VES-11-11-CO:R:IT:C 112170 MLR
Regional Commissioner of Customs
South Central Region
New Orleans, Louisiana 70130
RE: Application for Refund of Special Tonnage Tax and Light
Money for the Maltese Vessel M/V PRIME NOBLE
Dear Sir:
This is in reference to your memorandum dated March 26,
1992, concerning an application for refund of special tonnage
tax and light money filed by Riomar Steamship Agents.
FACTS:
The money, in the amount of $13,730 ($1.00 per net ton) 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 New Orleans on February 20, 1992.
Special tonnage tax and light money were demanded when
representatives for the vessel were unable to present an original
certificate of registry at the time of formal entry to establish
the nationality of the vessel.
The vessel agent, Riomar Agencies, presented the original
registry to Customs on February 25, 1992.
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 Certificate of Registry for the
vessel signed by the Registrar of Malta Ships?
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). Malta 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 the case before us, the vessel agent has timely applied
for a refund of the special tonnage taxes and light money
assessed against the M/V PRIME NOBLE. Although the original
certificate of registry was not presented upon the vessel's date
of entry, we are advised that all necessary documents, including
the original certificate of registry, have subsequently been
presented to the District Director. Therefore, since it has been
established that the M/V PRIME NOBLE was a vessel of Malta upon
its entry at the port of New Orleans, Louisiana, on February 20,
1992, and since Malta is a country included on the list of
countries whose vessels are exempt from the payment of special
tonnage tax and light money under section 4.22 Customs
Regulations (19 CFR 4.22), we concur with your recommendation
that the special tonnage taxes and light money assessed against
the M/V PRIME NOBLE 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 Certificate of Registry for the vessel signed by the
Registrar of Malta Ships.
Sincerely,
B. James Fritz
Chief
Carrier Rulings Branch