[Federal Register Volume 61, Number 226 (Thursday, November 21, 1996)]
[Notices]
[Pages 59278-59279]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-29774]


=======================================================================
-----------------------------------------------------------------------

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.

-----------------------------------------------------------------------

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