112 



Section 4(a) of the Outer Continental Slielf Lands Act (43 U.S.C. 1333(a)) 

 provides as follows : 



"The constitution and laws and civil and political jurisdiction are extended to 

 the subsoil and all seabed of the outer continental shelf and to all artificial 

 islands and fixed structures which may be erected thereon for the purpose of 

 exploring, developing, removing, and transporting resources therefrom to the 

 same extent as if the outer continental shelf were an area of exclusive federal 

 jurisdiction located within a State : * * *." 



In accordance with this provision, minerals obtained from the seabed of the 

 Continental Shelf are taken from territory of the United States and are therefore 

 not imported merchandise. Conversely mined products or other articles obtained 

 from the ocean or from the bottom thereof beyond the Continental Shelf, if 

 brought into the United States, must be considered as imported and are subject 

 to such customs duties which may be applicable under the Tariff Schedules of 

 the United States. 



Sincerely yours, 



E. F. KiLPATRICK. 



Director, Division of Tariff Classification Rulings. 



Mr. Danzig. Mr. Chairman, the lawyer in me prompts me to recon- 

 cile these two decisions. 



Mr. Fascfxl. That instinct makes for the l^est kind of lawyer. 



Mr. Danzig. Which is, that the Department of the Interior is simply 

 in its mind defining the continental shelf, which incidentally as we 

 have seen, is a somewhat complicated question, and that the Treasury 

 Department is saying, well, acceptinsc that definition, whatever you 

 mine outside of the shelf is an imported item. 



Mr. Fasceli.. Yes; and the lawyer in me, Mr. Danzig, compels me 

 to state that if I were a prospective lessee, I would, in view of the 

 Treasury Department's ruling, get Interior to issue me a lease on the 

 continental shelf even if it was 500 miles out into the sea, then I would 

 not have to pay any import duty. 



Maybe it is the businessman in me rather than a lawyer — I don't 

 know which. 



Mr. Danzig. It sounds like a good lawyer and businessman. 



Mr. Fascell. In any event, all this serves to point out the necessity 

 for an intelligent study of the problem and some sensible resolution of 

 the apparent conflicts, both insofar as the United States and the entire 

 international community are concerned. 



Now, it seems to me that I need to emphasize what has been expressed 

 by the many resolutions which are pending before this subcommittee. 

 It is the desire not to see the ITnited States thwarted in any of its rights 

 or its opportunities, or any U.S. business interests eliminated from ac- 

 cess to potential resources, by some action in the T"^nited Nations, 



It seems to me that the first step has already been taken in this 

 matter. The title of the proposal by Malta has been modified so that the 

 agenda item now does not refer to either a declaration or a treaty. Is 

 that correct ? 



Mr. EiCHELBERGER. That is correct. However, that does not prevent 

 any nation from introducing a resolution in the General Assembly and 

 I shall imagine there shall be quite a number of resolutions introduced 

 in the General Assembly. They might go so far as to call for a com- 

 mittee to draft a treaty. I think many of them look to the pattern of the 

 Assembly in 1061, thai outer space and celestial bodies were not subject 

 to appropriation or annexation. A treaty is being signed this noon. 



If I may express my hope that this Assembly would follow the prec- 



