IEEPA Refunds Applications Start Monday

April 18, 2026 by Leave a comment

Many of ASA’s members paid a significant amount in IEPPA duties. Those duties were ruled illegal and now we have an opportunity to seek a refund. Rather than using its own resources to provide refunds of 100% of the illegal duties, the government is requiring those who paid the illegal duties to affirmatively apply for the refunds. At present, if you fail to apply then you may lose out on those refunds!

The U.S. government has developed the Consolidated Administration and Processing of Entries (CAPE) mechanism. This is a part of the Automated Commercial Environment (ACE) system. It is the government’s mechanism for processing refunds for Importers of Record (IOR) who have paid the duties that were ruled illegal.

In summary, requesting refunds of IEEPA duties requires a little bit of infrstructure:

  • The applicant should be the Importers of Record (IOR) or the IOR’s authorized Customs broker (who filed the import records for the IOR);
  • The applicant should have an ACE Portal account;
  • The refund recipients should have already used the ACE Portal account to establish bank account information for electronic refunds;
  • The IOR (or the IOR’s authorized Customs broker) submits the CAPE Declaration in the ACE Portal (in the form of a CSV file).

The CAPE process starts with the filing of the CAPE Declaration in the ACE Portal by the IOR or the authorized broker who filed entries on behalf of the IOR. This CAPE Declaration will include a comma-separated values (CSV) file that is uploaded to the new CAPE tab in the ACE system. The CAPE tab will be available in the Importer, Organizational Broker, and Filer sub-accounts in ACE. The CSV file, called a CAPE Declaration, will contain a list of entry numbers for which IEEPA refunds are requested. Each individual CAPE Declaration is limited to 9,999 entries, but multiple CAPE Declarations may be submitted. A downloadable
CAPE Declaration template file will be available through the “Upload” button in the CAPE tab – use this to ensure you are formatting the file the right way.

Once the CSV file has been uploaded, the CAPE system will validate the submission and provide feedback to the filer as described below. For valid entry numbers, ACE will update the entry summary lines to remove the dutiable IEEPA Harmonized Tariff Schedule (HTS) Chapter 99 codes and duties, resulting in a new version of the entry summary. Once the IEEPA duties have been removed, ACE will recalculate the duties owed without the dutiable IEEPA HTS code(s). In general, following CBP review, entries will be liquidated or reliquidated, and refunds will be consolidated and then issued.

If your entries were filed through your customs broker, then please work with your customs broker to file the CAPE Declaration and process the refund application.

ACE Portal users with Importer sub-account access can monitor refund activity using ACE Reports. The REV-603 Trade Refund report covers successful refunds. The REV-613 ACH Rejected Refunds report highlights any refunds that have been rejected due to the recipient not being enrolled in ACH Refunds.

To learn more, check out CBP’s CAPE Information Notice.

CAPE is a brand-new system – don’t be surprised if there are some unexpected hurdles. If you run into problems with the CAPE system, then let us know (and if you solve them, then let us know how you solved them so we can spread the word to the entire community).

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New Aluminum, Copper, and Steel Tariffs: Read Carefully Because They May Not Apply to Many Aircraft Parts Imports

April 6, 2026 by Leave a comment

If you are importing aircraft parts made from aluminum, copper and steel then the new aluminum, copper and steel tariffs that go into effect today could have drawn your attention. It is important to look at them carefully because they will apply to a small number of aircraft parts, but they will not apply to most aircraft parts.

Last week, the President issued a Proclamation, “Strengthening Actions Taken to Adjust Imports of Aluminum, Steel, and Copper into the United States.” That proclamation imposes 10-50% additional duties on the full customs value of certain imports of steel, aluminum, copper articles (metal articles) and their derivatives from all countries, effective today (April 6, 2026). 

It is important to examine the tariff code for your goods, and compare it to the code listing for the tariff.  NOT ALL PARTS ARE SUBJECT TO THESE DUTIES!  Most bar stock and other non-finished products are covered.  Many wires and fasteners/hardware are covered. 

Many finished aircraft parts made from these materials are not covered; but some aircraft parts may be covered (like certain hydraulic fluid pumps under heading 8413, certain heat exchange units under 8419, and certain bearings under heading 8482 or 8483).  To be certain, it is important to check the annexes, which will be incorporated into the HTSUS.

Once you have identified your imports as being subject to one of these tariffs, then you still need to identify which of the annexes applies (based on tariff number) as well as the source of the material.  The actual calculation mechanism has gotten more complicated and is more fully described in the proclamation and annexes.  For more information, or if you need more guidance, then contact the Association.

Even if the tariff code for your import good is listed, you still need to check the metal content (by weight) because an additional exception may apply.  Goods specified in the annexes to the Proclamation, except those classifiable in Chapters 72, 73, 74, and 76, that contain less than 15 percent of the aggregate weight of the applicable metal(s) are not subject to the duties imposed by the Proclamation.  This is the sum of the applicable metals where there is more than one tariffed metal.  For example, since HTSUS is 8302.10.60 is identified in paragraphs (c)(vi) and (vii) of annex IV as both a derivative aluminum article and steel article in annex IV, the aggregate weight of both aluminum and steel (but not copper) should be included in the 15 percent calculation.  If you are able to use the “less than 15% weight” exception, then report it as HTSUS 9903.82.03, and include the aggregate weight of the applicable metal(s) in kilograms as a second quantity on the entry summary line.

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All CBP Refunds Are Now Electronic – Get Your Account Ready If It Isn’t Already Prepared

March 17, 2026 by Leave a comment

Many companies in the ASA community are anticipating refund applications based on the recent Supreme Court case (Learning Resources Inc. v. Trump) that ruled some IEEPA tariffs to be illegal, and the Court of International Trade tariff order directing the duties to be refunded.

There are reports that today, CBP amended its order, to remove the “immediacy” from the requirement to issue refunds. But the refunds still have to be issued. CBP is creating the CAPE system within ACE and has suggested that it could be ready within 45 days of the CIT order (so, mid-to-late-April).

In order to make use of the CAPE system – indeed in order to receive any refund – you will need an ACE account. This is because CBP recently changed the rules to require all refunds to be processed through the ACE system. Some importers rely on their customs broker or their carrier to process all of the imports, and may not yet have an ACE account. If that is your situation, then now is the time to obtain an ACE account.

The expected tariff refund process will be something like this:

  1. File a declaration that itemizes the entries on which you’ve paid IEEPA-based duties; this will be filed within the ACE system (probably within the CAPE subsystem)
  2. The ACE system validates the application against its own data and recalculates the duty owed without the IEEPA tariffs (to verify the refund amount)
  3. CBP verifies the declaration and processes the refunds
  4. CBP liquidates or reliquidates each validated entry
  5. The ACE system should allow CBP to certify that the refund is owed and then the refund will be released by the Treasury
  6. The refund will be deposited in the bank account that you registered for electronic refunds, through your ACE account

U.S. CBP has published a number of resources to assist in obtaining ACE accounts and setting them up to process refunds.

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Tariffs are Illegal – How Do I get My Refund?

February 20, 2026 by 1 Comment

By now, everyone has seen the headline: Many of the tariffs imposed by the Administration have been declared illegal by the Supreme Court in Learning Resources Inc. v. Trump. The Court ruled that the IEEPA did not support issuing those HTSUS Chapter 99 tariffs. Since it was illegal to collect the tariffs, those that have already been collected likely need to be refunded to those who paid them. Many companies in the ASA community paid tariffs and I am sure that those who paid would like to get refunds if it is possible.

It is possible that the administration may create a streamlined mechanism for seeking/issuing tariff refunds. This article describes processes under current law and regulations. We have reached out to the government to seek advice on streamlined filing for refunds, and to offer assistance in streamlining the refund process.

The first step is to assess which tariffs you paid, and which of those were illegal. Not all tariffs were ruled to be illegal – only certain ones. For example, if you imported a bearing last July, and you paid a 9% duty for that bearing under HTSUS chapter 84 PLUS an additional 20% Chapter 99 tariff based on the fact that the bearing’s origin was from the European Union (total of 29% duty), then it is likely that the 9% duty from the base tariff was legal but the 20% duty could be covered under the Supreme Court’s recent ruling.

By and large, the illegal tariffs were issued under HTSUS Chapter 99 so if the basis of the duty that you paid was under another HTSUS chapter then it might have been a legal tariff. Also, some of the HTSUS Chapter 99 tariffs (like steel and aluminum) were issued under other justifications (not under the IEEPA) and those would remain unaffected by today’s ruling.

Once you’ve identified duties that you paid that might be covered by the Supreme Court’s ruling, the next step is to assess whether the import has been liquidated or not. The term Liquidation means the final computation or ascertainment of duties on thing sthat are entered into the United States for consumption. Liquidation usually happens between 300 and 360 days after the import entry (the government aims for an average of 314 days, but our recent assessment found that the average was 330-335 days).

If your import has not yet been liquidated, then you may be able to perform a post-summary correction. Typically this can be accomplished within 300 days of entry but also at least 15 days before liquidation. This is processed through the ACE system. If you discover an error, there is actually a legal obligation to file a correction.

If the 300-day window has passed or the entry has been liquidated, then you can no longer file a post summary correction. Instead, you may be able to file a protest. Protests typically are required to be filed within 180 days of liquidation.

Protests are filed using CBP Form 19. You can file this as a paper form (in which case it must be filed in quadruplicate, and sent to the Port Director) or you can file it online through ACE. If you file a paper copy then we usually advise that you send a fifth copy and a self-addressed stamped envelope in order to get a date-stamped copy back from CBP (as proof of receipt). The filing is considered filed when it is received (not when it is mailed) so make sure it gets to the destination on time!

When you file CBP Form 19, you need to be as specific as you can be. Make sure you provide this information:

  • Identify what is wrong
  • Explain why it is wrong
  • Provide evidence
  • Explain what the corrected entry should be

In the online/electronic form the space to provide this information is small, so don’t be afraid to write up your full argument on a separate document and attach it.

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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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EU Aircraft Parts Are BACK to Duty Free

October 1, 2025 by Leave a comment

Under the Agreement on Trade in Civil Aircraft (ATCA), aircraft and their parts are supposed to enter on a duty-free basis. The recent application of duty (chapter 99 tariffs) to aircraft parts has been a major change for the aviation industry. We are slowly rolling that back.

The most recent change has been for civil aviation products of the EU. HTSUS (2025) revision 24 was issued on September 25 and it includes duty free treatment for most civil aircraft parts. The specific details can be found in the Federal Register notice.

To be clear, the actual tariff treatment is that civil aircraft parts that are products of the EU and that fall into a list of tariff codes (it is long, but reproduced below) are now exempt from additional duties, but will be subject to the regular base duty to which they were always subject.

The new chapter 99 tariff code for civil aircraft parts that are products of the EU is HTSUS 9903.02.76.

Tariff Codes Subject to the Civil Aviation Exemption for the EU:

3917.21.00 8411.21.40 8479.90.41 8518.29.80 9014.20.40
3917.22.00 8411.21.80 8479.90.45 8518.30.10 9014.20.60
3917.23.00 8411.22.40 8479.90.55 8518.30.20 9014.20.80
3917.29.00 8411.22.80 8479.90.65 8518.40.10 9014.90.10
3917.31.00 8411.81.40 8479.90.75 8518.40.20 9014.90.20
3917.33.00 8411.82.40 8479.90.85 8518.50.00 9014.90.40
3917.39.00 8411.91.10 8479.90.95 8519.81.10 9014.90.60
3917.40.00 8411.91.90 8483.10.10 8519.81.20 9020.00.40
3926.90.45 8411.99.10 8483.10.30 8519.81.25 9020.00.60
3926.90.94 8411.99.90 8483.10.50 8519.81.30 9025.11.20
3926.90.96 8412.10.00 8483.30.40 8519.81.41 9025.11.40
3926.90.99 8412.21.00 8483.30.80 8519.89.10 9025.19.40
4008.29.20 8412.29.40 8483.40.10 8519.89.20 9025.19.80
4009.12.00 8412.29.80 8483.40.30 8519.89.30 9025.80.10
4009.22.00 8412.31.00 8483.40.50 8521.10.30 9025.80.15
4009.32.00 8412.39.00 8483.40.70 8521.10.60 9025.80.20
4009.42.00 8412.80.10 8483.40.80 8521.10.90 9025.80.35
4011.30.00 8412.80.90 8483.40.90 8522.90.25 9025.80.40
4012.13.00 8412.90.90 8483.50.40 8522.90.36 9025.80.50
4012.20.10 8413.19.00 8483.50.60 8522.90.45 9025.90.06
4016.10.00 8413.20.00 8483.50.90 8522.90.58 9026.10.20
4016.93.50 8413.30.10 8483.60.40 8522.90.65 9026.10.40
4016.99.35 8413.30.90 8483.60.80 8522.90.80 9026.10.60
4016.99.60 8413.50.00 8483.90.10 8526.10.00 9026.20.40
4017.00.00 8413.60.00 8483.90.20 8526.91.00 9026.20.80
4823.90.10 8413.70.10 8483.90.30 8526.92.10 9026.80.20
4823.90.20 8413.70.20 8483.90.50 8526.92.50 9026.80.40
4823.90.31 8413.81.00 8483.90.80 8528.42.00 9026.80.60
4823.90.40 8413.91.10 8484.10.00 8528.52.00 9026.90.20
4823.90.50 8413.91.20 8484.90.00 8528.62.00 9026.90.40
4823.90.60 8413.91.90 8501.20.50 8529.10.21 9026.90.60
4823.90.67 8414.10.00 8501.20.60 8529.10.40 9029.10.80
4823.90.70 8414.20.00 8501.31.50 8529.10.91 9029.20.40
4823.90.80 8414.30.40 8501.31.60 8529.90.04 9029.90.80
4823.90.86 8414.30.80 8501.31.81 8529.90.05 9030.10.00
6812.80.90 8414.51.30 8501.32.20 8529.90.06 9030.20.05
6812.99.10 8414.51.90 8501.32.55 8529.90.09 9030.20.10
6812.99.20 8414.59.30 8501.32.61 8529.90.13 9030.31.00
6812.99.90 8414.59.65 8501.33.20 8529.90.16 9030.32.00
6813.20.00 8414.80.05 8501.33.30 8529.90.19 9030.33.34
6813.81.00 8414.80.16 8501.33.61 8529.90.21 9030.33.38
6813.89.00 8414.80.20 8501.34.61 8529.90.24 9030.39.01
7007.21.11 8414.80.90 8501.40.50 8529.90.29 9030.40.00
7304.31.30 8414.90.10 8501.40.60 8529.90.33 9030.84.00
7304.31.60 8414.90.30 8501.51.50 8529.90.36 9030.89.01
7304.39.00 8414.90.41 8501.51.60 8529.90.39 9030.90.25
7304.41.30 8414.90.91 8501.52.40 8529.90.43 9030.90.46
7304.41.60 8415.10.60 8501.52.80 8529.90.46 9030.90.66
7304.49.00 8415.10.90 8501.53.40 8529.90.49 9030.90.68
7304.51.10 8415.81.01 8501.53.60 8529.90.55 9030.90.84
7304.51.50 8415.82.01 8501.61.01 8529.90.63 9030.90.89
7304.59.10 8415.83.00 8501.62.01 8529.90.68 9031.80.40
7304.59.20 8415.90.40 8501.63.01 8529.90.73 9031.80.80
7304.59.60 8415.90.80 8501.71.00 8529.90.77 9031.90.21
7304.59.80 8418.10.00 8501.72.10 8529.90.78 9031.90.45
7304.90.10 8418.30.00 8501.72.20 8529.90.81 9031.90.54
7304.90.30 8418.40.00 8501.72.30 8529.90.83 9031.90.59
7304.90.50 8418.61.01 8501.72.90 8529.90.87 9031.90.70
7304.90.70 8418.69.01 8501.80.10 8529.90.88 9031.90.91
7306.30.10 8419.50.10 8501.80.20 8529.90.89 9032.10.00
7306.30.30 8419.50.50 8501.80.30 8529.90.93 9032.20.00
7306.30.50 8419.81.50 8502.11.00 8529.90.95 9032.81.00
7306.40.10 8419.81.90 8502.12.00 8529.90.97 9032.89.20
7306.40.50 8419.90.10 8502.13.00 8529.90.98 9032.89.40
7306.50.10 8419.90.20 8502.20.00 8531.10.00 9032.89.60
7306.50.30 8419.90.30 8502.31.00 8531.20.00 9032.90.21
7306.50.50 8419.90.50 8502.39.00 8531.80.15 9032.90.41
7306.61.10 8419.90.85 8502.40.00 8531.80.90 9032.90.61
7306.61.30 8421.19.00 8504.10.00 8536.70.00 9033.00.90
7306.61.50 8421.21.00 8504.31.20 8539.10.00 9104.00.05
7306.61.70 8421.23.00 8504.31.40 8539.51.00 9104.00.10
7306.69.10 8421.29.00 8504.31.60 8543.70.42 9104.00.20
7306.69.30 8421.31.00 8504.32.00 8543.70.45 9104.00.25
7306.69.50 8421.32.00 8504.33.00 8543.70.60 9104.00.30
7306.69.70 8421.39.01 8504.40.40 8543.70.80 9104.00.40
7312.10.05 8424.10.00 8504.40.60 8543.70.91 9104.00.45
7312.10.10 8425.11.00 8504.40.70 8543.70.95 9104.00.50
7312.10.20 8425.19.00 8504.40.85 8543.90.12 9104.00.60
7312.10.30 8425.31.01 8504.40.95 8543.90.15 9109.10.50
7312.10.50 8425.39.01 8504.50.40 8543.90.35 9109.10.60
7312.10.60 8425.42.00 8504.50.80 8543.90.65 9109.90.20
7312.10.70 8425.49.00 8507.10.00 8543.90.68 9401.10.40
7312.10.80 8426.99.00 8507.20.80 8543.90.85 9401.10.80
7312.10.90 8428.10.00 8507.30.80 8543.90.88 9403.20.00
7312.90.00 8428.20.00 8507.50.00 8544.30.00 9403.70.40
7322.90.00 8428.33.00 8507.60.00 8801.00.00 9403.70.80
7324.10.00 8428.39.00 8507.80.82 8802.11.01 9405.11.40
7324.90.00 8428.90.03 8507.90.40 8802.12.01 9405.11.60
7326.20.00 8443.31.00 8507.90.80 8802.20.01 9405.11.80
7413.00.90 8443.32.10 8511.10.00 8802.30.01 9405.19.40
7608.10.00 8443.32.50 8511.20.00 8802.40.01 9405.19.60
7608.20.00 8471.41.01 8511.30.00 8805.29.00 9405.19.80
8108.90.60 8471.49.00 8511.40.00 8807.10.00 9405.61.20
8302.10.60 8471.50.01 8511.50.00 8807.20.00 9405.61.40
8302.10.90 8471.60.10 8511.80.20 8807.30.00 9405.61.60
8302.20.00 8471.60.20 8511.80.40 8807.90.90 9405.69.20
8302.42.30 8471.60.70 8511.80.60 9001.90.40 9405.69.40
8302.42.60 8471.60.80 8514.20.40 9001.90.50 9405.69.60
8302.49.40 8471.60.90 8516.80.40 9001.90.60 9405.92.00
8302.49.60 8471.70.10 8516.80.80 9001.90.80 9405.99.20
8302.49.80 8471.70.20 8517.13.00 9001.90.90 9405.99.40
8302.60.30 8471.70.30 8517.14.00 9002.90.20 9620.00.50
8307.10.30 8471.70.40 8517.61.00 9002.90.40 9620.00.60
8307.90.30 8471.70.50 8517.62.00 9002.90.70 9802.00.40
8407.10.00 8471.70.60 8517.69.00 9002.90.85 9802.00.50
8408.90.90 8471.70.90 8517.71.00 9002.90.95 9802.00.60
8409.10.00 8479.89.10 8518.10.40 9014.10.10 9802.00.80
8411.11.40 8479.89.20 8518.10.80 9014.10.60 9818.00.05
8411.11.80 8479.89.65 8518.21.00 9014.10.70 9818.00.07
8411.12.40 8479.89.70 8518.22.00 9014.10.90
8411.12.80 8479.89.95 8518.29.40 9014.20.20

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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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Duty-Free Treatment for Civil Aviation Products of Japan: May Be Returning

September 4, 2025 by Leave a comment

Today the White House issued an executive order describing the new tariff agreement with Japan.

The new executive order establishes a baseline 15% tariff on goods of Japan. But it appears that aircraft parts produced in Japan may be authorized for duty-free entry into the United States.

The new executive order appears to recognize the Agreement in Trade on Civil Aircraft (“ATCA”) as providing for duty-free treatment of civil aviation products from Japan. The language is complicated because it directs that “the tariffs imposed through the following Presidential actions and subsequent amendments to those actions shall no longer apply.” The clause lists four Presidential actions. The problem is that the new executive order is not described as a specific amendment to those four Presidential actions, although it cross-references them. This leaves the administration some room to decide that the ATCA doesn’t really exempt aircraft parts from the 15% duty on goods of Japan.

But it appears that the current intent of the Administration is to recognize the ATCA duty-free treatment of civil aircraft parts that are the product of Japan. If this is implemented as we expect, then Japan will join the United Kingdom as only the second jurisdiction in which the ATCA is allowed to once-again provide duty-free treatment to civil aircraft parts, overcoming the Chapter 99 tariffs. It will take a few days for this to get implemented in the HTSUS, and when it is then the implementation will clarify the impact on aircraft parts.

In addition, the White House executive order announced a $550 billion investment in the United States by Japan. The Japan Times reported that 1-2% of this will be direct investment and the remainder will be provided in the form of loans and loan guarantees in the United States.

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Late Friday Changes to the Tariff Rules – Still No Love for EU Aircraft Parts

August 29, 2025 by Leave a comment

To round out our week, this afternoon the government has issued new tariff rules. Spoiler alert – it extends certain exemptions for products of China, but it does nothing useful for aircraft parts.

Welcome to the world, revision 21 of the 2025 HTSUS!

I’ve been watching the HTSUS carefully because I am expecting to see a change excluding EU aircraft parts from the ‘product-of-the-EU’ tariffs in Chapter 99. That change has not yet been issued. The change was foreshadowed in a White House Statement that was issued a week ago (see our blog post from 8/22). But the 15% duty rate is still (currently) applied to aircraft parts that are products of the EU.

So what did we see in revision 21? Minor changes to the way that we process products of China. The China exceptions for certain goods (covered under HTSUS 9903.88.69 and 9903.88.70, and their cross-referenced subchapter III notes) are extended through November 29, 2025. These are a variety of specific goods that have been excluded from tariffs by order of the U.S. Trade Representative. The list includes certain LCD modules and main board assemblies. Most aircraft parts fall outside of this list of exempted products from China.

Keep your eyes out for 2025 HTSUS revision 22 – if that is issued next week then it might change the treatment of civil aircraft parts that are the product of the European Union.

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