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HQ 113051

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May 19, 1994

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

CATEGORY: CARRIER

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

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