Aircraft Parts Exceptions to the 10% Section 122 Duty under Tariff Code 9903.03.01

June 4, 2026 by Leave a comment

Even though the Court of International Trade has ruled that the 10% section 122 tariff on most imports is illegal, it is still being collected while the matter is on appeal. It is therefore especially important to know when your imported parts are excepted from this duty (and most civil aircraft parts are now excepted).

The 10% duty that is charged under the section 122 tariff is described at HTSUS 9903.03.01.

Some imported aircraft parts from some may enjoy specific exceptions from the tariff collection, but you (or your customs broker) need to declare the exception tariff on your entry documents. In order to take advantage of the tariff exception from the 10% section 122 tariff, the imported part must meet one of these conditions:

  1. The part’s base HTSUS classification (its tariff code) must be listed on a list of codes that applies to the particular source country (and these lists vary by country, so you need to verify the applicability each time) [the references are found in the table below], or
  2. The part’s base HTSUS classification (its tariff code) must be listed on the general list of codes found in HTSUS Chapter 99, Subchapter III, U.S. Note 2, subdivision (aa)(iv).

The jurisdictions that enjoy expanded section 122 tariff exceptions for aircraft parts imports include:

JurisdictionTariff Code Excepting Aircraft PartsChapter 99, Subchapter III, Provision that Identifies the Affected Parts
Brazil9903.01.82U.S. Note 2, subdivision (x)(iv)
European Union9903.02.76U.S. Note 2, subdivision (v)(xxii)
Japan9903.96.02U.S. Note 35, subdivision (b)
Lichtenstein9903.02.90U.S. Note 2, subdivision (v)(xxv)(c)
South Korea9903.02.81U.S. Note 2, subdivision (v)(xxiv)(b)
Switzerland9903.02.85U.S. Note 2, subdivision (v)(xxv)(c)
Taiwan9903.96.03U.S. Note 35, subdivision (c)
United Kingdom9903.96.01U.S. Note 35, subdivision (a)
Any Country9903.03.05U.S. Note 2, subdivision (aa)(iv)

Some jurisdictions have fairly short lists – for example Taiwan has a shorter list that does not include the “standard” 8807 heading for many aircraft parts. Imports from Taiwan that do not benefit under the Taiwan provisions may benefit from the “any country” provisions found in HTSUS 9903.03.05.

It is important to note that the analysis for identifying an aircraft parts exception to the 10% section 122 duty is different from the analysis for exception from base duties under the Agreement on Trade in Civil Aircraft. For most parts one may get the same answer for both, but for other parts the answers may differ!

Example: If you have a brazed aluminum plate fin heat exchanger then the tariff code is 8419.50.10; this is classified with a “C” in the HTSUS so it is excepted from the 4.2% base tariff. This tariff code is also found in the list associated with 9903.03.05, so the unit is excepted from 10% section 122 tariff found in chapter 99. This unit enters duty-free, with an exception from both the base duty and also the 10% section 122 duty described under HTSUS 9903.03.01.

This is just one of the many import regulations that we will be learning to navigate at the ASA/AFRA Annual Conference, on June 14-16, in Las Vegas, Nevada. Check out the conference agenda for full details on this and many other workshops available at the conference!

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Classifying Inertial Reference Units (IRUs)

February 17, 2026 by Leave a comment

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

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Aircraft Parts from Japan are Once Again Duty-Free

September 16, 2025 by Leave a comment

Today, the United States published the new tariff standards for goods that are products of Japan.

Aircraft parts imported into the United States will once again enjoy duty-free status when they are products of Japan and are covered under the Agreement on Trade in Civil Aircraft.

The new tariff code for aircraft parts that are products of Japan is 9903.96.02. It exempts the parts from the new chapter 99 tariffs. As with other aircraft parts duties, this only provides duty-free treatment to the extent that the parts are covered under the Agreement on Trade in Civil Aircraft. Some things that we consider to be aircraft parts (for example: bearings and fasteners) may be outside of the scope of the Agreement on Trade in Civil Aircraft, in which case they may be subject to the “normal” chapter 99 duties on goods of Japan.

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Saying the Silent Part Out Loud: Aircraft Parts Will Continue to be Subject to Changing Tariff Rules

September 6, 2025 by Leave a comment

The White House has given the industry more guidance on their plans for import tariffs that may be applied to aircraft parts. In an Executive Order published last night, the Administration confirmed that the United States will set aircraft parts duty rates at unique levels for each trading partner.

“The list of imports for which I may be willing to provide a zero percent reciprocal tariff rate is … [description of other products]; aircraft and aircraft parts…. Given the complex, fact-specific, and sensitive nature of negotiations and the national emergency declared in Executive Order 14257, among other relevant considerations, the imports that might receive a reciprocal tariff rate of zero percent may be different for each final agreement between a foreign trading partner and the United States.”

This confirms that the Administration has no intent to honor the Agreement on Trade in Civil Aircraft provisions (including the statutory provisions that implemented that agreement) that provide for duty-free entry of aircraft and aircraft parts. Instead, the Administration expects to set varying tariff levels for imported aircraft parts, based on the country of origin. This can be very complicated to assess for some parts.

For example, an aircraft component that was produced in France might be a product of France when it sold into the aftermarket by the manufacturer. But the substantial transformation doctrine dictates that if the same part was original equipment on a Boeing aircraft produced in the United States, then it became a product of the United States because the fabrication of the complete aircraft (incorporating the component) was a complex assembly. Thus, two otherwise identical aircraft parts might actually be treated differently upon their import into the United States, with the former being a product of France subject to the EU HTSUS provisions, and the latter being a product of the United States that may eligible for duty-free return (assuming that it has not been advanced in value while abroad).

Aviation has a robust record-keeping practice, but the historical duty-free treatment of aircraft parts has meant that the record-keeping practices evolved to support airworthiness, rather than for the purpose of meeting import tariff rules. Modern aircraft parts record-keeping practices may be inadequate in some cases to support common exceptions that should otherwise apply to the U.S. import of aircraft parts.

In June, ASA published an argument to the United States government suggesting that current United States law does not permit duties on aircraft parts, because of (1) the Agreement on Trade in Civil Aircraft and also (2) statutory law that implemented the duty-free treatment of aircraft and aircraft parts. That discussion included the following text:

Any effort to impose tariff-based restrictions on commercial aviation must take into account the
Agreement on Trade in Civil Aircraft. The Agreement on Trade in Civil Aircraft requires
signatories to eliminate tariffs on aircraft and aircraft parts. The Agreement has been signed by
the United States and by many of its major aviation trading partners, including Canada, France,
and the United Kingdom

In 1979, Congress approved the ATCA. That law authorized the president to accept the final
language of the Agreement on Trade in Civil Aircraft and established that it would become
effective when the President finds that other countries have accepted the obligations of the
agreement with respect to the United States. The current implementation of this in the U.S.
Code recognizes that Congress approved the ATCA. While President Carter signed the
Agreement in 1979, it was President Reagan who issued the proclamation described in the
authorizing legislation. At least since 1984, then, the ATCA has been recognized as part of the
law of the United States. The mechanism by which Congress approved the ATCA and
authorized the President to proclaim the ATCA makes it a “congressional-executive agreement.”

Congress has passed other statutory provisions to implement ATCA. For example, the ATCA is
defined in by statute as “the Agreement on Trade in Civil Aircraft approved by the Congress
under section 2503 of [title 19 of the U.S.C.].” Congress has identified that the negotiating
objectives of the United States include eliminating tariff barriers through expanding membership
in the ATCA. General Note 6 of the HTSUS establishes which goods are eligible for duty-free
treatment under the ATCA, and the current language of that General Note was established in
1996 by Congress in the Miscellaneous Trade and Technical Corrections Act of 1996. Thus,
the duty-free treatment of aircraft is established under both the Agreement on Trade in Civil
Aircraft (an international agreement) and also by implementing domestic legislative language.
Eliminating those provisions means eliminating statutory law, as well as eliminating U.S.
obligations under an international agreement. [citations omitted]

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Spirit Airlines Files for Bankruptcy Protection

August 29, 2025 by Leave a comment

Spirit Airlines has filed for Chapter 11 bankruptcy protection. Chapter 11 means that they are seeking a reorganization (another one – remember that they just came out of chapter 11 earlier this year).

Spirit said it intends to conduct business as normal during the restructuring process, meaning that they will continue to need aircraft parts.

Spirit has published guidance on its restructuring plans. Part of that published plan involves “optimizing” the fleet which likely means that they plan to use bankruptcy to terminate some leases. Spirit will be sending out a Vendor Letter in which they confirm their plan to pay vendors in the normal course of business for goods and services delivered to Spirit on or after August 29, 2025 (today – this is the “post-petition” period). Any outstanding invoices for goods and services delivered prior to our Chapter 11 filing date are considered “pre-petition” claims and will need to be addressed as part of the Chapter 11 process.

It is not unusual to see a bankruptcy trustee seek to recover sums paid in the period immediately before the petition. If you get a letter like this, then please consult with an attorney before you agree to return money to the trustee. In my experience, there can be defenses to such trustee claims.

Those who are owed significant unpaid sums from Spirit should work with bankruptcy counsel to investigate options. Your attorney may be able to negotiate more favorable treatment if you have an ongoing relationship with Spirit, especially if they need your support to continue flying.

For ideas about how to protect your company from a customer’s bankruptcy, please look at some of our older blog posts on the subject:

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New Guidance on Tariffs for Aircraft Parts (Aug. 6, 2025)

August 6, 2025 by Leave a comment

Tariffs continue to be a moving target. Today’s Federal Register includes some new tariff changes that affect aircraft parts imports (some of these new provisions are not yet listed in revision 17 to the HTSUS).

A quick look at some major jurisdictions that produce civil aircraft parts shows the variety of approaches currently being used to assign tariff value to aircraft parts being imported into the United States:

Source (“product of”)Duty and Tariff Code
Aircraft parts that are products of Brazil (e.g. many Embraer parts):Base duty plus 10% additional duty (9903.02.09)(but NOT the additional 40% (9903.01.82)) for aircraft parts)
Aircraft parts that are the products of Canada (e.g. many Bombardier parts):If subject to USMCA – no additional duty (9903.01.14)
If NOT subject to USMCA  – base duty plus 35% (9903.01.10)
Aircraft parts that are products of the EU** (e.g. many Airbus parts):The higher of 15% (9903.02.20) or the normally-applicable base duty value if it exceeds 15% (9903.02.19)
Aircraft parts that are products of Japan (e.g. JAMCO parts):Base duty plus 15% (9903.02.30)
Aircraft parts that are products of the UK (e.g. many BAE Systems parts):No additional duty for aircraft parts (9903.96.01)

This table assumes an aircraft part that is subject to heading 8807 (where the base duty is 0%). In all cases, the civil aircraft-specific provisions are often limited to certain tariff codes, so please confirm the treatment of your actual import based on its tariff classification and actual country of origin. There may be additional codes and duties (or exceptions) that apply to your transaction based on the specific facts of your import.

These rates and applications are constantly changing, so be sure to verify information for the date of your entry into the U.S. Customs Zone!

** SPECIAL NOTE: The EU has reported that the United States has agreed to accept civil aviation products of the EU (including aircraft parts) with no additional duty; however this is not yet reflected in any Executive Order, Federal Register Notice, nor HTSUS provision. Stay tuned – we hope that this exception will be implemented into U.S. trade law, soon!

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Tariff Update: UK Tariffs Provide a Positive Model for Treatment of Aircraft Parts

July 28, 2025 by Leave a comment

Tariffs continue to be a hot topic in the news, and for aviation businesses. Recent tariff decisions suggest that aviation may see some relief from tariffs in the near future.

The Japan and EU agreements have both been reported in the press, but neither is yet available to the public. The EU agreement is particularly important because it will likely affect tariffs applicable to Airbus parts that are imported into the United States. While the EU agreement is not yet available, the UK agreement may shed some light on what we can expect from the EU agreement.

The recent UK agreement has been reflected in revision 16 to the 2025 HTSUS, and this provides us with some idea about how aviation is likely to be treated in the new tariff agreements (but it is no guarantee that other arrangements will include the same language). Under the UK agreement, civil aircraft parts will enjoy duty-free treatment and will be excepted from the chapter 99 country-based tariffs (currently found in HTSUS 9903.01.25 for products of the United Kingdom). This agreement will be limited to aircraft parts that are the product of the UK, but we are hopeful that ASA’s efforts will lead to a more general duty-free approach for most aircraft parts.

ASA filed formal comments with the United States earlier this summer, in which we explained that tariffs on aviation were a bad policy idea, and they were also a violation of U.S. law and U.S. treaty obligations. That concept has been endorsed in the UK agreement, and we are hoping that it will be endorsed in other agreements as well.

Aircraft parts that are products of the United Kingdom and that are entered on or after June 30, 2025 may be entered under HTSUS Subheading 9903.96.01 (in addition to the base tariff that applies to the underlying goods). This subheading allows for duty-free treatment of civil aircraft and their parts:

9903.96.01: Effective with respect to entries on or after [June 30, 2025], articles of civil aircraft (all aircraft other than military aircraft); their engines, parts, and components; their other parts, components, and subassemblies; and ground flight simulators and their parts and components of the United Kingdom, classified in the subheadings enumerated in subdivision (a) of U.S. note 35 to this subchapter.

This clause specifically exempts aircraft parts from the additional duties imposed by HTSUS subheadings 9903.01.25, 9903.81.94, 9903.81.96, 9903.81.97, 9903.81.98, , 9903.85.12, 9903.85.13, 9903.85.14, and 9903.85.15. This means that both the UK country-based 10% tariff and the UK steel and aluminum derivative tariffs appear to be excluded for aircraft parts. This is a positive sign for the aviation industry.

There is a list of the HTSUS subheadings that are affected by this exception, so please make sure your base tariff code is within the scope of the aircraft parts exception (the list is found in Chapter 99: U.S. Note 35(a)). Note that while this list includes many tariff subheadings typically associated with aircraft parts, you should identify your specific tariff codes to make sure that they are included before assuming that the exception applies to your imports.

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Quick! Get Your Airbus Parts! U.S. Threatens 50% tariff on products of the EU

May 24, 2025 by Leave a comment

The President has threatened a new tariff on products of the EU. This has the potential to dramatically increase the cost of Airbus parts, and other aerospace products from the EU.

This would also impact other products of the EU, like products from Thales and Safran, etc. It could also affect non-EU company products that are produced in the EU, like EU-produced articles from UK companies BAE Systems and Rolls Royce.

The current tariff standards apply a 10% duty to products of the EU (up from duty-free treatment before the current trade wars started). This means that the importer is responsible for paying 10% of the value of the parts to the U.S. government as a tariff. This is typically in addition to any other tariffs that may apply to the transaction.

U.S. tariffs on products of the European Union are scheduled to increase to a 20% duty rate on July 9, 2025.

Yesterday, the administration threatened to increase US tariffs on products of the EU to 50%. The threatened date for this is June 1. If the administration carries-through on this threat, then it could reflect a dramatic increase in the cost of aircraft parts from the EU.

Obviously, this affects U.S. aircraft parts distributors who have to pay the increased duty rates on aircraft parts that they import. But distributors aren’t the only ones affected!

  • This could affect U.S. repair stations who have to pay higher prices for aircraft parts that are products of Europe or other (tariffed) foreign locations. This could make it difficult for them to remain competitive against non-U.S. repair stations who do not have to pay those same duties on aircraft parts.
  • This could impact air carriers who will pay higher prices for maintenance. It could also make it difficult for U.S. air carriers to remain competitive against non-U.S. competitors, because the non-U.S. competitors may not have to pay those tariffs for parts acquired and installed outside the United States.
  • This could have a downstream effect on the affordability of air travel for Americans.

There is a potential for some relief. I partnered with one of ASA’s members to file a request for a customs ruling to prevent the tariffs on the EU from being applied to aircraft and aircraft parts from the EU (e.g. Airbus aircraft and their parts). We are looking forward to the ruling on that petition.

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U.S. Investigation Could Lead to Extraordinary Aircraft Parts Tariffs

May 10, 2025 by 1 Comment

This week, the U.S. will start a process that could impose restrictions on the U.S. import of foreign aircraft and their parts; this could affect Airbus, Embraer and Bombardier aircraft and it could affect non-U.S. components from well-known companies like BAE Systems, Safran, Thales, etc. You have an opportunity to do something about it.

The Federal Register announcement starting the process is expected to be published on May 13th.

Section 232 Investigation

The United States is opening a “section 232 investigation” into the commercial aviation market (the formal scope is “Commercial Aircraft and Jet Engines and Parts for Commercial Aircraft and
Jet Engines”). This is a process that could authorize the President to take extraordinary action to affect trade in civil aviation (including special aircraft parts tariffs). An announcement of this investigation is expected to be published in the Federal Register on May 13. Industry will likely only have 21 days to file comments.

When a “section 232 investigation” is opened, the Commerce Department has 270 days to prepare a report advising the President on whether the targeted product is being imported “in such quantities or under such circumstances as to threaten to impair the national security” of the United States.  Commerce is expected to provide recommendations based on its findings.

Past section 232 investigations into steel and aluminum led to the 25% tariffs on these materials and certain articles made from steel and aluminum.  The tariffs on automobiles and certain automotive parts were also a response to a section 232 investigation initiated in President Trump’s first term as President.

There are a number of tools available to the President if a section 232 investigation suggests a threat to national security.  The President can enter into negotiations to secure supplies necessary to the United States, the President can also establish tariffs intended to protect domestic market from non-US competition.  The President can also establish other import limits (like embargoes) designed to protect the domestic market. 

There are a number of elements that the United States must take into account under Section 232.  These include:

  • domestic production needed for projected national defense requirements
  • capacity of domestic industries to meet such requirements
  • existing and anticipated availabilities of the human resources, products, raw materials, and other supplies and services essential to the national defense
  • the requirements of growth of such industries and such supplies and services including the investment, exploration, and development necessary to assure such growth
  • the importation of goods in terms of their quantities, availabilities, character, and use as those affect such industries and the capacity of the United States to meet national security requirements
  • the impact of foreign competition on the economic welfare of individual domestic industries
  • any substantial unemployment, decrease in revenues of government, loss of skills or investment, or other serious effects resulting from the displacement of any domestic products by excessive imports

If you think that restriction on the import of non-US aircraft and aircraft goods could be a problem for your business, or if you support such a restriction, then you should file comments to the docket at www.regulations.gov.  The regulations.gov ID for this investigation is BIS-2025-0027 (this link will not be live until the Federal Register publication). Please refer to XRIN 0694-XC127 in all comments.

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EU Proposes Tariff Targets – Some (But Not All) Aircraft Parts Would be Affected

May 8, 2025 by Leave a comment

The European Union has published an updated list of proposed tariff targets. The title of this list is “List of the products originating in or from the United States which could be subject to possible commercial policy measures.” The link is to version 1.1 so be wary that the EU could further update this list.

The EU is seeking public comment on their proposed list of tariff targets. If the negotiations between the US and the EU do not yield an elimination of the duty imposed on all products of the EU, then the EU could implement these tariffs to impose a duty on products of the United States.

The proposed list is estimated to reflect imports from the US worth €95 billion.

The proposed list includes complete aircraft under headings 8802 (helicopters and airplanes) and 8806 (unmanned aircraft). Aircraft parts under heading 8807 are NOT included on the proposed list.

It is important to remember that many aircraft parts are NOT classified under heading 8807 because there is a more specific tariff heading that applies to them. Some aircraft parts would be affected by the proposed EU reciprocal tariffs. For example, the following aircraft parts classifications are included on the EU tariff proposal (this is a list of examples and is not meant to be exhaustive):

Tariff SubheadingDescription
40113000 new pneumatic tires, of rubber, of a kind used for aircraft
40121300 retreaded pneumatic tires, of rubber, of a kind used on aircraft
70071190toughened “tempered” safety glass, of size and shape suitable for incorporation in aircraft, spacecraft, vessels or other vehicles
85443000 ignition wiring sets and other wiring sets for vehicles, aircraft or ships
90142080 instruments and appliances for aeronautical or space navigation (excl. inertial navigation systems, compasses and radio navigational equipment)
91040000 instrument panel clocks and clocks of a similar type for vehicles, aircraft, vessels and other vehicles
94019110parts of seats used for aircraft, of wood, n.e.s
94019910 parts of seats used for aircraft, n.e.s.

The EU has explained its position in a press release.

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