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The Importation Alternative To Cabotage Compliance
An option for removing
cabotage restraints on international operations is importation of a U.S. registered aircraft into
foreign country (e.g. Canada, a European Union country etc.) in which
corporate aircraft owner wishes to operate. Importation then makes
aircraft an aircraft of
country into which it is imported (e.g. an aircraft of Canada or a European Union aircraft). The aircraft can usually be imported on a temporary or permanent basis and does not usually require that
aircraft be re-registered.
For importation into most countries,
corporate aircraft owner will be required to pay
“Value-Added Tax” (VAT) on
value of
aircraft. Two exceptions are
European Union countries of
United Kingdom and Denmark. Both countries have a zero valuation of aircraft weighing over 24,000 pounds and are frequently used to import corporate aircraft into
European Union. Once
aircraft is imported into
foreign country, for purposes of regulation it becomes an aircraft of that country and is no longer subject to
cabotage restrictions.
Locating Cabotage Regulations
If importation is not an option, a corporate aircraft operator will need to research
cabotage restrictions and regulations for
particular country of intended travel. The first place to consult is
Aeronautical Information Publication (AIP) published by
country to which
operator wishes to travel. How do you get
AIP for a particular country? Well,
best place to start is
International Flight Information Manual (IFIM). The IFIM is published by
FAA and has information regarding
civil aviation authority for each country and
respective contact information and addresses to which you can direct your request for
country’s AIP.
However, you should be aware that many countries’ AIP’s may not contain all of
applicable rules and regulations relating to cabotage and its enforcement. Often times a country’s customs and/or revenue officials responsible for enforcement are not always on
proverbial same page and may interpret
regulations inconsistently.
Fortunately for corporate aircraft operators,
IFIM contains a section for each country titled “Corporate Aircraft Constraints” that includes information prepared by
U.S. Department of State. This section specifically addresses cabotage and similar regulations as they may apply to operation of corporate aircraft within
foreign country.
Conclusion
At
end of
day,
pilot in command is responsible for
operation of
flight in compliance with all applicable regulations. However, in
context of a corporate operation,
corporation is also responsible for
operation of its aircraft. Violations of cabotage regulations can subject both
pilot and
corporation to some nasty consequences.
To avoid these consequences, as a corporate aircraft operator you should find out about
applicable regulations before you fly. Consult
AIP for
country in which you wish to travel. Review
corporate restraints for that country in
IFIM. If you are a member of
National Business Aviation Association (NBAA), review
feedback for
country in
NBAA’s International Operators Bulletin or on
NBAA’s website. Also, check with your point of entry handler/FBO/flight planning organization. Finally, for final, “official” confirmation, contact
applicable governing authority within
country to obtain current regulations and interpretations.
Proper planning and current information are essential for international operations by corporate aircraft. Don’t leave home without them.

Greg is an aviation attorney, author and holds a commercial pilot certificate with instrument rating. His practice concentrates on aviation litigation, including insurance matters and creditor’s rights, FAA certificate actions and aviation related transactional matters. He can be reached via e-mail at greigel@aerolegalservices.com or check out his website at www.aerolegalservices.com.