Announcement of Suspension 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. 96-79]

Announcement of Suspension 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 has ceased 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 possible to suspend the collection of special tonnage taxes

and light money from vessels of Ukraine upon entering United States

ports.

EFFECTIVE DATE: The change discussed in this notice became effective on

November 14, 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

[[Page 59279]]

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 was assessing

discriminatory tonnage fees against vessels of the United States which

enter at Ukrainian ports. As a consequence, the Department of State

requested that action be taken to end the exemption from the assessment

of special tonnage taxes and light money 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 was on-going, it

was determined to issue a non-amendatory notice by which to limit the

exemption privilege by excluding Ukraine. The Department of State

informed Customs that upon the conclusion of necessary discussions,

Customs would 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 a September

26, 1996, General Notice, vessels of Ukraine entering ports of the

United States were 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 were collected on all such vessels.

Customs has now been informed by the Department of State that

appropriate written assurances have been supplied by the Government of

Ukraine, indicating that vessels of the United States will be accorded

the treatment called for under the Maritime Agreement which expired in

December of 1995. Accordingly, it has been requested by the Department

of State that for a period of thirty days from the date of notification

to the Customs Service, vessels of Ukraine have restored to them the

statutory exemption from the collection of special tonnage taxes and

light money.

Therefore, effective immediately upon publication of this General

Notice, and for a period of thirty calendar days which will expire on

December 14, 1996, vessels documented under the laws of Ukraine are

exempted from the collection of special tonnage taxes and light money.

Dated: November 15, 1996.

Stuart P. Seidel,

Assistant Commissioner, Office of Regulations and Rulings

[FR Doc. 96-29774 Filed 11-20-96; 8:45 am]

BILLING CODE 4820-02-P