HQ 111436: Application for Refund of Special Tonnage Tax and Light Money for the Bahamian Vessel MV MARATHON KEY

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 111436

                        December 24, 1990


VES-11-11 CO:R:IT:C 111436 BEW

CATEGORY:  Carriers

Regional Commissioner of Customs
South Central Region
New Orleans, Louisiana 70130

RE:  Application for Refund of Special Tonnage Tax and Light
     Money for the Bahamian Vessel MV MARATHON KEY

Dear Sir:

     This is in reference to your memorandum dated November 15,
1990, which transmitted documents from Intermare Agency Services,
Inc., concerning an application for refund of special tonnage tax
and light money.

FACTS:

     The money was assessed pursuant to section 121 of title 46,
United States Code (46 U.S.C. 121), and section 4.20, Customs
Regulations (19 CFR 4.20), upon arrival of the vessel at the port
of New Orleans on November 9, 1990.

     Special tonnage tax and light money were demanded when
representatives for the vessel were unable to present an original
document to establish the nationality of the vessel.

     Intermare presented the original registry to Customs on
November 12, 1990.

ISSUE:

     May special tonnage taxes and light money assessed because
the vessel under consideration did not have a current original
document of registry when it was entered or before it was cleared
be refunded when timely application for refund is made and the
applicant submits an original Certificate of Registry for the
vessel signed by the Registrar of Bahamian Ships?

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. 141 (see also final clause of penultimate
sentence of 46 U.S.C. App. 121), upon satisfactory proof that no
discriminat-ing 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).  The Bahamas is 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.  Paragraph (e) of
section 4.24 provides that such an application must include:

     ... a certificate by the owner or ... agent that payment of
     tonnage tax at the applicable rate has been or will be made
     for each entry of the vessel on a voyage on which that rate
     is applicable before the end of the current tonnage year,
     exclusive of any payment which has been refunded or which
     may be refunded as a result of such application.

     Only the original of a vessel registry, tonnage certificate,
or official amendment or endorsement of either shall be accepted
by Customs at the time of arrival of the vessel for the purpose
of establishing the nationality and tonnage of the vessel, unless
the vessel is a vessel of Lebanon (Customs Directive 3100-03,
September 22, 1986).  When the owner or agent of a vessel which
has been assessed special tonnage taxes and light money timely
submits the original vessel document 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.  If it is impractical, infeasible, or
inconvenient for the vessel owner or agent to submit the original
document to Customs the vessel owner or agent may submit to
Customs a photostatic copy of the original document, signed and
certified to be a true copy by an appropriate official of the
government of registry of the vessel.

     In this case the vessel agent has timely applied for a
refund of the special tonnage taxes and light money assessed
against the MARATHON KEY.  The vessel agent has supplied an
original "Certificate of Registry" dated July 11, 1989, and
signed by the Registrar of Bahamian Ships.

     We conclude that this evidence satisfactorily establishes
the tonnage of the MARATHON KEY and the MARATHON KEY was a vessel
of the Bahamas when it entered New Orleans on November 9, 1990.
We concur with your recommendation that the special tonnage taxes
and light money assessed against the MARATHON KEY be refunded.

HOLDING:

     Upon the filing of the certificate required in 19 CFR
4.24(e), special tonnage taxes and light money assessed because
the vessel under consideration did not have a current original
document of registry when it was entered or before it was cleared
may be refunded on the basis of the applicant's submission of an
original Certificate of Registry for the vessel signed by the
Registrar of Bahamian Ships.

                                   Sincerely,




                                   Stuart P. Seidel
                                   Director, International Trade
                                   Compliance Division