US Customs Finds Satellite Propellant Eligible for Duty Refunds Following Launch

Fuel for satellites used after launch into space is eligible for customs duty refunds, called drawback, because the launched satellite is considered to be exported, Customs and Border Protection said in a recently released ruling. Drawback is allowed for goods imported into the U.S. that are unused or quickly exported. Thales Alenia Space asked CBP about drawback eligibility for satellite propellant, which "is solely utilized to power a satellite’s thruster system after the satellite has been launched into orbit and activated." CBP considers satellites and components "exported for drawback purposes despite the satellite’s exportation destination not being within a foreign country," said the agency. "Due to the commercialized technology and business conditions of communications satellite manufacture and launch, the definition of exportation includes satellites that are launched into permanent orbit from the territory of the United States by private entities." Thales also sought input on what documentation is necessary to prove export through launch. "Submission of multiple documents corroborating the fact and date of exportation, describing the merchandise, and identifying the ultimate purchaser of the satellite may serve as sufficient proof," the agency said.