Important ReadingsRegulations for Imports of Repaired / Reconditioned Aircraft Spares*

Presenter # Vikas Maini Director Custom RegulatoryI R C S up p l y Ch a i n S o l ut i o n s L i m i t ed

* Regulations are subjected to change any time by GOI

Massive expansion in aviation industry had invited large amount of aviation spares movement’s to support one of the largest industry serving almost every erect of global trade.

Practically, that was not possible for airlines to operate with fresh spares imports every time as those can be very expensive & can increase operational cost rapidly hence almost every airline had started looking at use of reconditioned / repaired aircraft spares subjected to airworthiness certification from manufacture.

In beginning certain restriction were imposed by Director General of Civil Aviation, Government of India to control secondary reconditioned / repaired spares.

There is an uncertainty and need to understand the relaxations clearly which are extended to aviation industry by Government of India removing restrictions on import of reconditioned / repair aircraft spares.

Introduction

Main features of foreign trade procedures / Policy year 2006-2007 & 2008-2009

Import of Reconditioned/ Second Hand Aircraft Spares (Foreign Trade Procedures) – 2.41

2006-2007Air India, Indian Airlines, Vayudoot, Pawan Hans Ltd. and scheduled domestic private airlines, private sector/public sector companies and State governments operating executive/ training aircraft or those engaged in the aerial spraying of crops and non scheduled airlines and charter service operators will be eligible to import, without a licence/ certificate/permission, reconditioned/ second hand aircraft spares on the recommendation of the Director General of Civil Aviation, Government of India.

Foreign airlines shall also be eligible to import without a licence/ certificate/ permission, reconditioned/second hand aircraft spares on the recommendation of the Director General of Civil Aviation, Government of India.

2008-2009Import Authorization for reconditioned / second hand aircraft spares is not needed on recommendation of Director General of Civil Aviation, Government of India (DGCA).

Re-import of goods repaired abroad (Foreign Trade Policy) – 2.22

Capital goods, equipments, components, parts and accessories, whether imported or indigenous, except those restricted under ITC (HS) may be sent abroad for repairs, testing, quality improvement or up gradation or standardization of technology and re-imported without an Authorization.

Notification for exemption from duties on Aircraft Spares

Serial Number Chapter Description of goods Duty rate Condition

346 88 Gliders, or simulators of aeroplanes NIL -

346 A88 and any other

chapterParts of gliders or simulators of aircrafts (excluding

rubber tyres and tubes of gliders) NIL 67

346 B8802 (except 8802

60 00) All goods NIL 101

346 C 8802 Helicopters 3% -

346 D 8803Parts, of aircraft of heading

8802 NIL 102

Main notification 21/2002 amended vide notification 20/2007

Condition “102“ for clearance under “346D“

If, - (ii) imported for servicing, repair or maintenance of aircraft, which is used for operating scheduled air transport

service or the scheduled air cargo service, as the case may be; or(iii) the parts are brought into India for servicing, repair or maintenance of an aircraft mentioned in clause (ii) of

Condition No.101. Explanation.- The expressions “scheduled air transport service” and “scheduled air cargo service” shall have

the meanings respectively assigned to them in Condition No.101.”

Extracts : -

– Foreign trade procedure 2006-2007 & 2008-2009 governed by Directorate General of Foreign trade wherein reconditioned / repair aircraft parts are permitted to import freely, which were earlier subjected to recommendation from DGCA (FTP 2006-2007) such restriction has been lifted by government in 2008-2009 FTP stating the recommendations from DGCA are no more required for reconditioned / second hand aircraft spares.

– In view of above clarification, aircraft spare parts which were exported for repair or reconditioned can be imported as a fresh / normal imports claiming benefit of duty under main notification 21/2002 serial number 346D subjected to notification condition stated at serial number 102.

Special Note: -

– Even though restrictions on repaired / reconditioned aircraft spares have been lifted by GOI, still it is mandatory to certify parts as aircraft spare / parts to claim the notification benefits. Non aircraft parts are still governed by the restrictions for imports, while re-importing non aircraft parts procedure will still remain same as for normal re-import shipment subjected to identification / establishing identity of goods with export documents.

– Only those parts which were sent abroad can be imported without any restrictions (refer to foreign trade policy 2007-2008 serial number 2.22) which make it clear that any specified goods which are exported for repair / upgrade or any other activity related to improvement in technology can be imported without any licence, has to undergo re-import clearance procedure of identification that goods were exported from India.

Thank You

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