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