MRO industry faces challenge of tariff refunds

Air cargo stakeholders are beginning the complicated process of seeking refunds on some tariffs enacted during President Donald Trump’s second administration. The refund process, involving multiple tariff types and inconsistent payment pass-through practices across the supply chain, is complex and fragmented, Jason Dickstein, general counsel for the Aviation Suppliers Association, said during a panel on tariffs at MRO Americas in Orlando, Fla., on April 21. [caption id="attachment_57296488" align="aligncenter" width="951"] The panel on tariffs at MRO Americas 2026. (Photo/Cargo Facts)[/caption] The tariffs were imposed in 2025 by Trump, who cited the International Emergency Economic Powers Act (IEEPA), a federal law granting the president broad authority to regulate international commerce after declaring a national emergency due to an "unusual and extraordinary threat" originating outside the United States. The Supreme Court ruled in February that the tariffs were unconstitutional, saying Trump did not have authority to impose them. This month, it ordered the federal government to refund the duties. Understanding tariffs “There are [Section] 301 tariffs, and there are [Section] 232 tariffs,” Dickstein said. “Each of these is a section of the U.S. Code that authorizes the U.S. government to impose tariffs for different reasons.” Section 232 tariffs were established in 1962, imposing additional duties on imports of specific goods, including steel, aluminum, copper and their derivatives, deemed to threaten U.S. national security. Section 301 tariffs were imposed under a 1974 trade act and apply to products from China. They were enacted following from unfair trade practices investigations according to U.S. Customs and Border Protection. Applying for refunds Companies that paid those tariffs can apply for refunds through the Consolidated Administration and Processing of Entries (CAPE) system, which went live on April 20. To start the refund process, companies must upload documents to CAPE on the CBP website — possibly more than once — Dickstein said. Companies that used customs brokers to handle their tariffs might have to pay more to obtain refunds. “For those of you that use customs brokers, typically, it’s your customs broker that’s going to have to actually file for you, which is not part of the original deal …,” Dickstein said. “I don’t know if they’re going to charge more for filing, or if they’re going to refuse to file on your behalf because it wasn’t part of the original deal.” Clarifying costs Identifying the tariffs eligible for refund will further complicate matters. There are questions about who would receive the refund in the case of companies that passed the additional fee on to customers in the supply chain, according to other panel speakers. For example, Setna iO elected not to pass tariff charges to its customers, but some MROs and maintenance procurement teams the company works with did have fees passed onto them, Vice President of Operations Stephanie Rybandt said. “Those were interesting conversations that we had with some of our partners, and it’ll be interesting to see how they intend to refund that,” she said. “Because what tariff were you charging me on if we had a blanket cost that an MRO passed on to me? Well, for what? Was it 232, was it IEEPA? And how are you going to refund that? So, I think that will be a challenge for somebody who decided to pass on the cost.” Since the aviation industry is global, it will not allow itself to be grounded or disrupted by tariffs, so stakeholders are going to pass through the tariff costs, Bruce Spear, partner at Oliver Wyman, said. Dave Marcontell, vice president of technical operations at JetBlue, said some MROs were not reporting the correct engine values on customs export forms. For example, an engine that goes through the shop may have been valued at $20 million even though the repair cost only $2 million, leading to a much higher tariff because the valuation was entered incorrectly, he said. “Nobody cared back then, because it wasn’t a tariff, it wasn’t a tax,” Marcontell said. “People were filling out the forms as they knew, and since there was never any feedback to it, it didn’t matter. Well, now all of a sudden, it really matters, so now you’ve got to go back and audit all this, and that’s become one of the big learning curves.” Cargo Facts EMEA 2026 will take place April 28-30 in Brussels at the Marriott Hotel Grand Place. For more information and to register, visit CargoFactsEvents.com .

MRO industry faces challenge of tariff refunds

MRO Americas 2026

Airbus begins A350F large cargo door installation

Amerijet, Cargojet launch Caracas flights with 767 freighters

Related Posts

Awesome Cargo completes 1st C check on own A330P2F

GE makes high jump with hybrid-electric powerplant

National to support 777Fs, 747-400Fs with GE90, CF6 purchases

Amerijet, Cargojet launch Caracas flights with 767 freighters

Cargo Facts Free Newsletters

Cargo Facts Connect Podcast

Follow Us

Welcome Back!

Retrieve your password