Internal Revenue Service TaxLinks.com sm Rev. Rul. 74-346 1974-2 C.B. 361 Section 4041 Caution: Modified by Rev. Rul. 75-526 Caution:Modified by Rev. Rul. 75-398 Caution:Modified by Rev. Rul. 75-190 IRS Headnote Exempt aircraft supplies; reciprocating countries. The list of countries that allow substantially reciprocal privileges for purposes of the exemption for supplies for civil aircraft of foreign registry is updated and restated; Rev. Ruls. 73-8, 73-208, 73-400, and 74-48 superseded. Full Text Rev. Rul. 74-346 The purpose of this Revenue Ruling is to announce the addition of Jordan and Singapore to the list of countries that allow substantially reciprocal privileges for purposes of the special rule provided by section 4221(e)(1) of the Internal Revenue Code of 1954, and to update and restate certain Revenue Rulings relating to the applicability of such rule. The Revenue Rulings in question are Rev. Rul. 73-8, 1973-1 C.B. 438; Rev. Rul. 73-208, 1973-1 C.B. 439; Rev. Rul. 73-400, 1973-2 C.B. 361; and Rev. Rul. 74-48, 1974-1 C.B. 315. Section 4041(c) of the Code imposes a tax at retail upon any liquid sold for use or used as a fuel in an aircraft in noncommercial aviation. Section 4041(g) provides that no tax shall be imposed under section 4041 on any liquid sold for use or used as supplies for vessels or aircraft within the meaning of section 4221(d)(3). Various articles are subject to the manufacturers excise taxes imposed under the provisions of chapter 32 of the Code. Section 4221(a)(3) of the Code provides that no manufacturers excise tax shall be imposed on the sale by the manufacturer of an article for use by the purchaser as supplies for vessels or aircraft. Section 4221(d)(3) of the Code provides that the term "supplies for vessels or aircraft" means fuel supplies, ships' stores, sea stores, or legitimate equipment to the extent applicable therein, on vessels actually engaged in foreign trade or trade between the Atlantic and Pacific ports of the United States or between the United States and any of its possessions. For purposes of this exemption the term "vessels" includes civil aircraft employed in foreign trade or trade between the United States and any of its possessions. Section 4221(e)(1) of the Code provides that the privileges granted under section 4221(a)(3) in respect of civil aircraft employed in foreign trade or trade between the United States and any of its possessions, in respect of aircraft registered in a foreign country, shall be allowed only if the Secretary of the Treasury has been advised by the Secretary of Commerce that he has found that such foreign country allows, or will allow, substantially reciprocal privileges in respect of aircraft registered in the United States. If the Secretary of the Treasury is advised by the Secretary of Commerce that he has found that a foreign country has discontinued or will discontinue the allowance of such privileges, the privileges granted under section 4221(a)(3) shall not apply thereafter in respect of civil aircraft registered in that foreign country and employed in foreign trade or trade between the United States and any of its possessions. The Secretary of the Treasury has been advised by the Secretary of Commerce that he has found that Jordan and Singapore allow substantially reciprocal privileges in respect of aircraft registered in the United States. The current list of foreign countries that the Secretary of Commerce has found allow substantially reciprocal privileges in respect of aircraft registered in the United States is as follows: Afghanistan Antigua Argentina (except aircraft fuel and lubricants) Australia Bahama Islands Belgium Bermuda Bolivia Brazil Canada Chile Republic of China Colombia Costa Rica Czechoslovakia Dahomey Denmark Dominican Republic Ecuador Egypt (only aircraft fuel and lubricants) Eire El Salvador Finland France Federal Republic of Germany Greece Guatemala Haiti Honduras Iceland (only aircraft fuel and lubricants) India Israel Italy Ivory Coast Jamaica Japan Jordan Kenya (only aircraft fuel and lubricants) Republic of Korea Lebanon Malaysia Mexico Netherlands Netherlands Antilles New Zealand Nicaragua Norway Pakistan Panama Paraguay Peru (except gasoline) Republic of the Philippines (only aircraft fuel and lubricants) Poland Portugal Saudi Arabia (only aircraft fuel and lubricants) Senegal Singapore Spain Sweden Switzerland Tanzania (only aircraft fuel and lubricants) Thailand (only aircraft fuel and lubricants) Trinidad and Tobago (only aircraft fuel and lubricants) Tunisia Uganda (only aircraft fuel and lubricants) Union of South Africa Union of Soviet Socialist Republics United Kingdom Uruguay Venezuela Yugoslavia Zaire (only aircraft fuel and lubricants) This Revenue Ruling should not be construed as indicating in any way the status of countries not mentioned herein. Rev. Rul. 73-8, Rev. Rul. 73-208, Rev. Rul. 73-400, and Rev. Rul. 74-48 are hereby superseded since the conclusions set forth therein are updated and restated in this Revenue Ruling. |