VES-11-11 CO:R:IT:C 112094 MLR
Regional Commissioner
South Central Region
U.S. Customs Service
423 Canal Street
New Orleans, Louisiana 70130-2341
RE: Application for Refund of Special Tonnage Taxes and Light
Money for the Luxembourg Vessel M/V FEDERAL OTTAWA
Dear Sir:
This is in reference to your memorandum of January 29, 1992,
which transmitted documents from Blue Water Shipping Company,
concerning an application for refund of special tonnage taxes and
light money.
FACTS:
Special tonnage taxes and light money in the amount of
$13,049 were collected from Blue Water Shipping Company on March
18, 1991, for the entry of the Luxembourg vessel, the M/V FEDERAL
OTTAWA, at the Port of New Orleans, Louisiana. The monies were
collected 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); section 4.22 of the Customs
Regulations (19 CFR 4.22) had not been amended to include
Luxembourg.
On May 15, 1991, the agent for the vessel under
consideration applied to the District Director of Customs in New
Orleans for a refund of the special tonnage taxes and light money
collected. The District Director forwarded the application to
the Regional Commissioner.
ISSUE:
Whether the special tonnage taxes and light money assessed
against a Luxembourg vessel after the effective date that
Luxembourg was added as one of the nations exempt under section
4.22 of the Customs Regulations may 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 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). Luxembourg is 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 one (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.
The special tonnage taxes and light money were collected
because Luxembourg did not appear on the list of nations exempt
from collection of these taxes and light money in section 4.22,
Customs Regulations (19 CFR 4.22). Customs places the names of
nations on that list upon notification by the United States
Department of State that no discriminating duties of tonnage are
levied by those nations on vessels of the United States.
Customs was notified on March 4, 1991, that Luxembourg
should be added to the list of nations exempt from the assessment
of special tonnage taxes, and that the exemption should be made
retroactive to January 1, 1991. Prior to amending our
regulations to reflect this change, we sent a telegram to all
regional commissioners on April 22, 1991, reporting this change,
including the retroactive effective date.
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 M/V FEDERAL OTTAWA. It is satisfactorily established
that the vessel was documented under the flag of Luxembourg on
its March 18, 1991, entry in New Orleans when the special tonnage
taxes and light money were collected. Because Luxembourg vessels
were exempt from special tonnage taxes and light money on that
date, the special tonnage taxes and light money under
consideration may be refunded.
HOLDING:
Special tonnage taxes and light money assessed against a
vessel of Luxembourg subsequent to January 1, 1991, may be
refunded.
Sincerely,
B. James Fritz
Chief
Carrier Rulings Branch