1. An organisation responsible for the design of products, parts and appliances or for changes or repairs thereto shall demonstrate its capability in accordance with Annex I (Part 21).

2. By way of derogation from point 1, an organisation whose principal place of business is in a foreign state may demonstrate its capability by holding a certificate issued by that State for the product, part and appliance for which it applies, provided:

(a)  that State is the State of design; and

(b)   the CAA has determined that the system of that State includes the same independent level of checking of compliance as provided by this Regulation, either through an equivalent system of approvals of organisations or through direct involvement of the competent authority of that State.

3. Design organisation approvals issued or recognised by a Member State or the United Kingdom in accordance with the JAA requirements and procedures and valid before 28 September 2003 shall be deemed to comply with this Regulation.

4. By way of derogation from points 21.B.433(d)(1) and (2) of Annex 1 (Part 21), a design organisation that holds a valid approval certificate issued in accordance with Annex 1 (Part 21) may correct any findings of non-compliance related to the implementation of the SMS requirements before 1 July 2026.

5. On or after 1 July 2026, where a design organisation has not corrected any findings of non-compliance related to the implementation of the SMS requirements, that organisation’s approval certificate must be either revoked, limited or suspended in whole or part, dependent on the severity of the non-compliance.