WASHINGTON – The Aeronautical Repair Station Association (ARSA) has released new guidance aimed at helping the aviation maintenance industry import parts for repair in order to more efficiently do business internationally.
Under U.S. law and international agreements, many aircraft parts may be imported into the United States duty-free. However, inconsistent interpretation of Customs rules has forced repair stations to divert resources to navigating a complex regulatory web and in some cases paying import duties they do not owe.
ARSA’s new Advisory 2017-01 provides an overview of the World Trade Organization’s Agreement on Trade and Civil Aircraft and rules adopted in the United States to implement the treaty obligations. The document also delves into relevant Customs regulations and legal opinions to answer a basic question: Must parts be airworthy to qualify for duty-free treatment? ARSA’s conclusion, with which Customs concurs, is that airworthiness is not a relevant factor in the duty-free determination. The association’s guidance examines the various conditions that must be met to avoid tariffs and identifies best practices to properly document imports. The association has also released a new on-demand training session about the parts importation issue.
The guidance and training were developed in direct response to questions raised by ARSA members at the association’s 2017 Symposium in Washington, D.C. “Issues like the tariff treatment of aircraft parts and inconsistent enforcement have a direct impact on our members’ bottom lines,” ARSA Executive Vice President Christian A. Klein said. “We hope these new resources, particularly [Advisory 2017-01], will help repair stations save time and money while more efficiently serving their international customers.”
The guidance is available for free to ARSA members and may be ordered by visiting arsa.org/publications.
To learn more about Advisory 2017-01 and the on-demand training session, visitarsa.org/parts-import.
To see all of the association’s resources for establishing duty-free rates, visit arsa.org/regulatory/customs.
ARSA is the only association devoted to the unique needs of the global civil aviation maintenance industry. It is dedicated to helping member companies operate more efficiently and effectively, while continuing to ensure the safety of aircraft worldwide. To learn more about the association’s work on behalf of both industry stakeholders and the flying public, please visit ARSA.org.