Light Money And Tonnage Taxes

Light Money And Tonnage Taxes

Summary of Light Money And Tonnage Taxes

Special duties applied to commercial vessels entering U.S. ports. The charges are collected as follows: Regular tonnage tax: imposed on all vessels, irrespective of nationality, at the rate of 2 cents per net ton (not to exceed 10 cents in any one year) for vessels entering the United States from any port in North America, the Caribbean, or the Caribbean coast of South America, including the mouth of the Orinoco River; the rate for vessels entering from ports elsewhere is 6 cents per ton (not to exceed 30 cents per year). The maximum any vessel may be assessed in any one year is 40 cents, i.e., five payments at 2 cents and five payments at 6 cents. The manner by which the port of origin is determined for application of the rate is specified in 19 CFR4.20 (1), et seq.

Special tonnage tax: collected in addition to the regular tonnage tax on vessels not documented in the United States at the rate of 30 cents per ton on vessels built in the United States but owned wholly or in part by foreign citizens or interests; foreign vessels not built in U.S. yards, and any vessel having one or more foreign officers are subject to tax at the rate of 50 cents per ton. Where a foreign vessel “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,”the rate is two dollars per ton, as specified in 46 U.S.C. 121.

Light money: assessed, in addition to tonnage taxes, at the rate of 50 cents per ton on vessels not documented in the United States.

Taxes are assessed on the net tonnage stated in the vessel's marine document. Whenever a maximum tax is payable in any year, the year runs 365 days from the date of the first tax payment. Exemptions from the tax are permitted, inter alia, for vessels in distress, bunkering, and scientific vessels not carrying cargo.

Vessels of the following states, as the result of treaties, presidential proclamations, or orders of the secretary of the treasury, are exempted from payment of light money, as well as tonnage duties higher than those imposed on U.S. ships:

Algeria Costa Rica

Argentina Cuba

Australia Cyprus

Austria Denmark (including the

Bahamas Faeroe Islands)

Bangladesh Dominica

Barbados Dominican Republic

Belgium Ecuador

Bermuda Egypt

Bolivia El Salvador

Brazil Estonia

Bulgaria Ethiopia

Burma Figi

Canada Finland

Cayman Islands France

Chile Gambia

Colombia German Democratic

Republic

German Federal Republic Nigeria

Ghana Norway

Greece Oman

Greenland Pakistan

Guatemala Panama

Guinea Papua New Guinea

Guyana Paraguay

Haiti Peru

Honduras Philippines

Iceland Poland

India Portugal

Indonesia Qatar

Iran Romania

Iraq Saudi Arabia

Ireland Singapore

Israel Somalia

Italy Spain

Ivory Coast Sri Lanka

Jamaica St. Vincent 8c the

Japan Grenadines

Kenya South Africa

Korea Surinam

Kuwait Sweden

Latvia Switzerland

Lebanon Syria

Liberia T aiwan

Libya Thailand

Malaysia Togo

Malta Tunisia

Mauritius Turkey

Mexico U.S.S.R.

Monaco United Arab Emirates

Morocco United Kingdom

Nauru Uruguay

Netherlands Vanuatu

Netherlands Antilles Venezuela

New Zealand Yugoslavia

Nicaragua Zaire

(Main Author: William J. Miller)


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