CHAD Law and Practice Contributed by: Claudy Monja and Felana Ranaivoson, John W Ffooks & Co
1. Aircraft and Engine Purchase and Sale 1.1 Sales Agreements 1.1.1 Taxes/Duties Payable Upon Execution of the Sales Agreement The transfer of title to an aircraft may be subject to the payment of fees of up to XAF1 million (approximately USD1,786). The transfer of title to an aircraft while the aircraft is located in Chad is subject to the payment of a tax of XAF5,000 (approximately USD9). 1.1.2 Enforceability Against Domestic Parties While this is not mandatory, it is advisable for a sale agreement written in a foreign language to be accom - panied by a French translation made by a Chadian sworn translator. 1.2 Transfer of Ownership 1.2.1 Transferring Title A sales agreement and a bill of sale may constitute a “transfer of ownership” of an aircraft or engine. The letter of the law does not specify whether they extend to the inclusion of all installed parts. Under the Chadian Civil Aviation Code, the transfer should be recorded in a written document (ie, sale agreement) and the transfer of ownership must be registered on the Aircraft Register to be enforceable against third parties. It is worth noting that the following documents can be considered as proof of ownership of an aircraft. • An original sale agreement between the purchaser (the applicant) and the seller of the aircraft, show - ing that the transfer of ownership has been com - pleted. • A fully paid commercial invoice (which must be made out on the seller’s letterhead or stamped with the seller’s contact number and date, as well as the seller’s name, address and company registration number). Eventually, a bill of sale issued by the civil aviation authorities of the state where the aircraft comes from is required as proof of ownership.
• Title of ownership recognised by Chadian civil law (eg, a judgment). • In the case of an aircraft built by an amateur con - structor, a certificate drawn up on plain paper by the applicant, establishing that they are the con - structor and owner of the aircraft. 1.2.2 Sales Governed by English or New York Law The parties are free to choose the law governing their contract. Therefore, it is possible for a bill of sale to be governed by a foreign law (including English or New York law). Such agreement should be recognised in Chad. 1.2.3 Enforceability Against Domestic Parties Although the law is silent on this matter, it is recom - mended that a bill of sale written in a foreign language should be accompanied by a French translation made by a Chadian sworn translator, in order to be enforce - able against a domestic party. 1.2.4 Registration, Filing and/or Consent From Government Entities Bills of sale should be registered with the Chadian Civil Aviation Authority ( l’Autorité de l’Aviation Civile , or ADAC). The following are mandatory for the registration of aircraft in Chad: • the initial certificate of registration of the aircraft; • the deregistration certificate or certificate of non- registration; • airworthiness documents; • tax or customs certificates (in the case of new registrations); • the sale agreement duly signed by the parties or their legal representatives; and • the original proof of ownership (eg, bills of sale) of the aircraft. The period for completion of registration is estimated to be five working days but this is subject to admin - istrative delay. There are no government applications or consents required as a prerequisite to the execution and deliv -
113 CHAMBERS.COM
Powered by FlippingBook