Manufacturing drawback
Import components, forgings, castings and materials, build finished articles, and export them. Duties on the dutiable inputs are recovered through manufacturing drawback when the engine, assembly or aircraft is exported.
Aerospace runs on a global bill of materials and a global customer base. Manufacturers that import components and materials, then export finished engines, assemblies, aircraft and service parts, can recover the duties paid along the way through manufacturing drawback.
The cross-border flow of parts and finished articles is precisely the pattern drawback rewards.
Import components, forgings, castings and materials, build finished articles, and export them. Duties on the dutiable inputs are recovered through manufacturing drawback when the engine, assembly or aircraft is exported.
Where components originate in China and carry Section 301 duties, those additional duties are recoverable when the finished article is exported.
Some civil aircraft parts enter duty-free under the Agreement on Trade in Civil Aircraft, so there is nothing to recover on those lines. Drawback focuses on the dutiable components, materials and Section 301 duties in the bill of materials.
Imported parts and materials matched to exported engines, structures and assemblies by direct identification or substitution of the same 8-digit HTS.
Exported service and aftermarket parts drawn from dutiable imports are a large, frequently overlooked recovery stream across the aerospace aftermarket.
Duties paid on dutiable imported components are recovered at 99% through manufacturing drawback when the finished engine, assembly or aircraft is exported, within the five-year window.
Often yes. Even where civil aircraft parts are duty-free, the dutiable components, raw materials and any Section 301 duties in a global bill of materials can add up to a meaningful recovery.
Yes, exported spares and MRO parts drawn from dutiable imports can support drawback with the right matching and documentation.
A licensed U.S. Customs broker will map your dutiable inputs to your exports, confirm what is recoverable, and build a manufacturing drawback program end to end.