[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