GKG Law Principal Richard Bar was invited to serve as a panelist for U.S. Transactions Corp.'s Presidential Forum Association Executives Virtual Roundtable "The Return of In-Person Conferences/Events," which took place on July 30 from 9:30 – 11 am ET. The invitation-only session was moderated by American Trucking Association COO Elisabeth Barna and Aronson LLC Partner Greg Plotts. Discussion covered what associations are doing for their events for the remainder of 2020 and into 2021, and the legal, insurance and financial considerations that should remain front of mind.
Month: July 2020
Use of Ownership Trusts & International Registry Issues in Aircraft Acquisitions
On Thursday, July 16 at 1 pm ET, GKG Law Principal Troy Rolf hosted the one-hour webinar Use of Ownership Trusts & International Registry Issues in Aircraft Acquisitions. During this session, Troy discussed the ins and outs of ownership trusts in business aviation. Additionally, he covered details of International Registry of Mobile Assets Transacting User Entity registrations, which are required in most aircraft purchase and sale and financing transactions.
The webinar recording can be found here and presentation slides are linked below.
Two GKG Law Principals Recognized in 2020 Chambers and Partners Guides
GKG Law, P.C. is pleased to announce that two firm principals have been recognized by Chambers and Partners for 2020. GKG Law Principal and President Keith G. Swirsky, who chairs the firm’s Business Aviation and Tax practices, was named to the Chambers High Net Worth 2020 guide for Private Aircraft – Global-wide (Band 3). Principal Thomas W. Wilcox, a leader within the firm’s Transportation practice, was named to the Chambers USA 2020 guide for Transportation: Rail (for Shippers) USA – Nationwide (Band 1).
The Chambers High Net Worth 2020 guide notes that:
“Keith Swirsky is president of GKG Law, P.C. and chairman of its business aviation group. One source says he is ‘iconic in this industry,’ and another interviewee adds that ‘he is highly specialised, he is super, he just knows the business and knows what needs to be done.’"
Chambers High Net Worth ranks the top lawyers and law firms for international private wealth. The guide also recommends leading accountancy firms, private banks, wealth managers, trust companies and other professional advisers to high net worth and ultra-high net worth clients around the world. Recommendations are based on in-depth analysis provided by Chambers researchers, who conduct their annual research from September to March.
The Chambers USA 2020 guide notes that:
“Thomas Wilcox routinely advises transport associations and industry bodies on rail charge cases and demurrage concerns. He frequently appears before the STB on complex proceedings.”
Chambers USA ranks the top lawyers and law firms from across the United States. Ranking tables are compiled through researcher assessment of a firm’s work and opinions from external market sources, with an emphasis on client feedback. Firms and lawyers need to demonstrate sustained excellence in order to be ranked in the guide.
Complete details of the Chambers research methodology can be found here.
FAA REGULATORY ALERT: NBAA Small Aircraft Exemption Extended and Modified
The FAA recently extended to March 31, 2022 the long-standing exemption that allows NBAA member companies that operate certain small airplanes and helicopters to conduct certain flight operations under Part Section 91.501(b) that otherwise may only be performed under Part 91 by operators of larger, more complex aircraft, including some operations for which compensation is permitted, such as operations under Time Share Agreements, Interchange Agreements and Joint-Ownership Agreements, as well as operations for affiliated companies. This exemption, commonly referred to as the NBAA Small Aircraft Exemption, has been around for decades, and the FAA typically extends the exemption every two years. This time around, however, the FAA extracted a pound of flesh in exchange for the extension in the form of a new administrative requirement.
The NBAA Small Aircraft Exemption, attached below, applies to operators of U.S. registered aircraft that do not fall within the applicability of FAR 91.501(a). By its terms, FAR 91.501(a) applies to U.S. registered aircraft that are either large airplanes (meaning airplanes with an MTOW in excess of 12,500lbs.), multi-engine turbojet aircraft regardless of weight, and fractional program aircraft operating under Subpart K of Part 91. Aircraft to which the NBAA Small Aircraft Exemption apply therefore includes airplanes with MTOWs of 12,500 pounds or less (other than multi-engine turbojet and fractional aircraft operated under Subpart K), and all helicopters.
Aircraft operators who wish to take advantage of the NBAA Small Aircraft Exemption must be members of the NBAA and must comply with the terms and conditions of the exemption. These conditions have long included a requirement that the operator use an inspection program under FAR 91.409(f) that has been approved by the operator’s FSDO; that he or she notify his or her local FSDO that operations will be conducted under the NBAA Small Aircraft Exemption; and that he or she provide the FSDO with a copy of any applicable Time Share Agreements, Interchange Agreements and Joint-Ownership Agreements. Effective September 27, 2020, aircraft operators operating under the NBAA Small Aircraft Exemption now must also file a “Notice of Joinder to FAA Exemptions No. 7897K.” This Notice must be submitted to the FAA electronically via http://www.regulations.gov and must include the following:
a. The person’s name and, for a person other than an individual, the name of the authorized representative submitting the Notice of Joinder.
b. The person’s physical address and, for a person other than an individual, the physical address for the authorized representative. If the person or the authorized representative does not receive mail at the physical address provided, a mailing address must also be provided.
c. The person’s email address or, for applicants other than individuals, the email address of the authorized representative.
d. The person’s telephone number(s).
e. The person’s NBAA membership number.
f. A statement requesting the FAA appends the Notice of Joinder to the list of NBAA members authorized to exercise the privileges of Exemption No. 7897K.
g. An attestation that the person will not conduct any operation under Exemption No. 7897K if the person ceases to be a member of NBAA.
h. An attestation that the person will comply with all conditions and limitations of Exemption No. 7897K.
The NBAA has stated that it will create a form to allow members to easily comply with the new requirements of the exemption, and that the form will be available prior to the Sept. 27, 2020, notification date. GKG Law is a member of the NBAA and will obtain a copy of the form when it becomes available and will then make the form available to our clients who are NBAA members. In the meantime, if you have any questions or concerns regarding the NBAA Small Aircraft Exemption, please feel free to contact the business aviation attorneys at GKG Law, P.C.
BIS Suspends EAR License Exceptions for Hong Kong
Effective Tuesday, June 30, 2020, the Department of Commerce’s Bureau of Industry and Security (BIS) suspended all License Exceptions in the Export Administration Regulations (EAR) for exports and re-exports to Hong Kong, and in-country transfers within Hong Kong, that are not available for exports, re-exports, or in-country transfers to the People’s Republic of China (PRC).
Put differently, Hong Kong shall be treated as part of the PRC under the EAR and, consequently, any item that requires a license for export, re-export, or transfer to the PRC shall now require a license for movement to or transfer within Hong Kong. Any License Exceptions that previously applied to Hong Kong but not the PRC are suspended, with the following exceptions:
1. Any items affected by this rule that were on dock for loading, on lighter, laden aboard an exporting or transferring carrier, or en route aboard a carrier to a port of export or re-export on June 30, 2020, which were actually destined for export to Hong Kong, may proceed to Hong Kong under the previous License Exception eligibility.
2. Deemed export and re-export transactions involving Hong Kong nationals that were authorized under a License Exception affected by this rule and that commenced prior to June 30, 2020, will continue to be authorized until August 28, 2020. According to BIS, companies relying on this authorization should retain documentation demonstrating that the Hong Kong nationals were hired and provided access to technology eligible for Hong Kong nationals prior to June 30, 2020.
Forwarders should review any License Exceptions for shipments destined for Hong Kong to determine whether those License Exceptions would also authorize a shipment to the PRC. Notably, Tuesday’s action could affect shipments to Hong Kong that were previously authorized under License Exceptions APP (15 CFR Section 740.7); RPL (Section 740.10); GOV (Section 740.11); and APR (Section 740.16).