Purchasing an aircraft from a foreign seller can widen the inventory to choose from which are often offered at more attractive prices. However, for North American buyers, understanding the range of additional steps you have to take, and the additional laws you have to comply with must first be factored into your aircraft acquisition plans to make the transaction a success.
Federal registration and import protocols
Under federal law, American Citizens must register any aircraft they operate within the United States with the Federal Aviation Administration (FAA) Aircraft Registration Branch. To import a foreign registered aircraft, you must first “de-register” the aircraft from the foreign country’s civil aviation registry. You will need an official statement from that country’s aviation authority confirming the completed “deregistration.” Without that, the FAA will not process your application for US registration. The airframe and engine logs must be in the English Language, and the maintenance records and part tags must be in compliance with the Federal Aviation Regulations.
You will need to prepare and file an application for registration with proof of ownership to meet the FAA’s eligibility requirements. If you are not a U.S. citizen, your only alternative is to apply for registration through a noncitizen trust or voting trust service approved by the agency.
The FAA does prioritize the processing of importation cases, but processing still takes several weeks. Unlike standard domestic transactions, federal regulations prohibit operating an imported aircraft on temporary authority while your application is pending.
Customs risks and tax obligations
Bringing an aircraft into the country triggers strict entry requirements enforced by U.S. Customs and Border Protection (CBP). You need to declare the vehicle, submit invoices and transport records and clear it through an official port of entry. All of this must be arranged in advance so that on the date of transport into the country, everything goes smoothly.
Furthermore, under international trade agreements, many civil airplanes enter the country free of import duties, provided you file for the correct exemption with customs. But even with this, other standard charges may apply. For example, CBP may assess administrative processing fees at entry, and federal excise taxes apply once the aircraft enters service.
Airworthiness gaps and compliance barriers
A foreign aircraft may hold a valid certificate in its home country and still fall short of FAA standards. Any imported aircraft has to conform to the type certificate issued to that aircraft by the FAA, and be in safe operating condition before it can receive a domestic airworthiness certificate.
If the exporting country holds a bilateral safety agreement with the U.S., the path may be smoother. The foreign authority can issue an export certificate of airworthiness, and the FAA will often accept it after conducting its own review. When no such agreement exists, or if the aircraft was modified abroad, the process is more complex. You may need to reverse foreign changes, replace nonconforming parts or undergo an inspection equal to a 100-hour review, all of which add cost and delay.
Transaction structure and legal safeguards
An overseas aircraft purchase carries risks which can be avoided with careful planning. A prepurchase inspection by a qualified U.S. technician or engineer familiar with the make and model is one of the most important steps for identifying issues before you close the deal. A thorough title search is equally important. Because the FAA registry only tracks U.S. aircraft, you engage a Title service to check the exporting country’s aviation registry and the International Registry (Cape Town Treaty) to verify that no foreign liens, mortgages or hidden debts follow the plane home.
Escrow services add another layer of protection which you should engage to holding funds until acceptance, approvals, inspections and filings are complete. This is especially valuable when the seller operates under a different legal system in which disputes are more difficult and more expensive to resolve.
With experienced legal and technical talent at your side who can plan for and guide you through each step of the process will make your foreign registered aircraft purchase a successful transaction.