What Happened
Navigating Exemptions And Duty Drawback Provisions
New US tariffs could increase costs across aerospace supply chains, but exemptions and duty drawback provisions offer routes to relief. The forced-labour tariff includes a generally applicable exemption for civil aircraft, engines, and parts. However, aerospace enterprises import more than just these exempted items, and some inputs may still face duties. According to Alliance Drawback Services founder and CEO Tony Nogueras, Section 301 duties are eligible for duty drawback, which could enable aerospace companies to recover tariffs. This was first reported by an unknown source.