Embraer Parts Appear to be Exempt from Latest Brazil Tariffs

July 30, 2025 by Leave a comment

Earlier today, the President issued an Executive Order imposing new sanctions on Brazil. The Executive Order imposes an additional 40% duty on goods of Brazil. This would be in addition to the existing 10% duty that already exists, for a total of a 50% duty on affected goods. Both of these are tariffs listed under Chapter 99 of the Harmonized Tariff Schedule, so they are called “chapter 99 tariffs.”

The good news for the aviation industry is that the Order appears to recognize the United States’ obligations under the Agreement on Trade in CIvil Aircraft, and it exempts civil aircraft parts under a wide array of tariff headings. In fact, the list includes things that are no always recognized as aircraft parts, like wires, tubes, and base metal parts [for purposes of the aviation exception, in all cases, only when the parts are intended for installation in civil aircraft]. As always, check your tariff code against the lust to be sure how your goods are treated, but the list of civil aircraft parts tariff codes that are not subject to this new Brazil tariff is a long one.

One particularly interesting element of the Executive Order is the way that it treats civil aviation maintenance performed in Brazil. When goods are exported for maintenance work overseas and the goods are then returned to the U.S., the work is typically tariffed on the invoice value of the work performed (under HTSUS 9802.00.50, for example). Many of the Chapter 99 tariffs have explicitly imposed their duties rates to maintenance performed in the subject country (for example, the tariff on goods of the EU also applies to the ‘added value’ associated with parts sent to the EU, repaired, and then returned to the United States [this is often the invoice value of the repairs]). But the additional 40% tariff does not apply to the value of maintenance of civil aircraft parts exported to Brazil for maintenance and then returned to the United States following that maintenance (at present, the earlier 10% tariff on goods of Brazil continues to apply to the added value of the repairs).

This is the second time we’ve seen this treatment for new chapter 99 tariffs – the UK tariff also has an exception for civil aircraft maintenance performed in the UK.

The Aviation Suppliers Association has filed documents with the Administration, asserting that application of many of the chapter 99 tariffs to civil aircraft parts violates both U.S. law and U.S> obligations under the Agreement on Trade in Civil Aircraft. Hopefully, the Administration is starting to recognize that aircraft parts need to be left out of the scope of the new chapter 99 tariffs.

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Is it an Aircraft Part? Be Careful About Classification for Imports and Exports!

March 26, 2025 by 1 Comment

I get recurring questions about the classification of aircraft parts for both exports and imports. This is a more complicated process than it might seem, at first.

When importing goods, the goods need to be identified with the proper Harmonized Tariff Schedule (HTS) tariff classification. This tariff classification also helps to identify the correct duty that must be paid upon the import of the goods.

When exporting goods, the exporter needs to identify the schedule B number for the goods. These numbers are analogous to the HTS numbers, but they sometimes diverge, so it is also important to look them up separately.

Many ASA members have approached me about whether they can “hit the easy button” and assume that all aircraft-related parts are classified under chapter 88 (which applies to aircraft parts). This would not be correct! Some aircraft parts are classified under other chapters.

When classifying goods under either the HTS or Schedule B, you must select the classification that most accurately describes your goods. For example, if you are importing vulcanized rubber o-rings for use on an aircraft, then you will have a choice between an aircraft parts classification under heading 8807 or:

4016.93.5010: Other articles of vulcanized rubber other than hard rubber: Gaskets, washers and other seals: Other: O-Rings.

Clearly, the O-Rings line in chapter 40 reflects a much more precise description of those O-Rings. It is therefore the more appropriate classification. Some of the places in the HTS and Schedule B where you will find more precise classifications for aircraft parts include the following:

  • Tires under heading 4011-4012
  • Other rubber products under chapter 40
  • Brakes in Chapter 68
  • Certain steel, iron, and aluminum products, like fasteners: Codes in chapters 72, 73, and 76
  • Aircraft safety glass under subheading 7007.11
  • Engines and engine parts under chapter 84
  • Stators, rotors, generators and electrical parts under chapter 85
  • Certain electronic integrated circuits, including those within heading 8542
  • Lithium-ion batteries under subheading 8507.60
  • Battery parts under subheading 8507.40
  • Inertial Measurement Unit under subheading 9014.20
  • Aircraft seats under subheading 9401.10

Each of these may end up being more precise than a classification under heading 8807 (8807 applies to aircraft parts). The classifications under heading 8807 are useful for many aircraft parts, but if there is a more precise and accurate description under another classification then the more precise and accurate description should be the one that it is used.

We will be covering this issue (selection of tariff numbers for imported aircraft parts) in ASA’s tariff webinar, tomorrow.  The ASA webinar will also examine some of the new tariffs, and will discuss how to read a tariff so that you are better prepared for the upcoming tariffs that have been promised. The webinar is free for ASA members please register to make sure you can get a seat), and available for a nominal price to non-members.

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New Schedule B for 2022 Harmonizes with Revised Harmonized Tariff Codes

February 17, 2022 by Leave a comment

Last month we wrote here to notify the ASA community that Harmonized Tariff Codes that affect aircraft parts were revised, effective January 27, 2022. Notably, heading 8803, which had long applied to “Propellers and rotors and parts thereof . . . Undercarriages and parts thereof . . . [and] Other parts of airplanes or helicopters” was revised to a new heading of 8807. Absent from our notification was any discussion of the corresponding Schedule B numbers (typically used for export data collection by the Census Bureau and reported via EEI filings).

We can now report that the Schedule B numbers for 2022 have been released, and as expected reflect the revisions to the Harmonized Tariff Codes we discussed last month. The U.S. Census Bureau’s website indicates that the 2022 Schedule B numbers are to be used after February 10, 2022, but to the best of our knowledge the new numbers went live only yesterday, February 16. 

Relevant examples of revised Schedule B numbers include:

Schedule B Number and HeadingCommodity Description
8807– Parts of goods of heading 8801, 8802 or 8806:
8807.10– – Propellers and rotors and parts thereof:
8807.10.0010– – – For use in civil aircraft
8807.10.0060– – – Other
8807.20– – Undercarriages and parts thereof:
8807.20.0010– – – For use in civil aircraft
8807.20.0060– – – Other
8807.30– – Other parts of airplanes or helicopters:
8807.30.0010– – – For use in civil aircraft
8807.30.60– – – Other

A complete list of obsolete and new Schedule B numbers accompanies the 2022 listing.

As always, remember that not all aircraft parts are included under new Heading 8807 and many often appear under a more precise Heading, e.g., engine parts, fasteners, and bearings. Take the time to be sure you are shipping under the correct Schedule B when you submit your EEIs.

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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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Import Classification 101: Introduction to Harmonized Tariff Codes (Part 2 of 3)

May 21, 2014 by Leave a comment

How are most commercial airplane parts supposed to be categorized under the Harmonized Tariff Schedule?  Many commercial airplane parts will be characterized as “8803.10.00.30.”  In today’s article we will focus on what this string of numbers really means.

This is the second in a three-part series of articles discussing import into the United States of aircraft parts. Yesterday, we explained that classifications of goods is based upon the U.S. Harmonized Tariff Schedule (USHTS). Today we will look more closely at the basic harmonized tariff codes applicable to aircraft parts.

U.S. import law applies to goods that enter the customs territory of the United States. Each such part must be classified correctly in order to assess the tariff status of the part. Most aircraft parts will fall within the scope of the Agreement on Trade in Civil Aircraft, which provides for the duty-free entry of civil aircraft and their parts into signatory nations (including the United States). But there are significant exceptions to this provision, and there is a significant minority of aircraft parts that will not be classified under the “aircraft parts” provisions of this Agreement [more on this tomorrow!].

Most aircraft parts are categorized under Chapter 88 of the Harmonized Tariff Code, and the most commonly used code will begin with 8803 (which is for parts). The additional numbers after the initial “8803” help to specify exactly what sort of aircraft parts they are. Civil aircraft propeller parts are characterized as 8803.10.00.30. Civil aircraft undercarriage parts are 8803.20.00.30 if they are intended for aircraft used by anyone other than the Department of Defense or the Coast Guard (the numbers would change if you altered any of these particulars).

Seeing a pattern to these numbers? The first set of digits (8803) indicates that it is an aircraft part. If the second sequence is “10” then it is a rotor or propeller part. If it is “20” then it is an undercarriage part. If it is a “30” then it is an “other” part from an airplane or helicopter.

For these particular subheadings, the third sequence will always be “00” but in other headings and subheadings, you can have different third sequence numbers that help to further distinguish different goods. The fourth sequence helps to further distinguish the nature of the parts, so for example in these subheadings a fourth sequence of “15” usually means the part is for use in a civil aircraft and civil aircraft is used by the Department of Defense or the United States Coast Guard. A fourth sequence of “30” usually means the part is for use in a civil aircraft that is NOT used by the Department of Defense or the United States Coast Guard.

As you can see, most civil aircraft parts imported by U.S. repair stations will be described as by harmonized tariff code 8803.30.00.30. Civil aircraft parts classified as 8803.30.00.30 may usually be entered into the U.S. on a duty free basis.

But, unfortunately, import classification of aircraft parts is not always this simple. There are many aircraft parts that fit into listed exceptions, and these parts are characterized under different tariff codes. Some of these tariff codes require the payment of import duties (the parts are not treated as duty-free under the Agreement on Trade in Civil Aircraft. On Monday morning, we examine the exceptions.

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Import Basics for the Aircraft Parts Distribution Community (Part 1 of 3)

May 20, 2014 by Leave a comment

This is the first in a series of articles discussing import into the United States of aircraft parts. It is meant to lay the ground-work for the rest of the series by explaining some basic terms and notions that apply to U.S. import law.

Import law is important to both U.S. companies (who are importing into the U.S.) and non-U.S. companies. non-U.S. companies may be exporting to the U.S., but that doesn’t mean tat they can ignore the U.S. import laws.  They need to cooperate with their U.S. importers to make sure that the importer can readily clear Customs with the goods without unnecessary delay.

U.S. import law applies to goods that enter the customs territory of the United States. The customs territory of the United States includes only the States, the District of Columbia and Puerto Rico. Other US possessions are not considered to be part of the customs territory of the United States.

Imports are regulated for a variety of reasons, but one of the most important historical reasons for regulating imports is to apply tariffs. The first US Congress passed the Tariff Act of 1789 in order to raise funds to be able to operate the government. Until the federal income tax began in the early 20th century, tariffs were the single most important source of revenue for the United States government.

Modern US policy no longer relies heavily on tariffs as a major source of US revenue – instead the US now uses tariffs to advance industrial, trade and foreign policy issues. For example, where the US believes that foreign goods are being subsidized, and that this subsidy is permitting them to be sold into the US market at a below-cost price, the US may apply heavy tariffs in order to make the imported goods more competitive relative to US-manufactured goods. Part of the reason for doing this is to protect the correlative US manufacturing industry because if the US correlative US manufacturing industry were to disappear in the face of the subsidized imports, then the prices for the imports could be increased to supra-competitive levels because there would be no domestic competition to offer competition that could prevent such price increases.

Many of the countries that have significant aviation industries are signatories to the Agreement on Trade in Civil Aircraft, which addresses import tariffs on aircraft parts. Most people in our industry know that aircraft parts are imported “duty-free” under the Agreement on Trade in Civil Aircraft.

But while duty-free treatment is the general rule, there are many exceptions.

Aviation industry personnel often do not realize that many aircraft parts are characterized as other things for import purposes. Some parts that appear to be aircraft parts are treated under other categories for import tariff purposes. This includes things like washers, certain rubber articles, certain bearings, brushes found in machines, and lamps and lighting fittings. These parts will all have special classifications, so learning how to identify the right classifications is important.

An important first step for importing goods is classification. The importer will be responsible for properly classifying the import goods, and this classification may drive the applicable tariffs.

Many nations have adopted the Harmonized Commodity Description and Coding System (HCDCS) which is a list that is published and maintained by the World Customs Organization (WCO). The HCDCS serves as the basis for the U.S. Harmonized Tariff Schedule, which is the list of goods used in the United States.

Classifications of goods are listed in the U.S. Harmonized Tariff Schedule, so you would find aircraft parts in this schedule; but you will also find exceptions. In part two of this series we will look more closely at the harmonized tariff codes applicable to aircraft parts and will discuss the full list of exceptions. In forthcoming articles, we will discuss topics like:

  • USHTS classification numbers associated with aircraft parts; and
  • Exceptions to the general rules including parts that are NOT duty-free.

 

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