Declaration of Compliance vs. Compliance Statement

If you fall under the new 14 CFR Part 5 SMS mandate, you have no doubt come across a requirement for a declaration of compliance to be submitted.  This is new and has caused some confusion.

You might be saying to yourself, “I thought we had to submit a compliance statement?”  There is a difference between it and a declaration of compliance.  Some applicants are still required to submit a compliance statement.  Let me explain and try to clear up any confusion.      

So, what is a declaration of compliance?  According to AC120-92D (Safety Management Systems for Aviation Service Providers), a declaration of compliance is a document submitted to the FAA that declares the aviation organization has developed and implemented an SMS in compliance with part 5 whether required by regulation or implemented voluntarily. It is a legal document.   

The new 14 CFR Part 5 SMS mandate requires that within 36 months of the effective date of the part 5 requirements, 14 CFR part 135 and 91.147 air tour operators with a Letter of Authorization (LOA) must submit a declaration of compliance to their FAA certificate management office (CMO) as evidence the organization has met the requirements of part 5

Once the FAA receives the declaration of compliance, the CMO will update the organization’s status in an internal FAA database noting that they have an SMS or a voluntary SMS that meets part 5 requirements. Validation of SMS performance will occur as a part of routine surveillance activities. Areas found deficient will be addressed using existing methods for ensuring compliance with the regulatory requirements.

A few key points for your declaration of compliance:

• It must be signed by the accountable executive or another senior member of management.

• It must include:

  • The name of the aviation organization and its certificate number (if applicable)

  • The physical address of the aviation organization.

  • A statement that the aviation organization has developed and implemented an SMS that meets the requirements of part 5.

On the other hand, the purpose of a compliance statement is to ensure aviation organizations adequately address the applicable sections of 14 CFR part 5 during the development and implementation of an SMS.

New applicants for a part 119 certificate authorizing them to operate under part 121 or 135 or air tour operators requiring a part 91.147 LOA must demonstrate they meet the applicable regulatory requirements of part 5 prior to issuance of a certificate or LOA (14 CFR 5.7(b) and 5.9(b), as applicable).

While not required for existing operators, a compliance statement makes identifying existing processes and procedures as well as existing methods and voluntary programs easier to verify when documenting how an organization meets the regulatory requirements. This is accomplished for all departments and areas identified in the organizational description.

The Compliance Statement must:

• List all part 5 sections and subsections that apply to the aviation organization’s operation.

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  Next to each part 5 requirement (section and subsection), the applicant/aviation organization must provide a specific reference to a manual or other document, if required, and may provide a brief narrative description that describes how they will comply with each section or subsection.

This statement also serves as a master index to the aviation organization’s documentation system to expedite the FAA’s oversight of the SMS.  Aviation organizations are encouraged to maintain and routinely update their compliance statement, which is a living document, as changes are made to their SMS.  Appendix D of AC120-92D provides guidance for developing a Compliance Statement.

In summary, there is a difference between a declaration of compliance and a compliance statement.  Take a moment to review the requirements for your type of operation.  Whether you must submit a declaration of compliance, or a compliance statement, will be based on the type of applicant you are and if you are an existing operator or a new applicant.  Contact Baldwin Safety and Compliance if you have any further questions or require assistance with your SMS. 

References used:  AC 120-92D and 14 CFR Part 5