June 2, 2021
NBAA recently published a new members-only resource to de-mystify aircraft export requirements, which are a critical component of many aircraft transactions and for which there are significant penalties for non-compliance.
Selling or leasing an aircraft to foreign owners or basing a U.S.-registered aircraft outside of the country, requires regulatory compliance with the FAA, U.S. Department of Commerce’s Census Bureau, Customs and Border Protection and more. Failure to comply with these requirements can result in significant penalties; in fact, failure to comply with electronic export information (EEI) filings, licensing requirements and restricted end-user and end-use limitations was recently cited in a federal criminal indictment.
The new resource provides an overview of permanent and temporary export requirements; details on EEI filings, including when one is required, who is responsible for filing the EEI and how to correct errors; and a number of best practices to consider when exporting an aircraft.
Scott O’Brien, NBAA’s senior director of government affairs, said these considerations, and others identified in the publication, should be included on aircraft transaction checklists.
“While there is significant focus on FAA registry issues during an aircraft transaction, it is critical to review potential export issues, even if the aircraft will remain on the N-registry when it leaves the U.S.,” O’Brien explained.
The resource also provides examples of some common scenarios to illustrate various requirements.
“The new publication, developed in coordination with industry partners and government agencies, provides a thorough overview of requirements for aircraft exports. However, aircraft sellers should retain appropriate legal counsel and possibly a customs broker to guide the sale and export process,” said O’Brien.
Aircraft exporting compliance tools and best practices will be highlighted at the upcoming NBAA GO Aviation Tax & Regulatory Compliance Seminar, June 9-10.