(a) Definitions For purposes of this subchapter—
(2) Port
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(B) Exception for certain facilities The term “port” does not include any channel or harbor with respect to which no Federal funds have been used since 1977 for construction, maintenance, or operation, or which was deauthorized by Federal law before 1985.
(C) Special rule for Columbia River The term “port” shall include the channels of the Columbia River in the States of Oregon and Washington only up to the downstream side of Bonneville lock and dam.
(3) Commercial cargo
(A) In general The term “commercial cargo” means any cargo transported on a commercial vessel, including passengers transported for compensation or hire.
(4) Commercial vessel
(A) In general The term “commercial vessel” means any vessel used—
(B) Exclusion of ferries
(i) In general The term “commercial vessel” does not include any ferry engaged primarily in the ferrying of passengers (including their vehicles) between points within the United States, or between the United States and contiguous countries.
(ii) Ferry The term “ferry” means any vessel which arrives in the United States on a regular schedule during its operating season at intervals of at least once each business day.
(5) Value
(A) In general The term “value” means, except as provided in regulations, the value of any commercial cargo as determined by standard commercial documentation.
(B) Transportation of passengers In the case of the transportation of passengers for hire, the term “value” means the actual charge paid for such service or the prevailing charge for comparable service if no actual charge is paid.
(b) Special rule for Alaska, Hawaii, and possessions
(1) In general No tax shall be imposed under section 4461(a) with respect to—
(A) cargo loaded on a vessel in a port in the United States mainland for transportation to Alaska, Hawaii, or any possession of the United States for ultimate use or consumption in Alaska, Hawaii, or any possession of the United States,
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(B) cargo loaded on a vessel in Alaska, Hawaii, or any possession of the United States for transportation to the United States mainland, Alaska, Hawaii, or such a possession for ultimate use or consumption in the United States mainland, Alaska, Hawaii, or such a possession,
Amended 1988
- 1988 Pub. L. 100-647 Pub. L. 100–647, § 2002(b), amended subpar. (B) generally. Prior to amendment, subpar. (B) read as follows: “cargo loaded on a vessel in Alaska, Hawaii, or any possession of the United States for transportation to the United States mainland for ultimate use or consumption in the United States mainland,”.
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(C) the unloading of cargo described in subparagraph (A) or (B) in Alaska, Hawaii, or any possession of the United States, or in the United States mainland, respectively, or
(D) cargo loaded on a vessel in Alaska, Hawaii, or a possession of the United States and unloaded in the State or possession in which loaded, or passengers transported on United States flag vessels operating solely within the State waters of Alaska or Hawaii and adjacent international waters.
Amended 1996
- 1996 Pub. L. 104-188 Pub. L. 104–188 inserted before period at end “, or passengers transported on United States flag vessels operating solely within the State waters of Alaska or Hawaii and adjacent international waters”.
(2) Cargo does not include crude oil with respect to Alaska For purposes of this subsection, the term “cargo” does not include crude oil with respect to Alaska.
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(3) United States mainland For purposes of this subsection, the term “United States mainland” means the continental United States (not including Alaska).
(c) Coordination of tax where transportation subject to tax imposed by section 4042 No tax shall be imposed under this subchapter with respect to the loading or unloading of any cargo on or from a vessel if any fuel of such vessel has been (or will be) subject to the tax imposed by section 4042 (relating to tax on fuel used in commercial transportation on inland waterways).
(d) Nonapplicability of tax to exports The tax imposed by section 4461(a) shall not apply to any port use with respect to any commercial cargo to be exported from the United States.
Amended 2005
- 2005 Pub. L. 109-59 Pub. L. 109–59 amended heading and text of subsec. (d) generally, substituting provisions relating to nonapplicability of tax imposed by section 4461(a) to exports for provisions relating to nonapplicability of tax imposed by section 4461(a) to bonded commercial cargo entering the United States for transportation and direct exportation to a foreign country and inapplicability of this provision to certain cargo exported to Canada or Mexico.
(e) Exemption for United States No tax shall be imposed under this subchapter on the United States or any agency or instrumentality thereof.
(f) Extension of provisions of law applicable to customs duty
(1) In general Except to the extent otherwise provided in regulations, all administrative and enforcement provisions of customs laws and regulations shall apply in respect of the tax imposed by this subchapter (and in respect of persons liable therefor) as if such tax were a customs duty. For purposes of the preceding sentence, any penalty expressed in terms of a relationship to the amount of the duty shall be treated as not less than the amount which bears a similar relationship to the value of the cargo.
(2) Jurisdiction of courts and agencies For purposes of determining the jurisdiction of any court of the United States or any agency of the United States, the tax imposed by this subchapter shall be treated as if such tax were a customs duty.
(3) Administrative provisions applicable to tax law not to apply The tax imposed by this subchapter shall not be treated as a tax for purposes of subtitle F or any other provision of law relating to the administration and enforcement of internal revenue taxes.
(g) Special rules Except as provided by regulations—
(1) Tax imposed only once Only 1 tax shall be imposed under section 4461(a) with respect to the loading on and unloading from, or the unloading from and the loading on, the same vessel of the same cargo.
(2) Exception for intraport movements Under regulations, no tax shall be imposed under section 4461(a) on the mere movement of cargo within a port.
(3) Relay cargo Only 1 tax shall be imposed under section 4461(a) on cargo (moving under a single bill of lading) which is unloaded from one vessel and loaded onto another vessel at any port in the United States for relay to or from any port in Alaska, Hawaii, or any possession of the United States. For purposes of this paragraph, the term “cargo” does not include any item not treated as cargo under subsection (b)(2).
Amended 1988
- 1988 Pub. L. 100-647 Pub. L. 100–647, § 6110(a), added par. (3).
(h) Exemption for humanitarian and development assistance cargos No tax shall be imposed under this subchapter on any nonprofit organization or cooperative for cargo which is owned or financed by such nonprofit organization or cooperative and which is certified by the United States Customs Service as intended for use in humanitarian or development assistance overseas.
Amended 1988
- 1988 Pub. L. 100-647 Pub. L. 100–647, § 6109(a), added subsec. (h) and redesignated former subsec. (h) as (i).
(i) Regulations The Secretary may prescribe such additional regulations as may be necessary to carry out the purposes of this subchapter including, but not limited to, regulations—
Amended 1988
- 1988 Pub. L. 100-647 Pub. L. 100–647, § 6109(a), added subsec. (h) and redesignated former subsec. (h) as (i).
(1) providing for the manner and method of payment and collection of the tax imposed by this subchapter,
(2) providing for the posting of bonds to secure payment of such tax,
(3) exempting any transaction or class of transactions from such tax where the collection of such tax is not administratively practical, and
(4) providing for the remittance or mitigation of penalties and the settlement or compromise of claims.