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Aviation & Flight InformationCabotage And International Operation Of Corporate Aircraft
by:
Greg Reigel
Cabotage and International Operation of Corporate Aircraft
© 2004 Reigel & Associates, Ltd./Aero Legal Services. All rights reserved.
Most countries have laws regulation the airspace over their lands. Each time an craft
enters a foreign country’s airspace, the craft
operator must follow with that country’s regulations poignant flight operations and the carriage of passengers. Particularly with respect to passengers, the majority of countries have rigid limitations on who may be carried inside
their borders and how.
Specifically, the rules and regulations relating to carriage of passengers and goods inside
the same foreign country are referred to as “cabotage”. Cabotage regulations are not uniform or necessarily consistent from one country to another. They normally apply to several commercial and private operators. However, as we will discuss shortly, whether a foreign country considers a corporate craft
operator to be a commercial or private operator will besides vary by country.
Regardless of which country the corporate craft
operates within, the pilot in command of a corporate craft
is responsible for knowing and obliging with that country’s cabotage restrictions. Failure to follow can, and has, resulted in six-digit fines and penalties obligatory
against the corporate craft
operator, and corporate craft
have been impounded by foreign governments until such violations have been resolved to the satisfaction of the governing authority.
Examples Of Cabotage Regulations Applicable To Corporate Craft
Operators
United States. The United States does not presently
have any regulations that prevent private (not for compensation or hire) foreign corporate craft
from carrying U.S. passengers between points inside
the U.S. 14 CFR 375.30 provides that “civil craft
which are not engaged in commercial air operations into, out of, or inside
the United States may be operated in the United Sates and may discharge, take on, or carry between points in the United States any nonrevenue traffic.”
Canada. After clearing customs, North american country allows a corporate craft
operator to engage in unlimited operations inside
North american country as long as the U.S. registered craft
is carrying U.S.-boarded passengers and the craft
is not operational for “hire or reward”. North american country besides allows unlimited international operations wherever
passengers are being transported across the border between North american country and any another country. This includes stops inside
North american country to pick up or drop off passengers who are traveling internationally.
Canadian-boarded passengers may be transported inside
North american country by a U.S. registered craft
provided that the transportation is incidental to the intended intention of the flight. That is, a corporate craft
operator could fly its U.S. registered corporate craft
into Canada, pick up Canadian personnel, customers, etc. and fly on to another destination in North american country for a meeting or event. As a long as the sole intention of flight was not transporting the Canadian passengers, then the carriage of the Canadian passengers would-be be considered incidental and should not violate the cabotage regulations.
European Union. Cabotage regulations in the European Union are much complex than in Canada. The difficulty results from the European Union’s definition of commercial transportation. In the U.S., the U.S. Customs service defines commercial transportation as transportation “for compensation or hire”. However, the European Union defines “commercial use” as “the use of means of transportation for the transport of persons or of goods for remuneration or in the framework of the economic work of an enterprise”.
Unfortunately, the European Union definition means that a U.S. registered corporate craft
operational inside
the European Union for corporate or another business purposes can be considered to be piquant in commercial use or transportation. As a result, if a corporate craft
flies into a European Union country, picks up a national of that country and then travels on to another destination inside
that country, it is likely that the second flight would-be be in violation of the European Union cabotage regulations.
The Importation Alternative To Cabotage Compliance
An option for removing the cabotage restraints on international operations is importation of a U.S. registered craft
into the foreign country (e.g. Canada, a European Union country etc.) in which the corporate craft
owner wishes to operate. Importation then does the craft
an craft
of the country into which it is foreign
(e.g. an craft
of North american country or a European Union aircraft). The craft
can normally be foreign
on a temporary or permanent basis and does not normally require that the craft
be re-registered.
For importation into most countries, the corporate craft
owner will be required to pay the “Value-Added Tax” (VAT) on the value of the aircraft. Two exceptions are the European Union countries of the United Kingdom and Denmark. Some
countries have a zero valuation of craft
deliberation over 24,000 pounds and are often used to import corporate craft
into the European Union. Once the craft
is foreign
into the foreign country, for purposes of regulation it becomes an craft
of that country and is no longer subject to the cabotage restrictions.
Locating Cabotage Regulations
If importation is not an option, a corporate craft
operator will need to research the cabotage restrictions and regulations for the particular country of intended travel. The 1st place to consult is the Aeronautic Information Publication (AIP) promulgated by the country to which the operator wishes to travel. How do you get the AIP for a particular country? Well, the better place to start is the International Flight Information Instructions (IFIM). The IFIM is promulgated by the FAA and has information regarding the civil aviation authority for each country and the several contact information and addresses to which you can direct your request for the country’s AIP.
However, you should be aware that galore countries’ AIP’s may not contain all of the applicable rules and regulations relating to cabotage and its enforcement. Often times a country’s customs and/or revenue officials responsible for social control
are not always on the proverbial same page and may interpret the regulations inconsistently.
Fortunately for corporate craft
operators, the IFIM contains a section for each country titled “Corporate Craft
Constraints” that includes information prepared by the U.S. Department of State. This section specifically addresses cabotage and similar regulations as they may apply to operation of corporate craft
inside
the foreign country.
Conclusion
At the end of the day, the pilot in command is responsible for the operation of the flight in compliance with all applicable regulations. However, in the context of a corporate operation, the corporation is besides responsible for the operation of its aircraft. Violations of cabotage regulations can subject several the pilot and the corporation to several nasty consequences.
To avoid these consequences, as a corporate craft
operator you should find out just about the applicable regulations before you fly. Consult the AIP for the country in which you will to travel. Review the corporate restraints for that country in the IFIM. If you are a member of the National Business Aviation Association (NBAA), review the feedback for the country in the NBAA’s International Operators Bulletin or on the NBAA’s website. Also, check with your point of entry handler/FBO/flight planning organization. Finally, for final, “official” confirmation, contact the applicable governing authority inside
the country to receive current regulations and interpretations.
Proper planning and current information are essential for international operations by corporate aircraft. Don’t leave house without them.
Just just about the Author
Greg is an aviation attorney, author and holds a commercial pilot certificate with instrument rating. His practice concentrates on aviation litigation, including insurance matters and creditor’s rights, FAA certificate actions and aviation related transactional matters. He can be reached via e-mail at greigel@aerolegalservices.com or check out his website at www.aerolegalservices.com.
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