HQ 113051: Application for Refund of Special Tonnage Tax and Light Money for the Tuvalu Vessel M/V BRIGITTE JACOB

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 113051

                          May 19, 1994


VES-11-11 CO:R:IT:C 113051 BEW

CATEGORY:  Carriers

Regional Commissioner of Customs
Pacific Region
Los Angeles, California 

RE:  Application for Refund of Special Tonnage Tax and Light
    Money for the Tuvalu Vessel M/V BRIGITTE JACOB

Dear Sir:

    This is in reference to your memorandum dated March 16,
1994, which transmitted documents from Jardine Shipping Agencies
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, Appendix (46 U.S.C. App. 121), and section
4.20, Customs Regulations (19 CFR 4.20), upon arrival of the
vessel at the port of Honolulu, Hawaiii, on February 24, 1993.
Special tonnage tax and light money in the amount of $14,074 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 faras
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 sections 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 arrived at the port of Honolulu
and paid an amount of $14,074 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 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.  

    In this case the vessel agent has timely applied for a
refund of the special tonnage taxes and light money assessed
against the BRIGITTE JACOB.  We concur with your recommendation
that the special tonnage taxes and light money assessed against
the BRIGITTE JACOB be refunded.
 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