Of Vat refunds and cabotage rules: | Aviation International News

Regulations and Government

Of Vat refunds and cabotage rules:

Cabotage is: (a) a cabbage soup popular in Russia; (b) the age of a guy named Cabot; (c) the transport of a paying passenger fro

By AIN Staff • AIN Staff

May 15, 2008

Cabotage is: (a) a cabbage soup popular in Russia; (b) the age of a guy named Cabot; (c) the transport of a paying passenger from one point to another within the same country by a foreign carrier. If your answer was (c), congratulations. But if you were not aware that U.S. cabotage rules apply to all foreign-owned business aircraft, and even some U.S.-registered business aircraft, “you are the weakest link.”

Of course, the rules of the popular television game show “Weakest Link” are far more lenient than those of the U.S. government. Instead of simply pleading ignorance and walking off the set with nothing, by violating the rules of cabotage you may instead end up owing the government a penalty equal to $1,100 for each passenger violation.

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