CAAC Opens Regulated Pathway for Overseas USM to China

The Civil Aviation Administration of China (CAAC) has established a formal regulatory pathway allowing Chinese airlines and maintenance, repair, and overhaul (MRO) providers to procure used serviceable material (USM) recovered from aircraft and engines dismantled outside the country.

Detailed in a press release issued by Block Aero Technologies on September 24, 2026, the new framework mandates strict traceability and registration standards for overseas parts. The regulatory shift opens the Chinese aviation market to global USM suppliers, provided they route their documentation through the newly designated AFRA-CAAC Registry.

Regulatory framework and compliance deadlines

The CAAC anchored the new pathway with two regulatory documents issued earlier in the month. On September 7, 2026, the regulator published Advisory Circular AC-145-FS-017 R1, covering aircraft disassembly. This was followed on September 10, 2026, by Management Document MD-MAT-FS-009, which governs the procurement and repair management of used aircraft parts and materials.

Under the new rules, previously approved aircraft-disassembly maintenance organizations face a strict transition period. All applicable procedural, system, and transition requirements must be completed by December 31, 2026, to maintain compliance and continue supplying the Chinese market. The CAAC also held a regulatory briefing focused on airline buyers in Beijing on September 18, 2026, to outline the procurement changes.

The AFRA-CAAC Registry infrastructure

To enforce the enhanced traceability requirements, the CAAC circular identifies the AFRA-CAAC Registry as the current compliant overseas registration platform. The registry operates on the Aviation Blockchain Network developed by Block Aero Technologies.

The formal recognition builds upon a 2023 memorandum of understanding between the CAAC and the Aircraft Fleet Recycling Association (AFRA) regarding technical cooperation. Block Aero and AFRA recently renewed their partnerships for a five-year term to deliver the asset registry solution to the CAAC and its stakeholders.

Block Aero Technologies CEO Todd Siena noted that China has historically been one of the most difficult markets for overseas USM suppliers to navigate.

“The door is now open, but it opens onto a checkpoint. The CAAC framework makes provenance something that must be demonstrated, not simply promised,” Siena said in the press release.

AFRA President Brent Webb added that the association has long championed trusted information infrastructure for the global aftermarket, a priority now codified in the CAAC requirements.

AirPro News analysis

We view the CAAC decision as a major structural shift for the global aircraft teardown and part-out market. Historically, foreign USM suppliers faced high barriers to entry in China due to complex and fragmented documentation requirements. By centralizing compliance through the AFRA-CAAC Registry, the CAAC is standardizing the import process. This provides a clear, albeit rigorous, mechanism for Western lessors and teardown facilities to monetize end-of-life assets in the world’s second-largest aviation market. The CAAC mandate for a blockchain-based registry also signals a growing regulatory appetite for immutable digital records to combat unapproved parts and ensure supply chain integrity.

Sources: Block Aero Technologies (via EIN Presswire), Block Aero