Supporting Law/Regulation

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TITLE 19--CUSTOMS DUTIES

CHAPTER I--UNITED STATES CUSTOMS SERVICE, DEPARTMENT OF THE TREASURY

PART 10--ARTICLES CONDITIONALLY FREE, SUBJECT TO A REDUCED RATE, ETC.--Table of Contents

Sec. 10.59 Exemption from customs duties and internal-revenue tax.

(e) A documented vessel with a fisheries license endorsement and foreign fishing

vessels of 5 net tons or over may be allowed to withdraw distilled spirits (including

alcohol), wines, and beer conditionally free under section 309, Tariff Act of 1930, as

amended (19 U.S.C. 1309), if the port director is satisfied from the quantity requested,

in the light of (1) whether the vessel is employed in substantially continuous fishing

activities, and (2) the vessel's complement, that none of the withdrawn articles is

intended to be removed from the vessel in, or otherwise returned to, the United States

without the payment of duty or tax. Such withdrawal shall be permitted only after the

approval by the port director of a special written application, in triplicate, on Customs

Form 5125, of the withdrawer, supported by a bond on Customs Form 301, containing

the bond conditions set forth in Sec. 113.62 of this chapter executed by the withdrawer.

Such application shall be filed with Customs Form 7501 or 7512, as the case may be.

The original and the triplicate copy of the application, after approval, shall be stamped

with the withdrawal number and date thereof and shall be returned to the withdrawer for

use as prescribed below. Approval of each such application shall be subject to the

condition that the original and the triplicate copy shall be presented thereafter by the

withdrawer or the vessel's master to the port director within 24 hours (excluding

Saturday, Sunday, and holidays) after each subsequent arrival of the vessel at a

Customs port or station and that an accounting shall be made at the time of such resentation of the disposition of the articles until the port director is satisfied that all of

them have been consumed on board, or landed under Custom's supervision, and takes

up the original application. (The withdrawer shall retain the triplicate copy as evidence of

consumption on board or landing under Customs supervision.) The approval shall be

subject to the further conditions that any such withdrawn article remaining on board while the vessel is in port shall be safeguarded in the manner and to such extent as the

district director for the port or place of arrival shall deem necessary and that failure to comply with the conditions upon which a conditionally free withdrawal is approved shall

subject the total quantity of withdrawn articles to the assessment and collection of an

amount equal to the duties and taxes that would have been assessed on the entire

quantity of supplies withdrawn had such supplies been regularly entered, or withdrawn,

for consumption.

Exemption from internal-revenue tax on distilled spirits, alcohol, wines, and beer removed from any internal-revenue bonded warehouse, industrial alcohol premises,

bonded wine cellar, or brewery; and drawback on taxpaid distilled spirits or wines removed from an export storage room, or on taxpaid beer removed from a brewery (or place of storage elsewhere), for use as supplies on vessels under section

309, Tariff Act of 1930, as amended, are governed by regulations of the Internal Revenue Service.