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Background
Existing problems for airlines were highlighted
and grew significantly after the unprecedented chain of events of
11 September 2001. In response, airline executives have altered
cost structures; and radically refocused and restructured their
operations.
Customs and international trade issues
Airlines are involved in international
movements of passengers and goods and are faced with a vast and
confusing array of customs procedures and compliance responsibilities.
The consequences for an airline making errors - often without realising
the consequences - are huge: considerable amounts of money can be
lost and, possibly even more importantly, a working relationship
with the customs authorities can be damaged, carrying implications
for the speed of clearance of passengers and goods.
Chicago Convention: The customs treatment
of airlines is mostly governed by Article 24 of the Chicago Convention
which allows for aircraft on a flight to, from, or across the territory
of another contracting State to be admitted temporarily free of
duty, subject to the customs regulations of the State. Fuel, lubricating
oils, spare parts, and regular equipment and aircraft stores on
board an aircraft of a contracting State, on arrival in the territory
of another contracting State and retained on board on leaving the
territory of that State shall be exempt from customs duty, inspection
fees or similar national or local duties and charges. This exemption
shall not apply to any quantities or articles unloaded, except in
accordance with the customs regulations of the State, which may
require that they shall be kept under customs supervision.
Cabotage: There is a lot of confusion
in respect of customs and cabotage for operators flying to, from
and within the European Union. In essence, there are well-founded
concerns that customs administration in EU Member States are now
taking divergent views regarding what constitutes an internal flight;
what is business and what is private use, etc. There is an enormous
amount of uncertainty about what one can and can't do and the customs
authorisations and documentation needed to support entry and movement
within the EU.
Duty frees: A key international trade
matter is the global duty free allowances available to passengers
travelling worldwide. Duty free allowances are normally only available
if the goods are carried personally by the passenger. The allowances
usually cover tobacco products, wines, spirits and perfume. As well
as the issue of allowances there are issues in respect of stock
loss and the payment of excise duty to Customs.
Solutions to help you succeed
We offer a variety of solutions to the
airline industry. We can provide:
- Training programmes for those involved
in the import and export of aircraft
parts;
- Details of duty free allowances worldwide;
- Guidance on Aircraft Stores operations
and bonded facilities;
- Advice on best practice and minimisation
of customs duty and excise payments;
and
- Assistance with customs cabotage
problems.
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