[Federal Register Volume 62, Number 244 (Friday, December 19, 1997)]
[Rules and Regulations]
[Pages 66521-66522]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-33169]


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DEPARTMENT OF THE TREASURY

Customs Service

19 CFR Part 4

[T.D. 98-3]
RIN 1515--AC27


Addition of Hong Kong 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 Hong Kong does not 
impose or levy any discriminating duties of tonnage or imposts upon 
vessels wholly belonging to citizens of the United States, or upon the 
produce, manufactures, or merchandise imported in these vessels from 
the United States or any foreign country and that, accordingly, vessels 
of Hong Kong are exempt from the payment of special tonnage taxes and 
light money in ports of the United States. This document amends the 
Customs Regulations by adding Hong Kong 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 amendment to the 19 CFR 4.22 is effective on 
December 19, 1997. The exemption from special tonnage tax and light 
money for vessels registered in Hong Kong became effective on July 1, 
1997.

FOR FURTHER INFORMATION CONTACT: Craig Clark, Entry 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 United States 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 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).

Treatment of Hong Kong

    On July 1, 1997, Hong Kong became a Special Administrative Region 
of the People's Republic of China. Before that date, vessels from Hong 
Kong had an exemption from special tonnage tax by virtue of Hong Kong's 
status as a British colony.
    The Department of State has requested that Customs add Hong Kong to 
the list of nations under Sec. 4.22 in order that vessels from Hong 
Kong receive the same treatment as they did prior to July 1, 1997. In 
addition, the Department of State has submitted information regarding 
the absence of discriminatory duties of tonnage or impost imposed on 
U.S. vessels in the ports of Hong Kong.
    The Department of State's request is consistent with the terms of 
section 2 of the Act of October 5, 1992, referred to as the United 
States-Hong Kong Policy Act (Pub. L. 102-383, 106 Stat. 1448) codified 
in title 22, United States Code, section 5701, et seq., which embodies 
the policy of the United States applicable to dealing with Hong Kong 
following reversion, including trade and commerce matters. That law 
demonstrates that dealings with Hong Kong after June 30, 1997, are to 
be conducted without change until and unless the Administration (the 
President) makes a determination that different treatment is warranted.

Finding

    Based on the request and information submitted by the Department of 
State, and based on 22 U.S.C. 5701, et seq., in order that vessels from 
Hong Kong remain exempt from the payment of special tonnage tax 
following reversion, the Customs Service has determined that Hong Kong 
should be added to the list of nations contained in 19 CFR 4.22, 
effective July 1, 1997. The Customs Regulations are amended 
accordingly.

Inapplicability of Public Notice and Delayed Effective 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.). Furthermore, this amendment does not meet the criteria 
for a ``significant regulatory action'' as specified in Executive Order 
12866.

List of Subjects in 19 CFR Part 4

    Cargo vessels, Customs duties and inspection, Maritime carriers, 
Vessels.

[[Page 66522]]

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 general authority for Part 4 and relevant specific authority 
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]

    2. Section 4.22 is amended by adding ``Hong Kong'' in appropriate 
alphabetical order.

    Dated: December 15, 1997
Harold M. Singer,
Chief, Regulations Branch.
[FR Doc. 97-33169 Filed 12-18-97; 8:45 am]
BILLING CODE 4820-02-P