HQ 0111359 - Special Tonnage Tax; Refund; Certificate of Registry; 46 U.S.C. App. 121 & 128; 19 C.F.R. 4.20-4.24; M/V SAGITARIO. - United States International Trade Commision Rulings

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HQ 111359

March 5, 1991

VES-11-11 CO:R:IT:C 111359 JBW

CATEGORY: CARRIER

Regional Commissioner
Southwest Region
United States Customs Service
5850 San Felipe Street, Suite 500
Houston, Texas 77057-3012

RE: Special Tonnage Tax; Refund; Certificate of Registry; 46 U.S.C. App. 121 & 128; 19 C.F.R. 4.20-4.24; M/V SAGITARIO.

Dear Sir:

With your memorandum of October 17, 1990 (FILE: VES 11-O:I RBK), you transmitted documents from H. D. Gale Maritime Agencies, Inc., pertaining to its request for the refund of special tonnage tax and light money assessed against the Panamanian vessel the M/V SAGITARIO. Our findings follow.

FACTS:

The record reflects that the subject vessel made formal entry at the port of Galveston, Texas, on July 12, 1988. At the time of entry, the shipping agent representing the vessel was not able to produce an original document of registry to demonstrate the nationality of the vessel. The port assessed against the ship special tonnage tax in the amount of fifty cents per ton and light money also in the amount of fifty cents per ton. The total amount collected was $2,892.00.

After the vessel departed, the shipping agent obtained an original registry, which was filed with the District Director in Houston. The registry is dated July 4, 1988.

ISSUE:

May the Customs Service refund special tonnage tax and light money assessed because the shipping agents for the vessel under consideration were unable to produce an original vessel registry when it was entered or before it was cleared when timely application for refund is made and the applicant submits an original vessel registry valid for the date of the entry of the vessel.

LAW AND ANALYSIS:

United States law assesses a special tonnage tax in the amount of fifty cents per ton and light money in the amount of fifty cents per ton on vessels not built in the United States and not of the United States. 46 U.S.C. App. 121 & 128 (1988). Pursuant to 46 U.S.C. App. 141 (1988), upon satisfactory proof that no discriminatory 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 proof has been supplied are listed in section 4.22 of the Customs Regulations. 19 C.F.R. 4.22 (1990). Panama is one of those nations.

The regulations pertaining to tonnage tax, special tonnage tax, and light money are found in the Customs Regulations, sections 4.20 to 4.24. 19 C.F.R. 4.20-4.24 (1990). 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 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 that has been assessed special tonnage tax and light money timely submits the original vessel document to the District Director of Customs for the port where the special tonnage tax and light money were assessed, the special tonnage tax 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 tax and light money assessed against the SAGITARIO with the District Director in Houston. In support of the request, the agent filed a certified copy of the original Panamanian registry of the SAGITARIO, which is dated July 4, 1988. This document is consistent with the information regarding the SAGITARIO found in the current edition of Lloyd' Register of Ships, 1990-91. We conclude that this evidence satisfactorily establishes that the SAGITARIO was a vessel of Panama when it entered at Galveston on July 12, 1988. We concur with your recommendation that the special tonnage tax and light money assessed against the ship be refunded.

HOLDING:

Special tonnage tax and light money assessed because the vessel under consideration did not have an 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 a certified copy of the original registry with District Director of Customs in Houston.

Sincerely,

Stuart P. Seidel

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