numbers on packages of merchandise and the marks or numbers for the same packages as shown on the manifest of the importing vessel when the quantities and description of the merchandise in such packages are correctly given.

(e) If the discrepancy is not explained to the satisfaction of the collector, the penalties prescribed by section 584, Tariff Act of 1930, as amended, shall be imposed. For the purpose of assessing such penalties the value of the merchandise is that defined in § 23.12 of this chapter. The fact that the master or owner had no knowledge that the discrepancy existed does not relieve him from the penalty.

(Secs. 440, 584, 46 Stat. 712, as amended, 748, as amended; 19 U. S. C. 1440, 1584) [13 F. R. 7929, Dec. 18, 1948, as amended by T. D. 52773, 16 F. R. 6834, July 17, 1951; T. D. 53336, 18 F. R. 5405, Sept. 9, 1953]

25 "In addition to any other requirement of law, every vessel, not exceeding five hundred net tons, from a foreign port or place, or which has visited a hovering vessel, shall carry a certificate for the importation into the United States of any spirits, wines, or other alcoholic liquors on board thereof (sea stores excepted), destined to the United States, said certificate to be issued by a consular officer of the United States or other authorized person pursuant to such regulations as the Secretary of State and the Secretary of the Treasury may jointly prescribe. Any spirits, wines, or other alcoholic liquors (sea stores excepted) found, or discovered to have been, upon any such vessel at any place in the United States, or within the customs waters, without said certificate on board, which are not shown to have a bona fide destination without the United States, shall be seized and forfeited and, in the case of any such merchandise so destined to a foreign port or place, a bond shall be required in double the amount of the duties to which such merchandise would be subject if imported into the United States, conditioned upon the delivery of said merchandise at such foreign port or place as may be certified by a consular officer of the United States or otherwise as provided in said regulations: Provided, That if the collector shall be satisfiled that the certificate required for the importation of any spirits, wines, or other alcoholic liquors was issued and was lost or mislaid without fraud, or was defaced by accident, or is incorrect by reason of clerical error or other mistake, said penalties shall not be incurred nor shall such bond be required. (19 U. S. C. 1707)

to a hovering vessel has on board any alcoholic liquors, other than sea stores, destined to the United States, a certificate on foreign service Form 149 for the importation of such liquors shall be delivered to the boarding officer with the inward foreign manifest.

(b) When any shipment of spirits, wines, or other alcoholic liquors found on board a vessel not exceeding 500 net tons is shown to have a bona fide destination outside the United States, the master shall furnish a landing bond on customs Form 7593 (see T. D. 47886) with an authorized corporate surety unless the shipment is accompanied by a certificate on foreign service Form 149.

(c) The condition of the landing bond shall be satisfied by the delivery to the collector of customs within 6 months from the date of the bond of a landing certificate or certificates of a revenue officer of the country of destination showing that all the alcoholic liquors have been landed at their foreign destination.

(Sec. 7, 49 Stat. 520; 19 U. S. C. 1707) [13 F. R. 7930, Dec. 18, 1948, as amended by T. D. 53336, 18 F. R. 5405, Sept. 9, 1953]

§ 4.14 Equipment and repairs to American vessels. (a) When the master of a vessel documented under the laws of the United States to engage in the foreign or coasting trade, or intended to be employed in such trade, makes entry for his vessel, he shall certify in duplicate on customs Form 3415 or 3417 as to whether or not any equipment, repair part, or material has been purchased for the vessel, or any expense for repairs has been incurred, in a foreign country,20 within the purview of section 466, Tariff Act of 1930, as amended."

26 The Canal Zone and the Virgin Islands are not "foreign countries" within the meaning of sec. 466, Tariff Act of 1930, and equipment, repair parts, or materials there purchased or repairs there made on a vessel of the United States are not dutiable

27 "The equipments, or any part thereof, including boats, purchased for, or the repair parts or materials to be used, or the expenses of repairs made in a foreign country upon a vessel documented under the laws of the United States to engage in the foreign or coasting trade, or a vessel intended to be employed in such trade, shall, on the first arrival of such vessel in any port of the United States, be liable to entry and the payment of an ad valorem duty of 50 per centum on the cost thereof in such foreign country; and if the owner or master

Although an entry may not be required for certain items, as stated in paragraph (b) (1) of this section, such items must nevertheless be reported on customs Form 3415. The duplicate copy of such certificate shall be mailed or delivered by the master to the comptroller of customs.

(b) Entry on customs Form 7535 shall be made for such equipment or repairs of such vessel shall willfully and knowingly neglect or fail to report, make entry, and pay duties as herein required, such vessel, with her tackle, apparel, and furniture, shall be seized and forfeited. For the purposes of this section, compensation paid to members of the regular crew of such vessel in connection with the installation of any such equipments or any part thereof, or the making of repairs, in a foreign country, shall not be included in the cost of such equipment or part thereof, or of such repairs.

"Sec. 3115. If the owner or master of such vessel furnishes good and sufficient evidence

"(1) That such vessel, while in the regular course of her voyage, was compelled, by stress of weather or other casualty to put into such foreign port and purchase such equipments or make such repairs, to secure the safety and seaworthiness of the vessel to enable her to reach her port of destination; or

"(2) That such equipments or parts thereof or repair parts or materials, were manufactured or produced in the United States, and the labor necessary to install such equipments or to make such repairs was performed by residents of the United States, or by members of the regular crew of such vessel; or

"(3) That such equipments, or parts thereof, or materials, or labor, were used as dunnage for cargo, or for the packing or shoring thereof, or in the erection of temporary bulkheads or other similar devices for the control of bulk cargo, or in the preparation (without permanent repair or alteration) of tanks for the carriage of liquid cargo;

then the Secretary of the Treasury is authorized to remit or refund such duties, and such vessel shall not be liable to forfeiture, and no license or enrollment and license, or renewal of either, shall hereafter be issued to any such vessel until the collector to whom application is made for the same shall be satisfied, from the oath of the owner or master, that all such equipments or parts thereof or materials and repairs made within the year immediately preceding such application have been duly accounted for under the provisions of this and the preceding sections, and the duties accruing thereon duly paid; and if such owner or master shall refuse to take such oath, or take it falsely, the vessel shall be seized and forfeited." (Tariff Act of 1930, sec. 466, as amended, 19 U. S. C. 257, 258)

and estimated duties deposited or a bond on customs Form 7567 or 7569 given therefor before the vessel shall be allowed clearance, except that—

(1) No entry or bond shall be required with respect to items which the collector is satisfied are clearly within the purview of R. S. 3115 (3), as amended, and

(2) Vessels owned by the United States, although subject to the provisions of section 466, Tariff Act of 1930, as amended, shall be allowed to proceed without such deposit of duties or filing of a bond, if operated by the Maritime Administration or other agency of the United States or if operated under an agreement providing that such agency shall pay duties accruing under such section 466. Vessels owned by the United States and operated by private parties who are liable by agreement for duties accruing under section 466 shall be treated in all respects the same as privately owned vessels.

an

(c) No consular invoice shall be required, but the master shall file with the entry receipts showing the costs of the items enumerated in the said section 466. If, however, it is impracticable to produce such receipts at the time of entry, liquidation of the entry shall be suspended pending the furnishing of a complete account of the items liable to duty. In such cases the collector shall cause an examination of such equipment or repairs to be made by a representative of the appraiser's office, if possible, in order to verify the cost declared on entry. If the cost of the equipment or repairs, as shown by the complete account when filed, differs from that declared on entry, the collector may permit the entry to be amended accordingly.

(d) When the entry has been completed by the filing of proper evidence of cost and no application for relief as provided for in paragraph (e) of this section, has been filed within the time authorized or, if filed, has been finally acted upon, or the collector is informed that no such application will be filed, the entry shall be liquidated.

(e) An application for relief may be filed with the collector of customs alleging (1) that an item covered by the entry is not within the class of items liable to duty under section 3114, Revised Statutes, as amended, (2) that such item is within the provisions of section 3115, Revised Statutes, as amended, or (3) both of the foregoing. To insure con

sideration in liquidation of the entry, the application shall be filed within 90 days from the date of the entry and, unless the collector is definitely advised that no application will be filed, the liquidation shall be suspended for that period of time to afford an opportunity for such filing. In meritorious cases the collector may authorize a further suspension of 90 days upon written request therefor. Inasmuch as an unprotested liquidation, insofar as it relates to the classification of items for the purposes of section 3114, Revised Statutes, is final at the expiration of 60 days, a subsequent application in regard to such classification cannot be considered in the absence of a timely protest.

(f) When relief is claimed under subdivision (1) of section 3115, Revised Statutes, as amended, there shall be submitted to the collector of customs a certificate of the master together with itemized bills covering the cost of the repairs made or equipment purchased, abstracts of the vessel's log, and a certificate of the proper officer when the repairs were made in order to obtain a certificate of seaworthiness, all of which shall be in duplicate if the vessel is owned or operated by the Maritime Administration, or a similar agency of the United States.

This certificate of the master shall set out fully the following information: (1) The nature of the casualty or stress of weather encountered;

(2) When and where the casualty or stress of weather occurred;

(3) The damage done by the casualty or stress of weather;

(4) The port where the repairs were made or the equipment secured; and

(5) A statement of the master of the vessel as to whether or not the repairs or equipments were required to secure the safety and seaworthiness of the vessel to enable her to reach her port of destination.

(g) When relief is claimed under subdivision (2) or (3) of section 3115, Revised Statutes, as amended, a certificate of the master shall be submitted to the Collector of Customs, accompanied by the evidence in support of the claim.

(h) The evidence referred to in paragraphs (f) and (g) of this section, or offered in support of an application filed under paragraph (e) (1) of this section,

shall be furnished to the collector of customs within 90 days after an application is filed. If such evidence is not received within the 90-day period the entry shall be liquidated without regard to the application unless the collector of customs shall have approved an extension of such period.

(i) The master shall certify as true copies or originals, as the case may be, one copy of each repair bill, abstract of the vessel's log, report of survey, and other documents submitted in support of the application for relief. If a document is written in a foreign language, it shall be accompanied by a translation certified to be accurate.

(j) When the evidence referred to in paragraphs (f), (g), or (h) of this section has been received and examined by the collector of customs he shall notify the owner or operator of the vessel, or other party in interest, of his decision, but if any doubt exists the case shall first be referred to the Bureau for advice. Thirty days after the date of such notice the collector shall proceed to liquidate the entry unless within that period the owner or operator of the vessel, or other party in interest, shall file a petition as provided for in paragraph (k) of this section.

(k) The owner or operator of the vessel involved, or other party in interest, may file with the collector of customs a petition addressed to the Commissioner of Customs for a review of the collector's decision on an application claiming relief under section 3115, Revised Statutes, as amended, (paragraph (e) (2) or (3) of this section). Such petition shall be filed in duplicate within 30 days from the date of the notice of the collector's decision, shall completely identify the case, and shall set forth in detail the exceptions to the collector's decision. When such a petition has been filed, the collector shall immediately transmit both copies thereof and the entire file to the Bureau, together with any comments he may desire to submit. When the Bureau's decision has been received the entry shall be liquidated in accordance therewith.

(R. S. 3114, as amended, 3115, as amended; 19 U. S. C. 257, 258) [13 F. R. 7930, Dec. 18, 1948, as amended by T. D. 52395, 15 F. R. 584, Feb. 2, 1950; T. D. 53268, 18 F. R. 3093, May 29, 1953; T. D. 53336, 18 F R. 5405, Sept. 9, 1953; T. D. 53399, 18 F. R. 8686, Dec. 24, 1953]

(b) Upon the arrival of a vessel enrolled and licensed or licensed for the fisheries which has put into a foreign port or place, the master shall report its arrival, make entry, and conform in all respects to the regulations applicable in the case of a vessel arriving from a foreign port.

(c) If a vessel which has been granted a permit to touch and trade arrives at a port in the United States, whether or not the vessel has touched at a foreign port or place, such permit shall forthwith be surrendered to the collector of customs.

(d) No permit to touch and trade shall be issued to a vessel enrolled and licensed or licensed for the coasting trade and mackerel fishery which is departing on a foreign voyage to engage exclusively in a trade other than the fisheries. For such a voyage the vessel shall be registered and the master shall obtain clearance for the foreign port or place.

(R. S. 4364, 4365; 46 U. S. C. 310, 311) [13 F. R. 7931, Dec. 18, 1948]

28 "Whenever any vessel, licensed for carrying on the fisheries, is intended to touch and trade at any foreign port, it shall be the duty of the master or owner to obtain permission for that purpose from the collector of the district where such vessel may be, previous to her departure, and the master of every such vessel shall deliver like manifests, and make like entries, both of the vessel and of the merchandise on board, within the same time, and under the same penalty, as are by law provided for vessels of the United States arriving from a foreign port." (46 U. S. C. 310)

"Whenever a vessel, licensed for carrying on the fisheries, is found within three leagues of the coast, with merchandise of foreign growth or manufacture, exceeding the value of $500, without having such permission as is directed by section 310 of this title, such vessel together with the merchandise of foreign growth or manufacture imported therein, shall be subject to seizure and forfeiture." (46 U. S. C. 311; see also 46 U. S. C. 325)

If such a vessel puts into a foreign port or place and only obtains bunkers, stores, or supplies suitable for a fishing voyage, it is not considered to have touched and traded there.

§ 4.16 Entry and clearance on board vessels. (a) A master, owner, or agent of a vessel described in the act of June 16, 1937,20 who desires that arrival may be reported, entry made, and clearance obtained on board the vessel shall file with the collector an application on customs Form 3853 and a bond on customs Form 7567 in such penal sum as the collector deems sufficient but not less than $1,000, or the usual term bond on customs Form 7569.

(b) If the application is approved, the collector of customs or such deputy collector of customs as may be designated by him shall receive the report of arrival and the entry of the vessel and grant it clearance on board the vessel.

(c) For the purposes of the said act the term "at night" shall include the hours from 5 p. m. of one day to 8 a. m. of the following day, and the term "holiday" shall include only national holidays.

(50 Stat. 303; 19 U. S. C. 1435b) [13 F. R. 7931, Dec. 18, 1948, as amended by T. D. 53336, 18 F. R. 5405, Sept. 9, 1953]

§ 4.17 Vessels from discriminating countries. The prohibition against imports in, and the penalty of forfeiture of, certain vessels from countries which discriminate against American vessels provided for in subsections 2 and 3 of

29 "In order to expedite the dispatch of vessels carrying passengers operating on regular schedules and arriving at night or on a Sunday or a holiday at a port in the United States at which such vessel is required by law to report arrival and make entry and from which it is required to obtain a clearance, the collector of customs, or any deputy collector of customs designated by him, if the vessel departs during the same night, Sunday, or holiday on which it arrives may, under such regulations as may be prescribed by the Secretary of the Treasury, receive the report of arrival and entry of such vessel from and give clearance for such vessel to the master or other proper officer thereof on board such vessel: Provided, That bond, as prescribed in section 1451 of this title, is given to secure reimbursement to the Government for the compensation of, and expenses incurred by, such customs officers in performing such services, who shall be entitled to rates of compensation fixed on the same basis and payable in the same manner and upon the same terms and conditions as in the case of customs officers and employees assigned to lading or unlading at night or on Sunday or a holiday." (19 U. S. C. 1435b. Sec. 102, Reorg. Plan No. 3 of 1946; 3 CFR, 1946 Supp., Ch. IV)

paragraph J, section IV, Tariff Act of 1913, as amended by the act of March 4, 1915 (19 U. S. C. 130, 131), shall be enforced only in pursuance of specific instructions issued and published from time to time by the Secretary of the Treasury or such other officer as the Secretary may designate. (See also §§ 4.20 (c) and 16.19 of this chapter.) [13 F. R. 7931, Dec. 18, 1948, as amended by T. D. 53336, 18 F. R. 5405, Sept. 9, 1953]

TONNAGE TAX AND LIGHT MONEY

§ 4.20 Tonnage taxes. (a) Except as specified in § 4.21, a regular tonnage tax or duty" of 2 cents per net ton, not to

38 "Upon vessels which shall be entered in the United States from any foreign port or place there shall be paid duties as follows: On vessels built within the United States but belonging wholly or in part to subjects of foreign powers, at the rate of thirty cents per ton; on other vessels not of the United States, at the rate of fifty cents per ton, and any vessel any officer of which shall not be a citizen of the United States shall pay a tax of fifty cents per ton.

"A tonnage duty of 2 cents per ton, not to exceed in the aggregate 10 cents per ton in any one year, is imposed at each entry on all vessels which shall be entered in any port of the United States from any foreign port or place in North America, Central America, the West India Islands, the Bahama Islands, the Bermuda Islands, or the coast of South America bordering on the Caribbean Sea, or Newfoundland, and a duty of 6 cents per ton, not to exceed 30 cents per ton per annum, is imposed at each entry on all vessels which shall be entered in any port of the United States from any other foreign port, not, however, to include vessels in distress or not engaged in trade.

"Upon every vessel not of the United States, which shall be entered in one district from another district, having on board goods, wares, or merchandise taken in one district to be delivered in another district, duties shall be paid at the rate of 50 cents per ton: Provided, That no such duty shall be required where a vessel owned by citizens of the United States, but not a vessel of the United States, after entering an American port, shall, before leaving the same, be registered as a vessel of the United States. On all foreign vessels which shall be entered in the United States from any foreign port or place, to and with which vessels of the United States are not ordinarily permitted to enter and trade, there shall be paid a duty at the rate of $2 per ton; and none of the duties on tonnage above-mentioned shall be levied on the vessels of any foreign nation if the President of the United States shall be satisfied that the discriminating or countervailing duties of such foreign nations, so far as they operate to the disadvantage of the United States, have been

exceed in the aggregate 10 cents per net ton in any 1 year, shall be imposed at each entry on all vessels which shall be entered in any port of the United States from any foreign port or place in North America, Central America, the West Indies, the Bahama Islands, the Bermuda Islands, Newfoundland, or the coast of South America bordering on the Caribbean Sea (considered to include the mouth of the Orinoco River), and regular tonnage tax of 6 cents per net ton, not to exceed 30 cents per net ton per annum, shall be imposed at each entry on all vessels which shall be entered in any port of the United States from any other foreign port.

(b) The tonnage year shall be computed from the date of the first entry of the vessel concerned, without regard to the rate of the payment made at that entry, and shall expire on the day preceding the corresponding date of the following year."7

(c) A vessel shall also be subject on every entry from a foreign port or place, whether or not regular tonnage tax is payable on the particular entry, to the payment of a special tonnage tax 38 and to the payment of light money at the rates and under the circumstances specified in the following table:

39

abolished. Any rights or privileges acquired by any foreign nation under the laws and treaties of the United States relative to the duty of tonnage on vessels shall not be impaired; and any vessel any officer of which shall not be a citizen of the United States shall pay a tax of 50 cents per ton." (46 U. S. C. 121)

37 There may be five payments at the maximum (6-cent) and five at the minimum (2-cent) rate during a tonnage year, so that the maximum assessment of tonnage duty may amount to 40 cents per net ton for the tonnage year of a vessel engaged in alternating trade.

38 See footnote 36.

39 "A duty of 50 cents per ton, to be denominated 'light money', shall be levied and collected on all vessels not of the United States which may enter the ports of the United States. Such light money shall be levied and collected in the same manner and under the same regulations as the tonnage duties: Provided, That no such duty shall be required where a vessel owned by citizens of the United States, but not a vessel of the United States, after entering an American port, shall, before leaving the same, be registered as a vessel of the United States." U. S. C. 128)

(46