Unfair Gaps🇮🇳 India

Aviation and Aerospace Component Manufacturing Business Guide

6Documented Cases
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All 6 Documented Cases

FAI अनुपालन विफलता जुर्माना (FAI Compliance Failure Penalties)

₹12-15 lakhs per compliance failure; contract loss (recurring revenue); production delays = ₹50-100+ lakhs depending on contract value

Aerospace suppliers failing to conduct proper FAI documentation face significant financial and contractual penalties. A documented case shows a supplier fined $150,000 USD (approximately ₹12.5 lakhs) by the FAA for failure to conduct FAI on a jet engine component, followed by contract termination with a major airline.

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FAI दस्तावेज़ की मैनुअल तैयारी से क्षमता हानि (FAI Manual Documentation Capacity Loss)

20-40 hours per FAI × ₹500-1000/hour labor cost = ₹10,000-40,000 per inspection; 10-20 inspections/quarter = ₹1-3 lakhs quarterly; Plus production delay cost: 5-10 days delay × daily production capacity loss

Manual FAI documentation creates bottlenecks. Creating balloon balloon number lists, cross-referencing to specifications, filling AS9102 forms, attaching supporting documents (tool calibration certs, Material CoCs), and awaiting customer approval are time-intensive. Each FAI typically requires: inspection plan creation (4-6 hours), physical inspection (6-10 hours), form completion (6-8 hours), document compilation (4-6 hours), and approval cycle (5-10 days of delay).

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FAI प्रक्रिया में त्रुटि से रीवर्क और ग्राहक मुआवज़ा (FAI Documentation Errors Causing Rework & Compensation)

Rework cost per rejected FAI: ₹20,000-50,000 (inspection re-run + documentation correction); 10-15% rejection rate on 10-20 FAIs annually = ₹2-5 lakhs annually; Warranty claims (if production errors): ₹1-10 lakhs+ depending on contract value

Manual FAI creates defect risk. Errors include: incorrect balloon number sequences, missing specification details, wrong tolerance ranges, incomplete material traceability. Result: customer rejection of FAIR → rework inspection (15-25 hours) + documentation fixes (8-12 hours) + delayed production start. If defects pass to production, warranty claims and customer compensation follow.

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GST ITC Mismatch और आयातित एयरोस्पेस घटकों पर रिवर्स चार्ज का खतरा

₹40-80 lakhs/annum (ITC denial interest + compliance labor); ₹5,000-15,000 per flagged invoice instance

Aerospace manufacturers importing materials face GST Reverse Charge liability. Search results confirm 'India still imports most of its aerospace-grade materials.' Manual matching of GSTR-2B with invoices (ITC Reconciliation pain point) combined with long lead-time delays causes flagged invoices. Average resolution: 20-30 days per invoice, with 10% interest penalty on denied ITC.

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