CON-13-02 CO:R:C:E 224266 TLS

Mr. Guillermo Orozco
Mexicana Airlines
P.O. Box 3670
Brownsville, Texas 78520

RE: Ruling request concerning the dutiable status of foreign aircraft parts imported from Mexico for repairs; Air Transport Agreement between United States Government and United Mexican States Government, article 7, paragraph (b); C.S.D. 80-249 (May 15, 1980); Customs ruling HQ 223604 (May 28, 1992).

Dear Mr. Orozco:

The above-referenced ruling request has been forwarded to this office for our consideration. We have considered the points raised and our decision follows.

FACTS:

Your company is importing aircraft parts from Mexico to the United States for repairs. The parts are to be returned to Mexico upon sufficient repair. The Laredo, Texas Customs office has responded to previous inquiries by stating that foreign aircraft parts imported for repairs are not subject to the Air Transport Agreement between Mexico and the U.S.

ISSUE:

Whether the Air Transport Agreement between Mexico and the U.S. applies to foreign aircraft parts entered into the United States for repairs.

LAW AND ANALYSIS:

The Air Transport Agreement (Agreement) provides in part for the following: Article 7- In order to prevent discriminatory practices and to assure equality of treatment, both parties agree further to observe the following principles: (b) ...spare parts, regular equipment, and stores introduced into the territory of one party by the other party or its nationals, and intended solely for use by aircraft of such party shall be exempt on a basis of reciprocity from customs duties, inspection fees and other national duties or charges. (Emphasis added.) 12 UST 60, TIAS 4675, 402 UNTS 177 (1961); extended and amended, 22 UST 1492, TIAS 7167, 800 UNTS 356 ( ).

In this case, there is no question that the subject spare parts are to be imported and then returned to the Mexican airline for use in its aircraft. The treaty clearly provides for an exemption from duties and other charges for such importations. There is also no dispute that the imported items are imported for repair, rather than as spare parts to be stored for future use. We find nothing in the agreement that suggests that broken parts are also covered under the treaty, however. While the question of whether they are of foreign or domestic origin is immaterial for the purposes of administering the treaty, we find that the treaty only covers those parts that are imported to be stored in this country for the future use of the importer. Therefore, we are compelled to find that the Air Transport Agreement allows for an exemption from duties and other charges on civil aircraft spare parts to be used in Mexican aircraft imported from Mexico only if they are imported with the sole purpose of storing those parts in this country for future use by the importer.

In the alternative, you may enter the subject parts under the Civil Aircraft Agreement, General Note 3(c)(iv) of the Harmonized Tariff Schedule of the United States Annotated (HTSUSA). See also 19 CFR 10.183. Those provisions allow for the free of duty importation of civil aircraft parts, whether broken or unbroken, if they are certified by the importer for use in civil aircraft. C.S.D. 80-249 (May 15, 1980); Customs ruling HQ 223604 (May 28, 1992). You might also want enter the parts under a temporary importation bond (TIB). The requirements for TIB entry are provided for in 19 CFR 10.31. You should contact the port through which you plan to import the parts for further information.

HOLDING:

The importation from Mexico of aircraft parts to be used in the aircraft of the importer are not eligible for exemption from customs duties and other charges pursuant to the Air Transport Agreement between the United States and Mexico, Article 7, paragraph (b) unless they are spare parts to be stored in this country for future use by the importer. It is immaterial whether the parts are of domestic or foreign origin.

Sincerely,

John Durant, Director