NAFA member, Jeffrey S. Towers, Vice President and General Counsel for TVPX, discusses United States Imports and Exports of Aircraft.
Introduction:
Like most other developed countries, the United States (U.S.) regulates the entry and removal of goods, including aircraft, across its borders. The primary reasons for regulating commerce in and out of the country are to measure the balance of trade and to prevent cross-border transfers involving prohibited merchandise or prohibited parties. The rules for U.S. imports and exports require the party or parties involved to timely and accurately report certain information to the government and under some circumstances to obtain licenses or other authority for exports.1 Unlike other jurisdictions, the United States does not charge significant taxes, fees or duties on most aircraft imports or exports.2 However, the governmental agencies that are primarily involved in imports and exports, namely U.S. Customs and Border Protection (CBP), Census Bureau, and Bureau of Industry and Security (BIS), can assess significant penalties and seize aircraft for violations of the reporting or licensing requirements.
Import Process:
An aircraft does not need to be imported when it is merely functioning as a carrier of passengers or cargo into the U.S.3 However, an import entry is required in other circumstances, such as when a foreign-based aircraft is brought into the United States for a pre-buy inspection and a closing or is brought into the United States for the purpose of basing the aircraft in the U.S. long term. In addition, aircraft typically must be imported when moved to the U.S. for repairs and alterations. In these situations, the aircraft is considered the merchandise that is being imported. The import entry needs to be completed prior to bringing the aircraft into the U.S. It is critical, therefore, that the party bringing in the aircraft hires a U.S. customs broker, supplies them with the necessary information to process the entry and takes the other required steps in advance.
This article was published by TVPX in June 2022.
