NOTE

This section is based on title 19, U.S.C., 1964 ed., § 1435b (June 16, 1937, c. 362, 50 Stat. 303; 1946 Reorganization Plan No. 3, eff. July 16, 1946, §§ 101-104, 1 F.R. 7875, 60 Stat. 1097; 1950 Reorganization Plan No. 26, §§ 1, 2, eff. July 31, 1950, 15 F.R. 4935, 64 Stat. 1280; 1965 Reorganization Plan No. 1, §§ 1, 2, eff. May 25, 1965, 30 F.R. 7035, 79 Stat. 1317).

The words "officer or employee designated by the Secretary for that purpose st such port or place" have been substituted for "collector of customs" and "the designee of such officer or employee" for "any deputy collector of customs desigated by him" in accordance with 1965 Reorganization Plan No. 1, which abolshed the office of "collector of customs."

This section originally provided for regulations to be prescribed jointly by the Secretary of Commerce and the Secretary of the Treasury. The functions of the Secretary of Commerce were transferred to the Commissioner of Customs by 1946 Reorganization Plan No. 3 and from the Commissioner of Customs to the Secretary of the Treasury by 1950 Reorganization Plan No. 26, so that this section presently provides for regulations to be prescribed "jointly by the Secretary of the Treasury and the Secretary of the Treasury." To remove this anomaly, the word "jointly" and the words "and the Secretary of the Treasury" in the second instance have been deleted. The words "under such regulations as may be prescribed by the Secretary of the Treasury" which remain have been deleted as unnecessary in view of subsection (a) of section 103 of this act under which the Secretary is authorized generally to make such rules and regulations as may be necessary to carry out the provisions of this act.

Changes have been made in phraseology as required in the context of this act.

SEC. 946. DEPOSIT OF SHIP'S PAPERS WITH CONSUL; RETENTION UNTIL WAGES PAID; PENALTY FOR FAILURE TO DEPOSIT PAPERS.(a) Every master of a vessel, belonging to citizens] of the United States, who] which shall sail under register from any port of the United States, shall, on [his] her arrival at a foreign port, deposit [his] her register[, sea letter, and Mediterranean passport] with the consul, or vice consul, [commercial agent, or vice-commercial agent, if any there be at such port; and it shall be the duty of such consul, or vice consul, [commercial agent, or vice-commercial agent, on such [master] master's [or commander] producing to him a clearance from the proper officer of the port where his vessel may be, to deliver to the master [all of his] the [papers] register, if such master [or commander] has complied with the provisions of law relating to the discharge of seamen in a foreign country, and to the payment of the fees of consular officers].

(b) All consular officers are authorized and required to retain in their possession [all] the [papers] registers of vessels of the United States [,] which shall be deposited with them as directed by law[,] till payment shall be made of all demands [and] for wages on account of such vessels.

(c) Every master of any such vessel who refuses or neglects to deposit the [papers] registers as required by [the preceding] subsection (a) of this section [,] shall be liable to a penalty of $500, to be recovered by such consul or vice consul, [commercial agent, or vicecommercial agent,] in his own name, for the benefit of the United States, in any court of competent jurisdiction.

NOTE

This section is based on title 46, U.S.C., 1964 ed., §§ 354, 355 (R.S. §§ 4309, 4310; Apr. 5, 1906, c. 1366, § 3, 34 Stat. 100); title 22, U.S.C., 1964 ed., § 1185 (R.S. § 1718).

This section consolidates 46 U.S.C. 354 and 355 and 22 U.S.C. 1185. Subsection (a) is based on 46 U.S.C. 354, subsection (b) on 22 U.S.C. 1185, and subsection (c) on 46 U.S.C. 355.

The reference to "sea letter, and Mediterranean passport" in subsection (a) has been deleted as obsolete for the reasons stated in the note to section 268 of this act.

The term "vessel of the United States" has been substituted for "vessel, belonging to citizens of the United States," and the words "under register" inserted after "sail," in subsection (a) because, with the deletion of the reference to "sea letter, and Mediterranean passport," a register, which may be possessed only by a "vessel of the United States", is the only document required to be deposited under the provisions of this subsection. It is possible that a vessel "belonging to citizens of the United States' may be undocumented and not possess a register in the circumstances.

The words "or commander" have been deleted in two places following "master" in subsection (a) for the sake of uniformity, in that they do not follow the word "master" where it appears as the second word in subsections (a) and (c), and as surplusage, as "master" in this context means "person in charge or command." The words "the register," "registers," and "register" have been substituted, respectively, for "all of his papers," ," "all the papers," and "papers" because, as stated in the third paragraph of this note, the only document required to be deposited under the provisions of this subsection is a "register."

The words ", and to the payment of the fees of consular officers" at the end of subsection (a) have been deleted as obsolete because charging such fees to American vessels is prohibited by section 1211 of this act.

The words "demands for wages" have been substituted for "demands and wages" in subsection (b) to reflect 9 Op. Atty. Gen. 384 (1859), which, in interpreting the predecessor of this section, held that the papers (now "register") referred to therein may be held by a consular officer only to ensure payment of wage claims and consular fees and not to secure the payment of "demands" other than "demands for wages."

The words "commercial agent or vice-commercial agent" following "vice consul" in subsections (a) and (c) have been deleted as obsolete because of the abolition of the grade of commercial agent by act Apr. 5, 1906, c. 1366, § 3, 34 Stat. 100. Changes have been made in arrangement and phraseology as required in the context of this act.

SEC. 947. PERFORMANCE OF DUTIES OF MASTER BY LICENSED DECK OFFICER OR PURSER. Whenever, under any provision or provisions of any statute of the United States, it is made the duty of the masters of vessels to make entry and clearance of the same, it shall be lawful for such duties to be performed by any licensed deck officer or purser of such vessel; and when such duties are performed by a licensed deck officer or purser of such vessel, such acts shall have the same force and effect as if performed by masters of such vessels[:]; [Provided, That] but nothing herein contained shall relieve the master of any penalty or liability provided by any statute relating to the entry and clearance of vessels.

NOTE

This section is based on title 46, U.S.C., 1964 ed., § 91a (May 4, 1934, c. 212, 48 Stat. 663); title 19, U.S.C., 1964 ed., § 1435a.

Changes have been made in phraseology as required in the context of this act.

CHAPTER 10-TONNAGE TAXES, DISCRIMINATING TAXES AND DUTIES, AND RECIPROCAL PRIVILEGES

SEC. 1001. REGULAR TONNAGE TAX.-A tonnage [duty] tax of 2 cents a ton, not to exceed in the aggregate 10 cents per ton in any one year, is [hereby] 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] tax of 6 cents per ton, not to exceed 30 cents per ton per annum, is [hereby] imposed at each entry on all vessels which shall be entered in any port of the United States from any other foreign port or place, not, however, to include vessels in distress or not engaged in trade.

NOTE

This section is based on title 46, U.S.C., 1964 ed., § 121 (R.S. § 4219; Aug. 5, 1909, c. 6, § 36, 36 Stat. 111).

The word "tax" has been substituted for "duty" in this section with reference to exactions based on vessel tonnage in order to achieve uniformity of expression and because a "tonnage duty" is not a "duty" in the generally accepted sense of an exaction on imports or exports. Support for this action is found in section 3 of the act July 5, 1884, c. 221, § 3, 23 Stat. 119, 46 U.S.C. 3 (omitted from this act for the reasons found in the note to sec. 106 of this act), which makes final the decision of the Commissioner of Navigation on all questions of interpretation "relating to the collection of tonnage tax, and to the refund of such tax when collected erroneously or illegally.'

The words "or Newfoundland," following "Sea," have been deleted as unnecessary because Newfoundland, formerly a British Dominion and Crown Colony, since 1949 has been a Province of Canada and thus is included in the phrase "any foreign port or place in North America."

Changes have been made in phraseology as required in the context of this act.

SEC. 1002. SAME: COASTING AND FISHING VESSELS EXEMPT.— No vessel belonging to any citizen of the United States, trading from one port or place within the United States to another port or place within the United States, or employed in the [bank,] whale[] or other fisheries, shall be subject to tonnage tax [or duty,] if such vessel be registered, enrolled and licensed, or licensed [, registered, or enrolled].

NOTE

This section is based on title 46, U.S.C., 1964 ed., § 122 (R.S. § 4220). The words "or place" have been inserted after "port" in two places consistent with act June 19, 1886, c. 421, §7, 24 Stat. 81; Aug 5, 1935, c. 438, title III, § 314, 49 Stat. 529; 46 U.S.C. 319 (sec. 247 of this act), which prescribes penalties for vessels entitled to be documented as vessels of the United States, other than registered vessels, found trading "between district and district, or between different places in the same district" without an enrollment and license or license. The reference to the "bank" fishery has been deleted as obsolete. Vessels may be enrolled and licensed or licensed only for the whale, mackerel, or cod fishery (46 U.S.C. 263; sec. 231 of this act).

The words "or duty," following "tax" have been deleted for the reasons stated in the note to section 1001 of this act.

The words "enrolled and licensed" have been substituted for "enrolled" because the fishery is an activity which requires a license of an enrolled vessel. Changes have been made in phraseology as required in the context of this act.

SEC. 1003. SAME: CERTAIN VESSELS ON THE NORTHERN, NORTHEASTERN, AND NORTHWESTERN FRONTIERS EXEMPT.-Enrolled [or] and licensed vessels engaged in the foreign and coasting trade on the northern, northeastern, and northwestern frontiers of the United States, [departing from or] arriving at [a] one port or place in [one district] the United States [to or] from [a] another port or place

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[in another district] within the same, and [also touching] having touched at an intermediate foreign port or at intermediate foreign ports, shall not thereby become liable to the payment of [entry and clearance fees, or tonnage tax[] as if from [or to] a foreign [ports] port; but such vessel shall, notwithstanding, be required to enter and clear].

NOTE

This section is based on title 46, U.S.C., 1964 ed., § 123 (R.S. § 2793).

The word "and" has been substituted for "or" between "Enrolled" and "licensed" because a vessel engaged in the foreign and coasting trade on the northern, northeastern, and northwestern frontiers of the United States is required to be "enrolled and licensed" by R.S. § 4318, as amended, 46 U.S.C. 258 (sec. 234 of this act).

The words "departing from or" have been omitted as inappropriate to this section as liabilit to tonnage tax is incurred on arrival "at each entry" (sec. 1001 of this act).

The words "arriving at one port or place in the United States from another port or place within the same" have been substituted for "arriving at a port in one district from a port in another district" for the reasons stated in the note to section 245 of this act.

The reference to "entry and clearance fees, or" has been omitted as covered by subsection (b) of section 1207 of this act.

The clause "; but such vessel shall, notwithstanding, be required to enter and clear" has been omitted as covered by section 911 of this act.

Changes have been made in phraseology as required in the context of this act.

SEC. 1004. SAME: PASSENGER VESSELS IN TRIWEEKLY SERVICE EXEMPT.-Any passenger vessel engaged triweekly or oftener in trade between ports of the United States and foreign ports shall be exempt from [entrance and clearance fees and] tonnage taxes while such service triweekly or oftener is maintained.

NOTE

This section is based on title 46, U.S.C., 1964 ed., § 124 (R.S. § 2792; May 28, 1908, c. 212, § 1, 35 Stat. 424).

The reference to "entrance and clearance fees and" has been omitted as covered by subsection (c) of section 1207 of this act.

SEC. 1005. SAME: VESSELS MAKING DAILY TRIPS ON CERTAIN INTERIOR WATERS EXEMPT.-In cases of vessels making regular daily trips between any port of the United States and any port in Canada, wholly upon interior waters not navigable to the ocean, no tonnage [or clearance fees] tax shall be charged against such vessel [by the officers of the United States,] except upon the first [clearing] entry of such vessel in each year.

NOTE

This section is based on title 46, U.S.C., 1964 ed., § 125 (R.S. § 4221).

The reference to "or clearance fees" has been omitted as covered by subsection (d) of section 1207 of this act.

The word "tax" has been inserted following "tonnage" consistent with section 1001 of this act and for the reasons stated in the note thereto.

The words "by officers of the United States" has been deleted as surplusage. The word "entry" has been substituted for "clearing" because liability to tonnage tax is incurred on arrival "at each entry" (sec. 1001 of this act). Tonnage tax is not payable on departure or "clearing.' This is consistent with the administrative interpretation found in section 4.21(b)(16), Customs Regulations, 19 C.F.R. 4.21(b)(16), which reads:

"(b) A vessel shall not be liable to the payment of tonnage tax or light money merely because

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“(16) It is a vessel making regular daily trips between any port of the United States and any port in Canada wholly upon interior waters not navigable to the ocean, except that such a vessel shall pay tonnage taxes upon her first arrival in each calendar year. [Emphasis added.]

SEC. 1006. SAME: CERTAIN VESSELS ENTERING OTHERWISE THAN BY SEA.-Vessels entering otherwise than by sea from a foreign port at which tonnage or lighthouse dues or other equivalent tax or taxes are not imposed on vessels of the United States shall be exempt from the tonnage [duty] tax of 2 cents per ton, not to exceed in the aggregate 10 cents per ton in any one year, prescribed by section [36] 1001 of [the act of August 5, 1909] this Act, notwithstanding the number of such entries made in any one year.

NOTE

This section is based on title 46, U.S.C., 1964 ed., § 132 (Mar. 8, 1910, c. 86, 36 Stat. 234).

The word "tax" has been substituted for "duty" consistent with section 1001 of this act and for the reasons stated in the note thereto.

The words "notwithstanding the number of such entries made in any one year” have been added at the end of this section for the purpose of making it clear that "2 cents per ton, not to exceed in the aggregate 10 cents per ton in any one year" is descriptive of the tax exempted from and not a limitation on the extent of the exemption.

Changes have been made in phraseology as required in the context of this act.

SEC. 1007. SAME: HOSPITAL SHIPS IN TIME OF WAR EXEMPT.Hospital ships, concerning which the conditions set forth in articles 1, 2, and 3 of the convention concluded at The Hague on July 29, 1899, for the adaptation to maritime warfare of the principles of the Geneva convention of August 22, 1864, are fulfilled, shall, in the ports of the United States [and] its districts, territories, and [the] possessions [thereof], and the Commonwealth of Puerto Rico, be exempted, in time of war, from all [dues and] taxes imposed on vessels by the laws of the United States, and from all pilotage charges. The President [of the United States] shall by proclamation name the hospital ships to which this [Act] section shall apply, and shall indicate the time when the exemptions [herein] provided for shall begin and end.

NOTE

This section is based on title 46, U.S.C., 1964 ed., §§ 133, 134, (Mar. 24, 1908, c. 96, §§ 1, 2, 35 Stat. 46).

This section consolidates act Mar. 24, 1908, c. 96, §§ 1, 2, 35 Stat. 46 (46 U.S.C. 133 and 134). The first sentence is based on 46 U.S.C. 133, and the second sentence is based on 46 U.S.C. 134.

The words "its districts, territories, and possessions, and the Commonwealth of Puerto Rico," have been substituted for "and the possessions thereof" consistent with phraseology used throughout this act. The reference to "the Commonwealth of Puerto Rico" has been included to reflect the present status of this former possession. See act July 3, 1950, c. 446, §§ 1-6, 64 Stat. 319; § 1 of the Constitution of Puerto Rico (48 U.S.C. 731b-e, 737).

The words "dues and" before "taxes" have been deleted as surplusage, since the reference is to lighthouse dues, which are now denominated "light money" and classified in section 1009 of this act as a tax.