HQ 111551: Application for Refund of Special Tonnage Tax and Light Money for the Panamian Vessel M/V YAGUAR

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 111551

                         March 11, 1991


VES-11-11 CO:R:IT:C 111551 BEW

CATEGORY:  Carriers

Regional Commissioner of Customs
Southwest Region
Houston, Texas 77029

RE:  Application for Refund of Special Tonnage Tax and Light
     Money for the Panamian Vessel M/V YAGUAR

Dear Sir:

     This is in reference to your memorandum dated August 20,
1990, concerning an application for refund of special tonnage
tax and light money filed by Oceanwide USA Maritime Agency.

FACTS:

     On October 27, 1989, the M/V YAGUAR made formal entry at the
port of Houston, Texas, as a foreign arrival from Tampico,
Mexico.  At the time of entrance, the vessel's agent was not able
to produce an original register or certificate of nationality for
the vessel.  Special tonnage tax and light money in the amount of
$6,963 were demanded when representatives for the vessel were
unable to present an original document.

     The money was assessed pursuant to section 121 of title 46,
United States Code (46 U.S.C. 121), and section 4.20, Customs
Regulations (19 CFR 4.20), upon arrival of the vessel at the
port of Houston, Texas, on October 27, 1989.

ISSUE:

     May special tonnage taxes and light money assessed because
the vessel under consideration did not have a current original
document of registry when it was entered or before it was cleared
be refunded when timely application for refund is made and the
applicant submits an original "Patente Provisional de Navegacion"
extending the "Patente Permanente de Navegacion?"

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).  Panama is one of those
nations.

     The Customs Regulations pertaining to tonnage taxes and
light money are found in section 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.  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 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 the vessel agent has timely applied for a
refund of the special tonnage taxes and light money assessed
against the M/V YAGUAR.

     An original "Patente Provisional de Navegacion" dated
October 31, 1989, extending the "Patente Permanente de
Navegacion" was submitted to Customs in Houston.  Inspector K.M.
Shetler has certified this document to be a true copy of the
original to sustain the vessel's nationality.  The original
document was issued in November 1986, and was in effect at the
time of entry in Houston, Texas.

     We conclude that this evidence satisfactorily establishes
the tonnage of the M/V YAGUAR and the M/V YAGUAR was a vessel of
the Panama when it entered Houston, on October 27, 1989.  We
concur with your recommendation that the special tonnage taxes
and light money assessed against the M/V YAGUAR be refunded.

HOLDING:

     Upon the filing of the certificate required in 19 CFR
4.24(e), special tonnage taxes and light money assessed because
the vessel under consideration did not have a current 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 an
original "Patente Provisional de Navegacion" extending the
"Patente Permanente de Navegacion."

                                  Sincerely,




                                  Stuart P. Seidel
                                  Director, International Trade
                                  Compliance Division