Common use of Parts Production Approval Based on a Licensing Agreement or Arrangement Clause in Contracts

Parts Production Approval Based on a Licensing Agreement or Arrangement. When the FAA or EASA/AA grants a production approval/Production Organization Approval for parts production based on design data obtained through a licensing agreement or arrangement with a design approval holder in the other’s jurisdiction, the FAA or EASA/AA shall have procedures to ensure that all changes to be introduced into the design by the licensee are approved by the design approval holder. The production approval holder shall submit these design changes to the design approval holder who shall obtain approval from its CA using normal procedures.