Aircraft and their parts
Information on authorised use and importing civil aircraft parts.
Authorised use is a way to reduce the amount of duty an authorisation holder has to pay when they import aircraft or aircraft parts. There are 3 areas where this can be applied:
- parts to be fitted to a civil aircraft - this can be used for parts that are imported for the manufacture, repair, maintenance, rebuilding, modification or conversion of a civil aircraft
- civil aircraft
- ground flying trainers - this can be used for all ground flying trainers (flight simulators), as well as certain parts used to construct, maintain, repair, equip, fit out, or convert them
What a civil aircraft is
A civil aircraft is one that is registered with a civil aviation authority, such as the Civil Aviation Authority (CAA) in the UK. For certain types (for example, gliders), registration is not obligatory.
Aircraft used by the Police, Customs, or Coastguard that carry a military or non-civil registration rather than a civil registration, are not eligible. This is because these aircraft are owned and operated by government agencies, and they are not used for commercial purposes.
Eligible aircraft can be identified in Authorised use: Eligible goods and authorised uses, under commodity code header 8802.
Authorisation requirements for importing civil aircraft
In order to reduce administrative burden, an authorisation for authorised use is not required for civil aircraft that fall under these commodity codes:
- 8802110000
- 8802120000
- 8802200000
- 8802300000
- 8802400000
An authorisation is required to import an eligible aircraft that doesn’t fall under the the mentioned commodity codes.
Read section 40 of the United Kingdom Customs Tariff: Reliefs from Import Duty document for more information.
Civil aircraft parts that can be imported under authorised use
Authorised use covers certain parts that can be used in civil aircraft or ground flying trainers for the following purposes:
- construction
- maintenance
- conversion
- equipping
- repair
- fitting out
Eligible aircraft parts can be identified in Authorised use: Eligible goods and authorised uses, with the description ‘for use in civil aircraft’.
What goods are not eligible
Authorised use cannot be used to import:
- items of test equipment that are temporarily fitted to an aircraft and removed once readings have been taken
- Global Positioning Systems (GPS) equipment
- ground handling equipment
- parts that are imported to be repaired
Authorised use cannot be used for imports of aircraft owned and operated by non-UK companies that visit UK sites, if the UK established authorisation holder is not involved in the activity other than permitting their authorised use authorisation number to be used.
Spare parts that can be imported under authorised use
Essential spare aircraft parts may be entered to authorised use. They would normally be goods that are unlikely to see much usage but ready in the event they are needed. These items must be clearly identifiable in the inventory. Due to the nature of the aircraft industry, these essential spare parts may have a different period of discharge to other goods on the authorisation.
There is a way to reduce the amount of VAT an authorisation holder may have to pay on certain aircraft parts and equipment.
To qualify for zero rating, both of these conditions must be met. The parts and equipment must be:
- the sort usually installed or incorporated in the propulsion, navigation or communications systems, or the general structure of a qualifying aircraft
- for the incorporation or installation in a qualifying aircraft
A ‘qualifying aircraft’ is legally defined as any aircraft that’s used by either:
- an airline operating for reward chiefly on international routes
- a state institution and is of a weight of not less than 8,000kg and is neither designed nor adapted for use for recreation or pleasure -m the weight is its authorised maximum take-off weight (parts and equipment can include part-assembled aircraft, for example the fuselage, wings or hull)
VAT relief does not apply to raw materials, partially processed parts, or non-specialist goods or appliances. Read VAT Notice 744C Ships, trains, aircraft and associated services for more information.
As an alternative to authorised use, importers of aircraft parts may use the airworthiness certificate scheme. Traders can use it to suspend import duty for aircraft parts, components and other goods used for the manufacture, repair, maintenance, rebuilding or modification of aircraft. This is provided the goods have been issued with a certificate of airworthiness from a civil aviation authority. Traders do no need to apply for any authorisation to be able to use the scheme.
The airworthiness scheme does not cover the import of an aircraft.
Read section 45 of United Kingdom Customs Tariff: Reliefs from Import Duty document and using the airworthiness scheme for imported aircraft parts for more information on airworthiness.
Read Table 17 of the Reliefs Reference Document for the list of eligible goods.
Authorised use is considered complete when:
- goods used by airlines for the maintenance and repair of their aircraft are first put to prescribed use
- goods intended for certain classes of aircraft for the purposes of their construction, maintenance, conversion or equipping have been fitted, and the aircraft is either transferred to a person other than the authorisation holder or made available to its owner
- civil aircraft are registered in the public records prescribed for that purpose - this includes aircraft that are registered in the records of third-country Civil Aviation Authorities
If the aircraft is not required to be registered, such as an aircraft in kit form, authorised use is considered to be completed when suitable evidence of civil use is produced.
Aircraft and parts may also be exported in order to discharge their duty liability.
When goods have been put to their prescribed use or destroyed, the authorisation holder must tell HMRC by completing a Bill of Discharge (BoD) form.
Read completion of authorised use and discharging liability for more information.
An authorisation holder selling parts to someone else
Authorisation holders can sell authorised use parts to private or business owners of single aircraft who are not authorised for authorised use. However, the invoice must be marked: “Subject to Customs authorised use control - for use in civil aircraft only”. authorised use is considered complete at the time of sale. TORO is not required when selling parts to someone else.