HQ 113056: Application for Refund of Special Tonnage Tax and Light Money for the Tuvalu Vessel MV CAP PALMAS

Native CBP ruling rendition. Applicability is fact-specific; modification/revocation relationships and original publisher date are retained. Publisher sentinel year0001 means unknown date, not a historical legal adoption.

                            HQ 113056

                          May 31, 1994

VES-11-11 CO:R:IT:C 113056 BEW

CATEGORY:  Carriers

Regional Commissioner of Customs
Northeast Region
Boston, Massachusetts 02222-0156

RE:  Application for Refund of Special Tonnage Tax and Light
    Money for the Tuvalu Vessel MV CAP PALMAS

Dear Sir:

    This is in reference to your memorandum dated March 18,
1994, which transmitted documents from Marine Cargo Management,
Inc. (MCM), and an application dated January 14, 1994 (copy
enclosed), filed by Ernst Jacob for refund of special tonnage tax
and light money.

FACTS:

    The money was assessed pursuant to section 121 of title 46,
United States Code, Appendix (46 U.S.C. App. 121), and section
4.20, Customs Regulations (19 CFR 4.20), upon arrival of the
vessel at the ports of Chester, Pennsylvania, Wilmington,
Delaware, and Port Manatee, Florida, on the following dates:

              DATE                AMOUNT
         March 30, 1993           $5,590.00
         April 13, 1993           $5,590.00
         April 27, 1993           $5,590.00
         May 13, 1993             $5,590.00
         May 26, 1993             $5,590.00
         June 8, 1993             $5,590.00
         June 22, 1993            $5,590.00
         July 6, 1993             $5,590.00         
         July 20, 1993            $5,590.00
         August 5, 1993           $5,590.00
         August 17, 1993          $5,590.00
         August 31, 1993          $5,590.00
         September 14, 1993       $5,590.00
         September 28, 1993       $5,590.00
         October 12, 1993         $5,590.0o
         October 26, 1993         $5,590.00
         November 9, 1993         $5,590.00 Special tonnage tax and light money were collected because
section 4.22 of the Customs Regulations had not been amended to
include Tuvalu.

ISSUE:

    May special tonnage taxes and light money assessed against a
Tuvalu vessel after the effective date that Tuvalu was added as
one of the countries exempt under section 4.22 of the Customs
Regulations be refunded when timely application for refund is
made.

LAW AND ANALYSIS:

    Under 46 U.S.C. App. 121 and 128, a special tonnage tax in
the amount of fifty cents per ton and light money in the amount
of fifty cents per ton are to be assessed on vessels not built in
the United States and not of the United States.  However,
pursuant to 46 U.S.C. App. 141 (see also final clause of
penultimate sentence of 46 U.S.C. App. 121), upon satisfactory
proof that no discriminating duties of tonnage or imposts are
imposed in the ports of another nation upon United States
vessels, "... foreign discriminating duties of tonnage and impost
within the United States are suspended and discontinued, so far
as respects the vessels of such foreign nation ..."  The nations
for which such satisfactory proof has been supplied are listed in
section 4.22, Customs Regulations (19 CFR 4.22).  Tuvalu is now
one of those nations.

    The Customs Regulations pertaining to tonnage taxes and
light money are found in section 4.20-4.24, Customs Regulations
(19 CFR 4.20-4.24).  The procedures and requirements for
obtaining a refund of tonnage taxes and light money are in
section 4.24.  Under that section, an application for refund must
be made within 1 year from the date of payment.  

    The special tonnage taxes and light money were collected
because Tuvalu did not appear on the list of countries exempt
from collection of these taxes and light money in section 4.22,
Customs Regulations (19 CFR 4.22).  Customs places the names of
countries on that list upon notification by the United States
Department of State that no discriminating duties of tonnage are
levied by those countries on vessels of the United States.

    Customs was notified on November 16, 1993 and January 27,
1994, that Tuvalu should be added to the list of nations whose
vessels are exempted from the assessment of special tonnage
taxes, and that the exemption should be made retroactive to
January 1, 1993.  Prior to amending our regulations to reflect
this change, we sent a telegram to all regional commissioners on February 9, 1994, reporting this change, including the
retroactive effective date.  Subsequent to the effective date of
the exemption, the subject vessel made fifteen (15) arrivals at
the port of Chester\Wilmington and two (2) arrivals at port
Manatee, and paid an amount of $5,590 in special tonnage tax and
light money each arrival.

    When the owner or agent of a vessel which has been assessed
special tonnage taxes and light money timely submits an
application and the appropriate documentation to the District
Director of Customs for the port where the special tonnage taxes
and light money were assessed, the special tonnage taxes and
light money may be refunded.  

    In the subject case the vessel owner, Ernst Jacob in a
letter dated January 14, 1993, timely applied for a refund of the
special tonnage taxes and light money assessed against the CAP
PALMAS when she arrived at the ports of Chester/Wilmington and
Port Manatee.  In addition to the application for refund filed
with your office by Marine Cargo Management, Inc., agent for
Ernest Jacob in the Chester case, we have also received an
application for refund, (filed with the District Director of
Customs, Tampa, Florida), from Manatee Marine Agency, Inc., the
vessel agent for Ernest Jacob in the Port Manatee case.  The
documents submitted revealed that the CAP PALMAS' first arrival
was on February 16, 1993, at the port of Chester.  On that date,
the vessel entered under the name of WALTER JACOB and she was
flying a German flag.  The documents show that the vessel entered
the port of Chester again on March 2, 1993.  Regular tonnage
taxes in the amount of $503.10 were assessed upon each arrival. 
On March 18, 1993, she entered the port of Manatee under the name
of CAP PALMAS and paid regular tonnage taxes in the amount of
$503.10.  The vessel changed from the German Flag to the Tuvalu
flag on March 30, 1993.  When she entered the port of Chester on
March 30, 1993, both regular tonnage taxes in the amount of
$503.10 and special tonnage taxes and light money in the amount
of $5,590 were assessed.  On April 13, 1993, she made her fifth
entry, and again both regular tonnage taxes and special tonnage
taxes and light money were assessed.  Subsequent to this entry
she made thirteen additional trips to Chester/Wilmington and two
trips to Port Manatee.  On each arrival special tonnage taxes and
light money in the amount of $5,590 were assesed 

    Based on the evidence in the file, we concur in your
recommendation that the special tonnage taxes and light money
assessed against the CAP PALMAS be refunded.  Accordingly, a
refund in the amount of $83,850 should be made through your
region to Marine Cargo Management, Inc., c/o Mid-Atlantic
Shipping and Stevedore, Inc., 128 Tilbury Road, Salem, New
Jersey.  By a letter dated today, we are authorizing the Regional
Commissioner of Customs, Southeast Region to make a refund of $11,180 to Manatee Marine Agency, Inc. 210 National Street,
Palmetto, Florida 34221-6600, an amount representing the special
tonnage taxes and light money paid at Port Manatee, Florida.
A copy of the additional documents contained in our file is being
sent to you for your information.  A complete file is being sent
to the Regional Commissioner of Customs, Southeast Region for
appropriate action.
 
HOLDING:

    Upon the filing of the certificate required in 19 CFR 4.24,
special tonnage taxes and light money assessed against a vessel
of Tuvalu subsequent to January 1, 1993, should be refunded.

                                  Sincerely,




                                  Stuart P. Seidel
                                  Director, International Trade
                                  Compliance Division  

Enclosure