HS Code:
The Aircraft, Spacecraft, and Parts Thereof category (HS Code 88) encompasses a wide range of products including airplanes, helicopters, spacecraft, satellites, and their respective parts and components. This category is a critical segment of global trade, driven by the aerospace industry's importance in commercial aviation, defense, and space exploration. Trade in this sector is characterized by high-value transactions, complex supply chains, and significant regulatory oversight due to safety and security concerns.
Total Trade Volume
USD 319 billion
Data from 2022
Source
United Nations Comtrade Database
USD 130 billion
40.8% of total trade of total trade
Increasing
USD 50 billion
15.7% of total trade of total trade
Stable
USD 30 billion
9.4% of total trade of total trade
Increasing
USD 20 billion
6.3% of total trade of total trade
Stable
USD 15 billion
4.7% of total trade of total trade
Increasing
Average Rate
2.5% ad valorem
Highest Rate
15% (applied by some developing countries on specific aircraft parts)
Lowest Rate
0% (under free trade agreements like the WTO Agreement on Trade in Civil Aircraft)
Increased demand for fuel-efficient aircraft
Drives innovation in lightweight materials and sustainable aviation technologies, boosting trade in related parts and components.
2021-2023
Growth in space exploration investments
Rising trade in satellites and spacecraft components due to public and private sector initiatives like SpaceX and national space programs.
2020-2023
Supply chain disruptions post-COVID-19
Delays in production and delivery of aircraft and parts, affecting trade volumes and increasing costs.
2020-2022
The United States and European Union agreed to suspend tariffs related to the long-standing Airbus-Boeing dispute, facilitating smoother trade in aircraft and parts.
June 2021
Reduction in trade barriers, expected to increase transatlantic trade volume by 10-15% over the next five years.
Global push for greener aviation has led to increased investments in aircraft designed for SAF compatibility, influencing trade patterns for new aircraft models.
October 2022
Potential shift in demand toward next-generation aircraft, impacting manufacturers and exporters.
China's domestically produced C919 narrow-body aircraft received certification and began commercial operations, marking a significant step in China's aerospace ambitions.
December 2022
Increased competition in the global market, potentially reshaping trade dynamics in the coming decade.