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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Hazmat Alert: Is the Government at Your Door?

May 3, 2015 by 1 Comment

The Department of Transportation conducts audits of hazmat compliance at facilities that ship hazardous materials (hazmat).  Because many aircraft parts are hazmats, aircraft parts distributors may find themselves the targets of such investigations.

Over the past 20 years, we have been contacted about hazmat audits being conducted by RSPA personnel (the predecessor to PHMSA), FAA personnel, and even TSA personnel.  It appears that many of these audits are generated by identifying hazmat shipments carried by a carrier (like an air carrier) and then following up on the shipments at their shipping-source.  So if you ship a hazmat, then there is a chance you could be targeted in a random audit.

Many aircraft parts distributors have found these audits to be quite innocuous.  The agent usually wants to see shipping records and may have questions about subjects like training records.  We’ve gotten calls from companies who lost their training records and needed them faxed over immediately in order to satisfy an auditor (when we perform hazmat training, we keep our records for three years so we can justify replacement certificates if they are needed).  Despite the generally innocuous nature of these audits, every fact pattern and every government audit is different, so you should use your own judgment when considering how to respond to the agent who arrives to perform the audit.

You Have a Right to Know

Sometimes the audits are not random – sometimes they are a follow-up of an allegation and they have a specific purpose.  If there is a specific purpose to the investigation, such as a follow-up to a reported hazmat incident, then any person subject to the investigation has the right to know the purpose of the investigation (“the general purpose for which the information or evidence is sought”).  49 C.F.R. sec. 107.305(c).  In our experience, many of these ‘surprise’ visits are really just random inspections.  If that is the case, then he investigator will usually be happy to tell you that in response to your inquiry.

What if they are Investigating a Specific Occurrence?

If the inspection is associated with a specific investigation, then you should seek the advice of an attorney.  Penalties for hazmat infringement can be very high, so anything you can do to defend against, or mitigate, the penalty is good.  And you do not want to suffer a recurrence so you should be examining how to restructure your system to prevent regulatory infringements and other risks.

If an investigation reveals that there was no violation, or that no further action is necessary or warranted, then the person being investigated will be notified when the investigative file is closed.  49 C.F.R. sec. 107.305(d).  This affirmative regulation is actually a great thing for the public, and I wish more agencies would include requirements like this one.

Do I Have to Participate in an Investigation?

Questions about issues like participation help illustrate why it is so important to coordinate with a lawyer.  The regulations require shippers, carriers, package owners (which could include a recipient), package manufacturers/certifiers, repair facilities, and persons reporting hazmat incidents to cooperate in investigations.  Under the regulations, these persons are required to provide certain access to records and information pertaining to the subject of the investigation, and also provide reasonable assistance to the investigator.  49 C.F.R. sec. 171.21(a).  However, these requirements could conflict with a person’s fourth and fifth amendment rights in some circumstances, so careful analysis of the facts is required.

There are additional regulatory requirements imposed on persons who are required to file hazmat incident reports.  They are generally required to respond to such inquiries within 30 days after receipt. This requirement can also conflict with other rights so consulting with a lawyer can be helpful.

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