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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Importing Compressed Gas in Cylinders

May 14, 2026 by Leave a comment

Imported compressed gas should be declared as a separate line item from the cylinder in which it is contained.

If you are importing a compressed gas (like an oxygen bottle) in a reusable cylinder and need to identify it for import purposes (e.g. on a CBP Form 7501), then you typically will need to declare the gas and the cylinder as two separate line items on the entry declaration.

One reason for this is found in the the HTSUS General Rules of Interpretation, which explains:

5. In addition to the foregoing provisions, the following rules shall apply in respect of the goods referred to therein:
(a) Camera cases, musical instrument cases, gun cases, drawing instrument cases, necklace cases and similar containers,specially shaped or fitted to contain a specific article or set of articles, suitable for long-term use and entered with the articles for which they are intended, shall be classified with such articles when of a kind normally sold therewith. This rule does not,however, apply to containers which give the whole its essential character;
(b) Subject to the provisions of rule 5(a) above, packing materials and packing containers entered with the goods therein shall be classified with the goods if they are of a kind normally used for packing such goods. However, this provision is not binding when such packing materials or packing containers are clearly suitable for repetitive use.

Normally, packaging would be merged into the entry for the material contained in the packaging, but for packaging susceptible to multiple uses (“clearly suitable for repetitive use”), that sort of packaging needs to be declared as a separate line item on the import entry.

This issue was addressed in a 2002 Customs Ruling, which involved a reusable steel gas cylinder containing carbon dioxide. The ruling explained that the carbon dioxide must be declared on import (in that case it was identified as HTSUS 2811.21.000) and the reusable steel gas cylinder also needed to be declared as part of the entry (in that case it was identified as HTSUS 7311.00.0090). There is a later ruling that supports this conclusion in a slightly different context: a 2016 Customs Ruling explains that the canisters in which a fire extinguishing agent was contained were to be declared separately from the contained chemical agent.

Today, steel cylinders for compressed gasses will be identified as 7311.00.00xx, where the last two digits depend on the configuration:

  • 7311.00.0030: a steel cylinder certified under the US DOT hazmat rules (Title 49 Part 178) and marked with DOT 3A, 3AX, 3AA, 3AAX, 3B, 3E, 3HT, 3T or DOT-E (including the specific exemption number);
  • 7311.00.0060: a steel cylinder certified under the US DOT hazmat rules (Title 49 Part 178) and but NOT marked according to the standards, above (for example, this could include a DOT 4D cylinder, as found in certain aircraft oxygen bottles);
  • 7311.00.0090: a steel cylinder that is NOT certified under the US DOT hazmat rules.

Aluminum cylinders for compressed gasses will be identified as HTSUS 7613.00.0000.

Some typical gasses (and their HTSUS tariff codes) that might be imported in aviation include:

  • 2804.30.0000: Nitrogen
  • 2804.40.0000: Oxygen
  • 2811.21.0000: Carbon Dioxide

It is important to identify your import with the right tariff code so that it will be subject to the right duties. The tariffs listed above all typically have a non-zero duty attached to them, and the cylinder and the gas may each have different duty rates associated with them.

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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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Classifying Fasteners

January 6, 2026 by 1 Comment

I have been seeing a number of companies having trouble with classifications.  This is the first of what will likely be an occasional series discussing classification.  This blog post will address fasteners.

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 ECCN 9A991.  This ECCN 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.  The second condition is equally important because the term “specially designed” is a legal term of art that has a specific definition under the Commerce Department regulations.  The definition specifically excludes fasteners, so fasteners typically will not be classified under ECCN 9A991.  Instead, they will typically be classified under EAR99.

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.  Classifying fasteners for import can reflect a more complex analysis than what we just had to perform for fastener export classification.  

Normally, fasteners will be classified based on their material.  An article made of iron or steel is typically classified within HTSUS Chapter 73 of the tariff schedule.  This chapter is 45 pages long.  Within the chapter are four-digit headings and the heading 7318 addresses fasteners (made from iron or steel).  If the fastener is a bolt, then bolts made from iron or steel will be classified under 7318.15.20xx.  This classification would also encompass bolts that are imported with their nuts or washers (the nuts and washers do not have to be declared separately).  The final two characters (the “xx” in the example above) are the statistical reporting number and this number will depend on the size and nature of the bolt.  If the bolt had a shank or threads less than 6mm, then the statistical reporting number would be “10” (so the full tariff code would be 7318.15.2010.  If the shank or thread is 6mm or more then the nature of the bolt will drive the statistical reporting number: for example,  a structural bolt is classified under 7318.15.2030.  

But if the same bolt was made from a different material then the importing tariff number could be different. An aluminum bolt would be found on the schedule for aluminum articles (HTSUS Chapter 76).  It would be identified as 7616.10.xxxx.  A threaded bolt with a shank or threads less than 6mm would be identified as 7616.10.7030.   A threaded bolt with a shank or thread diameter of 6mm or more would be classified as 7616.10.9030.

Proper tariff classification is important because different tariffs have different duty amounts.  For example, the 7616.10.7030 bolt would be subject to a 5.5% duty rate when imported into the United States.  The larger diameter 7616.10.9030 bolt would be subject to a 6% duty rate when imported into the United States.  

A common mistake is to classify these sorts of fasteners as aircraft parts under heading 8807, which is a general classification for aircraft parts that do not have a more specific code that describes them.  Heading 8807 doesn’t apply to our fasteners because there are more specific classifications for bolts.  This misclassification violates the import tariff rule that requires assignment of the most specific tariff description.  It also leads to underpaid duties, which can lead to penalties when the underpayment is detected.

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White House Announces Tariff Rates on EU Aircraft Parts

August 22, 2025 by Leave a comment

Last night the White House issued a statement explaining the current status of the framework trade agreement between the European Union and the United States.

The framework trade agreement anticipates that aircraft and aircraft parts that are products of the EU will enjoy the “most-favored nation” (“MFN”) rates of duty. MFN status means that the country enjoys the “column one” duty rates (it does not mean that they get better rates, even if another country has a preferable rate under a separate agreement). This appears to imply that the additional chapter 99 tariffs will no longer apply to aircraft parts that are products of the EU, and we would go back to the pre-2025 tariff treatment for civil aircraft products of the EU.

There is a strong likelihood that aircraft parts that were not subject to duty-free treatment before 2025 (like certain fasteners used in aircraft) could remain subject to the additional chapter 99 tariffs (which are scheduled to remain at 15% for most products of the EU).

The statement explaining the framework trade agreement suggests that the new rates (including the new rate on aircraft parts) will go into effect on September 1.

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Some Electronic Equipment Excepted From the Latest Tariffs

April 12, 2025 by Leave a comment

The Administration has announced the first product-based exceptions to the broad tariffs that it has issued on imported goods. The full announcement can be seen in the Presidential Memorandum.

Items under the following headings and subheadings appear to be excepted from the duties imposed by Executive Order 14257.

  • 8471
  • 8473.30
  • 8486
  • 8517.13.00
  • 8517.62.00
  • 8523.51.00
  • 8524
  • 8528.52.00
  • 8541.10.00
  • 8541.21.00
  • 8541.29.00
  • 8541.30.00
  • 8541.49.10
  • 8541.49.70
  • 8541.49.80
  • 8541.49.95
  • 8541.51.00
  • 8541.59.00
  • 8541.90.00
  • 8542

These are mostly aimed at computers, smartphones, modems/routers, solid state storage, monitors/displays. They also include semiconductors and integrated circuits, and some production equipment for such items. Although these headings and subheadings do not intrinsically describe aircraft parts, there may be certain aircraft parts that are properly classified under some of these headings and subheadings, like certain displays and certain onboard computer equipment.

More importantly, this shows that the White House is willing to except certain favored industries, so it is possible that an aviation exception could be carved-out.

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Country of Origin

April 5, 2025 by 1 Comment

With the new tariffs going into effect, it will be important to be able to identify the country of origin for your imports, so you can properly calculate the effective tariff(s).

First of all, “country of origin” means the country of manufacture, production, or growth of any article of foreign origin entering the United States. If you are importing an article you bought from an air carrier in country “A” but it was actually manufactured wholly in country “B,” then it is a product of “B” – not “A” – for purposes of determining country of origin. The rules for this are found in the ‘country-of-origin-marking-requirements’ in 19 C.F.R. Part 134.

If the goods are subject to further work or if material is added to the goods in another country, then this must be a “substantial transformation” in order to render such other country the “country of origin.”

Example: Imagine that you have aircraft parts produced in the U.S., the UK and Japan. The parts are imported into France where they are assembled into an aircraft. The assembly into an aircraft in France is a complex assembly operation that is typically considered to be transformative. That means that the complete aircraft is a product of France in this case.

Once parts have been transformed because of a complex assembly operation, Customs has confirmed that they retain the country-of-origin upon disassembly. Thus, parts that were made in the U.S. but transformed into products of France when assembled into an aircraft will continue to be products of France even after they are removed from the aircraft.

There is case law suggesting that country of origin can sometimes shift: the connection to the country where an article was built may be broken due to the extended period of time that the article was in use in another country. Ashdown, U.S.A. Inc. v. United States, 696 F. Supp. 661 (CIT 1988). However, Customs has confirmed that this principle applies “primarily in instances where the country of origin of used articles cannot be determined.” With aviation products, we typically have adequate records to identify the country of origin so use for a long time in some other country typically does not change the country of origin.

There are special rules for products of Canada or Mexico. These goods are subject to the USMCA, and subject to the country-of-origin rules set forth in 19 C.F.R. Part 102. The USMCA rules allow for ‘foreign’ constituents that come from the US, Canada or Mexico, and they also allow for a certain percentage of other foreign materials without upsetting the proposition that the goods are a product of the US, Canada or Mexico.

The USMCA country-of-origin rules set forth in 19 C.F.R. Part 102 also apply to certain other free trade agreements, like the U.S. trade agreements with Bahrain and Morocco.

One important USMCA country-of-origin rule is that for products under heading 8807 (which applies to aircraft parts that cannot be identified more specifically under another tariff heading), constituent sub-components will become subject to the same country-of-origin as the complete assembly (they undergo a transformation) if their base tariff sub-heading changes. So, Chapter 73 fasteners can be transformed and change their country of origin when they are assembled into a new USMCA product.

Typically, US goods are not subject to a duty when they re-enter the United States. But they can be subject to a duty when they are “advanced in value” abroad. The duty in that case applies to the foreign advancement in value. If a US-produced aircraft part is repaired in a foreign country, but the advancement does not transform the aircraft part into something wholly different, then when the part returns to the U.S., the duty would be paid based on the value of the repair (typically, invoice price for the repair) so that the original U.S. value would not be considered as part of this equation.

Example: if a U.S. good is sent to Canada for repair, and then returned to the U.S., the value of the repair will be subject to the applicable import duty under HTSUS subheading 9802.00.50. The repair will be a product of Canada (but not a good of Canada that might be subject to the USMCA). The amount of the import duty applied to the value of the repair will be 25% (under the current tariff for products of Canada, subheading 9903.01.10).

Note that the application of this rule to complete aircraft may be different! Normally, aircraft are subject to the same tariff rules as vessels. Under the U.S. Code, the tariff rules that previously applied a duty to repairs performed on aircraft were changed by section 601 of the Trade Agreements Act of 1979. That exempted aircraft from the duties previously applicable to them (the exemption appears in the vessel rules because of the norm that vessel rules typically apply). The Customs and Border Protection has held that “U.S.-registered commercial aircraft that are repaired or overhauled foreign are not required to make formal entry and pay duty on repairs or overhaul when returning to the United States.”

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(1) Tariff Update (2) Advice for Products of Canada and/or Mexico (3) Advice For Non-US Exporters

April 3, 2025 by 1 Comment

This evening we have guidance for you about tariffs:

  • An update on the latest tariffs
  • Guidance on using the USMCA to avoid certain tariffs on goods originating in Canada and Mexico
  • Guidance for non-US exporters who want to mitigate the impact of U.S. tariffs

Update on New Tariffs

I am getting a lot of questions about the latest round of tariffs and how they will affect aircraft parts that are the products of non-US countries and are imported into the United States. As of this evening, the United States has not yet filed the new tariff documents with the Federal Register. In some cases these filings can differ in significant ways from the descriptions found in the executive orders, so it is important to wait to read these documents before we can give any compliance advice. It is unfortunate that the short time-frame for implementation (between Executive Order and implementation date) lately has meant that the tariffs may not be published until after they become effective.

An example of the sort of things that are contained in the tariff details includes the USMCA provision that we talk about in the next section.

We will watch for the advance copies and get you information on the latest round of tariffs as soon as possible.

Products of Mexico and/or Canada

Products of Mexico and Canada are currently subject to 25% duties under the applicable Chapter 99 tariffs. We wrote about this in a previous blog post. One potential way to mitigate this is to import goods under the USMCA provisions. The USMCA applies to “goods originating in the territory of a USMCA country.” This includes goods that are 100% a product of the U.S. Canada or Mexico, but it also includes some goods that are mostly made of material from these jurisdictions. It also includes certain goods that are made from non-USMCA materials (‘non-originating goods’) according to rules that vary based on the tariff subheading of the imported good. The details of this exception are provided in General Note 11 to the HTSUS; this general note is 136 pages long, so I won’t attempt summarize it all, here, but I will note that aircraft parts imported under heading 8807 may be made from non-originating goods of any other (different) subheading and still have the potential to be classified as USMCA goods as long as they are “transformed” in a USMCA country. One reason for this is the process that makes them an aircraft part under heading 8807 is typically considered transformative.

You typically need to enter USMCA goods under the USMCA provisions of 9903.01.04 [Mexico] or 9903.01.14 [Canada] to avoid the 25% tariffs.

Special USMCA Note: Many aircraft parts are classified under other tariff headings, but the “aircraft parts” heading is 8807. Effective January 27, 2022, the primary tariff heading for aircraft parts changed from 8803 to 8807. The USMCA was originally signed in 2018 and became effective in 2020. This was before the change of tariff headings, so USMCA references 8803, instead of 8807. To find the 8807 reference in US law (as it applies to the USMCA) you need to start with 19 C.F.R. 102.11(a), which provides the rules for determining the country of origin of imported goods. That regulation incorporates 19 C.F.R. 102.20, which provides the up-to-date tariff rules including the rules for 8807 aircraft parts.  You can confirm that this rule is intended to be used to interpret the USMCA by looking at the scope clause found in 19 C.F.R. 102.0. 

One of the USMCA requirements in a certification of origin. You ought to consider working with the producer in Canada or Mexico – they may have a USMCA certificate of origin template already available but if they don’t then check out the ASA Webinar from last week for more details on what needs to be in that certificate. You can also find the nine elements of a certificate of origin listed in Annex 5-A to Chapter 5 of the USMCA. If the U.S. import from Canada or Mexico is 100% a product of Canada or Mexico then the certificate may be simple, but if a portion of the constituent components comes from outside of the U.S., Canada or Mexico then there are rules for whether it can be certified. The rules are too voluminous to repeat here but (as stated above) General Note 11 provides some useful guidance.

One final note: if you are sending goods to Canada or Mexico for repair, then the repair is considered an “advancement in value,” and the cost (or fair market value) of that advancement is subject to duty. This applies to U.S. goods. Examples:

  • If you send a US good to Canada and it is repaired there, then this is an “advancement in value” transaction whose value is subject to the 25% tariff on products of Canada. Dutiable value is typically going to be the invoiced amount for the repair. See Tariff Subheadings 9802.00.50 and 9903.01.10.
  • If you send a US good to Canada and it is repaired there on a warranty repair, then this is an “advancement in value” transaction. The value will be subject to the 25% tariff on products of Canada. Because there is typically no charge for a warranty repair, the value will be calculated based on the fair market value of the work performed. See Tariff Subheadings 9802.00.40 and 9903.01.10.

Guide for Non-US Exporters

For non-U.S. exporters watching the tariff news out of the United States, it can be frustrating to watch and think about how this could affect your own business. In effect, a tariff is like a tax on your goods that your customer in the U.S. must pay to the government. It effectively increases the cost to your customer (making your goods potentially less attractive) without putting any money into your pocket.

Working together, we can help to make sure that your importing customers don’t pay any more in impot duties than they need to. Here are some useful rules to remember:

Rule Number One: Tariffs apply to non-US goods and non-US “added value.” If you are selling Boeing parts that were made in the U.S. (and were not advanced in value outside the U.S.) to a U.S. customer, then the importer probably does not need to pay duty on those goods.

Rule Number Two: Communicate with your U.S. customer. Make sure that you are cooperating to make the right certifications and/or representations to minimize the effect of U.S. tariffs.

Rule Number Three: Try to identify strategies for minimizing duties associated with the tariffs. The USMCA strategy described above is just one way to use the tariff rules to reduce the potential duties that the importer needs to pay.

Rule Number Four: Be careful of the way that you classify your goods. There are special tariff codes for different situations. The USMCA provisions of 9903.01.04 [Mexico] and 9903.01.14 [Canada] are just two examples of tariff classifications that can help save your customer money. Also, make sure that you are accurately classifying goods (see our blog article on the subject). Misclassified goods run the risk of being held up in Customs.

The aviation industry is a global community. We will get through these tariffs, together.

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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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Tariff Update

February 24, 2025 by 2 Comments

We’ve been answering a number of questions from our members about tariff status. This article is meant to summarize what we know about recent tariff activity, but the administration hasn’t maintained a uniform message about tariffs, so what we know could change at any time.

UPDATE: We have published more up-to-date information for products of Canada, Mexico and other Non-US sources and for steel and aluminum.

China

The United States has applied a 10% tariff in addition to any pre-existing tariffs that already applied to aircraft parts from China.

It is important to recognize that there is an existing list of products of China that were already subject to a 25% ‘additional duty’ provision. This is described under subheading 9903.88.01 and the description can be found under U.S. note 20(b) to sub-chapter III of chapter 99 of the US Harmonized Tariff System. Many aircraft parts are subject to a 25% duty under this provision, including those under (for example) headings 8409, 8411, and 8807. This means that the additional 10% duty of tariff 9903.01.20 brings the import duty on those aircraft parts to 35% (assuming they would have been otherwise subject to a zero-duty entry, but-for the ‘additional duty’ provisions, e.g. aircraft parts under headings 8409, 8411, or 8807).

Because of the peculiar way that the China tariffs had been drafted, it is possible that articles subject to a non-zero base duty may have that base duty doubled (see this article for a detailed explanation). This is a non-issue for most aircraft parts because most are subject to a zero percent base duty rate, but some aircraft parts (like certain fasteners) have a non-zero base duty and the peculiarities will need to be resolved for those imports.

Canada and Mexico

The United States is scheduled to impose 25% tariffs against substantially all products of Canada and substantially all products of Mexico. In each case the tariffs are currently schedule to apply to Canadian imports and Mexican imports as of 12:01 am March 4, 2025. The tariffs (which are the description of how the duty rates will be applied) were withdrawn when the Canada and Mexico tariffs were delayed, so the republished tariffs could change.

Typically, the 25% tariff would be applied to the import value of the goods (25% of the value is charged as a duty). When the goods are exported from the United States for the purpose of obtaining repair abroad, and then subsequently returned to the U.S., the dutiable value upon return is typically calculated based on the parts-and-labor-cost of the MRO work that was accomplished abroad (unless it is a no-charge repair, like a warranty repair, in which case it is based on the fair market value of the repair). This is covered under chapter 98 tariff subheadings like 9802.00.40 (for warranty repairs) or 9802.00.50 (for non-warranty repairs). The goods would be subject to a basic duty based on the repair value times the rate that applies to the underlying good. For example, if the repair cost was $20,000 and the underlying aircraft part was subject to heading 8807, then the old rate of duty would be zero percent so the duty would be zero dollars. Under the new tariffs with the 25% duty rates, though, if the repair cost was $20,000 and the tariff on products of the country in which the repair was performed is at a 25% duty rate, then the U.S. importer to whom the repaired part is returned (from Canada) would need to pay an import duty of $5,000 (in addition to the repair cost).

Steel and Aluminum

The Administration has also issued orders to apply and increase duty rates on steel and aluminum (including plates, sheets, strips, bars, rods, tubes and wires). The new duty rates for aluminum from most countries will be 25% (in addition to any other applicable tariffs). Derivative products made from aluminum or steel will also be subject to a 10% duty (in addition to any other applicable tariffs). The executive order that announced these is quite complicated, with different phase-in dates for different countries, and some higher duty rates for certain countries (for example Turkey will face a 50% duty rate on all steel articles imports and Russia will face a 200% duty rate on imported derivative aluminum articles).

If you think that the steel or aluminum tariffs may apply to your imports then please be sure to read the tariffs thoroughly (don’t just rely on this blog article because there are too many details to republish them all here).

Other Targets

In tomorrow’s Federal Register, we expect to see a new request from the U.S. Trade Representative (USTR). The new request will ask the American people to identify any unfair trade practices by other countries, with a discussion of the harm to the United States. The draft publication refers to these as non-reciprocal trade arrangements so it appears that the Administration (which has threatened to implement reciprocal tariffs) may be looking at such arrangements as justifications for tariffs on comparable products from these source countries. This investigation is a response to the “America First Trade Policy” Executive Order.

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