567 



10. Exemption From Customs Duties of Supplies for Certain Vessels 



19 U.S.C. 1309 



§1309. Supplies for certain vessels and aircraft. 



(a) Exemption from customs duties and internal- 

 revenue tax. 



(a) Articles of foreign or domestic origin may be 

 withdrawn, under such regulations as the Secretary 

 of the Treasury may prescribe, from any customs 

 bonded warehouse, from continuous customs custody 

 elsewhere than in a bonded warehouse, or from a 

 foreign-trade zone free of duty and internal-revenue 

 tax, or from any internal-revenue bonded ware- 

 house, from any brewery, or from any winery prem- 

 ises or bonded premises for the storage of wine. 

 free of internal-revenue tax — 



(1) for supplies 'not including equipment) of 

 (A) vessels or aircraft operated by the United 

 States. (Bi vessels of the United States employed 

 in the fisheries or in the whaling business, or 

 actually engaged in foreign trade or trade be- 

 tween the Atlantic and Pacific ports of the 

 United States or between the United States and 

 any of its possessions, or between Hawaii and any 

 other part of the United States or between Alaska 

 and any other part of the United States, or (C) 

 aircraft registered in the United States and 

 actually engaged in foreign trade or trade between 

 the United States and any of its possessions, or 

 between Hawaii and any other part of the United 

 States or between Alaska and any other part of 

 the United States; or 



(2) for supplies (including equipment) or re- 

 pair of (A) vessels of war of any foreign nation. 

 or (B) foreign vessels employed in the fisheries or 

 in the whaling business, or actually engaged in 

 foreign trade or trade between the United States 

 and any of its possessions, or between Hawaii and 

 any other part of the United States or between 

 Alaska and any other part of the United States, 

 where such trade by foreign vessels is permitted; 

 or 



(3) for supplies (including equipment) , ground 

 equipment, maintenance, or repair of aircraft 

 registered in any foreign country and actually 

 engaged in foreign trade or trade between the 

 United States and any of its possessions, or be- 

 tween Hawaii and any other part of the United 

 States or between Alaska and any other part of 

 the United States, where trade by foreign aircraft 

 is permitted. With respect to articles for ground 

 equipment, the exemption hereunder shall apply 

 only to duties and to taxes imposed upon or by 

 reason of importation. 



The provisions for free withdrawals made by this 

 subsection shall not apply to petroleum products 

 for vessels or aircraft in voyages or flights exclu- 

 sively between Hawaii or Alaska and any airport or 

 Pacific coast seaport of the United States. 



(b) Drawback. 



Articles withdrawn from bonded warehouses, 

 bonded manufacturing warehouses, continuous cus- 

 toms custody elsewhere than in a bonded warehouse, 



or from a foreign-trade zone, and articles of do- 

 mestic manufacture or production, laden a-s supplies 

 upon any such vessel or aircraft of the United States 

 or laden as supplies (including equipment) upon. 

 or used in the maintenance or repair of, any such 

 foreign vessel or aircraft, shall be considered to be 

 exported within the meaning of the drawback pro- 

 visions of this chapter. 



(c) Articles removed in, or returned to. the United 

 States. 



Any article exempted from duty or tax. or in re- 

 spect of which drawback has been allowed, under 

 this section or section 1317 of this title and thereafter 

 removed in the United States from any vessel or 

 aircraft, or otherwise returned to the United States, 

 shall be treated as an importation from a foreign 

 country. 



(d) Reciprocal privileges. 



The privileges granted by this section and section 

 1317 of this title in respect of aircraft registered in 

 a foreign country shall be allowed only if the Secre- 

 tary of the Treasury shall have been advised by the 

 Secretary of Commerce that he has found that such 

 foreign country allows, or will allow, substantially re- 

 ciprocal privileges in respect of aircraft registered in 

 the United States. If the Secretary of Commerce 

 shall advise the Secretary of the Treasury that he 

 has found that 3 foreign country has discontinued, 

 or will discontinue, the allowance of such privileges, 

 the privileges granted by this section and such sec- 

 tion 1317 shall not apply thereafter in respect of 

 aircraft registered in that foreign country. (June 

 17, 1930, ch. 497. title in, §309, 46 Stat. 690: June 

 25, 1938. ch. 679. §5 (a), 52 Stat. 1080; July 22. 

 1941, ch. 314. § 3. 55 Stat. 602; Aug. 8. 1953. ch. 397. 

 § 11 (a), 67 Stat. 514; July 7, 1960, Pub. L. 86-606. 

 5 5(a), 74 Stat. 361.) 



AtczNDUitrrs 

 1960— Subsec. (a). Pub. L 86-606 InjBerted ", or be- 

 tween Hawaii and any other part of the tJnlti>d States or 

 between Alaska and any other part of the nr**d States" 

 following "possessions" w.lerever appearing, and made 

 the provisions for free withdrawals Inapplicable to pe- 

 troleum products for vessels or aircraft In voyages or 

 flights between Hawaii or Alaska and any airport or 

 Pacific coast seaport of the United States. 



1953— Subeec. (a). Act Aug. 8, 1963, extended the 

 exemption from payment of duty and internal revenxie 

 tax theretofore available to supplies for certain vessels 

 and aircraft withdrawn from bonded warehouses, bonded 

 manufacturing warehouses, or continuous customs cus- 

 tody elsewhere to supplies withdrawn from foreign trade 

 zonee; accorded free entry for equipment withdrawn 

 for foreign vessels; and enlarged the classes of vessels 

 and aircraft theretofore covered to Include all vessels 

 and aircraft operated by the United States 



Subsec. (b). Act Aug. 8. 1953. made technical changes 

 to conform with the changes made by such act In 

 subsec. (a). Including insertion of the reference "or from 

 a foreign-trade zone,". 



1941— Subsec. (a). Act July 22. 1941, Inserted after the 

 words "Internal revenue tax" the words "or from any 

 Internal revenue bonded warehouse, • • • free of Inter- 

 nal revenue tax." 



1938— Act June 25, 1938. amended section generally and 

 added subds. (c) and (d). 



