HQ 111359: 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.

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 111359

                          March 5, 1991

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

CATEGORY:   Carriers

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
                              Director, International
                              Trade Compliance Division