International Interests in Mobile Equipment (Cape Town Convention) Rules 2014

Administered by Department of Infrastructure, Transport, Regional Development, Communications, Sport and the Arts

Legislation au F2015L00113 Rules In force Legislative Instrument

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EXPLANATORY STATEMENT

Issued by the authority of the Minister for Infrastructure and Regional Development

 

International Interests in Mobile Equipment (Cape Town Convention) Rules 2014

 

Background

The International Interests in Mobile Equipment (Cape Town Convention) Act 2013 received Royal Assent in June 2013.  The Act sets the legislative framework for Australia’s accession to the Convention on International Interests in Mobile Equipment and the Protocol thereto on matters specific to aircraft equipment (collectively, the ‘Cape Town Convention’).   The Act provides for instruments to be made under the legislation to give the Cape Town Convention effect in Australia. 

Purpose

The purpose of the legislative rules (the Rules) is to confer powers upon the Civil Aviation Safety Authority (CASA) in relation to an Irrevocable Deregistration and Export Request Authorisation (IDERA).  IDERAs are a voluntary measure that provides greater security to creditors by preventing a debtor from flying the asset to a jurisdiction where the Cape Town Convention does not apply. 

To facilitate this remedy, the registration holder will be able to submit an IDERA to CASA indicating that the ‘authorised party’ is the only party that has the right to deregister and export a specified aircraft object. 

The Rules also provide for an authorised party to issue a certified designee confirmation letter (CDCL).  By signing a CDCL an authorised party will transfer its rights to the certified designee.  The CDCL cannot be withdrawn unless it has the consent of the certified designee. 

The Rules provide for CASA to charge a processing fee to cover the administrative costs associated with the recording, removal and exercise of an IDERA.

Further detail on the administrative processes for the registration, cancellation and removal of an IDERA or CDCL will be provided in future CASA advisory circulars.  

Consultation

A public consultation process on the draft Rules was conducted for a period of four weeks in August 2014.  The Department of Infrastructure and Regional Development (the Department) posted a draft copy of the Rules and an explanation of the purpose and intent of the Rules on the Department’s website and publicised the process through industry organisations. 

 

Copies of the documentation were also provided to airlines, lawyers and financiers who have engaged with the Department in developing the implementation legislation.

 

Submissions made to the Department were supportive of the draft Rules and stakeholders noted that the processing fee charged by CASA is reasonable given the potential savings airlines will be eligible for following the Cape Town Convention’s entry into force. 

 

The 2014 public consultation process followed formal stakeholder consultations regarding the merits of Australia’s accession to the Cape Town Convention conducted by the Attorney General’s Department in 2003 and the Department in 2008.  Limited feedback was received but, of those that responded, there was broad support for accession. 

 

The Department also released the Cape Town Convention Consultation Paper on 22 November 2010, inviting stakeholders to comment on a number of Convention issues that had yet to be explored with industry.  This consultation round generated greater industry interest and, again, there was broad support amongst the respondents to accede to the Convention. 

 

Australia’s accession to the Cape Town Convention was also considered by the Joint Standing Committee on Treaties on 4 February 2013.  The Committee recommended that binding treaty action be taken. 

Statement of Compatibility  

These Rules do not engage any of the applicable rights or freedoms and are compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

Authority:  Section 10 of the International Interests in Mobile Equipment (Cape Town Convention) Act 2013.


Notes on Rules

Part 1  PRELIMINARY

Rule 1  Name of Rules

This clause is a formal provision specifying the title of the Rules.

Rule 2  Commencement

This Rule sets out the commencement date of the Rules.  The Rules will commence on the day sections 3 to 10 of the International Interests in Mobile Equipment (Cape Town Convention) Act 2014 are Proclaimed.  It is intended that the Rules will commence on the same day as the Cape Town Convention and Protocol come into force in Australia.   

Rule 3  Definitions

This Rule defines specific terms and clarifies meanings of terms used in the Rules and their relation to terms used in the Cape Town Convention and Part 47 of the Civil Aviation Safety Regulations  1998.   

 

Part 2 RECORDATION OF AUTHORISATIONS ON THE AUSTRALIAN CIVIL AIRCRAFT REGISTER

Rule 4 Submission and Recording of an IDERA

This Rule outlines the process by which IDERAs are submitted to CASA.  Provided the request is made in accordance with the terms this Rule, CASA will record the IDERA on the Australian Civil Aircraft Register and return a countersigned original copy to the requesting registration holder within five working days.  Only one IDERA can be recorded against a specific aircraft at any given time.          

Rule 5  Submission and recording of CDCL

This Rule provides for CDCLs to be recorded against an IDERA which has already been registered on the Australian Civil Aircraft Register.  Provided the request is made in accordance with the terms of this Rule, CASA will record the CDCL on the Australian Civil Aircraft Register and return a countersigned original copy to the requesting registration holder within five working days.  Only one CDCL can be recorded against a specific aircraft at any given time.           

Rule 6  Removal of an IDERA

This Rule provides for the removal of an IDERA from the Australian Civil Aircraft Register. Provided the request is made in accordance with the terms of this Rule, CASA will remove the IDERA from the Australian Civil Aircraft Register as soon as practicable.

Rule 7  Removal of CDCL

This Rule provides for the removal of a CDCL from the Australian Civil Aircraft Register.  Provided the request is made in the approved form, CASA will remove the CDCL from the Australian Civil Aircraft Register as soon as practicable.

Rule 8  De-registration requests

This Rule prescribes the process of exercising a deregistration request under an IDERA or a CDCL.  An authorised party or, if a CDCL has been recorded against the IDERA, a certified designee are the only parties who request de-registration of an aircraft. 

In making the request, the authorised party (or certified designee) must certify that the aircraft is not subject to an interest that ranks in priority to it and, if so, that the higher ranking interest has consented to its de-registration. 

Provided the request is made in accordance with this Rule, CASA will facilitate the de-registration within five days and, to the extent consistent with its functions, cooperate and assist with the export of the aircraft.      

Part 3  ADMINISTRATIVE PROCEDURES  

Rule 9  Forms and Administrative Procedures

This Rule requires CASA to approve forms associated with the registration, cancellation and removal of an IDERA or CDCL.  It also gives CASA the authority to use and disclose the personal information contained in an IDERA of CDCL on the Australian Civil Aircraft Register. 

Rule 10  Fees

This Rule specifies fees payable to CASA for the registration, cancellation and removal of an IDERA or CDCL (outlined in the fee schedule at Schedule 3).  It also requires CASA to not act on a request unless payment for that request has been tendered. 

 Schedule 1  IDERA

Schedule 1 prescribes the form of the Irrevocable De-Registration and Export Request Authorisation. 

Schedule 2 CERTIFIED DESIGNEE CONFIRMATION LETTER

Schedule 2 prescribes the form of the Certified Designee Conformation Letter template.

 

Schedule 3 FEE SCHEDULE

Schedule 3 prescribes the applicable fees for the IDERA process. 

 

Overview

The International Interests in Mobile Equipment (Cape Town Convention) Rules 2014, enacted under the authority of the Minister for Infrastructure and Regional Development, establish the framework for implementing the Cape Town Convention in Australia. This convention governs international interests in mobile equipment, particularly aircraft, and aims to provide security to creditors by preventing debtors from relocating assets to jurisdictions where the convention does not apply. The rules were designed to confer specific powers upon the Civil Aviation Safety Authority (CASA) related to Irrevocable Deregistration and Export Request Authorisations (IDERA), which allow authorised parties to prevent the deregistration and export of specified aircraft objects. Additionally, the rules permit the transfer of rights to a certified designee through a Certified Designee Confirmation Letter (CDCL). The objective of these rules is to facilitate the implementation of the Cape Town Convention in Australia by providing administrative procedures for the recording, removal, and exercise of IDERAs and CDCLs, including the imposition of processing fees by CASA to cover administrative costs. The rules were developed following consultations with stakeholders and aim to ensure compatibility with human rights as recognised in relevant international instruments.

Scope and Application

The International Interests in Mobile Equipment (Cape Town Convention) Rules 2014 apply to the recording and management of Irrevocable Deregistration and Export Request Authorisations (IDERA) and Certified Designee Confirmation Letters (CDCL) by the Civil Aviation Safety Authority (CASA) under the International Interests in Mobile Equipment (Cape Town Convention) Act 2013. These Rules govern the process of registering, removing, and facilitating the deregistration and export of aircraft objects under the Cape Town Convention, aimed at providing security to creditors by preventing debtors from moving the asset to jurisdictions where the Convention does not apply. The Rules are applicable to aircraft registration holders and authorised parties who may submit requests to CASA. The geographic reach of these Rules is inherently tied to Australia’s accession to the Cape Town Convention, making them relevant within the national jurisdiction. CASA is also granted the authority to charge fees for processing these requests to cover administrative costs. The Rules are designed to commence on the same day as the Cape Town Convention and Protocol come into force in Australia, ensuring a coordinated implementation. The provisions set forth in these Rules can be further detailed and amended through future CASA advisory circulars, thereby extending the application and procedural details.

Key Provisions

The primary sections of the International Interests in Mobile Equipment (Cape Town Convention) Rules 2014 (the 'Rules') include Rule 1, which names the Rules, Rule 2, which specifies the commencement date of the Rules, and Rule 3, which provides definitions of key terms used in the Rules ((Rules 1–3)). These rules lay down the foundational aspects of the legislative framework governing the Cape Town Convention in Australia. The Rules impose several obligations on the parties involved, most notably on the Civil Aviation Safety Authority (CASA). For instance, Rule 4 mandates that CASA record an Irrevocable Deregistration and Export Request Authorisation (IDERA) on the Australian Civil Aircraft Register if the submission is made in accordance with the terms stipulated in the Rule (Rule 4). Similarly, Rule 5 requires CASA to record a Certified Designee Confirmation Letter (CDCL) on the register if the submission is compliant with the Rule's terms (Rule 5). Rule 6 and Rule 7 further require CASA to remove an IDERA and a CDCL from the register, respectively, upon receipt of a valid request (Rules 6–7). Rule 8 outlines the process for exercising a de-registration request under an IDERA or a CDCL, ensuring that only authorised parties or certified designees can request the de-registration of an aircraft (Rule 8). The Rules also establish specific penalties and consequences for non-compliance. Rule 9 grants CASA the authority to approve forms and manage administrative procedures related to the registration, cancellation, and removal of an IDERA or CDCL, ensuring that CASA can effectively implement and enforce the Rules (Rule 9). Rule 10 specifies the fees payable to CASA for these processes and mandates that CASA will not act on a request unless the required payment has been made (Rule 10). Although the Rules themselves do not explicitly outline criminal or civil penalties for non-compliance, the underlying Act and associated regulations may impose such penalties, which could include fines or other legal consequences for breaches. In summary, the Rules establish a structured process for recording, managing, and removing IDERAs and CDCLs on the Australian Civil Aircraft Register, while also detailing the obligations of CASA and the financial implications of these processes. The Rules aim to facilitate the implementation of the Cape Town Convention in Australia, providing a legal framework that supports the security interests of creditors and the regulatory oversight of CASA.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.