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CORPORATE TRANSACTIONS & COMPLIANCE BLOG

8 FAQs About the New FAA Requirement for Overseas FAA Certificate Holders

By: Colleen A. DeVries, COGENCY GLOBAL, on Dec 11, 2024 4:30:00 AM

FAQs About New FAA Requirement

What this is: On October 8, 2024, the Federal Aviation Administration (FAA) issued a final rule that requires individuals with a foreign address and no US physical address on file to designate a US agent for service of process. This applies to those who hold or are applying for FAA certificates, ratings or authorisations under specific sections of the 14 CFR regulations.

What this means: The US agent will be responsible for receiving legal and safety-critical documents from the FAA on behalf of the individual. This rule aims to facilitate faster and more efficient communication between the FAA and individual certificate holders abroad, as companies already have such mechanisms in place.

Summary of Questions About the Rule

  1. Why is this happening?
  2. What is required by individuals to comply with this new FAA requirement?
  3. Who will this apply to?
  4. What is a US agent of service for purposes of this new FAA regulation?
  5. What will the US agent of service do?
  6. What will happen if I don’t adhere to this new law?
  7. What are the benefits of designating a professional agent for service of process and how do I find one?
  8. Once I designate an agent for service, how do I certify the designation with the FAA?

1. Why is This Happening?

Answer: The FAA encounters difficulties in serving documents to the approximately 115,000 individuals who hold or apply for FAA certificates, ratings or authorisations and have a foreign address without a US physical address on record.

2. What is Required by Individuals to Comply With This New FAA Requirement?

Answer: The rule under 14 CFR Part 3 by the FAA requires individuals who have a foreign address and no US physical address on file and who hold or are applying for FAA certificates, ratings or authorisations under specific parts, to designate a US agent for service to receive and forward FAA documents.

3. Who Will This Apply to?

Answer: The FAA rule applies only to individuals who:

  • Hold or apply for FAA certificates, ratings or authorisations under specific parts of 14 CFR (47, 61, 63, 65, 67, 107)
  • Have an address outside of the US
  • Do not have a US physical address on record with the FAA

The rule aims to make it easier for the FAA to serve documents to these individuals by requiring them to designate a US agent for service. It does not apply to entities or FAA designees who don't meet these criteria because the FAA already has effective ways to reach them.

4. What is a US Agent of Service for Purposes of This New FAA Regulation?

Answer: Rule § 3.302 defines a US agent for service as an entity or an adult (18 years or older) with a US address designated by the certificate holder or applicant to receive FAA documents on their behalf. The US agent must have a physical US address and PO boxes or mail drops are not acceptable. 

The agent for service will receive documents from the FAA on behalf of the individual and forward directly to the email address and/or physical address provided by the individual appointing the agent for service.

5. What Will the US Agent of Service Do?

Answer: The designated agent for service must promptly forward the FAA documents to the individual who designated them. That is why it is important to ensure you engage an agent for service who understands their role and that you provide full contact information (i.e., name, address, phone number and email address) to ensure that the agent for service can forward any FAA documents to you upon receipt.

6. What Will Happen if I Don’t Adhere to This New Law?

Answer: If an individual fails to designate a US agent for service within this time frame, they will not be permitted to exercise any FAA-issued certificates, ratings or authorisations. Furthermore, the aircraft registration certificate of an individual aircraft owner will be considered ineffective. According to FAA Enforcement and Compliance Order 2150.3, enforcement actions may also be taken. After the rule is published, new certificates will not be issued to applicants with a foreign address unless they designate a US agent. Those with applications currently under review will be notified and given a chance to comply before any certificates, ratings or authorisations are issued.

7. What Are the Benefits of Designating a Professional Agent for Service of Process and How Do I Find One?

Answer: A professional agent for service will understand what is required to establish and accept the designation as agent for service to receive FAA documents and the internal controls to receive FAA documents and promptly forward to the individual contact on record.  

8. Once I Designate an Agent for Service, How Do I Certify the Designation With the FAA?

Answer: You must certify your agent for service (on a new system, US Agent for Service System (USAS), available by visiting https://usas.faa.gov.

Important note: The USAS portal is under development; Cogency Global is tracking when this new system goes live.

USAS is an online tool that will be used solely for collecting US agent for service designations. Once you access USAS, you should follow the instructions on the home page and follow the on-screen prompts to designate their US agent for service. You will need to provide certain information necessary to retrieve your FAA file and to ensure that the US agent for service designation is connected to you as correct applicant or holder of the certificate, rating or authorisation.

You will also be required to enter your agent for service of process information, including US agent name, type of agent (entity or adult 18 years or older), US address and email address.

Important note: You will be personally responsible for submitting this certification to the USAS system once you engage an agent for service of process and to ensure that any changes to information included in this online certification are updated promptly.

As noted above, there are a few important actions you will need to take to comply with this new FAA requirement by July 2025. First, engage a knowledgeable agent for service who understands their role when designated as your agent for service. Second, ensure that you certify the designation on the FAA’s USAS. Finally, should there be any changes to your contact information, ensure you notify your agent for service in a timely manner and update the FAA certification by visiting https://usas.faa.gov. This will ensure compliance with this new requirement.

 

This article is provided for informational purposes only and should not be considered, or relied upon, as legal advice.

Topics: Process Agent, U.S. Corporate Services