The world’s second-largest aviation market just opened to USM.

01The law

Beijing, September 21, 2026 — The world's second-largest civil aviation market is now open to importing used serviceable material (USM) from aircraft and engines dismantled overseas. Under Civil Aviation Administration of China (CAAC) Advisory Circular AC-145-FS-017 R1, now in force, every part must be verified with trace records on a recognized digital registry before airlines or maintenance organizations can buy it for installation on the 4,652 China-registered commercial airliners, which account for over 11% of the global fleet. The AFRA-CAAC parts registry named in that regulation operates on Block Aero's Aviation Blockchain Network.

This historic breakthrough for the global used serviceable material (USM) industry delivers a standardized, digital framework for qualifying used aircraft and engine parts — transforming a previously restricted secondary market into an accessible, regulated, and high-trust ecosystem. With the regulatory foundation now formally in place, asset owners, asset managers, and parts distributors can immediately begin selling material harvested by AFRA-accredited members holding CAAC approved maintenance organization (AMO) disassembly credentials.

The civil aviation regulation, AC-145-FS-017 R1, was conceived from a white paper the CAAC submitted to the International Civil Aviation Organization in 2023. Based on MOU cooperation frameworks with international organizations like the Aircraft Fleet Recycling Association (AFRA), CAAs were proposed to strengthen integrity in the supply-chain by establishing trusted networks and repositories of aviation data.

In an industry rocked by recurring paperwork fraud and quality lapses in recent years, it establishes China's first standardized digital framework for qualifying parts from retired and recycled aircraft and engines. To address the safety concerns, Block Aero's enterprise-grade blockchain technology platform has private networking and immutability benefits designed specifically for civil aerospace use-cases. As the first ISO-certified and regulator-endorsed aviation blockchain network, the program's digital infrastructure is poised to transform a fragmented and opaque aftermarket into an open, regulated, high-trust supply-chain.

Trading can start today. Material harvested by AFRA-accredited disassembly members holding CCAR-145 Limited Disassembly certification is eligible for sale to Chinese buyers for all parts that have completed their digital trace package registration.

02Three years from MOU to implementation

The path began on September 18, 2023, when CAAC signed an MOU with AFRA recognizing the value of standardization and digital-first traceability of parts recovered from retired aircraft and engines. CAAC and AFRA, after consultation with the public and industry, then defined a new set of disassembly quality and digital documentation standards — the substance of today's regulation. For the first time in any jurisdiction, compliance requires mandatory digital native workflows, full traceability, and real-time visibility into material provenance.

To deliver that, AFRA selected Block Aero on March 11, 2024, deploying its Registry-as-a-Service on the Block Aero Aviation Blockchain Network — neutral, global infrastructure that no single buyer, seller, or authority controls.

03Verification, not paperwork

The AFRA-CAAC Parts Registry is the official digital ledger of accredited USM from AFRA Best Management Practices (BMP) dismantlers worldwide. With the regulation in force:

• Chinese operators and MROs can source USM from distributors working with CAAC-approved offshore disassemblers, provided the parts are registered on a recognized platform.
• Disassembly records, images, and trace packages are validated digitally and sealed on the blockchain in real time — the record cannot be quietly altered after the fact.
• Offshore disassemblers and distributors gain a defined route into China for the first time, with recognized platforms named in the regulation and a single interface for source verification.
• Both Chinese and global buyers can check any part's authenticity and compliance status through the public AFRA-CAAC Dismantled Parts Registry portal.

04Who is already on it

Since the pilot launched in June 2024, the program has secured commitments to register 300 aircraft and engine disassembly projects across the U.S., Europe, and Asia; currently eligible members represent throughput of 305 aircraft and 560 engines per year. eCube Solutions — the largest aircraft dismantling organization by annual volume — was recently acquired by Airbus through its acquisition of Unical Aviation, and became the first aviation organization outside China to receive CAAC certification under the program in Europe. Stratton Aviation, a Maine-based specialist in airframe disassembly, was the first approved AMO in North America.

05Certification, simplified

Participating AFRA facilities must hold CCAR-145 Limited Disassembly certification, obtained through a simplified application process compared with a traditional CCAR-145 approval. Engine disassembly facilities with repair and overhaul capabilities are also eligible for certification.

06What leaders are saying

“China is the second-largest aviation market on earth and, until today, one of the hardest to sell used parts into. The door is now open, but it opens onto a checkpoint. The law says provenance has to be proven, not promised, and it names the network where that proof lives and the organizations who are responsible for jointly curating that data. That's a first for any aviation regulator, and we welcome other authorities and type certificate holders to join us in observing or exploring the safety benefits that come from combining industry digital standards with the power of immutable records on trusted aviation data networks.”

Todd Siena · CEO, Block Aero Technologies

At an airline buyer-focused regulatory briefing held in Beijing on September 18, 2026, Brent Webb, President of AFRA, spoke to the audience and said:

“AFRA has long championed trusted information infrastructure for the global aftermarket. Working with the CAAC, ASA, and Block Aero, we've created a new standard for quality and traceability that strengthens safety, sustainability, and market integrity across borders. The industry has asked when we can start to use it — and that day has now arrived.”

Brent Webb · President, AFRA

07A commercial bridge

Aircraft and their parts have long been among the goods China and the West want to keep trading with each other. This regulation adds a shared, verifiable standard that neither side has to take on trust: aviation authorities, an international industry body, and a neutral digital network have agreed on what a legitimate part looks like and how to prove it. A recycled CFM56 leaving a hangar in Wales or Maine and arriving at a Chinese MRO with an unbroken, tamper-evident record is a small transaction. Thousands of them, cleared through infrastructure both sides recognise, is a trading relationship both sides can keep.

08Looking ahead

China's fleet is projected to become the world's largest within the decade, which means the aftermarket that opened today will only grow. Airlines are contending with parts fraud, shortages, and rising maintenance costs at the same time, and supply-chain integrity is no longer optional. What begins in China — a regulator, an industry body, and a digital network working from the same ledger — could become the blueprint for a connected aftermarket serving airlines and MROs everywhere.