Importing & Exporting An Aircraft

Importing & Exporting An Aircraft

Depending on the circumstance, Canadian and foreign rules impose additional reporting requirements and potential tax exposure for aircraft being exported from Canada or other jurisdictions. For example, if a buyer in a sale transaction intends to export the aircraft, seller must consider their obligations in relation to the collection of sales tax and the need to report both the transaction and export to the Canada Border Services Agency.

Similarly, importations of aircraft into Canada can attract duties and taxes, unless certain limited exemptions apply.

Failure to comply with these Canadian and foreign laws could potentially result in the aircraft being seized in future. Therefore, it is important to carefully consider these aircraft import/export issues during any aircraft transaction, including an aircraft lease which commences outside of Canada, prior to the aircraft’s importation.

A resource which may be useful for operations to Canada is the D-Memoranda, published by the Canada Border Services Agency (CBSA). These documents consolidate the administrative position of the CBSA, as informed by the administrative positions of the Canada Revenue Agency, Transport Canada, and the Canadian Transportation Agency.