Application for Refund of Special Tonnage Tax and Light Money for the M/V MSC STELLA, Panama Flag vessel; certificate of registry; 46 U.S.C. §§ 504, 60301, 60302, 60303, 60304, 60312, 60503; 19 CFR §§ 4.20-4.24.

HQ H239917 May 6, 2013 VES-11-10 OT:RR:BSTC:CCR H239917 DAC CATEGORY: CARRIERS Port Director, Port of New Orleans U.S. Customs and Border Protection 423 Canal Street, Suite 260 New Orleans, LA 70130 RE: Application for Refund of Special Tonnage Tax and Light Money for the M/V MSC STELLA, Panama Flag vessel; certificate of registry; 46 U.S.C. §§ 504, 60301, 60302, 60303, 60304, 60312, 60503; 19 CFR §§ 4.20-4.24. Dear Port Director: This is in reference to your memorandum dated March 19, 2013, forwarding an application for refund of tonnage tax pursuant to 19 CFR § 4.24, submitted by Murphy, Rogers, Sloss & Gambel PLC, on behalf of the M/V MSC STELLA. The petition requests a refund of the special tonnage tax and light money assessed for failure to produce an original registry document at the time of entry of the M/V MSC STELL at the Port of New Orleans, Louisiana. FACTS: The subject vessel is the M/V MSC STELLA and it is a Panama flagged vessel that arrived at the Port of Houston, Texas, on or about January 25, 2013. Then, the representatives of the M/V MSC STELLA presented a photocopy of the registry document that had an endorsement from the Consul General of Panama in Houston, Texas, to the Customs and Border Protection (CBP) personnel in the Port of Houston. A few days later, on or about January 27, 2013, at the Port of New Orleans, Louisiana, the photocopy of the registry document with such an endorsement was not accepted by CBP personnel in the Port of New Orleans. On January 28, 2013, the representatives of the subject vessel paid special tonnage tax and light money in the amount of USD $47,138.00. The “Certificate of Payment of Tonnage Tax,” CBP Form 1002, No. 2646427, dated January 28, 2013, is the evidence of the payment of $47138.00 of “Light Money/ Special Tonnage Tax” that was received by CBP at the Port of New Orleans. The reason for such assessment that is annotated on the CBP receipt as follows: “No Original Registry.” See also 46 U.S.C. §§ 60301, 60302, 60303. 19 CFR § 4.20-4.23. The representatives of the M/V MSC STELLA have submitted an application for refund of the special tonnage tax and light money, dated February 19, 2013, to CBP at the Port of New Orleans, through their counsel, Mr. Charles L. Whited, Jr. of Murphy, Rogers, Sloss & Gambel, Professional Law Corporation. See also 46 U.S.C. §§ 504, 60312, 60503. 19 CFR § 4.24. The application for refund includes the applicant’s claims for refund and supporting documentary evidence that includes, but is not limited to: the application for refund pursuant to 19 CFR § 4.24; a copy of the certificate of payment of tonnage tax; a certified copy of the certificate of registry from Panama for the MSC STELLA, valid through June 18, 2017, endorsed by the Consul General of Panama in Houston, Texas; a receipt for the endorsed certificate of registry dated January 25, 2013; a certificate of ownership for the MSC STELLA, endorsed and issued by the Consul General of Panama in New Orleans, Louisiana; and a receipt issued from the Panama Maritime Authority showing the appropriate owner has paid the Panama vessel taxes and fees for the year 2013. ISSUE: Whether the request for relief and refund of the special tonnage tax and light money assessed for failure to produce an original registry document at the time of entry shall be granted upon proper application pursuant to 19 CFR § 4.24 and presentation of sufficient evidence of a current registry valid for the subject date of arrival of the subject vessel? LAW AND ANALYSIS: The relevant statutes for the assessment of tonnage tax, special tonnage tax and light money are provided for at 46 U.S.C. §§ 60301, 60302, 60303. The relevant statute for the preservation of rights under treaties is located at 46 U.S.C. § 60312, and provides, in pertinent part: 46 U.S.C. § 60312. Rights under treaties preserved This chapter and chapter 605 of this title [46 U.S.C. §§ 60301 et seq. and 60501 et seq.] do not affect a right or privilege of a foreign country relating to tonnage taxes or other duties on vessels under a law or treaty of the United States. The relevant statute for the reciprocal suspension of discriminating duties is located at 46 U.S.C. § 60503, and provides, in pertinent part: 46 U.S.C. § 60503. Reciprocal suspension of discriminating duties (a) General authority. On receiving satisfactory proof from the government of a foreign country that it has suspended, in any part, the imposition of discriminating duties for any class of vessels owned by citizens of the United States or goods imported in those vessels, the President may proclaim a reciprocal suspension of discriminating duties for the same class of vessels owned by citizens of that country or goods imported in those vessels. (b) Effective and expiration dates. A suspension under this section takes effect retroactively from the date the President received the proof from the foreign government, and expires when that government stops granting the reciprocal suspension. The nations for which such proof has been supplied are listed at 19 CFR § 4.22 of the CBP Regulations, which provides, in pertinent part: 19 CFR § 4.22. Exemptions from special tonnage taxes Vessels of the following nations are exempted by treaties, Presidential proclamations, or orders of the Secretary of the Treasury from the payment of any higher tonnage duties than are applicable to vessels of the United States and are exempted from the payment of light money: …Panama * * * The relevant statute that provides for remission of monies collected relating to vessels is located at 46 U.S.C. § 504, and provides, in pertinent part: 46 U.S.C. § 504. Remission of fees and penalties Any part of a fee, tax, or penalty paid or a forfeiture incurred under a law or regulation relating to vessels or seamen may be remitted if-- (1) application for the remission is made within one year after the date of the payment or forfeiture; and (2) it is found that the fee, tax, penalty, or forfeiture was improperly or excessively imposed. The relevant CBP regulation that allows for the application of refund of tonnage tax is located at 19 CFR § 4.24, and provides, in pertinent part: 19 CFR § 4.24. Application for refund of tonnage tax. (a) The authority to make refunds in accordance with section 26 of the Act of June 26, 1884 (46 U.S.C. 8) of regular tonnage taxes described in § 4.20(a) is delegated to the Directors of the ports where the collections were made. If any doubt exists, the case shall first be referred to Headquarters, U.S. Customs Service for advice. * * * (b) Each application for refund of regular or special tonnage tax or light money prepared in accordance with this section shall be filed with the Customs officer to whom payment was made. After verification of the pertinent facts asserted in the claim, the application shall be forwarded with any necessary report or recommendation to the appropriate port director. * * * (emphasis added.) The procedures and requirements for submitting an application for refund of tonnage taxes and light money are detailed in the CBP Regulations at 19 CFR § 4.24. Generally, with regards to vessel documents, only the original of a registry document, tonnage certificate, or official amendment or official endorsement of such documents shall be accepted by CBP personnel at the time of arrival of the vessel for the purpose of establishing the nationality and tonnage of the vessel, unless the vessel is a vessel of Lebanon (See Customs Directive 3100-03, September 22, 1986). When the owner or agent of a vessel that has been assessed special tonnage tax and light money timely submits the original vessel document to the port director of the port where the assessment was made, the special tonnage tax and light money may be refunded. If it is impractical, infeasible, or inconvenient for the vessel owner or agent to submit the original document to CBP, the vessel owner or agent may submit a photocopy of the original document, signed and certified to be a true copy by an appropriate official of the government of registry of the subject vessel. See CBP Ruling HQ 115057, June 27, 2000. In this instance, the representative of the subject vessel timely applied for a refund of the special tonnage tax and light money assessed on the subject vessel with the appropriate Port Director. In support of its application, the representative of the subject vessel provided CBP with evidence of a current registry document valid for the date of arrival of the subject vessel. The application for refund submitted has shown that at the time of entry of the subject vessel in the Port of Houston, Texas, a photocopy of the registry document with an endorsement from the Consulate of Panama in Houston was submitted to CBP personnel at the Port of Houston. Moreover, such application has also shown that at the time of entry of the subject vessel in the Port of New Orleans, Louisiana, a photocopy of the registry document with an endorsement from the Consulate of Panama in Houston was submitted to CBP personnel at the Port of New Orleans, however, it was not accepted by the CBP personal in New Orleans. Additionally, the application for refund submitted has provided the Certificate of Payment of Tonnage Tax (No. 2646427, dated January 28, 2013, in the amount of $47,138.00). Therefore, we find that the proper application pursuant to 19 CFR § 4.24 and the evidence of submission by the representative of the MSC STELLA, of the photocopy of the original registry document, valid for the subject date of arrival of the subject vessel, endorsed as a genuine copy by an appropriate official of the government of registry of the subject vessel, satisfies the requirements for the application for refund. Accordingly, we find that this application satisfies the requirements of 19 CFR § 4.24 and establishes that the M/V MSC STELLA was a registered vessel of Panama on the dates of entry at both Houston, Texas, and on the date of entry and payment of such special tonnage tax and light money at New Orleans, Louisiana. Therefore, since Panama is a nation listed in the CBP Regulations at 19 CFR § 4.22 as one of the countries whose vessels are exempt from the payment of special tonnage tax and light money, we conclude that the special tonnage taxes and light money assessed against M/V MSC STELLA shall be refunded. See also 46 U.S.C. § 504; 19 CFR § 4.24. HOLDING: We conclude that based upon the discussion above, the special tonnage tax and light money assessed against the M/V MSC STELLA shall be refunded. The applicant has satisfied the requirements of 19 CFR § 4.24. Moreover, the applicant’s submission provides evidence of its original submission to the CBP personnel in the Port of New Orleans, Louisiana, of a photocopy of a current original registry document, endorsed by the Consul General of Panama in Houston, valid for the subject date of entry of the subject vessel. Therefore, the subject application submitted pursuant to 19 CFR § 4.24 and the accompanying evidence satisfy the requirements for CBP to grant the request for relief and the subject special tonnage taxes and light money shall be refunded. Sincerely, George Frederick McCray Supervisory Attorney-Advisor/Chief Cargo Security, Carriers and Restricted Merchandise Branch Office of International Trade, Regulations & Rulings U.S. Customs and Border Protection