Switching aircraft & parts sourcing from Brazil to Canada

A aircraft & parts importer's margin increasingly turns on a single field on the entry: country of origin. Switch the origin from Brazil (12.5%) to Canada (10%) and an importer reclaims about $2,638 for every $100,000 purchased. Two suppliers can quote the same factory price and still land at very different costs once Customs is done. The sections that follow show where every dollar of the difference comes from.

How the tariff stacks compare

Here is how US Customs builds the bill for each origin. Shipped out of Brazil, the product is hit with a 12.5% forced-labor Section 301 duty on its aircraft & parts, an effective 12.5% once the $49.74 in processing fees are added. On the Canada side, Customs applies a 10% forced-labor Section 301 duty on its aircraft & parts, an effective 10% once the $49.74 in processing fees are added. Because the MPF and HMF ($49.74 combined) track customs value rather than origin, they wash out of the comparison entirely. Subtract one stack from the other and $263.75 per $10,000 shipment separates the two origins. A $25,000 order therefore differs by about $659, and a $100,000 year by roughly $2,638. A buyer placing $25,000 orders sees about $659 of avoidable duty on each one.

Trade context

aircraft & parts — Commercial jets, Business aircraft, Helicopters, UAVs/drones, Jet engines, Avionics, and Landing gear and similar goods — falls under HTS 8801, 8802, 8803, 8804, 8805. For aircraft & parts, where buyers reorder frequently, the duty rate compounds into one of the largest controllable costs on the P&L. Commercial aircraft are generally duty-free under the WTO Civil Aircraft Agreement; Section 122 and its interaction with civil aircraft trade is legally complex. Brazil's trade profile leans toward steel iron products, crude oil petroleum, and fresh produce, and it sits in South America. With no preferential deal in force, Brazil aircraft & parts faces the standard rates plus any applicable surcharge. Canada, in North America, ships the US mainly crude oil petroleum, passenger vehicles, and lumber wood products. Canada's USMCA membership can zero out duties on qualifying aircraft & parts (USMCA 0%, except Section 338 annex goods), which is why it so often undercuts non-agreement origins. Different regions — South America versus North America — mean shipping economics deserve a look beside the tariff math. A switch to Canada still hinges on capacity, certification and lead time, but the duty advantage is the part that is already quantified. Sourcing diversification has shifted from resilience theatre to margin necessity, and a documented second source like Canada is how buyers act on it.

Recommendation

Where Canada is a viable supplier, expect roughly $2,638 at $100,000, rising to about $6,594 at $250,000 and $26,375 at $1,000,000 as volume grows. All values are calculated, not assumed — the engine applies the current published rates to identical goods and reports the difference. These figures reflect tariff and fee savings only, assuming equal product cost — your actual landed cost also depends on price and freight, which vary by supplier. If any price premium from Canada is smaller than the duty saving, the switch still wins on net landed cost. Before acting, confirm the Canada supplier classifies under the same HTS heading, can meet your volume and certifications, and faces no product-specific exclusion or quota that shifts the duty. Time the switch with the policy calendar in mind — the post-Section-122 picture can favour a different origin entirely. Open the Tariff Savings Finder to rank every feasible origin for your specific volume.