WITHDRAWAL OF LIQUORS FOR USE ON AIRCRAFT; RECIPROCATING COUNTRIES
Proprietors of distilled spirits plants,
bonded wine cellars, breweries,
and others concerned:
Purpose. This circular is issued to inform you of the provisions of a
revenue procedure which will be published in an early issue of the Internal
Revenue Bulletin. The revenue procedure will announce the addition of
South Africa to the list of foreign countries to which the reciprocal
privileges provided by section 309 of the Tariff Act of 1930, as amended,
may be extended, and will advise that ground equipment may not be withdrawn
under section 309 for aircraft registered in Canada, the Federal Republic
of Germany, Italy, and the United Kingdom.
Background. Under the provisions of the above-cited section of the Tariff
Act, the privilege of withdrawing liquors free of tax or with benefit of
drawback, for use as supplies (including equipment), maintenance, or repair,
of aircraft registered in a foreign country is extended to aircraft
registered in a foreign country only if the Secretary of the Treasury is
advised by the Secretary of Commerce that such foreign country allows, or
will allow, substantially reciprocal privileges to aircraft registered in
the United States. The Secretary of Commerce has advised the Secretary of
the Treasury that, except for ground equipment, South Africa extends such
privileges to aircraft registered in the United States and engaged in
foreign trade. Corresponding privileges are, therefore, extended to aircraft
registered in South Africa and engaged in foreign trade.
Although prior revenue procedures did not specify any exceptions for the
countries of Canada, the Federal Republic of Germany, Italy, and the United
Kingdom, the Secretary of Commerce has now found that these countries do not
allow exemption from tax on ground equipment brought into those countries
for aircraft of United States registry engaged in foreign trade. Therefore,
effective May 1, 1969, as to Canada and the Federal Republic of Germany,
effective June 25, 1969, as to the United Kingdom, and effective September 23,
1969, as to Italy, ground equipment may not be withdrawn under section 309(a)(3)
of the Tariff Act of 1930, as amended, for aircraft registered in such foreign
countries.
Complete List of Foreign Countries. The complete list of foreign countries
to which the privileges provided for by section 309 of the Tariff Act of
1930 maybe extended is now as follows:
Argentina
Australia
Bahama
Islands
Belgium
Bermuda
Brazil
Canada*
Chile
Costa Rica
Denmark
Dominican Republic
|
Ecuador
Eire
El Salvador
Finland
France
Germany, Federal
Republic of*
Greece
India
Israel
Italy* |
Japan
Lebanon
Mexico
Netherlands
Nicaragua
Norway
Pakistan
Panama
Peru
Portugal* |
South Africa*
Spain
Sweden
Switzerland
Trinidad and Tobago
Union of Soviet
Socialist Republics
United Kingdom*
Venezuela |
* (except for ground equipment).
Inquiries. Inquiries regarding this circular should refer to its number and
be addressed to the office of your Assistant Regional Commissioner (Alcohol,
Tobacco and Firearms).
Harold A. Serr, Director
Alcohol, Tobacco and Firearms Division |