Classifying Inertial Reference Units (IRUs)

I have been seeing a number of companies having trouble with classifications.  This is the second of what will likely be an occasional series discussing classification.  This blog post will address Inertial Reference Units or IRUs.

Please note that the following analysis is based on the regulations and standards as they are written today.  Export and import law, is subject to change.  This is particularly true of tariffs over the past year.  So you should always verify your classification under the current regulations and standards.

Classification is necessary for both exports and imports.  Exports of civil aircraft parts are typically classified under Export Commodity Classification Numbers or ECCNs.  An exception arises when the goods are controlled under the International Traffic in Arms Regulations (ITARs).

Export Classification

ECCNs are typically five characters long.  Many civil aircraft parts are characterized under ECCNs like 9A991, but this ONLY applies to civil aircraft parts that are (1) not specified elsewhere and (2) specially designed for civil aircraft.  The first condition is important because some parts (like engines, avionics, etc.) are specified elsewhere and may have different export limits and licensing provisions based on their proper classification.  

In our case, IRUs are typically classified elsewhere.  Even though they may be aircraft parts, when there is a more specific classification, they must rely on the most specific classification.

Many civil aircraft IRUs are classified under ECCN 7A103.  One might be tempted by ECCN 7A003, but the regulations specify that ECCN 7A003 “does not apply to ‘inertial measurement equipment or systems’ which are certified for use on ‘civil aircraft’ by civil aviation authorities of one or more Wassenaar Arrangement Participating States.”

ECCN 7A103 has two primary reasons for control: missile technology (MT) and anti-terrorism (AT). The missile technology reason for control could be an issue for many export destinations, as there is a license obligation associated with most export destinations (currently there are exceptions for Australia, Canada,and the UK). If you plan to rely on a license exception, then please read the regulations carefully as some destinations may be unable to rely on certain license exceptions when exporting articles controlled under ECCN 7A103.

Import Classification

Imported goods are typically classified under harmonized tariff codes from the Harmonized Tariff Schedule of the United States (HTSUS).  These codes can be ten digits long (when you include the statistical reporting number).  There are also a lot more tariff numbers than there are ECCNs, which makes navigating the tariff schedule a little more daunting.  

The United States Government has classified civil aircraft IRUs under HTSUS heading 9014.20.8040 for import purposes. Note that if you click through the link, you will see an outdated number that was assigned; 9014.20.8040 is the modern equivalent tariff number. But that assignment relies on a specific fact pattern: that the IRU (a) is not an optical instrument, (b) does not measure an electrical phenomenon, and (c) is for use in civil aircraft. Other types of inertial measuring device have fallen into other HTSUS classifications (like a Northrupp Grumman IMU that was characterized as 9014.20.20 in the year 2020). So look carefully at the characteristics of your device to ensure it is properly classified under 9014.20.8040.

Proper tariff classification is important because different tariffs have different duty amounts.  9014.20.8040 is specific to aviation use inertial reference units, so classification under 9014.20.8040 currently yields a base duty of zero percent (this may be modified by chapter 99 tariffs).

Past Classification Articles

• Fasteners