Watch Out for New Aircraft Parts Tariff Codes!!!

January 24, 2022 by 1 Comment

The tariff codes for aircraft parts will change, effective January 27, 2022 (the thirtieth day after publication in the Federal Register).

Most importers are used to assigning tariff codes in the form 8803.XX.XXXX to their aircraft parts. These tariff codes are being replaced! So if you have been using a tariff code that starts with 8803, then it is likely to have been changed to a new tariff code that begins with 8807.

The new tariff codes were announced in Proclamation 10326. The Proclamation cross references ITC Publication 5240, which provides the specific new tariff codes:

HeadingSubheadingArticle Description
8807Parts of goods of heading 8801, 8802, or 8806
8807.10.00Propellers and rotors and parts thereof
8807.20.00Undercarriages and parts thereof
8807.30.00Other parts of airplanes, helicopters or unmanned aircraft
8807.90.00Other:
8807.90.30Parts of communications satellites
8807.90.30Other

Remember! Not all aircraft parts are imported under Heading 8803. for example, engine parts have their own Heading.

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New Agreement With China – No Relief for US Aircraft Parts Importers

January 16, 2020 by 2 Comments

I almost titled this post “Boeing Wins. Aviation Loses.”  But I am not sure that Boeing even wins under this Agreement.

The United States and China have signed a new trade agreement.  For most of the aviation industry, very little changes.  Aircraft parts imported into the United States that were subject to the 25% duty associated with the section 301 tariff, continue to be subject to the 25% duty levied on parts from China.

China has agreed to place orders for additional manufactured goods.  The list of manufactured goods includes complete aircraft, but does not include aircraft parts.  The obligation can be met by merely placing orders.  Thus China can meet its obligations under the new agreement by placing orders for aircraft for the first three years and then refusing delivery after the three year term of the agreement.  So even though it looks like this could be a boon for Boeing, it might not be as beneficial as one might think.  Furthermore, there is no agreement to purchase aircraft parts, and companies like Boeing sell a significant volume of parts.

The agreement does not appear to change the List One tariffs.  The list one tariffs became effective on July 6, 2018 and placed an additional duty rate of 25% on $34 billion worth of goods from China.  The list one goods include (but are not limited to):

  • 40113000 (New pneumatic tires, of rubber, of a kind used on aircraft)
  • 40121300 (Retreaded pneumatic tires, of rubber, of a kind used on aircraft)
  • 84071000 (Spark-ignition reciprocating or rotary internal combustion piston engines for use in
    aircraft)
  • 84091000 (Parts for internal combustion aircraft engines)
  • 84111140 (Aircraft turbojets of a thrust not exceeding 25 kN)
  • 84111240 (Aircraft turbojets of a thrust exceeding 25 kN)
  • 84112140 (Aircraft turbopropellers of a power not exceeding 1,100 kW)
  • 84112240 (Aircraft turbopropellers of a power exceeding 1,100 kW)
  • 84118140 (Aircraft gas turbines other than turbojets or turbopropellers, of a power not
    exceeding 5,000 kW)
  • 84118240 (Aircraft gas turbines other than turbojets or turbopropellers, of a power exceeding
    5,000 kW)
  • 85030045 (Stators and rotors for electric generators for use on aircraft)
  • 85030090 (Parts for electric generators suitable for use on aircraft)
  • 85443000 (Insulated ignition wiring sets and other wiring sets of a kind used in vehicles, aircraft
    or ships)
  • 88031000 (Parts of airplanes and other aircraft, propellers and rotors and parts thereof)
  • 88032000 (Parts of airplanes and other aircraft, undercarriages and parts thereof)
  • 88033000 (Parts of airplanes and helicopters, not elsewhere specified or included)

As a condition of the agreement, the United States apparently agreed to cut certain (non-aviation) tariffs from a 15% duty to a 7.5% duty.  The USTR Fact Sheet acknowledges that “The United States has agreed to modify its Section 301 tariff actions in a significant way.”  These alleged modifications/reductions in duty rates are not part of the written agreement between China and the US, that has been released, so it is possible that US importers will continue to pay these duties.

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Harmonized Tariff Codes for Engines and Engine Parts

March 19, 2013 by 1 Comment

ASA Members are frequently confused about what are the right tariff codes for aircraft engine parts. This can be a complicated area, and a number of tariff rulings have provided guidance in this area.  Aircraft engines usually fit into an engine-specific tariff code, like one of these:

  • 8411.11.4000  turbojet engines for aircraft; thrust not exceeding 25 kN
  • 8411.12.4000  turbojet engines for aircraft; thrust exceeding 25 kN
  • 8411.21.4000  turboprop engines for aircraft; power not exceeding 1,100 kW
  • 8411.22.4000  turboprop engines for aircraft; power exceeding 1,100 kW
  • 8411.81.4000  other gas turbine engines for aircraft; power not exceeding 5,000 kW
  • 8411.82.4000 other gas turbine engines for aircraft; power exceeding 5,000 kW

Engine parts, on the other hand, usually fit into parts-specific tariff codes.  Articles that are integral, constituent or component parts without which the article with which they are used cannot function have been held to be “parts” for tariff purposes.  Thus gas turbine engine parts may fit into one of the “8411.91” or “8411.99” categories. An example of a part that could not be described as an engine part would be a “stud” fastener used in Rolls Royce engines, which was characterized under tariff code 7318.15.50.  Classificiation HQ 957549  (May 12, 1995).  One of the factors that caused the government to characterize the stud as a general fastener instead of as an engine part was the fact that there was no evidence that the stud was an integral part of the engine.  Id. (“Dowels of the type in issue perform a fastening or joining function. There is no evidence that they are integral, constituent or component parts necessary to the proper function or operation of an exhaust collector, muffler or engine”).

On the other hand, though, the Low-Pressure Compressor section of the PW4000 aircraft gas turbine engine would be characterized under the aircraft engine parts tariff code as 8411.91.9080. See Classification HQ 962104 (June 11, 1999) (modifying Classification NY C87045 (April 29, 1998) which had been improperly issued based on a mistake of fact about the material).  Similar tariff codes that may be usable for engine parts include:

  • 8411.91.1060 Parts of turbojets or turbopropellers: Cast-iron parts, not advanced beyond cleaning, and machined only for the removal of fins, gates, sprues and risers or to permit location in finishing machinery – for civil aircraft turbine engines.
  • 8411.91.1090 Parts of turbojets or turbopropellers: Cast-iron parts, not advanced beyond cleaning, and machined only for the removal of fins, gates, sprues and risers or to permit location in finishing machinery – for non-civil aircraft turbine engines (including military aircraft engines)

If using one of the 8411.91.10xx tariff codes, the user should be careful of the material from which the part is made. The Customs Service issued several rulings under these codes that had to be corrected because the parts were made from titanium, rather than from cast iron.

Note that the cascades, cascade assemblies, cascade boxes and nacelle cascades for Boeing 737s and 777s (“engine cascades”) would be characterized as aircraft parts under 8803.30.00 (and not under 8411).

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