HQ 0112265 - Special Tonnage Tax and Light Money; Original Registry unavailable; Waiver sought; Russian F/V STERKODER - United States International Trade Commision Rulings

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HQ 112265

June 16, 1992

VES-11-11-CO:R:IT:C 112265 MLR

CATEGORY: CARRIER

Ms. Caitlin J. Bjorke
Geo. S. Bush & Co., Inc.
International Freight Forwarders
Customs Brokers
1400 Exchange Building
821 Second Avenue
Seattle, Washington 98104

RE: Special Tonnage Tax and Light Money; Original Registry unavailable; Waiver sought; Russian F/V STERKODER

Dear Ms. Bjorke:

This is in reference to your facsimile dated May 28, 1992, seeking a waiver of the requirement to present the original registry.

FACTS:

The Russian F/V STERKODER arrived in Seattle on May 21, 1992, from Petropavlovsk-Kamchatskii, in the Russian Far East. Seattle Customs requested the original registry documents to demonstrate the nationality of the vessel, but the original "Ship's Patent and Ship's Certificate" are in the custody of the Russian Customs Service. You allege that according to Russian law, while a vessel is in Russian waters, the original registry is kept by Russian Customs and the vessel carries copies "certified by notary or Harbor Master." Evidently, when the ship was granted clearance to Seattle, Russian Customs failed to return the original documents.

You allege that the copies of the registry appear to be certified copies, in that they bear original seals and signatures of the Petropavlovsk-Kamchatskii "Fish Ship Harbor Master" (equivalent of Customs Port Director). Seattle Customs is not satisfied that these copies are, in fact, certified copies. Because of the remoteness of Petropavlovsk-Kamchatskii, only mail delivery is possible; however, the original would be expected to arrive after the vessel's scheduled departure date of June 30, 1992. A waiver of the requirement to present the original registry is requested.

ISSUE:

Whether the requirement to present the original registry may be waived.

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 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).

The U.S. Customs Service has consistently ruled that 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 it is admitted that the original registry still is in the custody of Russian Customs. If it is not possible to present the original registry to U.S. Customs before June 30, 1992, the vessel owner or agent may present a certification by an appropriate official of the government of registry of the vessel (i.e., Russian Embassy or Consulate) that the copy of the original is a true copy. If this is not possible, the master shall be required to pay the special tonnage tax and light money prescribed in section 4.20(c), Customs Regulations {19 CFR

If taxes are assessed, 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. In order that a refund may be considered it must be established by evidence from the appropriate authority of the foreign country involved, or by presenting the original registry, that the vessel was, in fact, registered under the laws of that country at the time of entry of the vessel at the port of arrival in the United States. Paragraph (e) of section 4.24 provides that such an application must also 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.

HOLDING:

The requirement of presenting the original registry may not be waived, but a 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, may be presented to avoid the payment of special tonnage taxes and light money. If this is not possible before the vessel departs, an application for refund may be made.

Sincerely,

B. James Fritz

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