HQ 111481: User Fees; Commercial Vessel; 19 U.S.C. 58c(a)(1)

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 111481

                         March 11, 1991

VES-5-08-CO:R:IT:C 111481 GEV

CATEGORY:  Carriers

Sondra George Tipton
Director
Park West Children's Fund, Inc.
Berth 57
San Pedro, California 90731-7211

RE:  User Fees; Commercial Vessel; 19 U.S.C. 58c(a)(1)

Dear Ms. Tipton:

     This is in response to your letter dated January 18, 1991,
requesting a waiver of the fee of $397 for the arrival of a
commercial vessel of 100 net tons or more.  Our ruling is set
forth below.

FACTS:

     Park West Children's Fund, Inc., of San Pedro, California,
a nonprofit corporation not funded by government or corporate
grants and operated by an all volunteer staff, provides food and
supplies at no cost to needy families on a domestic and
international basis. This corporation is the owner and operator
of the SPIRIT SHIP, a 3800 ton fishing vessel used to aid and
assist the poor in developing countries.

     Upon returning from its maiden voyage to Central America
last year, the vessel was assessed a $397 user fee.  Park West
Children's Fund, Inc. requests a waiver of this fee.

ISSUE:

     Whether a fishing vessel owned and operated by a nonprofit
organization for the purpose of providing food and supplies for
needy families overseas is considered to be a commercial vessel
within the meaning of 19 U.S.C. 58c(a)(1) and therefore subject
to the $397 user fee.

                              - 2 -

LAW AND ANALYSIS:

     Title 19, United States Code, section 58c(a)(1), provides
for the assessment of a $397 user fee upon the arrival of a
commercial vessel of 100 net tons or more.  Under 19 U.S.C.
58c(a)(4) there is an annual fee of $25 for all arrivals made
during a calendar year by a private vessel.  These fees are
reflected in sections 24.22(b) and (e), Customs Regulations (19
CFR 24.22(b) and (e)).

     Neither the user fee legislation nor related legislative
history indicate what Congress meant by the term "commercial
vessel."  Webster's New World Dictionary of the American
Language, Second Edition, defines "commercial" as "of or
connected with commerce or trade."

     Upon reviewing this matter we conclude that while the SPIRIT
SHIP is operating in the manner described above, it is not a
vessel transporting passengers or merchandise in commerce or
trade.  Accordingly, it is not considered a "commercial vessel"
for purposes of 19 U.S.C. 58c(a)(1) and therefore is not subject
to the $397 user fee assessed pursuant thereto.

     We note the copy of a letter from the District Director,
Internal Revenue Service (IRS), Los Angeles, California, attached
to your January 18 letter stating that your organization is not
considered to be a private foundation for purposes of the IRS.
This determination, however, is not dispositive in regard to
Customs assessment of user fees.  Furthermore, we note that the
user fee legislation contains no provision exempting charitable
organizations.  Accordingly, we consider the subject vessel to be
a private vessel subject to the $25 annual fee prescribed by 19
U.S.C. 58c(a)(4).

HOLDING:

     A fishing vessel owned and operated by a nonprofit
organization for the purpose of providing food and supplies for
needy families overseas is not considered to be a commercial
vessel within the meaning of 19 U.S.C. 58c(a)(1) and therefore is
not subject to the $397 user fee.

                                   Sincerely,




                                   B. James Fritz
                                   Chief
                                   Carrier Rulings Branch