Duty exemption prolonged for aircraft imports into EAEU

Zero dutties for imported turboprops will be discontinnued on January 1, 2018, across the EAEU for the exception of Kazakhstan and Kyrgyzstan The customs duty preferences for certain passenger jets will remain in force until late 2020 (Aeroflot)

The Eurasian Economic Commission (EEC) Council has prolonged until 2020 the complete exemption from all taxes and duties for medium-haul passenger jets being temporarily imported into the Eurasian Economic Union (EAEU).

The decision comes in response to a request by Russia, an EAEU member state, which argued that the current exemption regime was expiring at the end of 2017.

The Council also prolonged the duty-free operation period for such aircraft from five to eight years, provided that the airframe’s age does not exceed 12 years, and that it will leave the EAEU territory upon turning 16.

The move is aimed at modernizing the fleet operated in the EAEU (which also includes Armenia, Belarus, Kazakhstan, and Kyrgyzstan), and should facilitate imports of such popular airliner types as the Airbus A320 and the Boeing 737. The Council’s decision will come into effect on January 1, 2018.

The decision does not come at the expense of Russian-made aircraft, particularly of the Sukhoi Superjet 100, because the customs duty exemption does not cover airliners seating between 50 and 110 passengers.

The EEC Council also prolonged through late 2020 the customs duty exemption for passenger turboprops being imported into Kazakhstan. The same rules will apply to neighboring Kyrgyzstan as a measure to lower the costs of passenger transportation on domestic routes within the two countries.

At least 12 airliners worth a total of $281.7 million are expected to be imported into Kazakhstan by 2028. Kyrgyzstan’s national carrier is planning to purchase three turboprops, worth up to $30 million in total, in 2017-19.

Elsewhere within the EAEU, the exemption for turboprop aircraft seating not more than 79 passengers will be discontinued on January 1, 2018.

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