Vessels in foreign and domestic trades: Nations entitled to special tonnage tax exemptions; list Brazil; removal,
[Federal Register: October 2, 1998 (Volume 63, Number 191)]
[Rules and Regulations]
[Page 52967-52968]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr02oc98-8]
DEPARTMENT OF THE TREASURY
Customs Service
[T.D. 98-79]
Removal of Brazil From the List of Nations Entitled to Reciprocal Exemption From the Payment of Special Tonnage Taxes
AGENCY: U.S. Customs Service, Department of the Treasury.
ACTION: Final rule.
SUMMARY: This document amends the Customs Regulations by removing Brazil from the list of nations whose vessels are entitled to reciprocal exemption from the payment of special tonnage taxes and light money. The Department of State has informed Customs that Brazil has implemented a law that discriminates against U.S. vessels in its preferential tax treatment of cargoes carried on certain specially- registered Brazilian vessels; thus, Brazil no longer qualifies for the exemption. Accordingly, Customs is withdrawing the exemption privileges formerly granted Brazil.
EFFECTIVE DATE: This amendment is effective, and the reciprocal privileges extended to all Brazilian-registered vessels are withdrawn, as of October 2, 1998.
FOR FURTHER INFORMATION CONTACT: Gerry O'Brien, Entry Procedures and Carrier Rulings Branch, (202-927-2320).
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 U.S. ports (46 U.S.C. App. 121 and 128).
Vessels of a foreign nation, however, may 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 U.S. 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 U.S. 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 exemption from payment of special tonnage tax and light money (46 U.S.C. App. 141).
Brazil is currently listed among the nations exempt from the payment of such special tonnage taxes and light money.
The Department of State, however, has informed Customs that Brazil implemented a new tax law, effective as of July 30, 1998, that discriminates against U.S. vessels and the vessels of other countries in its preferential tax treatment of cargoes carried by certain specially-registered Brazilian vessels. Specifically, the law establishes a second commercial shipping register whereby the dutiable value of imported merchandise carried by Brazilian vessels so registered does not include freight charges. However, identical imports carried by U.S. vessels or the vessels of other countries are subject to duty on the freight charges as well as the value of the merchandise. Because this circumstance violates the reciprocal nature of the exemption privilege granted, Brazil no longer qualifies for the exemption.
As a result, the Department of State, in accordance with 46 U.S.C. App. 141 and Executive Order 10289 of September 17, 1951 (16 FR 9499, 3 CFR 1949-1953 Comp. p. 787, as amended, see 3 U.S.C.A. 301 note), has recommended to the Secretary of the Treasury, through Customs, that Brazil be removed from the list of nations found at Sec. 4.22.
Finding
The Customs Service has determined that the vessels of Brazil are no longer exempt from the payment of special tonnage taxes and light money, effective as of October 2, 1998, and that Sec. 4.22 of the Customs Regulations should be amended accordingly. The authority to amend this section of the Customs Regulations has been delegated to the Chief, Regulations Branch.
In Applicability of Public Notice and Comment and Delayed Effective Date Requirements, the Regulatory Flexibility Act and Executive Order 12866
Because this amendment concerns a foreign affairs function of the United States, merely implements a statutory mandate, and involves a matter in which the general public has no significant interest, pursuant to 5 U.S.C. 553, notice and public procedure thereon are considered unnecessary; further, for the same reason, good cause exists for dispensing with a delayed effective date under 5 U.S.C. 553(d)(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.). Nor does the amendment meet the criteria for a ``significant regulatory action'' under E.O. 12866.
List of Subjects in 19 CFR Part 4
Cargo vessels, Customs duties and inspection, Entry, Maritime carriers, Vessels.
Amendment to the Regulations
Part 4, Customs Regulations (19 CFR part 4), is amended as set forth below.
[[Page 52968]]
PART 4--VESSELS IN FOREIGN AND DOMESTIC TRADES
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The general authority citation for part 4 and the specific authority citation for Sec. 4.22 continue 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]
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Section 4.22 is amended by removing ``Brazil'' from the list of nations entitled to exemption from special tonnage taxes and light money.
Dated: September 29, 1998. Harold M. Singer, Chief, Regulations Branch
[FR Doc. 98-26417Filed10-1-98; 8:45 am]
BILLING CODE 4820-02-P
