Civil Aircraft Parts Need Not Be Airworthy at Time of Entry for Duty-Free Treatment, CBP Says
Aircraft parts imported for repair do not have to actually be “airworthy” at the time of entry to qualify for duty-free treatment under the Civil Aircraft Agreement, CBP said in a recent ruling. The parts need only be used as original or replacement parts for civil aircraft, and meet documentation requirements including an airworthiness certificate issued by the Federal Aviation Administration or a foreign authority, to enter duty free under the CAA, the agency said in HQ H302111.
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Barfield Precision Electronics, an FAA repair station in Atlanta, had requested the ruling for civil aircraft parts it imports for repair in the United States. The parts are returned to the shipper after they are made airworthy, but are not imported in airworthy condition.
Requirements for claiming CAA treatment are outlined in General Note 6 to the tariff schedule, which says importers have to maintain supporting documentation required by CBP, and certify that the imported article is a civil aircraft or is for use in civil aircraft, to qualify. That note goes on to define “civil aircraft” as including parts, components and subassemblies for repair, and says civil aircraft are operated under a certificate issued by the FAA or a foreign country’s “airworthiness” authority.
CBP’s regulations at 19 CFR 10.183 further outline documentation requirements, requiring that each entry claiming duty-free treatment must be supported by documentation verifying the claim, including a written order and “other evidence.” That other evidence may include an FAA certification or approval of airworthiness by the airworthiness authority in the country of export “and evidence that the FAA recognizes that approval as an acceptable substitute for an FAA certification.”
“In the instant case, if the aircraft parts imported for repair meet the requirements under GN 6, HTSUS, and the documentary requirements under 19 C.F.R. § 10.183, they will be eligible for duty-free treatment [under] the CAA. There is no requirement that the imported civil aircraft parts must be airworthy at the time of entry to be eligible for duty-free treatment under the CAA,” CBP said. “Civil aircraft parts imported for repair, which are not airworthy at the time of entry, may be eligible for duty-free treatment under the CAA” if they meet the requirements under GN 6 and documentation requirements.