Treatment FAQ

special program ‘c’; which is a trade agreement for trade in civil aircraft (duty-free treatment)

by Bette Ernser Published 2 years ago Updated 2 years ago

What is the agreement on trade in civil aircraft?

The Agreement on Trade in Civil Aircraft is one of the plurilateral agreements signed by a smaller number of WTO members.

Does customs have an obligation to enforce civil aircraft agreements?

Customs has always been charged with the obligation to enforce the provisions of the civil aircraft agreement (as implemented by General Note 6, HTSUS) to protect the revenue, and there is nothing improper in making explicit in the regulation Customs intent to do so by monitoring and auditing entries.

Can I get free entry under the civil aircraft agreement?

Free entry under the civil aircraft agreement is not expressly precluded under any of these circumstances, and Customs is not aware of, nor has the commenter cited, instances when free entry was denied on account of merchandise having been previously exported as described.

What are the benefits of the international civil aircraft manufacturers’ agreement?

It eliminates import duties on all aircraft, other than military aircraft, as well as on all other products covered by the agreement — civil aircraft engines and their parts and components, all components and sub-assemblies of civil aircraft, and flight simulators and their parts and components.

What is the agreement on trade in civil aircraft?

The Agreement on Trade in Civil Aircraft (Aircraft Agreement) requires Signatories to eliminate tariffs on civil aircraft, engines, flight simulators, and related parts and components, and to provide these benefits on a nondiscriminatory basis to other signatories.

Are aircraft parts duty free?

Under the World Trade Organization (WTO) Agreement on Trade in Civil Aircraft (“the Civil Aircraft Agreement” or “CAA”), many civil aviation products and parts are exempt from import duties.

Can you buy aircraft from the boneyard?

No. Aircraft that are surplus to requirements are signed over to and disposed of by the Defense Reutilization and Marketing Office (DRMO). Sales of surplus equipment are frequently carried out but purchases can only be made if you are a company or individual who possess a licence to do so.

Can you buy an old 747?

As long as you follow the proper regulations for private jets, there is no reason why you couldn't buy and fly a 747. The oldest 747-8 is only ~8 years old. It's not that second hand ones aren't occasionally offered up for sale, but if you're restricting yourself to the -8, don't expect a lot of great deals.

Summary

The Aircraft Agreement was concluded on 12 April 1979 at the end of the Tokyo Round. It entered into force on 1 January 1980. The Agreement consists of tariff provisions requiring bound duty-free treatment for products listed in an Annex; provisions addressing non-tariff barriers to trade in civil aircraft; and institutional and final provisions.

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What is the Aircraft Agreement?

The Agreement on Trade in Civil Aircraft (Aircraft Agreement) requires Signatories to eliminate tariffs on civil aircraft, engines, flight simulators, and related parts and components, and to provide these benefits on a nondiscriminatory basis to other signatories. In addition, the Signatories have agreed provisionally to provide duty-free treatment for ground maintenance simulators, although this item is not covered under the current agreement.

How many signatories are there to the Aircraft Agreement?

For example, signatory governments pledge that they will base their purchasing decisions strictly on technical and commercial factors. There are 32 Signatories to the Agreement:

When did the WTO enter into force?

It entered into force on January 1, 1980, and is one of two WTO plurilateral agreements (along with the Agreement on Government Procurement) that are in force only for those WTO Members that have accepted it. The Aircraft Agreement also establishes various obligations aimed at fostering free market forces.

What is the duty free entry of civil aircraft?

The amendments allow an importer to claim duty-free admission of civil aircraft merchandise without submitting a certificate, or having one on file at Customs, at the time of entry . The amendments also allow an importer to make a post-entry claim for duty-free admission by filing a statement prior to liquidation of the entry or before the liquidation becomes final.

What is a civil aircraft?

General Note 6 defined the term “civil aircraft” as all aircraft other than aircraft purchased for use by the Department of Defense or the United States Coast Guard. The Act amended General Note 6 to expand the definition of “civil aircraft.”. The Act also eliminated the statement (certification) filing requirement.

What is Section 10.183 of the Customs Regulations?

This document amends § 10.183 of the Customs Regulations ( 19 CFR 10.183 ), which concerns Customs duty-free treatment of civil aircraft merchandise. Section 10.183 implements General Note 6 of the Harmonized Tariff Schedule of the United States (HTSUS) ( 19 U.S.C. 1202 ), which implements the Agreement on Trade in Civil Aircraft (Title VI of the Trade Agreements Act of 1979, Public Law 96-39, 93 Stat. 144, July 26, 1979), to provide duty-free treatment for qualifying civil aircraft merchandise upon compliance with certain requirements. The term “civil aircraft merchandise” as used in this document covers merchandise that qualifies as “civil aircraft” under paragraph (b) of General Note 6, HTSUS, and thus is aircraft, aircraft engines, or ground flight simulators, including their parts, components, and subassemblies, that otherwise meet the requirements of paragraph (b).

What is the program indicator for duty free treatment under General Note 6?

The Act provided that a claim for duty-free treatment under General Note 6 is made by the importer by entering the merchandise under a tariff provision for which the program indicator “Free (C)” appears in the “Special” subcolumn of the tariff. (This is accomplished by placing the program indicator “C” on the entry summary.)

How long does it take to get proof of end use for civil aircraft?

Therefore, there is no requirement to furnish proof of end use within three years after the date the civil aircraft merchandise is entered, as required under Additional U.S. Rule 1 (b). Also, there is no time limit as to when imported merchandise must be used in civil aircraft.

Is free entry under the Civil Aviation Agreement allowed?

Free entry under the civil aircraft agreement is not expressly precluded under any of these circumstances, and Customs is not aware of, nor has the commenter cited, instances when free entry was denied on account of merchandise having been previously exported as described.

Is merchandise that fails to comply eligible for duty free treatment under these provisions?

Merchandise that fails to so comply is not eligible for duty-free treatment under these provisions. Comment: Another comment concerned safeguards for ensuring that merchandise entered duty-free as civil aircraft merchandise is used as intended.

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