What Is Bonded Jet Fuel?

Bonded jet fuel is, in short, jet fuel that is not subject to taxation. Bonded jet fuel can only be used for international flights, entering the country under "bond." Interestingly, it was invented and initially used for marine transportation.
  1. Basics

    • Bonded jet fuel must be created outside of the US or in a free trade zone, also called an FTZ, in aviation vernacular. Upon being loaded with bonded fuel, officials must provide documents and evidence to US customs that all procedures were completed correctly.

    Presence

    • Bonded jet fuel can be manipulated to avoid taxation, so recent measures have been developed to avoid such issues. Today, the fuel must be physically present in the tanks from which it was pumped.

    Brokers

    • Customs brokers play a big role in the bonded jet fuel industry. All are well-trained and licensed, ably documenting declarations and making sure all aircraft using bonded fuel are in compliance with all regulations.

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