Policy & RegulationAnalysis

China Issues 13 Measures to Expand Aviation Bonded Maintenance Sector

Nine government departments lift geographic curbs, ease customs oversight, and clarify tax rules to boost high-value aviation services.

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An Airbus A380-800 aircraft being serviced on airport tarmac under a bright sky.
Photo by Ben Leonard on Pexels

The Brief

Nine Chinese government departments, led by the Ministry of Commerce, have jointly released guidelines containing 13 policy measures to promote the development of China's aviation bonded maintenance industry. The policy broadens the catalogue of eligible products, eliminates previous geographic boundaries, and clarifies export tax rebate and domestic resale procedures. Officials noted that bonded aviation maintenance currently accounts for 85 percent of the total import and export value across China's bonded maintenance sector, reaching $60 billion in 2025.

Why it matters

Aviation bonded maintenance is a high-tech, high-value-added modern service sector. Removing regional restrictions and streamlining customs procedures lowers operating expenses and turnaround times for maintenance, repair, and overhaul (MRO) providers. Clarifying tax rebates and domestic resale paths helps Chinese facilities capture larger shares of international aviation maintenance contracts while supporting domestic airlines.

China context

China operates the world's second-largest commercial aviation fleet, creating significant domestic demand for aircraft and component servicing. However, bonded maintenance operations have previously faced tight geographical restrictions and regulatory friction when transferring parts between bonded zones and domestic facilities. This multi-agency initiative reflects broader efforts to advance foreign trade reform and integrate comprehensive bonded zones with wider regional manufacturing ecosystems.

Editor's View

EDITOR'S VIEW — Analysis and inference, not factual reporting. The decision to allow companies to subcontract specific repair procedures outside bonded zones addresses a persistent operational bottleneck in China's MRO industry. Aircraft maintenance frequently involves highly specialized treatments that a single facility cannot efficiently handle in-house. While the 13 measures provide a welcoming macro framework, the speed of practical adoption will depend heavily on how quickly the General Administration of Customs and local customs offices issue detailed operational handbooks.

What to watch

  • Implementation guidelines from the General Administration of Customs on supervising subcontracted repair procedures
  • The publication of the updated, expanded national catalogue of eligible aviation bonded maintenance products
  • Follow-up policies and infrastructure incentives introduced by major domestic airport hubs and aviation economic zones

Key Takeaways

  • 1Nine Chinese agencies issued 13 measures to reform and expand the aviation bonded maintenance sector.
  • 2The policy lifts regional boundaries, expands the eligible product catalogue, and permits subcontracting of specific repair steps.
  • 3Repaired aviation goods are permitted to enter the domestic market under national rules, and export tax rebates apply.
  • 4China's 37 aviation bonded maintenance projects accounted for 85 percent of the country's bonded maintenance trade value, reaching $60 billion in 2025.
Nine Chinese government ministries and agencies, led by the Ministry of Commerce, have jointly issued policy guidelines to foster the high-quality development of the country's aviation bonded maintenance sector, according to state media. The directive sets out 13 specific measures designed to lower corporate operational costs, improve turnaround efficiency, and enhance the global competitiveness of domestic aviation maintenance, repair, and overhaul (MRO) enterprises. According to Huang Ling, a spokesperson for the Ministry of Commerce cited by Xinhua, China's civil aviation transport industry has expanded rapidly in recent years, with its commercial fleet size ranking second globally. This growth has generated rising demand for the inspection, repair, and overhaul of civil aircraft and related components. Huang reported that China currently hosts 37 aviation bonded maintenance projects. Although these represent roughly 12 percent of the total number of bonded maintenance projects across all industries in China, they accounted for 85 percent of the sector's total import and export trade value, generating 60 billion U.S. dollars in 2025. To address structural and operational constraints, the new guidelines introduce reforms across three primary domains: scope of coverage, taxation, and customs supervision. Under the rules, the official product catalogue for aviation bonded maintenance will expand, and existing geographical restrictions on these operations will be removed. In fiscal and tax policy, the directive confirms that eligible bonded maintenance services qualify for export tax rebate or exemption policies. Repaired products are also formally permitted to be sold domestically in compliance with relevant national regulations. On the regulatory front, customs procedures will be eased, notably allowing licensed enterprises to outsource specific maintenance and processing steps to external partner firms. Moving forward, the Ministry of Commerce plans to coordinate with relevant departments and regional authorities to implement detailed operational measures to support the sector.