Announcement of Collection of Special Tonnage Taxes and Light Money Upon Entry Into the United States of Vessels of Ukraine

DEPARTMENT OF THE TREASURY

Customs Service

[T.D. 96-69]

Announcement of Collection of Special Tonnage Taxes and Light

Money Upon Entry Into the United States of Vessels of Ukraine

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

ACTION: General notice.

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SUMMARY: This notice announces that the United States has determined

that the Government of Ukraine is discriminating against vessels of the

United States in the collection of certain fees and taxes from such

vessels which enter that country. As a consequence, it has become

necessary to discontinue the exemption from the collection of special

tonnage taxes and light money enjoyed by vessels of Ukraine upon

entering United States ports.

EFFECTIVE DATE: The change established by this notice will commence

September 26, 1996.

FOR FURTHER INFORMATION CONTACT: Larry L. Burton, Office of Regulations

and Rulings (202) 482-7040.

SUPPLEMENTARY INFORMATION:

Background

Generally, the United States imposes regular and special tonnage

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

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

U.S.C. App. 121 and 128). Vessels of a foreign nation may, however, be

exempted from the payment of such 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 United

States vessels or their cargoes (46 U.S.C. App. 141). The list of

nations whose vessels have been found to be reciprocally 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 is found at

Sec. 4.22, Customs Regulations (19 CFR 4.22). Nations granted these

commercial privileges that subsequently impose discriminatory duties

are subject to retaliatory suspension of the commercial privileges (46

U.S.C. App. 141 and 142).

The list of countries in 19 CFR 4.22 is compiled as the result of

international agreements between the United States and the governments

of those nations listed. Customs either adds or deletes the names of

countries only upon the request of the Department of State. The present

list includes the former Union of Soviet Socialist Republics (USSR)

and, following the dissolution of that country, Customs was guided by a

policy determination of the Department of State which holds that absent

a separate agreement to the contrary, the states emerging from the

break-up of the USSR take the same rights and obligations as existed

for the USSR.

By a letter received on September 16, 1996, Customs was informed by

the Department of State that the Government of Ukraine is presently

assessing discriminatory tonnage fees against vessels of the United

States which enter at Ukrainian ports. As a consequence, the Department

of State has requested that action be taken to end the exemption from

the assessment of special tonnage taxes and light money presently

extended to Ukrainian vessels entering United States ports. Normally,

Customs would be supplied with the names of countries to add to or

delete from the regulatory list, but since discussion with other former

Soviet states is on-going, it has been determined to issue this non-

amendatory notice at this time to limit the exemption privilege by

excluding Ukraine. The Department of State informs Customs that upon

the conclusion of present discussions, Customs will be formally

requested to add the names of certain countries to 19 CFR 4.22, and to

delete the USSR from the regulation.

Therefore, effective immediately upon publication of this General

Notice, vessels of Ukraine entering ports of the United States are no

longer exempted from the assessment of special tonnage taxes and light

money. Special tonnage taxes and light money in the amounts authorized

under law will be collected on all such vessels.

Dated: September 20, 1996.

Stuart P. Seidel,

Assistant Commissioner, Office of Regulations and Rulings.

[FR Doc. 96-24658 Filed 9-25-96; 8:45 am]

BILLING CODE 4820-02-P