Aircraft & Related Products

• Trade and Tariffs
• Tariff Elimination

Trade and Tariffs

This sector is defined by the World Trade Organization agreement on Civil Aircraft. Aircraft and related products, which totaled almost $78 million in 2003, accounted for 21 percent of total non-textile industrial good exports to Oman. Airplanes and other aircraft dominate this area, accounting for 79 percent of total U.S. exports to the region in this sector.

Oman either applies a duty of 5 percent on imports of aircraft and related products or allows the products to enter duty-free. The average tariff for this sector is 4.21 percent

Oman did not export any products in this sector to the United States in 2003.

The United States, as a party to the Agreement on Trade in Civil Aircraft, applies duty-free treatment on an MFN basis to these products.

Tariff Elimination

The U.S.-Oman FTA will eliminate all industrial tariffs in the United States and Oman within 10 years of implementation. Tariffs will be phased out according to three tariff elimination categories: 1) immediate elimination, 2) equal cuts over 5 years, and 3) equal cuts over 10 years.

Currently, 78 percent of aircraft and related products imported into the United States from Oman receive duty-free treatment. Upon implementation of the agreement, all duties on the remaining 22 percent of aircraft and related products will be eliminated immediately for imports from Oman.

Approximately 18 percent of aircraft and related products enter Oman duty-free. Immediately upon implementation of the agreement, Oman will allow for duty-free treatment for 100 percent of aircraft and related products imported from the United States.

International Trade Administration
Manufacturing and Services
Office of Trade Policy Analysis