reviewed the available data, including the comments that have been received, and determined that air safety and the public interest require adopting the AD with the changes described previously. We have determined that these changes will neither increase the economic burden on any operator nor increase the scope of the AD. Costs of Compliance There are about 1,106 Model 747 airplanes of the affected design in the worldwide fleet. Of those airplanes, there are about 66 Model 747-100, 747-100B, 747-100B SUD, and 747SR series airplanes of the affected design in the worldwide fleet that are subject to the new actions. The following table provides the estimated costs, at an average labor rate of $80 per hour, for U.S. operators to comply with this AD. Estimated Costs Action Work hours Parts Cost per airplane Number of U.S.- registered airplanes Fleet cost Inspection for all airplanes (required by AD 2004-16-05) 1 None $80 256 $20,480 Removal of the load evening system (required by AD 2004-16-05) 240 $2,392 21,592 256 5,527,552 Inspection for certain airplanes (new action) 1 None 80 21 1,680 Authority for This Rulemaking Title 49 of the United States Code specifies the FAA's authority to issue rules on aviation safety. Subtitle I, section 106, describes the authority of the FAA Administrator. Subtitle VII, Aviation Programs, describes in more detail the scope of the Agency's authority. We are issuing this rulemaking under the authority described in subtitle VII, part A, subpart III, section 44701, “General requirements.” Under that section, Congress charges the FAA with promoting safe flight of civil aircraft in air commerce by prescribing regulations for practices, methods, and procedures the Administrator finds necessary for safety in air commerce. This regulation is within the scope of that authority because it addresses an unsafe condition that is likely to exist or develop on products identified in this rulemaking action. Regulatory Findings We have determined that this AD will not have federalism implications under Executive Order 13132. This AD will not have a substantial direct effect on the States, on the relationship between the national government and the States, or on the distribution of power and responsibilities among the various levels of government. For the reasons discussed above, I certify that this AD:

(1)Is not a “significant regulatory action” under Executive Order 12866;

(2)Is not a “significant rule” under DOT Regulatory Policies and Procedures (44 FR 11034, February 26, 1979); and

(FAA)amends § 39.13 by removing amendment 39-13761 (69 FR 48359, August 10, 2004) and by adding the following new airworthiness directive (AD): **2007-01-10 Boeing:** Amendment 39-14882. Docket No. FAA-2006-25087; Directorate Identifier 2006-NM-053-AD. Effective Date

(a)This AD becomes effective March 2, 2007. Affected ADs

(b)This AD supersedes AD 2004-16-05. Applicability

(c)This AD applies to all Boeing Model 747-100, 747-100B, 747-100B SUD, 747-200B, 747-200C, 747-200F, 747-300, 747-400, 747-400D, 747-400F, 747SR, and 747SP series airplanes, certificated in any category. Unsafe Condition

(d)This AD results from identification of an additional unsafe outer cylinder of the wing landing gear. We are issuing this AD to prevent fracture of the outer cylinder of the wing landing gear, which could result in collapse of the wing landing gear. Compliance

(e)You are responsible for having the actions required by this AD performed within the compliance times specified, unless the actions have already been done. Restatement of Requirements of AD 2004-16-05 Inspection To Determine Part Number

(f)Within 36 months after September 14, 2004 (the effective date of AD 2004-16-05), perform a one-time inspection to determine the part number (P/N) of the outer cylinder of the wing landing gear on both sides of the airplane, per the Accomplishment Instructions of Boeing Service Bulletin 747-32-2472, dated November 30, 2000; or Revision 1, dated February 23, 2006. Instead of inspecting the outer cylinder of the wing landing gear, a review of airplane maintenance records is acceptable if the detailed part number of the outer cylinder of the wing landing gear (not just a higher-level assembly) can be positively determined from that review.

(1)If no outer cylinder having P/N 65B01212-( ) (where “( )” is any dash number of that part number), 65B01430-3, or 65B01430-4 is found: No further action is required by this paragraph.

(2)If any outer cylinder having P/N 65B01212-( ) (where “( )” is any dash number of that part number), 65B01430-3, or 65B01430-4 is found: Accomplish paragraph

(g)of this AD. Replacement of Outer Cylinder

(g)For any outer cylinder identified in paragraph (f)(2) of this AD: Within 36 months after September 14, 2004, replace the outer cylinder on the wing landing gear with a new, improved part or a part that has been inspected and reworked per the Accomplishment Instructions of Boeing Service Bulletin 747-32-2472, dated November 30, 2000; or Revision 1, dated February 23, 2006, except as provided by paragraph

(k)of this AD. The rework procedures described in the service bulletin, if accomplished, include performing a one-time nital etch inspection of the upper inner surface of the outer cylinder for chrome plating; removing any chrome plating that is present; performing a one-time magnetic particle inspection for cracking of the outer cylinder; performing a nital etch inspection for heat damage of the outer cylinder; reworking the outer cylinder, as applicable; and marking the outer cylinder to indicate that the service bulletin has been accomplished. Removal of the Load Evening System

(h)For airplanes identified in Boeing Service Bulletin 747-32-2131, Revision 2, dated March 15, 1974: Before performing the requirements of paragraph

(g)or

(j)of this AD, as applicable, remove the load evening system installed on the wing and body landing gears, per the Accomplishment Instructions of the service bulletin. New Requirements of This AD Inspection To Determine Outer Cylinder Part Number on Certain Airplanes

(i)For Model 747-100, 747-100B, 747-100B SUD, and 747SR series airplanes: Within 36 months after the effective date of this AD, do a one-time inspection to determine the part number of the outer cylinder of the wing landing gear on both sides of the airplane, in accordance with the Accomplishment Instructions of Boeing Service Bulletin 747-32-2472, Revision 1, dated February 23, 2006. Instead of inspecting the outer cylinder of the wing landing gear, a review of airplane maintenance records is acceptable if the detailed part number of the outer cylinder of the wing landing gear (not just a higher-level assembly) can be positively determined from that review.

(1)If no outer cylinder having P/N 65B01382-( ) is found: No further action is required by this paragraph.

(2)If any outer cylinder having P/N 65B01382-( ) is found: Accomplish paragraph

(j)of this AD. Replacement of a Certain Outer Cylinder

(j)For any outer cylinder identified in paragraph (i)(2) of this AD: Within 36 months after the effective date of this AD, replace the outer cylinder on the wing landing gear with a new, improved part or with a part that has been reworked in accordance with the Accomplishment Instructions of Boeing Service Bulletin 747-32-2472, Revision 1, dated February 23, 2006, as applicable; except as provided by paragraph

(k)of this AD. The rework, if applicable, must be done by accomplishing all of the related investigative actions and applicable corrective actions in paragraph 3.B.3. of the Accomplishment Instructions of the service bulletin. If applicable, do the actions specified in paragraph

(h)of this AD before accomplishing the actions specified in this paragraph. Exception to Revision 1 of the Service Bulletin

(k)Where Boeing Service Bulletin 747-32-2472, Revision 1, dated February 23, 2006, specifies that the related investigative and corrective actions may be accomplished using an operator's “equivalent procedure:” The related investigative and corrective actions must be accomplished in accordance with the chapter(s) of the applicable Boeing 747 Standard Overhaul Practices Manual

(SOPM)or Overhaul Manual

(OHM)specified in the service bulletin. Parts Installation

(l)As of September 14, 2004, no person may install, on any airplane, an outer cylinder of the wing landing gear if the outer cylinder has P/N 65B01212-( ), 65B01430-3, or 65B01430-4, unless the outer cylinder has been inspected, reworked, and marked to indicate that Boeing Service Bulletin 747-32-2472, dated November 30, 2000; or Revision 1, dated February 23, 2006; has been accomplished. As of the effective date of this AD, no person may install an outer cylinder, P/N 65B01382-( ), of the wing landing gear on any airplane, unless the outer cylinder has been inspected, reworked, and marked to indicate that Boeing Service Bulletin 747-32-2472, Revision 1, dated February 23, 2006, has been accomplished. Alternative Methods of Compliance (AMOCs) (m)(1) The Manager, Seattle Aircraft Certification Office (ACO), FAA, has the authority to approve AMOCs for this AD, if requested in accordance with the procedures found in 14 CFR 39.19.

(4)AMOCs approved previously in accordance with AD 2004-16-05 are approved as AMOCs for the corresponding provisions of paragraphs (f), (g), and

(h)of this AD. Material Incorporated by Reference

(n)You must use the service information listed in Table 1 of this AD, to perform the actions that are required by this AD, unless the AD specifies otherwise. Table 1.—Material Incorporated by Reference Service Bulletin Revision level Date Boeing Service Bulletin 747-32-2131 2 March 15, 1974. Boeing Service Bulletin 747-32-2472 Original November 30, 2000. Boeing Service Bulletin 747-32-2472 1 February 23, 2006.

(1)The Director of the Federal Register approved the incorporation by reference of Boeing Service Bulletin 747-32-2472, Revision 1, dated February 23, 2006, in accordance with 5 U.S.C. 552(a) and 1 CFR part 51.

(2)On September 14, 2004 (69 FR 48359, August 10, 2004), the Director of the Federal Register approved the incorporation by reference of Boeing Service Bulletin 747-32-2472, dated November 30, 2000; and Boeing Service Bulletin 747-32-2131, Revision 2, dated March 15, 1974.

(3)Contact Boeing Commercial Airplanes, P.O. Box 3707, Seattle, Washington 98124-2207, for a copy of this service information. You may review copies at the Docket Management Facility, U.S. Department of Transportation, 400 Seventh Street, SW., Room PL-401, Nassif Building, Washington, DC; on the Internet at *http://dms.dot.gov;* or at the National Archives and Records Administration (NARA). For information on the availability of this material at the NARA, call

(202)741-6030, or go to *http://www.archives.gov/federal_register/code_of_federal_regulations/ibr_locations.html* . Issued in Renton, Washington, on December 26, 2006. Ali Bahrami, Manager, Transport Airplane Directorate, Aircraft Certification Service. [FR Doc. E7-1077 Filed 1-25-07; 8:45 am] BILLING CODE 4910-13-P DEPARTMENT OF COMMERCE Bureau of Industry and Security 15 CFR Parts 732, 738, 740, 742, 746, 772 and 774 [Docket No. 070111012-7017-01] RIN 0694-AD97 North Korea: Imposition of New Foreign Policy Controls AGENCY: Bureau of Industry and Security, Commerce. ACTION: Final rule. SUMMARY: In accordance with recent United Nations

(UN)Security Council resolutions and the foreign policy interests of the United States, the United States Government is imposing restrictions on exports and reexports of luxury goods to the Democratic People's Republic of Korea (North Korea), and is continuing to restrict exports and reexports of nuclear or missile-related items and other items included on the Commerce Control List (CCL). To this end, the Bureau of Industry and Security

(BIS)is amending the Export Administration Regulations

(EAR)to impose license requirements for the export and reexport of virtually all items subject to the EAR to North Korea, except food and medicines not listed on the CCL. BIS will generally deny applications to export and reexport luxury goods, e.g., luxury automobiles; yachts; gems; jewelry; other fashion accessories; cosmetics; perfumes; furs; designer clothing; luxury watches; rugs and tapestries; electronic entertainment software and equipment; recreational sports equipment; tobacco; wine and other alcoholic beverages; musical instruments; art; and antiques and collectible items including but not limited to rare coins and stamps. BIS will continue to generally deny applications to export and reexport arms and related materiel controlled on the CCL and items controlled under the multilateral export control regimes (the Missile Technology Control Regime, the Nuclear Suppliers Group, the Australia Group, and the Wassenaar Arrangement). This includes items specified in UN documents S/2006/814, S/2006/815 and S/2006/853. BIS will also generally deny applications to export and reexport other items that the UN determines could contribute to North Korea's nuclear-related, ballistic missile-related, or other weapons of mass destruction-related programs. BIS will also generally approve applications to export or reexport: non-food, non-medical humanitarian items (e.g., blankets, basic footwear, heating oil, and other items meeting subsistence needs) intended for the benefit of the North Korean people; items in support of United Nations humanitarian efforts; and agricultural commodities and medical devices that are determined not to be luxury goods. BIS will review on a case-by-case basis applications to export and reexport all other items subject to the EAR. DATES: This rule is effective January 26, 2007. ADDRESSES: Although this is a final rule, BIS welcomes comments, which should be sent by fax to

(202)482-3355, e-mail to *publiccomments@bis.doc.gov,* or by mail to Jeffery Lynch, Regulatory Policy Division, Bureau of Industry and Security, Department of Commerce, P.O. Box 273, Washington, DC 20044. Please refer to regulatory identification number

(RIN)0694-AD974 in all comments, and in the subject line of e-mail comments. Comments on the collection of information should be sent to David Rostker, Office of Management and Budget

(OMB)by e-mail to *David_Rostker@omb.eop.gov* , or by fax to

(202)395-7285. FOR FURTHER INFORMATION CONTACT: Joan M. Roberts, Foreign Policy Division, Office of Nonproliferation and Treaty Compliance, Bureau of Industry and Security, *Telephone:*

(202)482-4252. SUPPLEMENTARY INFORMATION: Background On July 4, 2006, in defiance of international calls for restraint, the Democratic People's Republic of Korea (North Korea) proceeded with the launch and testing of a series of ballistic missiles. On July 15, 2006, the United Nations

(UN)Security Council adopted Resolution 1695 (UNSCR 1695), condemning North Korea for its actions. In UNSCR 1695, the Security Council demanded that North Korea suspend all ballistic missile-related activity and reinstate its moratorium on missile launches. Subsequently, the President signed the North Korea Nonproliferation Act of 2006 (Pub. L. 109-353), which affirmed Congress' statement that it should be the policy of the United States to impose sanctions on persons who supported North Korea's missile or weapons of mass destruction programs. On October 9, 2006, despite the adoption of UNSCR 1695, and in flagrant disregard of the admonitions of the international community, North Korea conducted a nuclear test. On October 14, 2006, the UN Security Council adopted Resolution 1718 (UNSCR 1718), which condemned the nuclear test and expressed the gravest concern over the challenge such a test constitutes to the Treaty on the Non-Proliferation of Nuclear Weapons, to peace and stability in the region, and to international efforts to strengthen the global nonproliferation regime. Among other things, UNSCR 1718 decides that all UN Member States shall prevent the direct or indirect supply, sale, or transfer to North Korea of:

(1)Certain arms and related materiel;

(2)items set out in the lists in UN documents S/2006/814, S/2006/815, and S/2006/853 (available at *http://www.un.org/Docs/sc/committees/1718/1718SelEng.htm* ), as well as other items identified by the Security Council or the Sanctions Committee established by UNSCR 1718 that could contribute to North Korea's nuclear-related, ballistic missile-related, and other weapons of mass destruction-related programs; and

(3)luxury goods. UNSCR 1718 also decides that Member States shall prevent transfers to North Korea of technical training, advice, services, or assistance related to the provision, manufacture, maintenance or use of the items specified above. Furthermore, UNSCR 1718 demands that North Korea, in a verifiable and irreversible manner, abandon nuclear weapons, existing nuclear programs, and all other existing weapons of mass destruction programs. The Resolution also decides that North Korea must suspend all ballistic missile activities, demands that North Korea return to the Treaty on the Non-Proliferation of Nuclear Weapons, and requires that North Korea act in accordance with the terms and conditions of its International Atomic Energy Agency

(IAEA)Safeguards Agreement. On December 7, 2006, in accordance with Section 102(b) of the Arms Export Control Act, as amended (22 U.S.C. 2799aa-1), the President determined that North Korea had detonated a nuclear explosive device. The President directed the relevant agencies and instrumentalities of the United States to take the necessary actions to impose the sanctions described in Section 102(b)(2) of that Act. See 72 FR 1899 (Jan. 16, 2007). Section 102(b)(2)(G) of that Act provides that dual-use export control authorities shall be used to prohibit exports of specific goods and technology to any country so identified by the President. Changes to Licensing Requirements and Policy As a result of North Korea's test launch of ballistic missiles in July, 2006, and testing of a nuclear device in October, 2006, and consistent with UNSCR 1718, the United States is imposing new export and reexport controls on North Korea. Under this final rule, in accordance with UNSCR 1718 and the foreign policy interests of the United States, the Bureau of Industry and Security

(BIS)will require a license for the export and reexport to North Korea of all items subject to the Export Administration Regulations (EAR), except food and medicines that are not on the Commerce Control List (CCL). Although a license is already required to export and reexport to North Korea all items controlled on the CCL for Nuclear Nonproliferation

(NP)and Missile Technology

(MT)reasons, BIS also will require a license for these items (except for items classified under Export Commodity Classification Number

(ECCN)7A103) in accordance with the President's December 7, 2006 directive regarding implementation of Section 102(b) of the Arms Export Control Act. Pursuant to new Section 746.4(c) of the EAR, BIS will review license applications for the export or reexport of luxury goods to North Korea under a general policy of denial. This policy of denial applies to, but is not limited to applications to export and reexport luxury goods including, for example: Luxury automobiles; yachts; gems; jewelry; other fashion accessories; cosmetics; perfumes; furs; designer clothing; luxury watches; rugs and tapestries; electronic entertainment software and equipment; recreational sports equipment; tobacco; wine and other alcoholic beverages; musical instruments; art; and antiques and collectible items, including but not limited to rare coins and stamps. These and similar items have been imported by North Korea for the use and benefit of government officials and their families, rather than for the good of the North Korean people. In new Supplement No. 1 to part 746 of the EAR, BIS will provide further detail regarding the illustrative list of luxury goods set forth in Section 746.4(c). The determination of whether an item is a luxury good will be made on a case-by-case basis. In some cases, the end-use or end-user will be relevant to this determination. For example, an item being exported to a humanitarian organization for purposes of providing humanitarian assistance to the people of North Korea may not be considered a luxury good, but the same item going to a different end-user might be considered a luxury good and might not be approved. Computer laptops and luxury automobiles will be exempted from the general policy of denial if they are being exported or reexported to organizations legitimately involved in humanitarian relief efforts, other internationally sanctioned efforts, or in the interest of the U.S. Government. BIS will review under a general policy of approval license applications for the export or reexport of humanitarian items other than food or medicine (e.g., blankets, medical supplies, heating oil, and other items meeting subsistence needs) intended for the benefit of the North Korean people. This policy applies to license applications to export or reexport items in support of UN humanitarian efforts and programs. The general policy of approval also extends to agricultural commodities (as defined in Section 102 of the Agricultural Trade Act of 1978) and medical devices (as defined in Section 201 of the Federal Food, Drug, and Cosmetic Act) that are determined by BIS, in consultation with the interagency license review community, not to be luxury goods. Applications for all other exports and reexports of EAR99 items will be reviewed on a case-by-case basis. Consistent with UNSCR 1718 and existing U.S. export control policy, BIS will review license applications for arms and related materiel controlled on the CCL and items controlled on the multilateral export control regime control lists (the Missile Technology Control Regime, the Nuclear Suppliers Group, the Australia Group, and the Wassenaar Arrangement) under a general policy of denial. This includes items specified in UN documents S/2006/814, S/2006/815 and S/2006/853. BIS will also generally deny applications to export and reexports other items that the UN Security Council or the Sanctions Committee has determined could contribute to North Korea's nuclear-related, ballistic missile-related or other weapons of mass destruction-related programs. In addition, applications to export or reexport items controlled on the CCL for NP and MT reasons (except ECCN 7A103 items) will be reviewed under a general policy of denial. Applications to export or reexport other items on the CCL will be reviewed in accordance with the licensing policy set forth in Section 742.19 of the EAR (Anti-terrorism: North Korea). Section 742.19 is being amended to make technical corrections and also to provide that applications to export or reexport parts and components for safety-of-flight will be reviewed on a case-by-case basis. License Exceptions This final rule makes inapplicable for North Korea most license exceptions set forth in part 740 of the EAR. The only license exceptions that remain available for North Korea, as provided in new Section 746.4(b) are: TMP (15 CFR 740.9(a)(2)(viii) only) for items for use by the news media; GOV (15 CFR 740.11(a), (b)(2)(i), and (b)(2)(ii) only) for items for personal or official use by personnel and agencies of the U.S. Government, the IAEA, or the European Atomic Energy Community (Euratom); GFT (15 CFR 740.12) for the export or reexport of gift parcels not containing luxury goods by an individual to an individual or a religious, charitable or educational organization, and for the export or reexport by groups or organizations of certain donations to meet basic human needs; TSU (15 CFR 740.13(a) and

(b)only) for operation technology and software for lawfully exported items and sales technology; BAG (15 CFR 740.14

(a)through

(d)only) for exports of items by individuals leaving the United States as personal baggage; and AVS (15 CFR 740.15(a)(4) only) for civil passenger aircraft on temporary sojourn. Other Conforming Changes Finally, to conform with the above-described changes and to make minor technical corrections, this rule makes limited revisions to Sections 732.1 and 732.3 (Steps for Using the EAR); Supplement No. 1 to Part 738 (the Country Chart); Sections 740.2 and 740.10 (License Exceptions); Sections 742.1 and 742.19 (Control Policy—CCL Based Controls); Section 746.1 (Embargoes and Other Special Controls); Section 772.1 (Definitions of Terms as used in the EAR); and Supplement No. 1 to Part 774 (Commerce Control List) of the EAR. Expansion of Foreign Policy-Based Export Controls This rule imposes new export controls for foreign policy reasons. As required by Section 6 of the Export Administration Act of 1979, as amended (the Act), a report on the imposition of these controls was delivered to Congress on January 16, 2007. Although the Act expired on August 20, 2001, Executive Order 13222 of August 17, 2001, 3 CFR, 2001 Comp., p. 783 (2002), as extended by the Notice of August 3, 2006, 71 FR 44551 (Aug. 7, 2006), has continued the Export Administration Regulations in effect under the International Emergency Economic Powers Act. Savings Clause Items that did not require a license prior to the publication of this rule for export or reexport to North Korea and that are on dock for loading, on lighter, laden aboard an exporting carrier or en route aboard a carrier to a port of export on January 26, 2007, may be exported or reexported without being subject to this rule if the items are exported or reexported before midnight as of February 9, 2007. Any such item not actually exported or reexported before midnight February 9, 2007, may be exported or reexported only if authorized pursuant to this final rule. Exporters holding valid licenses for export or reexport to North Korea prior to January 26, 2007 are authorized to continue shipments pursuant to the terms and conditions of their licenses. Rulemaking Requirements 1. This final rule has been determined to be significant for purposes of E.O. 12866. 2. Notwithstanding any other provision of law, no person is required to respond to, nor shall any person be subject to a penalty for failure to comply with, a collection of information subject to the requirements of the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 *et seq.* ) (PRA), unless that collection of information displays a currently valid Office of Management and Budget

(OMB)Control Number. This rule contains a collection of information subject to the requirements of the PRA. This collection has previously been approved by OMB under Control Number 0694-0088 (Multi-Purpose Application), which carries a burden hour estimate of 58 minutes to prepare and submit form BIS-748. This rule is not expected to result in any change for collection purposes. Send comments regarding this burden estimate or any other aspect of this collection of information, including suggestions for reducing the burden, to David Rostker, Office of Management and Budget (OMB), and to the Regulatory Policy Division, Bureau of Industry and Security, Department of Commerce, as indicated in the ADDRESSES section of this rule. 3. This rule does not contain policies with Federalism implications as this term is defined under Executive Order 13132. 4. The provisions of the Administrative Procedure Act (5 U.S.C. 553) requiring notice of proposed rulemaking, the opportunity for public participation, and a delay in effective date, are inapplicable because this regulation involves a military and foreign affairs function of the United States (5 U.S.C. 553(a)(1)). Further, no other law requires that a notice of proposed rulemaking and an opportunity for public comment be given for this final rule. Because a notice of proposed rulemaking and an opportunity for public comment are not required to be given for this rule under 5 U.S.C. 553 or by any other law, the analytical requirements of the Regulatory Flexibility Act (5 U.S.C. 601 *et seq.* ) are not applicable. Therefore, this regulation is issued in final form. Although there is no formal comment period, public comments on this regulation are welcome on a continuing basis. Comments should be submitted to *publiccomments@bis.doc.gov,* by fax to

(202)482-3355, or to Jeffery Lynch, Regulatory Policy Division, Bureau of Industry and Security, Department of Commerce, P.O. Box 273, Washington, DC 20044. List of Subjects 15 CFR Part 732 Administrative practice and procedure, Exports, Reporting and recordkeeping requirements. 15 CFR Part 738 Exports. 15 CFR Part 740 Administrative practice and procedure, Exports, Reporting and recordkeeping requirements. 15 CFR Part 742 Exports, Terrorism. 15 CFR Part 746 Exports, Reporting and recordkeeping requirements. 15 CFR Part 772 Exports. 15 CFR Part 774 Exports, Reporting and recordkeeping requirements. Accordingly, parts 732, 738, 740, 742, 746, 772, and 774 of the Export Administration Regulations (15 CFR parts 730 through 799) are amended as follows: PART 732—[AMENDED] 1. The authority citation for part 732 is revised to read as follows: Authority: 50 U.S.C. app. 2401 *et seq.* ; 50 U.S.C. 1701 *et seq.* ; E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 228; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; Notice of August 3, 2006, 71 FR 44551 (August 7, 2006). § 732.1 [Amended] 2. Section 732.1 is amended: a. By revising the phrase “Cuba and Iran” in the next to last sentence of paragraph (d)(2) to read “Cuba, Iran, and North Korea”; and b. By revising the phrase “Cuba and Iran” in the last sentence of paragraph (d)(3) to read “Cuba, Iran, and North Korea”. § 732.3 [Amended] 3. Section 732.3 is amended: a. By revising the phrase “Cuba and Iran” in the first sentence of paragraph (d)(4) to read “Cuba, Iran, and North Korea”. b. By revising the phrase “Cuba, Iran, Iraq, and Rwanda” in the first sentence of paragraph

(i)introductory text to read “Cuba, Iran, Iraq, North Korea, and Rwanda”. PART 738—[AMENDED] 4. The authority citation for part 738 is revised to read as follows: Authority: 50 U.S.C. app. 2401 *et seq.* ; 50 U.S.C. 1701 *et seq.* ; 10 U.S.C. 7420; 10 U.S.C. 7430(e); 18 U.S.C. 2510 *et seq.* ; 22 U.S.C. 287c; 22 U.S.C. 3201 *et seq.* ; 22 U.S.C. 6004; 30 U.S.C. 185(s), 185(u); 42 U.S.C. 2139a; 42 U.S.C. 6212; 43 U.S.C. 1354; 46 U.S.C. app. 466c; 50 U.S.C. app. 5; Sec. 901-911, Pub. L. 106-387; Sec. 221, Pub. L. 107-56; E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 228; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; Notice of August 3, 2006, 71 FR 44551 (August 7, 2006). 5. Amend the country chart in Supplement 1 to Part 738 by revising the entry for “Korea, North” to read as follows: Supplement No. 1 to Part 738.—Commerce Country Chart [Reason for control] Countries Chemical & biological weapons CB 1 CB 2 CB 3 Nuclear non- proliferation NP 1 NP 2 National security NS 1 NS 1 Missile tech MT 1 Regional stability RS 1 RS 2 Firearms convention FC 1 Crime control CC 1 CC 2 CC 3 * * * * * * * Korea, North See Sections 742.19 and 746.4 of the EAR to determine whether a license is required in order to export or reexport to this destination. * * * * * * * PART 740—[AMENDED] 6. The authority citation for part 740 is revised to read as follows: Authority: 50 U.S.C. app. 2401 *et seq.* ; 50 U.S.C. 1701 *et seq.* ; Sec. 901-911, Pub. L. 106-387; E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 228; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; Notice of August 3, 2006, 71 FR 44551 (August 7, 2006). § 740.2 [Amended] 7. Section 740.2 is amended by revising the phrase “Cuba and Iran” in the first sentence of paragraph (a)(6) to read “Cuba, Iran, and North Korea.” § 740.10 [Amended] 8. Section 740.10 is amended by revising the phrase “except the People's Republic of China

(PRC)and North Korea” in the paragraph heading and first sentence of paragraph (b)(2)(iii) to read “except the People's Republic of China (PRC).” PART 742—[AMENDED] 9. The authority citation for part 742 is revised to read as follows: Authority: 50 U.S.C. app. 2401 *et seq.* ; 50 U.S.C. 1701 *et seq.* ; 18 U.S.C. 2510 *et seq.* ; 22 U.S.C. 3201 *et seq.* ; 42 U.S.C. 2139a; Sec. 901-911, Pub. L. 106-387; Sec. 221, Pub. L. 107-56; Sec 1503, Pub. L. 108-11,117 Stat. 559; E.O. 12058, 43 FR 20947, 3 CFR, 1978 Comp., p. 179; E.O. 12851, 58 FR 33181, 3 CFR, 1993 Comp., p. 608; E.O. 12938, 59 FR 59099, 3 CFR, 1994 Comp., p. 950; E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 228; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; Presidential Determination 2003-23 of May 7, 2003, 68 FR 26459, May 16, 2003; Notice of October 25, 2005, 70 FR 62027 (October 27, 2005); Notice of August 3, 2006, 71 FR 44551 (August 7, 2006). 10. Section 742.1 is amended by revising the last sentence of paragraph

(d)to read as follows: § 742.1 Introduction.

(d)* * * If you are exporting or reexporting to Cuba, Iran, or North Korea, you should review part 746 of the EAR, Embargoes and Other Special Controls. 11. Section 742.19 is amended by revising paragraphs (a)(1) and (a)(3)(ii) and by adding a sentence to the end of paragraph (b)(1)(vi) and to the end of (b)(2) to read as follows: § 742.19 Anti-Terrorism: North Korea.

(a)License Requirements.

(1)All items on the Commerce Control List

(CCL)(i.e., with a designation other than EAR99) that are controlled for anti-terrorism reasons require a license for export or reexport to North Korea. This includes all items on the CCL containing AT column 1 or AT column 2 in the Country Chart column of the License requirements section of an ECCN; and ECCNs 0A986, 0A988, 0A999, 0B986, 0B999, 0D999, 1A999, 1B999, 1C995, 1C999, 1D999, 2A994, 2A999, 2B999, 2D994, 2E994, 3A999, and 6A999. See also part 746 of the EAR.

(3)* * *

(ii)Items described in paragraphs (c)(1) through (c)(5) of Supplement No 2 to part 742 destined to non-sensitive end-users, as well as items described in paragraph (c)(6) through (c)(45) to all end-users, are controlled to North Korea under section 6(a) of the EAA. License applications for items reviewed under section 6(a) controls will also be reviewed to determine the applicability of section 6(j) controls to the transaction. When it is determined that an export or reexport could make a significant contribution to the military potential of North Korea, including its military logistics capability, or could enhance North Korea's ability to support acts of international terrorism, the Secretaries of State and Commerce will notify the Congress 30 days prior to issuance of a license. (See Supplement No. 2 to part 742 for more information on items controlled under sections 6(a) and 6(j) of the EAA and § 750.6 of the EAR for procedures for processing license applications for items controlled under EAA section 6(j).)

(b)* * *

(1)* * *

(vi)* * * (Not including parts and components for safety-of-flight, which will be reviewed on a case-by-case basis in accordance with paragraph (b)(2) of this section).

(2)* * * Applications to export or reexport humanitarian items intended for the benefit of the North Korean people; items in support of United Nations humanitarian efforts; and agricultural commodities and medical devices will generally be approved. PART 746—[AMENDED] 12. The authority citation for part 746 is revised to read as follows: Authority: 50 U.S.C. app. 2401 *et seq.* ; 50 U.S.C. 1701 *et seq.* ; 22 U.S.C. 287c; Sec 1503, Pub. L. 108-11,117 Stat. 559; 22 U.S.C. 6004; Sec. 901-911, Pub. L. 106-387; Sec. 221, Pub. L. 107-56; E.O. 12854, 58 FR 36587, 3 CFR 1993 Comp., p. 614; E.O. 12918, 59 FR 28205, 3 CFR, 1994 Comp., p. 899; E.O. 13222, 3 CFR, 2001 Comp., p. 783; Presidential Determination 2003-23 of May 7, 2003, 68 FR 26459, May 16, 2003; Notice of August 3, 2006, 71 FR 44551 (August 7, 2006); Presidential Determination 2007-7 of December 7, 2006, 72 FR 1899, January 16, 2007. § 746.1 [Amended] 13. Section 746.1 is amended by revising the phrase “Iraq and Rwanda” in paragraph

(b)to read “Iraq, North Korea, and Rwanda”. 14. Section 746.4 is added to read as follows: § 746.4 North Korea.

(a)Licensing Requirements. As authorized by section 6 of the Export Administration Act of 1979, as amended, and consistent with United Nations Security Council Resolution 1718, a license is required to export or reexport any item subject to the EAR (see part 734 of the EAR) to the Democratic People's Republic of Korea (North Korea), except food and medicines classified as EAR99 (definitions in part 772 of the EAR. Portions of certain license exceptions, set forth in paragraph

(c)of this section, may be available. Exporters should be aware that other provisions of the EAR, including parts 742 and 744, also apply to exports and reexports to North Korea.

(b)Licensing Policy. Items requiring a license are subject to case-by-case review, except as follows:

(1)Luxury Goods. Applications to export or reexport luxury goods, e.g., luxury automobiles; yachts; gems; jewelry; other fashion accessories; cosmetics; perfumes; furs; designer clothing; luxury watches; rugs and tapestries; electronic entertainment software and equipment; recreational sports equipment; tobacco; wine and other alcoholic beverages; musical instruments; art; and antiques and collectible items, including but not limited to rare coins and stamps are subject to a general policy of denial. For further information on luxury goods, see Supplement No. 1 to part 746.

(2)Applications to export or reexport arms and related materiel are subject to a general policy of denial. In addition, applications to export or reexport items specified by UN documents S/2006/814, S/2006/815 and S/2006/853 and other items that the UN Security Council or the Sanctions Committee established pursuant to UN Security Council Resolution 1718 has determined could contribute to North Korea's nuclear-related, ballistic missile-related or other weapons of mass destruction-related programs are also subject to a general policy of denial.

(3)Applications to export or reexport items controlled for NP and MT reasons (except ECCN 7A103 items) are subject to a general policy of denial.

(4)Applications to export or reexport humanitarian items (e.g., blankets, basic footwear, heating oil, and other items meeting subsistence needs) intended for the benefit of the North Korean people; items in support of United Nations humanitarian efforts; and agricultural commodities or medical devices items that are determined by BIS, in consultation with the interagency license review community, not to be luxury goods are subject to a general policy of approval.

(5)Other items on the CCL. See Section 742.19(b) of the EAR.

(c)License Exceptions. You may export or reexport without a license if your transaction meets all the applicable terms and conditions of any of the license exception subsections specified in this paragraph. To determine scope and eligibility requirements, you will need to refer to the sections or specific paragraphs of part 740 (License Exceptions). Read each license exception carefully, as the provisions available for countries subject to sanctions are generally narrow.

(1)TMP for items for use by the news media as set forth in § 740.9(a)(2)(viii) of the EAR.

(2)GOV for items for personal or official use by personnel and agencies of the U.S. Government, the International Atomic Energy Agency (IAEA), or the European Atomic Energy Community (Euratom) as set forth in § 740.11(a), (b)(2)(i), and (b)(2)(ii) of the EAR.

(3)GFT, except that GFT is not available to export or reexport luxury goods as described in this section to North Korea.

(4)TSU for operation technology and software for lawfully exported commodities as set forth in § 740.13(a) and sales technology as set forth in § 740.13

(b)of the EAR.

(5)BAG for exports of items by individuals leaving the United States as personal baggage as set forth in § 740.14(a) through

(d)of the EAR.

(6)AVS for civil aircraft as set forth in § 740.15(a)(4) of the EAR.

(d)The Secretary of State has designated North Korea as a country the government of which has repeatedly provided support for acts of international terrorism. For anti-terrorism controls, see Section 742.19 of the EAR.

(e)OFAC maintains controls on certain transactions involving persons subject to U.S. jurisdiction and North Korean entities or any specially designated North Korean national. 15. Supplement No. 1 to part 746 is added to read as follows: Supplement No. 1 to Part 746—Examples of Luxury Goods The following further amplifies the illustrative of list luxury goods set forth in § 746.4(c):

(a)Tobacco and tobacco products

(b)Luxury watches: Wrist, pocket, and others with a case of precious metal or of metal clad with precious metal

(c)Apparel and fashion items, as follows:

(1)Leather articles

(2)Silk articles

(3)Fur skins and artificial furs

(4)Fashion accessories: Leather travel goods, vanity cases, binocular and camera cases, handbags, wallets, designer fountain pens, silk scarves

(5)Cosmetics, including beauty and make-up

(6)Perfumes and toilet waters

(7)Designer clothing: Leather apparel and clothing accessories

(d)Decorative items, as follows:

(1)Rugs and tapestries

(2)Tableware of porcelain or bone china

(3)Items of lead crystal

(4)Works of art (including paintings, original sculptures and statuary), antiques (more than 100 years old), and collectible items, including rare coins and stamps

(e)Jewelry: Jewelry with pearls, gems, precious and semi-precious stones (including diamonds, sapphires, rubies, and emeralds), jewelry of precious metal or of metal clad with precious metal

(f)Electronic items, as follows:

(1)Flat-screen, plasma, or LCD panel televisions or other video monitors or receivers (including high-definition televisions), and any television larger than 29 inches; DVD players

(2)Personal digital assistants

(3)Personal digital music players

(4)Computer laptops

(g)Transportation items, as follows:

(1)Yachts and other aquatic recreational vehicles (such as personal watercraft)

(2)Luxury automobiles (and motor vehicles): Automobiles and other motor vehicles to transport people (other than public transport), including station wagons

(3)Racing cars, snowmobiles, and motorcycles

(4)Personal transportation devices (stand-up motorized scooters)

(h)Recreational items, as follows:

(1)Musical instruments

(2)Recreational sports equipment

(i)Alcoholic beverages: wine, beer, ales, and liquor PART 772—[AMENDED] 15a. The authority citation for part 772 is revised to read as follows: Authority: 50 U.S.C. app. 2401 *et seq.* ; 50 U.S.C. 1701 *et seq.* ; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; Notice of August 2, 2005, 70 FR 45273 (August 5, 2005). 16. Section 772.1 is amended by adding, in alphabetical order, the definition of “Food” to read as set forth below: § 772.1 Definitions of terms as used in the Export Administration Regulations (EAR). *Food.* Specific to exports and reexports to North Korea and Syria, food means items that are consumed by and provide nutrition to humans and animals, and seeds, with the exception of castor bean seeds, that germinate into items that will be consumed by and provide nutrition to humans and animals. (Food does not include alcoholic beverages.) * PART 774—[AMENDED] 17. The authority citation for part 774 is revised to read as follows: Authority: 50 U.S.C. app. 2401 *et seq.* ; 50 U.S.C. 1701 *et seq.* ; 10 U.S.C. 7420; 10 U.S.C. 7430(e); 18 U.S.C. 2510 *et seq.* ; 22 U.S.C. 287c, 22 U.S.C. 3201 *et seq.;* 22 U.S.C. 6004; 30 U.S.C. 185(s), 185(u); 42 U.S.C. 2139a; 42 U.S.C. 6212; 43 U.S.C. 1354; 46 U.S.C. app. 466c; 50 U.S.C. app. 5; Sec. 901-911, Pub. L. 106-387; Sec. 221, Pub. L. 107-56; E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 228; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; Notice of August 2, 2005, 70 FR 45273 (August 5, 2005). 18. In Supplement No. 1 to part 774, Category 0—“Nuclear Materials, Facilities, and Equipment [and Miscellaneous Items]” is amended by revising the “License Requirements” section of ECCNs 0A018, 0A918, 0A984, 0A985, 0A986, 0A987, 0A988, 0B986, 0E018, 0E918, and 0E984 to read as follows: 0A018 Items on the Wassenaar Munitions List. License Requirements *Reason for Control:* NS, AT, UN. *Control(s)* *Country chart* NS applies to entire entry NS Column 1. AT applies to entire entry AT Column 1. UN applies to entire entry Iraq, North Korea, and Rwanda. 0A918 Miscellaneous Military Equipment not on the Wassenaar Munitions List License Requirements *Reason for Control:* RS, AT, UN. *Control(s)* *Country chart* RS applies to entire entry RS Column 2. AT applies to entire entry AT Column 1. UN applies to entire entry Iraq, North Korea, and Rwanda. 0A984 Shotguns, barrel length 18 inches (45.72 cm) inches or over; buckshot shotgun shells; except equipment used exclusively to treat or tranquilize animals, and except arms designed solely for signal, flare, or saluting use; and parts, n.e.s. License Requirements *Reason for Control:* CC, FC, UN. *Control(s)* *Country chart* FC applies to entire entry FC Column 1. CC applies to shotguns with a barrel length greater than or equal to 18 in.(45.72 cm), but less than 24 in. (60.96 cm) or buckshot shotgun shells controlled by this entry, regardless of end-user CC Column 1. CC applies to shotguns with a barrel length greater than or equal to 24 in.(60.96 cm), regardless of end-user CC Column 2. CC applies to shotguns with a barrel length greater than or equal to 24 in.(60.96 cm) if for sale or resale to police or law enforcement CC Column 3. UN applies to entire entry Iraq, North Korea, and Rwanda. 0A985 Discharge type arms (for example, stun guns, shock batons, electric cattle prods, immobilization guns and projectiles) except equipment used exclusively to treat or tranquilize animals, and except arms designed solely for signal, flare, or saluting use; and parts, n.e.s. License Requirements *Reason for Control:* CC, UN. *Control(s)* *Country chart* CC applies to entire entry. A license is required for ALL destinations, except Canada, regardless of end-use. Accordingly, a column specific to this control does not appear on the Commerce Country Chart. (See part 742 of the EAR for additional information.) UN applies to entire entry Iraq, North Korea, and Rwanda. 0A986 Shotgun shells, except buckshot shotgun shells, and parts. License Requirements *Reason for Control:* AT, FC, UN. *Control(s)* *Country chart* AT applies to entire entry. A license is required for items controlled by this entry to North Korea for anti-terrorism reasons. The Commerce Country Chart is not designed to determine AT licensing requirements for this entry. See § 742.19 of the EAR for additional information. FC applies to entire entry FC Column 1. UN applies to entire entry Iraq, North Korea, and Rwanda. 0A987 Optical sighting devices for firearms (including shotguns controlled by 0A984); and parts, n.e.s. License Requirements *Reason for Control:* FC, CC, UN. *Control(s)* *Country chart* FC applies to optical sights for firearms, including shotguns described in ECCN 0A984, and related parts FC Column 1. CC applies to entire entry CC Column 1. UN applies to entire entry Iraq, North Korea, and Rwanda. 0A988 Conventional military steel helmets as described by 0A018.d.1.; and machetes. License Requirements *Reason for Control:* UN. *Control(s)* UN applies to entire entry. A license is required for conventional military steel helmets as described by 0A018.d.1 to Iraq, North Korea, and Rwanda. A license is required for machetes to Iraq and Rwanda. The Commerce Country Chart is not designed to determine licensing requirements for this entry. See part 746 of the EAR for additional information. Note: Exports from the U.S. and transhipments to Iran must be licensed by the Department of Treasury, Office of Foreign Assets Control. (See § 746.7 of the EAR for additional information on this requirement.) 0B986 Equipment specially designed for manufacturing shotgun shells; and ammunition hand-loading equipment for both cartridges and shotgun shells. License Requirements *Reason for Control:* AT, UN. *Control(s)* AT applies to entire entry. A license is required for items controlled by this entry to North Korea for anti-terrorism reasons. The Commerce Country Chart is not designed to determine AT licensing requirements for this entry. See § 742.19 of the EAR for additional information. UN applies to entire entry. A license is required for items controlled by this entry to Iraq, North Korea, and Rwanda. The Commerce Country Chart is not designed to determine licensing requirements for this entry. See part 746 of the EAR for additional information. 0E018 “Technology” for the “development”, “production”, or “use” of items controlled by 0A018.a through 0A018.c. License Requirements *Reason for Control:* NS, UN, AT. *Control(s)* *Country chart* NS applies to entire entry NS Column 1. UN applies to entire entry Iraq, North Korea, and Rwanda. AT applies to entire entry AT Column 1. 0E918 “Technology” for the “development”, “production”, or “use” of bayonets. License Requirements *Reason for Control:* RS, UN, AT. *Control(s)* *Country chart* RS applies to entire entry RS Column 2. UN applies to entire entry Iraq, North Korea, and Rwanda. AT applies to entire entry AT Column 1. 0E984 “Technology” for the “development” or “production” of shotguns controlled by 0A984 and buckshot shotgun shells. License Requirements *Reason for Control:* CC, UN. *Control(s)* *Country chart* CC applies to “technology” for shotguns with a barrel length over 18 in. (45.72 cm) but less than 24 in. (60.96 cm) and shotgun shells, regardless of end-user CC Column 1. CC applies to “technology” for shotguns with a barrel length over 24 in. (60.96 cm), regardless of end-user CC Column 2. CC applies to “technology” for shotguns with a barrel length over 24 in. (60.96 cm) if for sale or resale to police or law enforcement CC Column 3. UN applies to entire entry Iraq, North Korea, and Rwanda. 19. In Supplement No. 1 to part 774, Category 1—“Materials, Chemicals, ‘Microorganisms’ and ‘Toxins’ ” is amended by revising the “License Requirements” section of ECCNs 1A005, 1B018, 1C018, and 1D018 to read as follows: 1A005 Body armor, and specially designed components therefor, not manufactured to military standards or specifications, nor to their equivalents in performance. License Requirements *Reason for Control:* NS, UN, AT. *Control(s)* *Country chart* NS applies to entire entry NS Column 2. UN applies to entire entry Iraq, North Korea, and Rwanda. AT applies to entire entry AT Column 1. 1B018 Equipment on the International Munitions List. License Requirements *Reason for Control:* NS, MT, RS, AT, UN. *Control(s)* *Country chart* NS applies to entire entry NS Column 1. MT applies to equipment for the “production” of rocket propellants MT Column 1. RS applies to 1B018.a RS Column 2. AT applies to entire entry AT Column 1. UN applies to entire entry Iraq, North Korea, and Rwanda. 1C018 Commercial Charges and Devices Containing Energetic Materials on the Wassenaar Arrangement Munitions List and Certain Chemicals as Follows (See List of Items Controlled). License Requirements *Reason for Control:* NS, MT, AT, UN. *Control(s)* *Country chart* NS applies to entire entry, except as noted in 1C018.m NS Column 1. MT applies to 1C018.m, except as noted therein MT Column 1. AT applies to entire entry AT Column 1. UN applies to entire entry Iraq, North Korea, and Rwanda. 1D018 “Software” specially designed or modified for the “development”, “production”, or “use” of items controlled by 1B018. License Requirements *Reason for Control:* NS, MT, AT, UN. *Control(s)* *Country chart* NS applies to entire entry NS Column 1. MT applies to “software” for the “development”, “production”, or “use” of items controlled by 1B018 for MT reasons MT Column 1. AT applies to entire entry AT Column 1. UN applies to entire entry Iraq, North Korea, and Rwanda. 20. In Supplement No. 1 to part 774, Category 2—“Materials Processing” is amended by revising the “License Requirements” section of ECCNs 2B018, 2D018, and 2E018 to read as follows: 2B018 Equipment on the International Munitions List. License Requirements *Reason for Control:* NS, MT, RS, AT, UN. *Control(s)* *Country chart* NS applies to entire entry NS Column 1. MT applies to specialized machinery, equipment, and gear for producing rocket systems (including ballistic missile systems, space launch vehicles, and sounding rockets) and unmanned air vehicle systems (including cruise missile systems, target drones, and reconnaissance drones) usable in systems that are controlled for MT reasons including their propulsion systems and components, and pyrolytic deposition and densification equipment MT Column 1. RS applies to entire entry RS Column 2. AT applies to entire entry AT Column 1. UN applies to entire entry Iraq, North Korea, and Rwanda. 2D018 “Software” for the “development”, “production” or “use” of equipment controlled by 2B018. License Requirements *Reason for Control:* NS, MT, AT, UN. *Control(s)* *Country chart* NS applies to entire entry NS Column 1. MT applies to “software” for equipment controlled by 2B018 for MT reasons MT Column 1. AT applies to entire entry AT Column 1. UN applies to entire entry Iraq, North Korea, and Rwanda. 2E018 “Technology” for the “use” of equipment controlled by 2B018. License Requirements *Reason for Control:* NS, MT, AT, UN. *Control(s)* *Country chart* NS applies to entire entry NS Column 1. MT applies to “technology” for equipment controlled by 2B018 for MT reasons MT Column 1. AT applies to entire entry AT Column 1. UN applies to entire entry Iraq, North Korea, and Rwanda. 21. In Supplement No. 1 to part 774, Category 6—“Sensors and Lasers” is amended by revising the “License Requirements” section of ECCNs 6A002, 6A003, 6E001, and 6E002 to read as follows: 6A002 Optical sensors. License Requirements *Reason for Control:* NS, MT, CC, RS, AT, UN. *Control(s)* *Country chart* NS applies to entire entry NS Column 2. MT applies to optical detectors in 6A002.a.1, a.3, or .e that are specially designed or modified to protect “missiles” against nuclear effects (e.g., Electromagnetic Pulse (EMP), X-rays, combined blast and thermal effects), and usable for “missiles” MT Column 1. RS applies to 6A002.a.1, a.2, a.3, .c, and .e RS Column 1. CC applies to police-model infrared viewers in 6A002.c CC Column 1. AT applies to entire entry AT Column 1. UN applies to 6A002.a.1, a.2, a.3 and c Iraq, North Korea, and Rwanda. License Requirement Notes: See § 743.1 of the EAR for reporting requirements for exports under License Exceptions. 6A003 Cameras. License Requirements *Reason for Control:* NS, NP, RS, AT, UN. *Control(s)* *Country chart* NS applies to entire entry NS Column 2. NP applies to items controlled in paragraphs 6A003.a.2, a.3 and a.4 NP Column 1. RS applies to items controlled in 6A003.b.3 and b.4 RS Column 1. AT applies to entire entry AT Column 1. UN applies to items controlled in 6A003.b.3 and b.4 Iraq, North Korea, and Rwanda. 6E001 “Technology” according to the General Technology Note for the “development” of equipment, materials or “software” controlled by 6A (except 6A991, 6A992, 6A994, 6A995, 6A996, 6A997, or 6A998), 6B (except 6B995), 6C (except 6C992 or 6C994), or 6D (except 6D991, 6D992, or 6D993). License Requirements *Reason for Control:* NS, MT, NP, RS, CC, AT, UN. *Control(s)* *Country chart* NS applies to “technology” for items controlled by 6A001 to 6A008, 6B004 to 6B008, 6C002 to 6C005, or 6D001 to 6D003 NS Column 1. MT applies to “technology” for items controlled by 6A002, 6A007, 6A008,6A102, 6A107, 6A108, 6B008, 6B108, 6D001, 6D002, 6D102 or 6D103 for MT reasons MT Column 1. NP applies to “technology” for equipment controlled by 6A003, 6A005, 6A202,6A203, 6A205, 6A225, 6A226 or 6D001 for NP reasons NP Column 1. RS applies to “technology” for equipment controlled by 6A002.a.1, .a.2, .a.3, .c, or .e, 6A003.b.3 or .b.4, or 6A008.j.1 RS Column 1. CC applies to “technology” for equipment controlled by 6A002 for CC reasons CC Column 1. AT applies to entire entry AT Column 1. UN applies to “technology” for equipment controlled by 6A002 or 6A003 for UN reasons Iraq, North Korea, and Rwanda. License Requirement Notes: See § 743.1 of the EAR for reporting requirements for exports under License Exceptions. 6E002 “Technology” according to the General Technology Note for the “production” of equipment or materials controlled by 6A (except 6A991, 6A992, 6A994, 6A995, 6A996, 6A997 or 6A998), 6B (except 6B995) or 6C (except 6C992 or 6C994). License Requirements *Reason for Control:* NS, MT, NP, RS, CC, AT, UN. *Control(s)* *Country chart* NS applies to “technology” for equipment controlled by 6A001 to 6A008, 6B004 to 6B008, or 6C002 to 6C005 NS Column 1. MT applies to “technology” for equipment controlled by 6A002, 6A007, 6A008, 6A102, 6A107, 6A108, 6B008, or 6B108 for MT reasons MT Column 1. NP applies to “technology” for equipment controlled by 6A003, 6A005, 6A202, 6A203, 6A205, 6A225 or 6A226 for NP reasons NP Column 1. RS applies to “technology” for equipment controlled by 6A002.a.1, .a.2, .a.3, .c or .e, 6A003.b.3 or .b.4, or 6A008.j.1 RS Column 1. CC applies to “technology” for equipment controlled by 6A002 for CC reasons CC Column 1. AT applies to entire entry AT Column 1. UN applies to “technology” for equipment controlled by 6A002 or 6A003 for UN reasons Iraq, North Korea, and Rwanda. License Requirement Notes: See § 743.1 of the EAR for reporting requirements for exports under License Exceptions. 22. In Supplement No. 1 to part 774, Category 8—“Marine” is amended by revising the “License Requirements” section of ECCNs 8A018 and 8A918 to read as follows: 8A018 Items on the International Munitions List. License Requirements *Reason for Control:* NS, AT, UN. *Control(s)* *Country chart* NS applies to entire entry NS Column 1. AT applies to entire entry AT Column 1. UN applies to entire entry Iraq, North Korea, and Rwanda. 8A918 Marine Boilers. License Requirements *Reason for Control:* RS, AT, UN. *Controls* *Country chart* RS applies to entire entry RS Column 2. AT applies to entire entry AT Column 1. UN applies to entire entry Iraq, North Korea, and Rwanda. 23. In Supplement No. 1 to part 774, Category 9—“Propulsion Systems, Space Vehicles and Related Equipment” is amended by revising the “License Requirements” section of ECCNs 9A018, 9A991, 9D018, and 9E018 to read as follows: 9A018 Equipment on the Wassenaar Arrangement Munitions List. License Requirements *Reason for Control:* NS, RS, AT, UN. *Control(s)* *Country chart* NS applies to entire entry NS Column 1. RS applies to 9A018.a and b RS Column 2. AT applies to entire entry AT Column 1. UN applies to entire entry Iraq, North Korea, and Rwanda. 9A991 “Aircraft”, n.e.s., and gas turbine engines not controlled by 9A001 or 9A101 and parts and components, n.e.s. License Requirements *Reason for Control:* AT, UN. *Control(s)* *Country chart* AT applies to entire entry AT Column 1. UN applies to 9A991.a Iraq, North Korea, and Rwanda. License Requirement Notes: There is no de minimis level for foreign-made aircraft described by this entry that incorporate Commercial Standby Instrument Systems

(CSIS)that integrate QRS11-00100-100/101 Micromachined Angular Rate Sensors (see § 734.4(a) of the EAR). 9D018 “Software” for the “use” of equipment controlled by 9A018. License Requirements *Reason for Control:* NS, RS, AT, UN. *Control(s)* *Country chart* NS applies to entire entry NS Column 1. RS applies to 9A018.a and .b RS Column 2. AT applies to entire entry AT Column 1. UN applies to entire entry Iraq, North Korea, and Rwanda. 9E018 “Technology” for the “development” of equipment controlled by 9A018. License Requirements *Reason for Control:* NS, RS, AT, UN. *Control(s)* *Country chart* NS applies to entire entry NS Column 1. RS applies to 9A018.a and .b RS Column 2. AT applies to entire entry AT Column 1. UN applies to entire entry Iraq, North Korea, and Rwanda. Dated: January 22, 2007. Christopher A. Padilla, Assistant Secretary for Export Administration. [FR Doc. E7-1180 Filed 1-25-07; 8:45 am] BILLING CODE 3510-33-P DEPARTMENT OF HOMELAND SECURITY Bureau of Customs and Border Protection DEPARTMENT OF THE TREASURY 19 CFR Parts 24 and 111 [USCBP-2006-0035; CBP Dec. 07-01] RIN 1505-AB62 Fees for Certain Services AGENCIES: Customs and Border Protection, Department of Homeland Security; Department of the Treasury. ACTION: Final rule. SUMMARY: This document amends the rules dealing with customs financial and accounting procedures by revising the fees charged for certain customs inspectional services under section 13031 of the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended, and incorporates two technical corrections to the existing fee chart. DATES: Final rule effective April 1, 2007. FOR FURTHER INFORMATION CONTACT: For information concerning user fee policy and rates, contact Mr. Jerry Petty, Director, Cost Management Division, 1300 Pennsylvania Avenue NW., Room 4.5A, Washington, DC 20229. Telephone:

(202)344-1317. SUPPLEMENTARY INFORMATION: Background CBP collects fees to pay for the costs incurred in providing customs services in connection with certain activities under the authority of section 13031 of the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA), as amended, codified at section 19 U.S.C. 58c. On October 22, 2004, the President signed the American Jobs Creation Act of 2004 (Pub. L. 108-357). Section 892 of the American Jobs Creation Act amended 19 U.S.C. 58c to renew the fees provided under COBRA, which would have otherwise expired March 1, 2005, and to allow the Secretary of the Treasury to increase such fees by an amount not to exceed 10 percent in the period beginning fiscal year 2006 through the period for which fees are authorized by law. Regulations concerning user fees, among other customs revenue functions, are promulgated under the authority of the Secretary of the Treasury pursuant to Treasury Department Order No. 100-16. (See Appendix to 19 CFR Part 0). On April 24, 2006, CBP published a notice of proposed rulemaking in the **Federal Register** (71 FR 20922) proposing to amend the regulations in accordance with the current statutory provisions by increasing the fees for:

(1)Customs services provided in connection with the arrival of certain commercial vessels, commercial trucks, railroad cars, private aircraft and private vessels, passengers aboard commercial aircraft and commercial vessels, and barges or other bulk carrier arrivals,

(2)each item of dutiable mail for which a customs officer prepares documentation, and

(3)annual customs brokers permits. The comment period ended on May 24, 2006. Discussion of Comments A total of six commenters responded to the solicitation of comments on the notice of proposed rulemaking. These comments were received from the recreational boating associations, industry and travel agent products services, carrier/vessel concerns, air transport associations, and other members of the general traveling and importing public. The comments are discussed below. *Comment:* One commenter supported the proposed fee increases as appropriate to reflect the costs incurred by the agency for services provided. The commenter also suggested raising the annual maximum fees and each of the annual fee caps by the maximum 10% permitted by law. *CBP response:* The COBRA, as amended (Pub. L. 108-357, Section 892), does not authorize an increase in annual fee caps. Therefore, the suggestion to raise the annual maximum fees and each of the annual fee caps involves legislative policy issues. In the absence of further legislative changes, CBP is bound by the current statutory provisions which do not provide the legal basis to support such regulatory changes suggested by the commenter. *Comment:* One commenter suggested that CBP establish an on-line ACE (Automated Commercial Environment) carrier account capable of tracking among other things all CBP fees and tonnage taxes as well as penalties issued by CBP and the United States Coast Guard to a vessel. The commenter also suggested that the ACE account record should be capable of displaying accumulated fees charged to each vessel regardless of which SCAC (Standard Carrier Alpha Code) and carrier bond were associated with those charges. *CBP response:* This comment relates to issues that are beyond the scope of the proposed rulemaking. *Comment:* An association representing private vessel owners stated its opposition to the increase in the annual decal fee for private vessels from $25.00 to $27.50, on the basis that it is inherently unfair. The commenter stated that while the annual decal fee currently applies to vessels 30 feet in length or greater, CBP must expend an equal amount of time and expense on all vessels crossing the border, not just those 30 feet in length or greater. The commenter suggested that if CBP retains the annual decal fee of $25.00, but removes the specific exemption for private pleasure vessels of less than 30 feet in length, that this action would generate far more revenue for CBP than raising the annual decal fee only for vessels 30 feet in length or greater to $27.50. *CBP response:* The specific exemption for private pleasure vessels of less than 30 feet in length not carrying goods required to be declared was included in 19 CFR 24.22(e), when it was promulgated because CBP incurs no processing costs in clearing private pleasure vessels of less than 30 feet in length not carrying goods required to be declared. Pursuant to the amended COBRA (Pub. L. 108-357, section 892), and in relevant part, fees may be charged in amounts that are reasonably related to the costs of providing customs services. CBP is not authorized to collect a fee because the agency would like to generate more revenue. Accordingly, we cannot implement the commenter's suggested course of action. *Comment:* Two commenters stated that the final rule should specify the effective date of the user fee increase applicable to commercial airline passengers. One commenter suggested the effective date should be no earlier than 60 to 90 days after the final rule is published, and two commenters requested sufficient time to allow the industry to adjust their systems to collect the increased fee. One commenter urged that the regulations be amended to make clear and precise that the proper amount of the user fee to be collected from a passenger shall be the amount of the fee in effect at the time that a ticket is issued. One commenter stated that the increased fee should apply only to tickets issued on and after the effective date, so that carriers do not have to collect an additional fifty cents for tickets already issued. *CBP response:* We have specified that the final rule's effective date will be more than 60 days after the date it is published to permit industry to adjust their systems to collect the increased fee amounts. In response to the commenter's concern about the proper amount of the user fee to be collected, the statute sets forth the general rule that the fee shall be collected from the passenger by the person who issues a transportation document or ticket and that such collection shall take place when the document or ticket is issued. The collection procedures in the regulations at § 24.22(g)(4)(ii), state, in relevant part, that the collection of the fees shall take place when a through ticket or travel document is issued. Given this statutory and regulatory specificity and clarity, amending the regulations as this commenter suggests is not necessary. The increased fee shall apply prospectively, that is, only to tickets issued on and after the effective date of the fee increase. For example, if a ticket has been issued prior to the effective date of the increased fee rates, and the flight does not take place until after the effective date of the increased fee rates, CBP is not authorized by law to retroactively collect the fifty cents from the carrier. As such, the date that the ticket is issued is the relevant event to which the effective date provision applies. *Comment:* One commenter stated that the proposed rule to increase the customs user fee paid by international passengers arriving by commercial aircraft from $5.00 to $5.50 did not suggest that these passengers would actually experience a more efficient and pleasant clearance process upon arrival in the United States. The commenter suggested that the number of CBP officers at U.S. airports must be increased to meet the demands of increasing international traffic and prevent passengers from waiting in long lines in the inspection facilities. *CBP response:* In FY 2005 approximately 73% of the total collections in the COBRA user fee account came from international air passengers. These passengers stand to benefit from the additional revenue collected. CBP estimates that the additional revenue will support the following central priorities of increased staffing of no less than 200 new CBP Officer positions, and the funding of overtime pay which will allow for more targeting, enforcement, special operations, and backfilling, where necessary. More officers on more shifts would allow CBP to fully match staff-to-workload and address any workload movement quickly, thereby meeting CBP's processing goals as well as providing better service to passengers. *Comment:* One commenter noted that the Secretary of the Treasury is required by statute to apply the funds generated by the customs user fees to cover specific costs. The commenter stated that the statute allows the funds to be used for the salaries of full-time and part-time CBP officers only after five other costs, such as overtime compensation and premium pay, have been met. The commenter stated nothing in the proposed rule gives any information about how the user fee funds are allocated among the various options and how they interrelate, e.g., could overtime compensation be decreased in order to hire additional full-time or part-time CBP officers at airports. *CBP response:* The statute specifically stipulates the order of reimbursements from the user fees collected for costs incurred. First, the Secretary of the Treasury shall directly reimburse from the fees collected the amount paid for the costs incurred by the Secretary in: Paying overtime compensation, premium pay, and agency contributions to the Civil Service Retirement and Disability Fund; providing all preclearance services for which the recipients of such services are not required to reimburse the Secretary of the Treasury; and paying foreign language proficiency awards. To the extent funds remain available, reimbursements for costs incurred in providing salaries for full-time and part-time inspectional personnel and equipment that enhance customs services for those persons or entities that are required to pay fees under paragraphs

(1)through

(8)of subsection

(a)of 19 U.S.C. 58c are distributed on a basis proportionate to the fees collected under subsection (a)(1) through (a)(8) of 19 U.S.C. 58c. To the extent funds remain available, reimbursements are made for costs incurred in providing salaries for up to 50 full-time equivalent inspectional positions to provide preclearance services. See 19 U.S.C. 58c(f)(3)(A)(i)-(iii). This is the allocation authorized by the statute. Fees collected under subsection

(a)of 19 U.S.C. 58c, with two exceptions, shall be deposited as offsetting receipts into the Customs User Fee Account. Section 13031(f) of the Consolidated Omnibus Budget Reconciliation Act of 1985 (19 U.S.C. 58c(f)) was amended by section 892 of Pub. L. 108-357 to specify that, except as otherwise provided in the subsection, all funds in the Customs User Fee Account shall be available to pay the costs incurred by CBP in conducting customs revenue functions as defined in section 415 of the Homeland Security Act of 2002 (other than functions performed by the Office of International Affairs referred to in section 415(8) of that Act), and for automation (including the Automation Commercial Environment computer system), and for no other purpose. Paragraph (f)(2) of 19 U.S.C. 58c also states that so long as there is a surplus of funds in the Customs User Fee Account, the Secretary of the Treasury may not reduce personnel staffing levels for providing commercial clearance and preclearance services. *Comment:* One commenter stated it was difficult to determine whether air passengers paying the proposed increases in customs user fees will derive any benefits or whether the proposed increases were justified because the proposed rule does not provide the types of costs included in the chart showing the fiscal year 2004 obligations, and does not account for savings from the consolidation of certain agricultural, customs, and immigration inspection functions into CBP. *CBP response:* The customs user fees are authorized by statute. In Public Law 108-357, the Congress authorized the Secretary of the Treasury to charge fees in amounts that are reasonably related to the costs of providing customs services in connection with the activity or item for which the fee is charged, except that in no case may the fee charged exceed by more than 10 percent the amount otherwise prescribed. The amounts of the proposed fees are reasonably related to the costs of providing customs services. The types of costs associated with providing customs services include salaries and benefits, overtime, rent, supplies and equipment, training, travel, utilities, and overhead. The increased fees will support more CBP officer positions at airports and new technology and equipment. As a result, air passengers will benefit from enhanced and timely passenger facilitation. Regarding the question of whether the proposed increases account for savings from the consolidation of the immigration, customs and agricultural functions in aircraft passenger processing, a CBP officer accounts for time and costs spent performing these services separately according to work activity and function. The inspectional services provided and the associated costs are identified as legacy Customs, legacy Immigration, and legacy Agriculture functions, depending on which legacy organization performed each function. While certain components of the legacy agencies have been combined to form CBP, the statutory and regulatory authorities for those agencies and associated functions have not been consolidated. Therefore, all user fees are collected in distinct accounts (Customs User Fee Account, Immigration User Fee Account, Land Border Inspection Fee Account, etc.) and are only used to cover costs based on function and authorized by their respective legislation. User fee program costs are also segregated from all other costs. *Comment:* Two commenters stated that the immigration, customs, and agriculture user fees should be consolidated into a single user fee for CBP inspection services provided to air passengers. The commenters stated that consolidation of the three inspectional fees would provide for greater efficiency. One commenter stated that consolidation of the user fees would result in more streamlined and transparent accounting, and would enable the agency to look at the cost of an air passenger inspection in relation to what an air passenger pays in user fees. *CBP response:* While certain components of the legacy agencies have been combined to form CBP, the statutory and regulatory authorities for these agencies and their associated functions remain unchanged. The legacy Customs user fee authority resides with the Secretary of the Treasury. The legacy INS user fee authority resides with the Attorney General. The legacy APHIS user fee authority resides with the Secretary of Agriculture. Presently, CBP has no authority to consolidate user fees. In the administration and collection of user fees, CBP is bound by current statutory law and must capture user fee costs based on function, that is, agriculture, customs, and immigration. CBP receives only a portion of the total user fees from the immigration and agriculture user fee accounts. Since CBP lacks the necessary authority to modify the immigration and agriculture user fees, a consolidated average cost of an inspection is neither appropriate nor possible at this time. However, CBP recognizes the benefits of consolidation, including streamlining the collection process and improving the management of the user fees. CBP is looking at options to improve the structuring of fees. *Comment:* One commenter stated that aviation security is a matter of national security, a Federal Government responsibility that should be funded accordingly, and not by increasing user fees. *CBP response:* The user fees are for the customs inspection and processing of passengers as authorized by the COBRA statute and the authority to increase the fees is specifically provided in law. Moreover, most aviation security inspection is performed outside of the context of these user fees. *Comment:* One commenter stated that the airline industry faces a disproportionate and ever increasing tax burden. The commenter stated that implementation of this proposal would clearly worsen this inequitable situation and further stultify an airline's ability to serve the traveling and shipping public. *CBP response:* While CBP understands the concerns of the airline industry, the authority to increase inspection fees was specifically provided in law two years ago, and this increase is consistent with that statute. *Comment:* One commenter stated that the statement in the notice of proposed rulemaking regarding the minimal impact on business from the increase in user fees since user fees come from individual travelers, demonstrates a basic misunderstanding of the realities of contemporary airline economics. The commenter stated that the intense competition in the airline industry forces carriers to absorb these taxes and fees. The commenter stated that it is the airline, and ultimately its employees and shareholders, that principally bear the burden of increased fees. *CBP response:* CBP notes that under the statute, entities issuing a document or ticket are authorized to collect the customs fee from an individual at the time the document or ticket is issued. This regulation does not change the method for collecting that fee, nor does this rule establish a new class of fees; it is only increasing the current fee collected by a maximum of 10 percent. *Comment:* One commenter stated that it has repeatedly requested an analysis of the actual average cost of an inspection for airline passengers since the consolidation of the three border inspection agencies, Immigration and Naturalization Service (INS), U.S. Customs Service (Customs), and the Animal and Plant Health Inspection Service (APHIS) into CBP. The commenter stated that among the justifications for the consolidation were greater efficiency, enhanced cost savings, and a more coordinated approach to the way in which inspection user fees were levied. The commenter stated that the proposed rule provides no analytical information on the cost of an inspection. The commenter concluded that no fee increase should be implemented absent the cost information and an opportunity to comment in response. *CBP response:* The current fees charged and collected for the provision of customs services in connection with the arrival of passengers aboard a commercial vessel or commercial aircraft are set by statute at 19 U.S.C. 58c. Public Law 108-357 authorizes the Secretary of the Treasury to charge fees in amounts that are reasonably related to the costs of providing customs services in connection with the activity or item for which the fee is charged, except that in no case may the fee charged exceed by more than 10 percent the amount otherwise authorized. CBP has proposed to raise the customs user fees for related customs inspectional services based on costs and as authorized by the statute. CBP has analyzed the costs of providing customs services and the fee collections for these corresponding customs services, and has published the collections received and obligations incurred in Fiscal Year 2004, in the **Federal Register** (71 FR 20922) on April 24, 2006. *Comment:* One commenter stated that the collection of a $1.75 fee from commercial vessel passengers (to be raised by 10 percent in the proposed rule to $1.93) for the exact same inspection that airline passengers experience, results in fee collections from airline passengers that subsidize the inspections of cruise ship passengers. The commenter stated that this inequity needed to be rectified. *CBP response:* The current fees charged and collected for the provision of customs services in connection with the arrival of passengers aboard a commercial vessel or commercial aircraft are set by statute at 19 U.S.C. 58c. In fiscal year 2006, and in each succeeding fiscal year for which fees are authorized, Public Law 108-357 authorizes the Secretary of the Treasury to charge fees in amounts that are reasonably related to the costs of providing customs services in connection with the activity or item for which the fee is charged, except that in no case may the fee charged exceed by more than 10 percent the amount otherwise authorized. As the respective fees are established by statute, this comment is beyond the scope of this rulemaking. Conclusion of Comment Analysis Based upon the analysis of the comments as discussed above, CBP has decided to adopt the proposed rule published on April 24, 2006, without change. Additional Changes to the Regulations In addition to the changes of the fee amounts in the regulatory text of Parts 24 and 111, as proposed in the proposed rulemaking published on April 24, 2006, the final regulations incorporate two technical corrections to the fee chart at 19 CFR 24.22(g)(2). The fee chart was intended as a tool to help readers understand the application of the fee structure explained in the regulatory text at 19 CFR 24.22(g)(1). However, in two locations, the fee chart did not accurately reflect the regulatory text. The fee chart is being corrected to reflect the regulatory text at 19 CFR 24.22(g)(1)(i)(A) and (B). Paragraph (g)(1)(i)(A) provides for the collection of a fee for services provided in connection with the arrival of passengers aboard commercial aircraft from Canada, Mexico, any territories and possessions of the United States, and any adjacent islands (“Specified Location” (SL)), when the journey of the arriving passenger originates in a place outside the United States other than an SL. The chart is accordingly amended to state that a fee is assessed in such a situation. The chart is also amended to reflect the language of paragraph (g)(1)(i)(B) that a fee is assessed when the journey of the arriving passenger from an SL originates in the United States and includes travel to a country other than to an SL. The Regulatory Flexibility Act This rule generally affects individuals and large commercial carriers. The increase in fees is 10 percent over the amounts currently paid by users of the customs services for which each fee is charged. Accordingly, CBP certifies that this final rule will not have a significant impact on a substantial number of small entities because the majority of fees will come from individual travelers into the United States. Therefore, it is not subject to the analysis provisions of the Regulatory Flexibility Act, as amended (5 U.S.C. 601 *et seq.* ). The American Jobs Creation Act specifically provides that the Secretary of the Treasury shall charge fees that are reasonably related to these activities. Executive Order 12866 This rule does not meet the criteria for a “significant regulatory action” as specified in E.O. 12866. Accordingly, a regulatory impact analysis is not required. Signing Authority This document is being issued in accordance with § 0.1(a) of Chapter I of Title 19, Code of Federal Regulations (19 CFR 0.1) pertaining to the exercise of authority to approve regulations in 19 CFR chapter I. List of Subjects 19 CFR Part 24 Accounting, Claims, Customs duties and inspection, Fees, Financial and accounting procedures, Imports, Taxes, User fees. 19 CFR Part 111 Administrative practice and procedure, Brokers, Customs duties and inspection, Imports, Licensing. Amendments to the Regulations For the reasons set forth above, parts 24 and 111 of the Customs and Border Protection Regulations (19 CFR parts 24 and 111) are amended as follows: PART 24—CUSTOMS FINANCIAL AND ACCOUNTING PROCEDURE 1. The authority citation for part 24 continues to read in part as follows: Authority: 5 U.S.C. 301; 19 U.S.C. 58a-58c, 66, 1202 (General Note 3(i), Harmonized Tariff Schedule of the United States), 1505, 1520, 1624; 26 U.S.C. 4461, 4462; 31 U.S.C. 9701; Public Law 107-296, 116 Stat. 2135 (6 U.S.C. 1 *et seq.* ). 2. Amend § 24.22 as follows: a. In paragraph (b)(1)(i), the figure “$397” is removed and, in its place, the figure “$437” is added. b. In paragraph (b)(2)(i), the figure “$100” is removed and, in its place, the figure “$110” is added. c. In paragraph (c)(1), the figure “$5” is removed and, in its place, the figure “$5.50” is added. d. In paragraph (d)(1), the figure “$7.50” is removed and, in its place, the figure “$8.25” is added. e. In paragraph (e)(1), the figure “$25” is removed and, in its place, the figure “$27.50” is added. f. In paragraph (e)(2), the figure “$25” is removed and, in its place, the figure “$27.50” is added. g. In paragraph (f), the figure “$5” is removed and, in its place, the figure “$5.50” is added. h. In paragraph (g)(1)(i), the figure “$5” is removed and, in its place, the figure “$5.50” is added. i. In paragraph (g)(1)(ii), the figure “$1.75” is removed and, in its place, the figure “$1.93” is added. j. In paragraph (g)(2), the table is revised to read as set forth below. k. In paragraph (g)(5)(v), the figure “$5” is removed and, in its place, the figure “$5.50” is added; and, the figure “$1.75” is removed and, in its place, the figure “$1.93” is added. l. In paragraph (i)(7), the figure “$5” is removed and, in its place, the figure “$5.50” is added. m. In paragraph (i)(8), the figure “$1.75” is removed and, in its place, the figure “$1.93” is added. The revision reads as follows: § 24.22 Fees for certain services.

(g)* * *

(2)* * * Place where journey originates (see (g)(1)(iv)) Fee status for arrival from SL Vessel Aircraft Fee status for arrival from other than SL Vessel Aircraft SL $1.93 No fee No fee No fee. Other than SL or U.S. 1.93 $5.50 $5.50 $5.50. U.S.* 1.93 No fee N/A N/A. U.S.** 1.93 $5.50 $5.50 $5.50. PART 111—CUSTOMS BROKERS 3. The authority citation for part 111 continues to read in part as follows: Authority: 19 U.S.C. 66, 1202, (General Note 3(i), Harmonized Tariff Schedule of the United States), 1624, 1641. Section 111.96 also issued under 19 U.S.C. 58c; 31 U.S.C. 9701. 4. Section 111.19 is amended in paragraph

(c)by removing all the figures reading “$125” and adding in their place the figure “$138”. 5. Section 111.96 is amended in paragraph

(c)by removing all the figures reading “$125” and adding in their place the figure “$138”. Deborah J. Spero, Acting Commissioner, Bureau of Customs and Border Protection. Approved: January 23, 2007. Timothy E. Skud, Deputy Assistant Secretary of the Treasury. [FR Doc. 07-335 Filed 1-25-07; 8:45 am]

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