Copyright © 2013 Holland & Knight LLP All Rights Reserved

Practical Advice on Export and Embargo Laws in

Cross-Border Aircraft Transactions 20th Annual Aircraft Transaction Forum

Phoenix, AZ

March 5, 2013

Presented by :

Jonathan Epstein

Holland & Knight LLP

Jonathan.epstein@hklaw.com

202.828.1870

What do Transaction Teams Need to Know About U.S. Export and

Embargo Laws?

• What are the restrictions on sale, leasing, and operation of civil

aircraft?

• When are aircraft, engines, or components subject to stricter

restrictions under the International Traffic in Arms Regulations (ITAR)

or other regimes?

• What kind of due diligence should you undertake to avoid violating U.S.

sanctions?

• Tips on drafting and negotiating “Patriot Act” clauses

• Clearance procedures for importing/exporting aircraft to/from the

United States

1

Export Embargo Issues Routinely Arise in Cross-Border

Transactions at Various Stages

• Early Stages

– Initial Queries & Due Diligence

– Where is this aircraft engine really going?

– Example: Aircraft does not fit in fleet profile

• Negotiation & Drafting Stages

– Operational restrictions

– Patriot Act clauses and pushback from counter-party

• Post Closing

– Changing U.S. policy toward entity or country

• Example: AeroContinente designated as drug trafficker

• Role of counsel/transaction team as gatekeeper

2

3

Complex Regulatory Environment

• U.S. Treasury Department Office of Foreign Assets Controls (OFAC)

- Principal agency administering sanctions on Cuba, Iran, Syria, and Sudan

- Administers the Special Designated Nationals (SDN) list of terrorists

• U.S. Department of Commerce Bureau of Industry and Security (BIS)

– Governs export and re-export of most U.S.-origin goods to embargoed

countries

• Department of State

– Responsible for certain extraterritorial sanctions on Iran

– Responsible for aircraft, engines, parts deemed to be “Defense Articles”

• U.S. Customs & Border Protection

– Import/export clearance

OVERLAPPING JURISDICTION – APPARENT AUTHORIZATION BY

ONE AGENCY MAY NOT MEAN IT IS LEGAL (Sudan, military

exports)

4

Who Is Subject to U.S. Jurisdiction?

• “U.S. Persons”

– U.S. citizens and permanent resident aliens (green card holders) wherever located

– Any entity organized under the laws of the U.S.

– Any person or entity in the U.S.

• Entities owned or controlled by U.S. entities with respect to sanctions on Cuba and Iran (as of Oct. 9, 2012)

• Anyone in possession of U.S.-origin goods or technology (in rem jurisdiction over the U.S.-origin good)

• Anyone engaging in certain barred activities under certain extraterritorial sanctions imposed on Iran

– Iran Air, Mahan Airways

• Anyone using the U.S. banking system

5

Terminology

• What is an “Export”? – Actual shipment or transmission of goods, technology, software from the U.S.

to a foreign country – Permanently exporting an aircraft by flying it out of the country is the same as

putting it in a box and shipping it from a regulatory perspective

• What is a “Re-export”? – Re-transfer of U.S.-origin goods from one foreign country to another

• What is a Temporary Sojourn? – Export or re-export of a vessel or aircraft where there is no transfer of

“operational control” (BIS concept)

• What is “Facilitation”? – When a U.S. entity assists in any manner a third country entity to engage in a

transaction with an embargoed country that it could not enter into directly such as financing, insuring, approving, or brokering.

6

Export Administration Regulations (EAR)

• Administered by BIS

• Covers exports and re-exports of virtually all U.S. commercial goods

and technology

• Commerce Control List (CCL) of goods restricted to certain

destinations assigned Export Control Classification Number (ECCN)

• Licensing requirements based on classification of the goods and the

destination (end-user/country)

7

U.S. “In Rem” Jurisdiction Over Foreign-made Aircraft

• Foreign-manufactured products containing more than de minimus U.S.

controlled content:

– 10% U.S. controlled content for re-exports to embargoed countries, such as Iran

(25% U.S. controlled content to all other countries)

– De minimus rules do not apply to encryption, military items, QRS-11

• Virtually all western large commercial aircraft in service are considered

of U.S.-origin and thus subject to U.S. jurisdiction because they contain

more than 10% U.S.-origin components (e.g., engines, avionics)

– Presume that all Airbus, Bombardier, Embraer, BAE, and Boeing aircraft are of

U.S.-origin

– Presume that all GE, CFM, IAE, and Pratt & Whitney and Rolls Royce engines are

U.S.-origin

• U.S. enforces these rules strictly on sale or lease of aircraft and

aircraft parts

Export Control Classification Numbers

• Most civil aircraft, engines, and specialized mechanical and structural

aircraft parts fall under ECCN 9A991

– Only controlled for anti-terrorism (AT reasons)

– Can be exported, re-exports to all but embargoed countries

– “Black Box” rule for classification of systems integrated into aircraft

• Most civil aircraft avionics fall under ECCN 7A994, similar controls to

above

• Components subject to strict controls:

– Modern inertial navigation systems, and components (QRS-11) and related

technology

– Certain night vision technologies

– Engine hot section technology (not the parts themselves)

– Certain lightweight high-thrust turbojet engines (can be issue for very light jet

market) because they fall under cruise missile/unmanned aerial system controls

8

International Traffic in Arms Regulation (ITAR)

• Administered by the U.S. Department of State Directorate of Defense Trade Controls (DDTC)

• U.S. Munitions List (USML) controls defense articles, technical data, and defense services -- Generally speaking a license is required to export a USML item to any non-U.S. person

– Transfer of registration (title) of a USML-controlled aircraft also requires authorization from DDTC

– U.S. lessor may be required to register as an “arms broker” in order to hold title to an ITAR-controlled aircraft

– Sikorsky S92 example

• When Are Civil Aircraft Subject to the ITAR? Specially Designed Rule – DDTC “look through rule”

• Aircraft equipped with anti-missile technology

• Certain night vision equipment and NVG compatible cockpits

• Helicopters with specialized deployable beacons

• Certain categories of demilitarized surplus aircraft

– 1930s vintage Swordfish Torpedo Bomber

9

ITAR Application to Aircraft, Engines, Parts

• Current demilitarized aircraft not ITAR-controlled* (22 C.F.R. § 121.3) – Cargo aircraft bearing “C” designations and numbered C-45 through C-118 inclusive,

C-121 through C-125 inclusive, and C-131, using reciprocating engines only

– Trainer aircraft bearing “T” designations and using reciprocating engines or turboprop engines with less than 600 horsepower (s.h.p.)

– Utility aircraft bearing “U” designations and using reciprocating engines only

– All liaison aircraft bearing an “L” designation

– All observation aircraft bearing “O” designations and using reciprocating engines

• Specially designed “catch-all” is major issue for aerospace manufacturers as there is often commonality between civil and military versions of aircraft engines/components

• Final Rule in 2008 provided some clarification on aviation components: – If designed exclusively for civil (non-military) aircraft or engines, an aviation component is

controlled by BIS (and generally no license required to export)

– If designed for military aircraft or military or military aircraft engines, an aviation component is controlled under the ITAR (and generally a license is required to export)

– If neither (i.e., a component that could be used on both civil or military variants of the same aircraft), there is a multipart test

10

Export Control Reform

• 2010 plan to move less sensitive items off the USML

• 2011 proposed rulemakings to only control most sensitive aircraft and gas turbine engine components on the USML and move “everything else” to the Commerce Control List

– Creates new ECCNs for military items that move off ITAR that will now require BIS licenses (600 series)

– Certain subcomponents will be essentially fully decontrolled such as:

• Aircraft tires, analog cockpit gauges, galleys, lavatories, life rafts, and magnetic compasses for most military aircraft

• Oil tanks, fuel and oil filters, identification plates, and clamps for gas turbine engines

• Benefit from EAR “Black Box” versus ITAR “Look Through” rule: – Less incentive for foreign manufactures to design out U.S. components (as was

done in the satellite industry)

• When will reforms be implemented?

11

Foreign Assets Control Regulations (FACR)

• Administered by OFAC • Almost total embargoes on Cuba, Iran, Syria, Sudan, (North Korea)

designated persons – U.S. persons cannot engage directly or indirectly in transactions with such

countries or entities in such countries, or “facilitate” transaction by third country persons with such countries

– Implication on international wire transfers in U.S. dollars

• Lesser embargoes on other countries: – Burma, Belarus, Congo, Iraq, Ivory Coast, Lebanon, Liberia, Libya, North

Korea, Zimbabwe, Somalia, Yemen

• Specially Designated Nationals (SDN) – One of a number of barred entity lists -- However, there is a new Consolidated

Screening List at: http://export.gov/ecr/eg_main_023148.asp

12

U.S. Government Consolidated Barred Entity list • Specially Designated Nationals and Blocked Persons List (SDN List). This is a list of barred terrorists, narcotics

traffickers, and persons and entities associated with embargoed regimes. Generally, all transactions with such persons

are barred.

• Denied Persons List. These are individuals and entities that have had their export privileges revoked or suspended by

BIS. Note: Some of these suspensions are partial or limited in scope.

• Entity List. These are entities identified as being involved in the proliferation of missile technology, weapons of mass

destruction, or have otherwise been designated under U.S. law. Generally all exports to such persons will require a

license.

• Unverified List. These are foreign entities that BIS has been unable to verify the nature of their operations. While

transactions with these entities are not barred, special due diligence is required.

• List of Debarred Parties. This is a list of entities debarred from engaging in arms exports under the Arms Export

Control Act.

• Excluded Parties List. These are entities that have been barred from contracting with U.S. government agencies. In

general, no person can contract with such parties in fulfilling a U.S. government contract, either as prime or sub-

contractor.

• Persons Named in General Orders. BIS had identified and barred exports to certain entities pursuant to general order.

• Non-proliferation Sanctions. These are entities subject to varying sanctions because of their involvement with nuclear

proliferation. These lists are maintained by the U.S. Department of State.

13

Recent Changes in U.S. Sanctions Programs

• Burma/Myanmar – July 2012 – Sanctions on providing “financial services” and “investment” in Burma largely lifted.

There are still an number of Burmese entities designated as SDNs, some for narcotics trafficking. These include certain airlines and banks.

• Cuba – Early 2011 – Further relaxation of U.S. travel restrictions; expansion of ports of entry for travel to

Cuba; increasing number of flights to Cuba.

• Iran – Broad new sanctions allow the U.S. to sanction foreign entities that engage in transactions with

certain Iranian SDNs or facilitate Iran’s attempts to circumvent sanctions.

• Libya – Broad sanctions imposed in February 2011 – These were lifted in stages in late 2011 and now

transactions are generally allowed with Libya.

• Syria – Aug. 2011, Executive Order 13582 – Substantially expanded U.S. embargo of Syria. Now bars

U.S. persons from providing any services to Syria.

• South Sudan – July 2011 – U.S. recognizes Republic of South Sudan – No longer subject to sanctions on

Sudan.

• (North) Sudan – No major changes except for expansion of humanitarian shipment general licenses.

14

Significant Changes in U.S. Sanctions on Iran

• Since 2010, the U.S. has targeted Iran and Iranian entities: – Flights to/from Iran on U.S.-origin aircraft are prohibited, but . . .

– Aggressive enforcement of sanctions against entities that sell, lease aircraft, engines, parts to Iran

– Designation of entities such as Iran Air and Mahan Airways under non-proliferation and anti-terrorism designations

– Designation in rem of specific aircraft in September 2012 – a number of aircraft owned or operated by Iran Air, Mahan Airways, and YAS Air, designated by tail number and serial number

– Purchases of significant fuel from Iran could violate extraterritorial sanctions

– Recent legislation requires report to Congress of foreign airports that serve Iranian airlines.

• Export Import Bank Reauthorization Act of 2012 – Section 18 requires a certification that the recipient of financing, or any entity owned

or controlled by recipient, does not engage in any activity prohibited under U.S. Sanctions of Iran.

– Much broader than other restrictions on “prohibited countries, restricted countries” that apply to the particular aircraft being financed.

15

Sale or Dry Lease

• A sale or long-term dry lease of a U.S.-origin aircraft or engine to a

foreign person will be considered a permanent export of the aircraft,

even if the aircraft will stay on the FAA registry.

• Generally, most civil aircraft, aircraft engines, and aviation components

can be exported or re-exported (i.e., sold or leased) to most entities in

most countries without a license. However:

– Sale or dry lease to embargoed countries (e.g., Cuba, Iran, Syria, Sudan,

North Korea) is prohibited

– Sale or dry lease to a barred entity or for a barred end-use is prohibited

– Sale where the seller knows or has reason to know the aircraft or engine

is intended to be resold or leased to an embargoed country, barred entity,

or barred end-use

16

Operations to Embargoed

Countries

• Temporary Sojourn Exception – BIS concept of “operational control” differs from

term as common used in aviation industry:

• The operator must meet all nine criteria:

(i) have the right to hire and fire the cockpit crew

(ii) control the dispatch of the aircraft

(iii) have the right to determine the aircraft's routes (except for contractual commitments entered

into by the exporter for specifically designated routes)

(iv) maintain (and base) the aircraft in a country other than an embargoed country (other than

minimum necessary in-transit maintenance)

(v) not stage spares or a fly-away-kit in the embargoed country

(vi) not change the registration of the aircraft to an embargoed country register

(vii) not transfer of technology to a national of an embargoed country except the minimum

necessary in-transit maintenance to perform flight line servicing required to depart safely

(viii) not change the livery, colors, or logos to that of the embargoed country

(ix) not fly under a flight number issued by an embargoed country

17

The Difficulty of the Temporary Soujourn

• Wet lease

– Long term ACMI charter will not meet criteria

– Possible other charter arrangements could meet temporary soujourn

• Scheduled Service

– Will meet typically temporary soujourn provided:

• Aircraft is not based in embargoed country

• No prepositioning of parts in that country

• Temporary sojourn technically only exists under BIS regulations

– Would not apply to Iran

– Would apply to Cuba, Sudan, Syria, North Korea

• Problem of Facilitation by U.S. Lessor

– Safe approach is to prohibit (insurance analogy)

– Alternative approach would be based on knowledge (e.g., predominant use)

• Practical reasons not to allow temporary soujourn

18

Hypothetical: Lease of Boeing 737 to

Lebanese Air Carrier

• Lebanese air carrier wants to lease Boeing 737

• Indicia that it intends to charter the aircraft to Syrian airline for flights to

specific destinations in Europe

• Legal Analysis:

– Probably no OFAC issue: hence no concern over facilitation

– Presumption that charter would not meet temporary sojourn exception

• We would want to know specifics and possibly seek advice from BIS

• Business Risk Considerations

– Do you want your aircraft in Syria? (Orion Air case)

– Risk of investigation

19

Hypothetical: Flight From Fort Lauderdale to Havana

– For an U.S. air carrier to fly to Havana

• Must be OFAC-licensed Carrier Service Provider (CSP) OR carrier acting as a direct air carrier for a licensed CSP

• Must amend OPSPECS for Cuba operations

• May only carry persons authorized under general or specific license

– General license – Cuban-Americans visiting family

– Special license – Person-to-person (P2P) license

• May only carry authorized cargo

• Only CSP can expend funds in Cuba

• Must depart/arrive through Designated Portal Airport

– Private Operator will need a BIS license for the temporary sojourn and travelers must fall under general or special license

– Generally, if flight is authorized, support such as routing also authorized

– Practical issues

• If you have an AOG in Cuba

• Contract restrictions in loan, lease, insurance

• Bank may detain wire transfers until they vet the transaction

20

How Much Should You Know

About Your Customer?

• Due Diligence: – Reasonable and Practicable

– Risk based assessment

• Operational Due Diligence: – Carrying charter customer from New York to Los Angeles

– Long term ACMI of aircraft to air carrier in Lebanon

• Transaction Due Diligence – Entering into distribution agreement to sell aircraft parts to company in UAE

– Sale of a jet to a publically traded company

• Special concerns for public companies

• Document the Diligence –

– “If there is no documentation of diligence none was done”

– Documents lacked constructive knowledge

21

22

Screening Counterparties

• For most of the industry there is no specific law telling how and when to screen against the SDN List and other lists:

– Specific requirements for certain financial institutions such as banks under the Patriot Act

– Screening must be programmatic – and done in a practical manner

– Screening of beneficial owners

• Particularly where counter party is special purpose vehicle

• Any entity owned or controlled by an SDN is also an SDN

• Screening beyond “official” lists – World Check and similar commercial services

• When to Screen?

– In some cases, months can pass between LOI & consummation of transaction

Other Diligence Steps

• Dependant on “risk profile”

• Lower Risk:

– Internet searches for public information

– In country searches from agent in local language

– Business records for entity/parent entity

• Higher Risk

• Third Party Information

– Third party reporting on shipments by business

• Require specific end-use certificate

• Obtain Dunn & Bradstreet Report

• World Check or similar custom report

• Hire Trace International

• Consult outside counsel

23

Red Flags

• Red Flag = Elevated Risk Transaction (Not that the deal is dead)

– 20/20 hindsight of enforcement agencies

– Additional diligence and/or contractual representations may be sufficient to proceed

– Important that red flags get reported up the chain

• Ex: “New labels on Boxed Pipes”

• Examples of Export/Embargo Red Flags:

– Buyer is foreign air carrier that doesn’t operate your type of aircraft

– Payment terms are unusual or routed through third country

– Parts buyer not familiar with parts being ordered; doesn’t negotiate; ask about

warranties, airworthiness

– Borrower, lessee strenuously object to export control restrictions in loan, lease

– Third party information (including Google)

• Procedures for Clearing & Documenting Red Flags

– Example: News report of vessel being sold to embargoed country

24

Patriot Act and Other Compliance Clauses

• Come in two forms:

– Robust diligence requirements from banks and other financial institutions for

counterparties (beyond financial diligence) including requirements to disclose:

• Beneficial ownership

• Passports of key officials

• Source of income

– Extensive “Patriot Act” clauses or separate certifications/appendices requiring the

counterparty to make representations:

• Status of the entity: that neither it nor anyone owned by it is an SDN

• Compliance with Patriot Act, anti-bribery laws, and export control laws

• Geographic or other restrictions on operations

• Sanctions clauses do not relieve a party of diligence requirements

– Clear and specific language puts borrower/lessee/purchaser on notice and may

“tease” out issues (i.e., operational restrictions)

– Unlikely to have significant mitigating effect if not combined with adequate diligence

(except in insurance context)

25

The Patriot Act Anti-Money Laundering Requirements

• Title III of the USA Patriot Act, Pub. L. 107-56 (Oct. 26, 2001) amended banking statutes/subsequent regulations issued by FINCEN over following years:

– Require banks, insurance companies and other financial institutions that regularly engage in money transfer to:

• Implement anti-money laundering programs, including customer identification programs

• Screen customers against SDN list

• Pending rulemaking on screening of beneficial owners

• Businesses engaged in the sale of aircraft are “financial institutions” but currently not subject to mandatory CIP requirements

• Any person in business subject to general AML criminal restrictions 19 U.S.C. 1956, 1957:

– Applies to anyone who engages in a transaction, including the transport, transmission, or transfer of funds or property with knowledge that the funds or property were derived from an unlawful activity or intended for use in an unlawful activity

– Knowledge means not only actual knowledge but also willful blindness or deliberate indifference (such as ignoring red flags)

• Primary Risk for Aircraft Sales/Leasing: – Actual beneficiary of lease or purchase of aircraft/engine is an SDN or from an embargoed

country or narcotics trafficker

– Iran actively seeking aircraft, aircraft parts

26

27

• Foreign Corrupt Practices Act (FCPA) – Payment of anything of value to a foreign government official to affect

a government decision to obtain or retain business

• Travel, lodging, and gifts

– Constructive Knowledge & Diligence • Awareness of high probability of illicit conduct • Deliberately ignore information that should reasonably alert to high

probability of violation

– Biggest risk for aircraft transactions • Many foreign state flag airlines are government-owned, and its officers

are therefore foreign government officials • Brokers and agents

– Criminal statute – huge fines/costs associated with violations

• Bizjet – Paid $11.8 million to settle criminal charges over allegations that it paid bribes to Mexican and Panamanian officials to obtain work

• Other Anti-Bribery laws – Travel Act – Commercial bribery

– UK Bribery Act of 2010

Anti-Corruption

Common Problems with Patriot Act Clauses

• Requirements that are broader than law requires (unless you intend it) – Requiring the Aircraft not fly to any “U.S. embargoed country”

– Requiring foreign air carrier to have FCPA/AML compliance programs

• Requiring broad representations, without qualification regarding company owners, affiliates

– Public company may not be able to make representation regarding shareholders

– Lack of of knowledge qualifier or lack of clear definition of owner/controlling interest

You further represent and warrant to ____that to your actual or constructive knowledge: (i) neither you (including your directors and officers), nor any of your affiliates, subsidiaries, respective shareholders, beneficial owners of non-publicly traded shareholders or, to your knowledge, the funding sources for any of the foregoing either is identified on the list of "Specially Designated Nationals or Blocked Persons" ("SDNs") . . .; (iv) neither you nor any of your affiliates, subsidiaries, respective shareholders, beneficial owners of non-publicly traded shareholders is involved in business arrangements or otherwise engaged in transactions with countries subject to economic or trade sanctions imposed by the United States government.

28

Common Problem with Patriot Act Clauses

• Invasive diligence requirements that are broader than reasonably

necessary

• Vague and general language that is broader than law requires:

– “Lessee shall comply with USA Patriot Act”

You shall promptly provide ___with all information reasonably requested . . . with

respect to you and your affiliates and subsidiaries, including their respective

officers, directors or shareholders. The information requested may include but not

necessarily be limited to financial condition, personal and family background,

litigation, indictment, criminal proceedings and the like in which any of the

aforementioned may have been involved . . . .

• Unintended consequences of overbroad language

– Pushback from counterparty may be legitimate, but pushback in itself is a “red flag”

that can trigger further diligence

29

Export/Import Clearance Issues

• Import/export requirements for routine aircraft operations differ from

those applicable for import/export for dry-lease or sale

• Import/export requirements are separate and not necessarily linked to

country of registry, certificate of airworthiness

– Lease and export of a “N” registered aircraft to a foreign airline will be permanent

export from U.S.

– Return of such aircraft from long term lease would be permanent import into the

U.S.

• Clearly identify who is responsible to carry out and who is responsible

to pay for costs associated with such actions:

– Costs of customs broker, import bond, merchandise processing fee, etc.

– Placing contract requirement on foreign party does not absolve U.S. party of

regulatory obligations/exposure for violations

30

Export Clearance for Sale or

Long-Term Lease

• Export Classification

– Aircraft fall under Export Classification Control Number (ECCN) 9A991.b.

– No License Required (NLR) to most countries

• Export Clearance

– Electronic Export Information (EEI) (replaced the Shipper’s Export Declaration (SED))

– Destination control statement and EEI annotation on shipping documents

– U.S. Principal Party in Interest (USPPI) – many aircraft exports are “routed exports”

• Customs Clearance

– Foreign carrier or ferry flight operator will have to comply with aircraft clearance for outbound flights (differ from private and commercial flights)

– Customs broker files export manifest with Customs (including the aircraft and any other goods being exported with the aircraft) supported by:

• Commercial or pro-forma invoice; use fair market value

(Note: Under treaty, generally aircraft imports are not dutiable, but there may be

general VAT issues)

• Export Procedures Differ from Port to Port

– Some require 72-hour advance notice

– Most require proof of airworthiness and registration

– Some take fax/e-mail, others require pilot to deliver documents in person

31

Permanent Import of Aircraft, Aircraft Engine, Parts into U.S.

• Formal Entry for Permanent Import typically handled by licensed customs broker

• Import Classification & Duty Rate – Under Harmonized Tariff Schedule of the United States (HTSUS) (generally duty free)

• HTSUS 8802 covers civil aircraft with FAA certificate of airworthiness (or foreign equivalent)

• HTSUS 9801.00.10.75 American Goods Returned – U.S. built aircraft being returned without having been improved abroad (minor cost savings)

• Customs Form 7501 Entry Summary, filed by broker with copy of commercial/pro-forma invoice

– Issues with return of aircraft with spare parts

• Customs Bond – May use continuous bond of foreign lessee airline

– Obtain single transaction bond (can be expensive)

– Use broker’s own continuous bond

• How do you handle issue of aircraft coming in for inspection prior to sale in U.S.?

32

Permanent Import – Aircraft Clearance

• Typically handled by aircraft operator (not customs broker)

• Customs Declarations:

– Commercial aircraft carrying passengers and cargo file General Declaration (CF

7507) and air cargo manifest (CF 7509) 24 hours in advance, 19 C.F.R. § 122

– Private aircraft filings vary depending on location

– Advance passenger manifest (eAPHIS)

• Flight Authorizations

– FAA Special Flight Permit – Ferry flight for U.S.-registered large commercial aircraft

not being operated by air carrier, foreign air carrier, or under FAR Part 125.

– FAA Special Flight Authorization – Foreign-registered aircraft that does not have

U.S. certificate of airworthiness or equivalent

– TSA International Waiver – Large aircraft flying into/out of U.S. not under air

carrier/foreign air carrier TSA approved security program

33

Questions

34