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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