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Agreement between the Government of Canada and the Government of the Republic of Korea on the Production of the Bell Helicopter Textron Canada Model 427 Helicopter [2001] CATSer 18 (4 June 2001)

E103877 - CTS 2001 No. 18

AGREEMENT BETWEEN THE GOVERNMENT OF CANADA AND THE GOVERNMENT OF THE REPUBLIC OF KOREA ON THE PRODUCTION OF THE BELL HELICOPTER TEXTRON CANADA MODEL 427 HELICOPTER

The Government of Canada and the Government of the Republic of Korea, hereinafter referred to as "the Parties",

Considering that:

Bell Helicopter Textron Canada and Korean Aerospace industries have agreed on a business arrangement to produce the Model 427 helicopter in the Republic of Korea and its subsequent distribution;

Bell Helicopter Textron Canada is the bolder of the Canadian Department of Transport Type Certificate no. H-103 for the Model 427 helicopter;

Bell Helicopter Textron Canada is an approved manufacturer in Canada under the Department of Transport Approved Organization Certificate no. 31-92, which has been extended to include the Bell Helicopter Textron Canada facilities located at Korean Aerospace Industries in the Republic of Korea;

Canada is the State of Design and the State of Manufacture for the Model 427 helicopter and, has to discharge its responsibilities under the Canadian Aviation Regulations and, fulfill its international obligations under Annex 8, Airworthiness of Aircraft, to the Convention on International Civil Aviation;

In Canada, the regulatory functions for the airworthiness oversight, certification and production of civil aeronautical products is the sole responsibility of the Minister of Transport, as performed by Transport Canada Civil Aviation of the Department of Transport;

In the Republic of Korea, the regulatory functions for the airworthiness certification is the responsibility of the Minister of Construction and Transportation, as performed by the Civil Aviation Bureau of the Ministry of Construction and Transportation, while the regulatory functions for performance and quality inspection are the responsibility of the Minister of Commerce, Industry and Energy;

Have agreed to provide for the oversight of the production and for the airworthiness approval of the Model 427 helicopter in the Republic of Korea, as follows:

ARTICLE I

For the purpose of this Agreement:

(1) "Civil aeronautical product" means any civil aircraft, aircraft engine, or propeller or sub-assembly, appliance, material, part, or component to be installed thereon;

(2) "Airworthiness approval" means a finding that a civil aeronautical product conforms to an approved type design or to an approved change to a type design, and is in a condition for safe operation;

(3) "Approved type design" means a design that has been the subject of a type design approval;

(4) "Approved change to a type design" means a change to a type design that has been the subject of a type design approval;

(5) "Type design approval" means a finding by Transport Canada Civil Aviation of the Department of Transport that the type design or change to a type design of a civil aeronautical product meets the standards established by Transport Canada Civil Aviation of the Department of Transport; and,

(6) "Type design" means the description of all characteristics of a civil aeronautical product, including its design, manufacturing processes, limitations, continued airworthiness instructions, and all other data necessary to determine its airworthiness.

ARTICLE II

(1) The Government of Canada, through its Department of Transport, shall discharge all of its regulatory responsibilities and functions with respect to the airworthiness approval of all Model 427 helicopters produced in the Republic of Korea. Canada is the State of Design as well as the State of Manufacture for all Model 427 helicopters, including those produced in the Republic of Korea. Accordingly, for the purpose of granting airworthiness approval to the Model 427 helicopters produced in the Republic of Korea, all related activities and premises in the Korean Aerospace Industries facilities shall be subject to compliance with the appropriate Canadian regulatory requirements.

(2) The Government of Canada's officials shall exercise surveillance and oversight functions to verify that the production is made in continual compliance with an approved production system, that manufactured products and parts fully conform to the approved type design, and that each helicopter is in a condition for safe operation. Accordingly, airworthiness inspectors from Transport Canada Civil Aviation of the Department of Transport, shall work with Korean Aerospace Industries in the designated area for Bell Helicopter Textron Canada to:

(a) Carry out regulatory surveillance of the production;

(b) Exercise regulatory control of the production;

(c) Have final decision on the production;

(d) Issue or recommend the issue of flight authorities for test flights and positioning purposes; and

(e) Issue Export Airworthiness Certificates for the complete aircraft.

(3) The conduct of test flights as part of the airworthiness approval process shall be governed by the requirements of the Canadian Aviation Regulations, under the oversight of the airworthiness inspectors referred to in paragraph (2) of this Article, in conjunction with Article III.

ARTICLE III

Within the limits of the laws and regulations of the Republic of Korea, the Government of Korea shall be responsible for:

(1) Ensuring that the Government of Canada receives the support it requires to fulfill the responsibilities and functions in Article II;

(2) Ensuring that the Government of Canada can perform its functions in Article II without interference or adverse influence from any organization or person under the jurisdiction of the Government of the Republic of Korea;

(3) Facilitating the performance of the required test flights of paragraph (3) of Article II. The same facilitation shall be extended to the Transport Canada Civil Aviation of the Department of Transport flight crew licenses, where required; and,

(4) Facilitating entry into the Republic of Korea of Government of Canada officials as members of the technical or administrative staff of the Canadian Embassy whose status shall be accorded in accordance with the Vienna Convention on Diplomatic Relations. The Government of Canada shall ensure that these officials shall perform the functions mentioned in Article II necessary for the implementation of this Agreement.

ARTICLE IV

(1) The procedures used by the Government of Canada to grant airworthiness approvals are those documented in the Canadian Aviation Regulations and associated Standards, advisory materials, policies and procedures. These include "Flight Authorities", "Export Airworthiness Certificates For Aircraft" and "Continuing Airworthiness".

(2) Where the Government of Canada needs information for the investigation of service incidents, accidents, or suspected unapproved parts involving an aeronautical product that was produced in the Republic of Korea, the Government of the Republic of Korea, upon request from the Government of Canada, shall initiate appropriate and necessary actions in accordance with the relevant laws and regulations of the Republic of Korea.

ARTICLE V

(1) Transport Canada Civil Aviation of the Department of Transport and the Korean Civil Aviation Bureau of the Ministry of Construction and Transportation are responsible, on behalf of the Parties, for the administration and implementation of the provisions of Articles II, III and IV of this Agreement. For these Articles, the designated offices for facilitating communications between the Parties relating to this Agreement are those of the Directors of Aircraft Certification and Maintenance and Manufacturing for Transport Canada Civil Aviation of the Department of Transport and the Director of Flight Operation and Certification Division for the Korean Civil Aviation Bureau of the Ministry of Construction and Transportation.

(2) The Parties shall advise each other of any significant change to their legislation or organization affecting the administration and implementation of the provisions of this Agreement, including the identity of the persons identified in paragraph (1) above.

ARTICLE VI

Any disagreement regarding the interpretation or application of this Agreement shall be resolved by consultation between the Parties. With respect to production and airworthiness approval issues, due consideration shall be given to the prevailing requirements of the Canadian Aviation Regulations.

ARTICLE VII

This Agreement shall enter into force upon signature and shall remain in force until terminated by either Party. Such termination shall be effected by sixty days written notification to the other Party. This Agreement may be amended by the written agreement of both Parties.

IN WITNESS WHEREOF, the undersigned, being duly authorized thereto by their respective Governments, have signed this Agreement.

DONE in duplicate at Ottawa, on this 4th day of June 2001, in the English, French and Korean languages, all versions being equally authentic.

David M. Collenette

FOR THE GOVERNMENT OF CANADA

Kim San-hoon

FOR THE GOVERNMENT OF THE REPUBLIC OF KOREA