ANNEX IISupplementary provisions
For the purposes of the present Agreement, the following definitions shall apply: 1. 'large civil aircraft': with respect to such aircraft produced in the US by existing manufacturers of large civil aircraft and in the European Community by the Airbus consortium, or their successor entities, all aircraft, as defined in Article 1 of the GATT Agreement on Trade in Civil Aircraft, except engines as defined in Article 1.1 (b) thereof, that are designed for passenger or cargo transportation and have 100 or more passenger seats or its equivalent in cargo configuration; 2. 'derivative' means an aircraft model the major design elements of which are derived from a prior aircraft model; 3. 'Total development cost', as referred to in Article 4.2: the following cost items, incurred prior to the date of certification, are those which may be taken into account in assessing the 'total development cost' referred to in Article 4.2: - preliminary design, - engineering design, - wind-tunnel, structural, system and laboratory tests, - engineering simulators, - equipment development work, except for work directly financed by equipment and engine manufacturers, - flight tests, including associated ground support, and analysis necessary to obtain certification, - documentation required for certification, - the cost of manufacture of prototypes and test aircraft, including spares and such modifications as may be necessary to obtain certification, less the estimated fair market value of flight aircraft after refurbishment, - jigs and tools, except machine tools, for use on specific programmes; 4. 'production': all manufacturing, marketing and sales activities other than those described under point 3 with the exception of official export credit financing consistent with the Large Aircraft Sector Understanding of the OECD Understanding on Official Export Financing; 5. 'indirect government support': financial support provided by a government or by any public body within the territory of a Party for aeronautical applications, including research and development, demonstration projects and development of military aircraft, which provide an identifiable benefit to the development or production of one or more specific large civil aircraft programmes; 6. 'direct government support' means any financial support provided by a government or by any public body within the territory of a Party which is provided: 1. for specific large civil aircraft programmes or derivatives; or 2. to specific companies to the extent that large civil aircraft programmes or derivatives directly benefit; 7. 'royalty payment' means repayment of a certain predetermined amount of development support per aircraft delivered.