COMMERCIAL AND CORPORATE FLYING WITHIN THE EUROPEAN UNION

Short & Sweet no. 19
The real differences between full importation and Temporary Admission

Added September 2023

Select the flight privileges needed
See the risks and liabilities involved
Get a basis for a decision on how to fly within the EU
Choose the most applicable customs procedure

We have made a simple overview of the main decision points when choosing between full importation and Temporary Admission (TA). The overview is made primarily for EU outsiders but will of course also grant EU insiders a view on the same issues.

The customs aspect of flying within the EU
Any aircraft flying into the EU will operate under customs control using either the Temporary Admission procedure (TA) or full importation. There are no other options. The TA procedure can only be used by EU outsiders where the aircraft is owned (including any UBOs), operated, registered, and based outside the EU, leaving EU insiders with only one option: full importation. EU outsiders can, of course, choose to use full importation instead of TA if they find it beneficial. However, both options can be used commercially or privately if applied correctly.

Please have a look at the below tables and start locating the flight privileges needed and then learn about the risks and liabilities involved and thereafter take a decision on how to fly within the EU using the most applicable customs procedure.

Nature of the customs entry method	Full importation	Temporary Admission
How are taxes handled?	Payment of all taxes 1)	Suspension of all taxes
Scope of use	Mandatory for EU insiders, but a full importation can be chosen as the preferred option by EU outsiders if they want a free circulation status	Only possible for EU outsiders

Aircraft structure and registration	Full importation	Temporary Admission
Involvement of EU elements	Yes	No 3)

Flight pattern, period of stay, and base	Full importation	Temporary Admission
Flying to one EU destination	Yes	Yes
Flying internally within the EU	Yes	Yes
Maximum period of stay	Unlimited	Six months per stay 4)
Fixed established EU base	Yes	No 4)

Persons onboard allowed	Full importation	Temporary Admission
EU passengers on internal EU-flights	Yes	Yes
EU crew on internal EU-flights	Yes	Yes

Type of flights allowed within the EU	Full importation	Temporary Admission
Corporate flights	Yes	Yes
Private flights	Yes	Yes
Commercial flights, like Part 135 group charters	Yes	Yes
Allowed to fly commercially within EU member states without getting traffic rights (charter permits)	No	No

Green = Possible Yellow = Impossible

Risks and liabilities	Full importation	Temporary Admission
The biggest risks	Wrong and unaccepted use 2) of the aircraft, e.g., non-business use of a corporate aircraft or non-commercial use of a commercial aircraft	Ramp checks without the operator being ready and able to prove the TA compliance convincingly
Geographical areas that the aircraft must be used correctly according to the EU regulation	Worldwide. After the importation, any future use of the aircraft, no matter where the aircraft is flying, must conform to the EU regulations	Only when flying within the EU
Statute of limitation	The VAT liability exists five years after the physical importation	Only when flying within the EU
Is non-business use allowed inside and outside the EU for corporate aircraft (Part 91)?	The answer is no unless all non-business flights worldwide are compensated correctly according to the EU regulation	Yes, all kinds of use is allowed. No compensation is required at all
Is non-commercial use allowed inside and outside the EU if the aircraft was imported using the EU 0% airline exemption (Part 135)?	Generally, no. However, it depends on the exact preconditions in the EU member state where the aircraft was imported. The required minimum commercial use is different between EU member states	Yes, all kinds of use is allowed. No compensation is required at all

Green = High flexibility Red = Low flexibility and extra liabilities

Legal background for Temporary Admission
The Istanbul convention from 1990, regulating the worldwide usage of TA, is not very precise, and the EU Commission have been and are therefore continuously publishing various working papers and guidelines, etc., to clarify the correct understanding of TA and its usage within the EU. Especially the 2014 working paper from the EU Customs Code Committee (available in English, French and German) is important. Operators should anyway be aware off that these documents are not binding for the EU member states, which is why different interpretations exist between member states, thus also why it is important to have a competent customs agency to outline the correct use and understanding based on the specific setup. The problem with local interpretations is often related to flights within France, Spain, Portugal, Italy and Greece, and less often other places.

Click here to see a list of the known grey zone areas where different interpretations of the TA procedure exist between member states and the areas where an operator often need guidance to use TA in a safe way. Yet, none of the situations cause problems for using TA if handled and documented correctly.

How can we help?
If you have questions about the above, please do not hesitate to contact us.

Taxes (the VAT) are typically deducted or exempted on the basis that correct use of the aircraft will happen
Some business activities are not subject to VAT, such as selected real estate activities, banking and finance, insurance, gaming, and holding companies, etc. The listing is not complete. These activities will, therefore, not be seen as correct economic activities in this context
San Marino (T7), Guernsey (2), and UK (G) registrations are compatible with TA
The aircraft can stay up to six months per stay, and multiple entries are allowed