HQ 111705: Application for Refund of Special Tonnage Tax and Light Money for the Luxembourg Vessel MV CORNELIS VEROLME

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 111705

                        October 22, 1991

VES-11-11 CO:R:IT:C 111705 BEW

CATEGORY:  Carriers

Regional Commissioner of Customs
South Central Region
New Orleans, Louisiana 70130

RE:  Application for Refund of Special Tonnage Tax and Light
     Money for the Luxembourg Vessel MV CORNELIS VEROLME

Dear Sir:

     This is in reference to your memorandum dated May 16, 1991,
which transmitted documents from Oceanseas Freight Corporation,
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 (46 U.S.C. 121), and section 4.20, Customs
Regulations (19 CFR 4.20), upon arrival of the vessel at the port
of New Orleans on April 27, 1991.

     Special tonnage tax and light money were collected because
section 4.22 of the Customs Regulations had not been amended to
include Luxembourg.

ISSUE:

     May special tonnage taxes and light money assessed against a
Luxembourg vessel after the effective date that Luxembourg 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. 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 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.

     The special tonnage taxes and light money were collected
because Luxembourg 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 March 4, 1991, that Luxembourg
should be added to the list of countries 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 23, 1991, reporting this change,
including the retroactive effective date.  The vessel arrived in
port four days later.

     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 CORNELIS VEROLME.  We concur with your
recommendation that the special tonnage taxes and light money
assessed against the CORNELIS VEROLME 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 Luxembourg subsequent to January 1, 1991, may be refunded.

                                   Sincerely,




                                   Stuart P. Seidel
                                   Director, International Trade
                                   Compliance Division