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Allister Crossley TEP

The EU and Foreign Registered Aircraft

Posted by Allister Crossley TEP on 11th May 2016

The US is currently the largest market for business aviation with approximately 54% of projected aircraft deliveries between 2015 –2024. Of the total predicted deliveries during the same period, 25% are likely to be within the Ultra Long Range segment of the market, demonstrating the need to be able to travel globally. The US is one of Europe’s biggest trading partners with US based companies looking towards Europe for development and growth, requiring the ability to operate within Europe with free circulation and not under the constraints of the Temporary Admission Rules.

There is a need for US businesses to be able to travel within the Europe Union (EU) and possibly transport people with the necessary skills and market knowledge to drive their desire for growth. Companies will look to the local markets to obtain these qualities and therefore require the ability to transport them, likely EU citizens.

The introduction of the new Union Customs Code on 1 May 2016 has impacted on solutions available to owners of aircraft established outside the EU.

To be able to fully import an aircraft and benefit from end-use relief into the EU, the importer of the aircraft must be established within the EU and have a factual or legal right to dispose of the aircraft. The aircraft must be registered as a civil aircraft on a public register, however, there is no restriction as to the location of the register i.e. it can be in a Member State or in a third (non-EU) country.

In light of the above, it is still possible for an aircraft owner to look to establish a leasing structure within the EU to fully import an aircraft and benefit from end-use relief.

Isle of Man structures continue to present owners that operate their aircraft for business purposes with an ideal opportunity to import their aircraft into the EU, even if registered outside the EU.

It remains the case that consideration, planning and professional advice is required to ensure the structure is both compliant and meets the owner’s requirements.

Döhle Corporate and Trust Services Limited is a regulated corporate service provider, together with our network of VAT advisors we can assist with the establishment of the appropriate structures for aircraft owners.

Allister Crossley

Senior Manager – Aviation


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