The FAA has published a new policy memo (AIR100-16-110-DM04) that changes the way that the FAA treats export 8130-3 tags. This policy memo will alter export 8130-3 tags so that they no longer identify the specific destination country. An additional policy memo specifies that so-called "Domestic Tags" do not need to be so-identified.
The Problem
The industry has had problems with export 8130-3 tags for many years. The typical export 8130-3 tag will identify a destination country. This becomes a problem when the parties want to re-export the article to a third nation.
Here is an example. It is not unusual to establish a forward stocking warehouse to hold inventory destined to be distributed in a particular part of the world. Let's say that the warehouse is in Singapore. Parts bound for this Singapore warehouse would bear 8130-3 tags that specify that they meet the special import requirements of Singapore. But the Singapore warehouse will be used to supply parts to customers in other nations, like Indonesia, Malaysia, Thailand and Viet Nam. These parts are sometimes rejected because they name Singapore as the destination rather than any of the other nations. Replacing the Singapore 8130-3 tags with tags naming other destinations is a needless expense that adds no safety value to the transactions.
The State of the Industry
If you go back to the 1963 NPRM that established the rules for export airworthiness approvals, you will see that the original intent of the tag was to facilitate export transactions. The FAA has recognized that this current process adds no value, and that 8130-3 tags are impeding transactions, rather than facilitating them.
The FAA has found that the current practice of including the specific destination information and the word "EXPORT" on the tag impedes global trade, explaining:
"Requiring this statement needlessly complicates the issuance of the tag and hinders the global shipment of engines, propellers, and articles, especially when they are exported multiple times."
The FAA has examined the European system, in which the manufacturers issue EASA Form One themselves, and there is a single EASA Form One (there is no distinction that creates a separate export EASA Form one). The FAA has recognized that this system appears to work better than having distinct export 8130-3 tags that name a destination country.
The Solution
The FAA has issued a Deviation Memo that eliminates the destination country from the export 8130-3 tag. The Memo does more than permit dropping the destination from the tag - it actually directs that those who complete 8130-3 tags for articles should NOT include the specific export information:
"~Do not use the statement, "Export airworthiness approval - This article meets the special requirements of (enter country)," from paragraph 4-5 L(9), in block 12.
~Do not use the statements in Appendix A, Figures A-14, A-15, A-16, and A-17 ("Export airworthiness approval - This article meets the special requirements of (enter country)" and "EXPORT."
~Do not use the statement, "Export airworthiness approval. No special import
requirements for [enter name of country or jurisdiction] stated at time of issuance," from paragraph 4-5 L(10), in block 12.
~An exporter must continue to include any other statements required by FAA Order 8130.21 and the applicable bilateral agreements."
The above-quoted language is specific to articles, but similar language is published in the Deviation Memo that applies to engines and propellers, as well. The language represents a deviation from FAA Order 8130.21H. It is effective as of June 24, 2016.
ASA members will want to ensure that they communicate with their global business partners to educate them about this change. At first, there may be some reluctance to accept the new 8130-3 tags, but a review of the new FAA Deviation Memo will show trading partners that the FAA no longer permits inclusion of the language that historically has designated a destination nation.
"Domestic Shipment Only"
In a similar vein, on June 28 the FAA issued a policy memo (AIR100-16-110-PM04) that forbade parties from stating "domestic shipment only" or "not an export approval" on the 8130-3 tag.
"This memorandum provides clarification on the use of "domestic shipment only" and "not an export approval" in block 12 of FAA Form 8130-3 (hereafter, tags). Inspectors, designees, delegated organizations, and persons authorized in accordance with a production approval holder's approved quality system to issue tags are directed to not add "domestic shipment only" and "not an export approval" to block 12."
This language impeded subsequent exports; many people thought that this language was meant to prevent a subsequent export. Use of this sort of language also ignored the original purpose of the "domestic tag" which was to facilitate export for parties who were unable at the time to apply for export 8130-3 tags (it circumvented a regulatory anomaly that prevented distributors from applying for export 8130-3 tags - the exporting distributor was expected to ensure compliance with the importing nation's special import requirements). For a short time, this limiting language actually appeared in an earlier version of Order 8130.21. ASA sought clarification from FAA Management at the time and FAA Management confirmed that the inclusion of that language had been a mistake, because it contradicted the original purpose of the domestic tag.
ASA members who encounter parties who want to print "domestic shipment only" or "not an export approval" in block 12 of FAA Form 8130-3, should draw the issuing party's attention to this policy memo.