HS Code:
The Aircraft, Spacecraft, and Parts Thereof category (HS Code: 88) encompasses a wide range of products related to aviation and space exploration. This includes civil and military aircraft, helicopters, spacecraft, satellites, and their respective parts and components. This category is critical to global transportation, defense, and telecommunications industries, with significant economic and strategic importance. Trade in this sector is driven by technological innovation, geopolitical factors, and the demand for air travel and satellite services.
Total Trade Volume
USD 250 billion
Data from 2022
Source
United Nations Comtrade Database & World Trade Organization (WTO)
USD 100 billion
40% of total trade of total trade
Increasing
USD 50 billion
20% of total trade of total trade
Stable
USD 30 billion
12% of total trade of total trade
Increasing
USD 20 billion
8% of total trade of total trade
Stable
USD 10 billion
4% of total trade of total trade
Increasing
Average Rate
2.5% ad valorem
Highest Rate
15% (imposed by certain developing countries on specific subcategories)
Lowest Rate
0% (under free trade agreements like the USMCA and EU trade pacts)
Increased demand for fuel-efficient aircraft
Driven by rising fuel costs and environmental regulations, manufacturers are focusing on lightweight materials and sustainable aviation fuels, boosting trade in innovative components.
2022
Growth in satellite and space technology trade
The rise of private space companies and demand for satellite-based internet services (e.g., Starlink) has led to a surge in spacecraft parts exports.
2021-2023
Supply chain disruptions post-COVID-19
Delays in aircraft production due to shortages of critical components have slowed trade recovery, though demand for air travel is rebounding.
2020-2022
The long-standing trade dispute between the US and EU over subsidies to Boeing and Airbus saw a temporary truce, with both sides suspending retaliatory tariffs on aircraft for five years.
June 2021
Reduced trade barriers temporarily, fostering smoother transatlantic trade in aircraft and parts, though underlying tensions remain.
Companies like SpaceX and Blue Origin have increased demand for spacecraft components, with significant contracts awarded for satellite launches and space station resupply missions.
Throughout 2022-2023
Boosted exports of spacecraft parts, particularly from the US, and encouraged international collaboration in space tech.
Major airlines and manufacturers committed to net-zero emissions by 2050, driving investment in new aircraft designs and alternative fuel technologies.
October 2021 (IATA Annual Meeting)
Increased trade in next-generation aircraft parts and retrofit kits, with a focus on reducing carbon footprints.