When an aircraft from another geographic jurisdiction enters the EU, and no longer operates for commercial purposes on international routes, it ceases to be exempt from customs VAT and duty.
The facility selected for an aircraft storage or dis-assembly project requires authorisations from their local tax authority that enables them to suspend the customs taxes for imported assets while they deliver the project:
- Inward Processing Relief
- Customs Warehouse
eCube Solutions has the authorisations, knowledge and experience of the customs legislation to manage and discharge tax liabilities of behalf of clients.
Typical scenarios (all of which have been successfully managed during 2015):
- An aircraft is re-delivered from a non-EU airline to a lessor, and is subsequently made available for sale to parties who may / may not return the aircraft to commercial airline operations. In this situation, the aircraft is initially entered to IPR for performance of re-delivery tasks, and then transferred to Customs Warehouse for storage while the sale / purchase is agreed. Once the transaction is complete and the future of the aircraft has been determined, it can either be returned back to commercial (qualifying) operations for the new owner, or, if it becomes a part-out project, the aircraft will be declared back into IPR in order to undertake the dis-assembly.
- A part-out project of a non-EU aircraft takes place under IPR, and each of the As Removed components becomes a ‘Compensating Product’ under the process, meaning they are also covered under the IPR suspended tax regime. Those components will then be transferred back into the approved Customs Warehouse awaiting customer instructions. They can be stored in this environment, exported outside of the EU, transferred to another party with appropriate customs authorisations, or entered into free circulation by paying VAT and duty. If they are removed with a Form 1 or FAA 8130-3, with an intent to return to international commercial operations, then they can be declared into free circulation under the Airworthiness Certification scheme, meaning they will be exempt from duty and VAT.
- Exchange components are ordered from outside the EU to replace unserviceable components on an aircraft stored in a Care & Maintenance programme at eCube Solutions. The components can be entered to End Use, with the duty liabilities discharged by installing onto the stored aircraft.
Whatever your project requirements, or indeed whether you intend to bring an aircraft to eCube Solutions or not, please feel free to use our experience and knowledge for guidance in customs matters – contact us at any time to discuss customs management issues for aircraft arriving in the EU.