Addition of Brazil to the List of Nations Entitled to Special Tonnage Tax Exemption

DEPARTMENT OF THE TREASURY

Customs Service

19 CFR Part 4

[T. D. 95-14]

Addition of Brazil to the List of Nations Entitled to Special

Tonnage Tax Exemption

AGENCY: U. S. Customs Service, Department of the Treasury.

ACTION: Final rule.

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SUMMARY: Pursuant to information provided by the Department of State,

the United States Customs Service has found that Brazil no longer

imposes discriminating duties of tonnage or imposts upon vessels

belonging to citizens of the United States. Accordingly, vessels of

Brazil are exempt from special tonnage taxes and light money in ports

of the United States. This document amends the Customs Regulations by

adding Brazil to the list of nations whose vessels are exempt from the

payment of any higher tonnage duties than are applicable to vessels of

the United States and from the payment of light money.

EFFECTIVE DATE: The reciprocal privileges for vessels registered in

Brazil became effective on September 15, 1994. This amendment is

effective February 6, 1995.

FOR FURTHER INFORMATION CONTACT: Barbara E. Whiting, Carrier Rulings

Branch (202-482-6940).

SUPPLEMENTARY INFORMATION:

Background

Generally, the United States imposes regular and special tonnage

taxes, and a duty of a specified amount per ton, called ``light

money,'' on all foreign vessels which enter United States ports (46

U.S.C. App. 121, 128). However, vessels of a foreign nation may be

exempted from the payment of special tonnage taxes and light money upon

presentation of satisfactory proof that no discriminatory duties of

tonnage or impost are imposed by that foreign nation on U.S. vessels or

their cargoes (46 U.S.C. App. 141).

Section 4.22, Customs Regulations (19 CFR 4.22), lists those

nations whose vessels have been found to be exempt from the payment of

any higher tonnage [[Page 6967]] duties than are applicable to vessels

of the United States and from the payment of light money. The authority

to amend this section of the Customs Regulations has been delegated to

the Chief, Regulations Branch.

Brazil was previously included in the list of exempted nations in

Sec. 4.22, Customs Regulations (19 CFR 4.22), but the U.S. Department

of State informed Customs that U. S. vessels and their cargoes were

being charged discriminatory duties in the form of lighthouse fees and

a Merchant Marine Renewal Tax by the Government of Brazil. Accordingly,

Brazil was removed from the list of exempted nations by means of a

final rule published in the Federal Register on March 5, 1993 (58 FR

12538).

The Department of State now informs Customs that the Government of

Brazil has agreed to exempt vessels of the United States from payment

of lighthouse fees, effective September 15, 1994. The Government of

Brazil also indicated that it has ended rebates of the Merchant Marine

Renewal Tax to Brazilian-registered ships, so that duty is no longer

being applied in a discriminatory manner.

Finding

On the basis of the above-mentioned information from the Department

of State regarding the current absence of discriminatory duties of

tonnage or impost imposed upon U.S. vessels in the ports of Brazil, the

Customs Service has determined that vessels of Brazil are exempt from

the payment of the special tonnage tax and light money, effective

September 15, 1994. The Customs Regulations are amended accordingly.

Inapplicability of Public Notice and Delayed Date Requirements, the

Regulatory Flexibility Act and Executive Order 12866

Because this amendment merely implements a statutory requirement

and confers a benefit upon the public, pursuant to 5 U.S.C. 553(b)(B),

notice and public procedure are unnecessary; further, for the same

reasons, good cause exists for dispensing with a delayed effective date

under 5 U.S.C. 553(d)(1) and (3). Since this document is not subject to

the notice and public procedure requirements of 5 U.S.C. 553, it is not

subject to the provisions of the Regulatory Flexibility Act (5 U.S.C.

601 et seq.). This amendment does meet the criteria for a ``significant

regulatory action'' as specified in Executive Order 12866.

Drafting Information

The principal author of this document was Janet L. Johnson,

Regulations Branch, U.S. Customs Service. However, personnel from other

offices participated in its development.

List of Subjects in 19 CFR Part 4

Cargo vessels, Customs duties and inspection, Maritime carriers,

Vessels.

Amendment to the Regulations

Part 4, Customs Regulations (19 CFR Part 4), is amended as set

forth below:

PART 4--VESSELS IN FOREIGN AND DOMESTIC TRADES

1. The authority for Part 4 continues to read as follows:

Authority: 5 U.S.C. 301; 19 U.S.C. 66, 1431, 1433, 1434, 1624;

46 U.S.C. App. 3, 91.

* * * * *

Section 4.22 also issued under 46 U.S.C. App. 121, 128, 141;

* * * * *

Sec. 4.22 [Amended]

2. Section 4.22 is amended by inserting ``Brazil'' in appropriate

alphabetical order.

Dated: January 31, 1995.

Harold M. Singer,

Chief, Regulations Branch.

[FR Doc. 95-2842 Filed 2-3-95; 8:45 am]

BILLING CODE 4820-02-P