Addition of Lithuania to the List of Nations Entitled to Special Tonnage Tax Exemption

The Customs and Border Protection (CBP) issued a final rule pursuant to information provided by the Department of State, Customs and Border Protection has found that no discriminating or countervailing duties are imposed by the government of Lithuania on vessels owned by citizens of the United States . Accordingly, vessels of Lithuania are exempt from special tonnage taxes and light money in ports of the United States . This document amends title 19 of the Code of Federal Regulations by adding Lithuania to the list of nations whose vessels are exempt from payment of any higher tonnage duties than are applicable to vessels of the United States and from the payment of light money. This amendment is effective March 10, 2008. The exemption from special tonnage taxes and light money for vessels registered in Lithuania became applicable on February 13, 2002.

Background

Generally, the United States imposes regular and special tonnage taxes, and a duty of a specified amount per ton, called "light money," on all foreign vessels which enter U.S. ports (46 U.S.C. 60301-60303). However, vessels of a foreign country may be exempted from the payment of special tonnage taxes and light money upon presentation of satisfactory proof that the government of that foreign country does not impose discriminatory or countervailing duties to the disadvantage of the United States (46 U.S.C. 60304).

Section 4.22, Customs and Border Protection (CBP) regulations (19 CFR 4.22), lists those countries whose vessels have been found to be exempt from the payment of any higher tonnage duties than are applicable to vessels of the United States and from the payment of light money. The authority to amend this section of the CBP regulations has been delegated to the Chief, Trade and Commercial Regulations Branch, Regulations and Rulings, Office of International Trade.

By letter dated April 13, 2007, the Department of State informed CBP that the government of Lithuania does not impose discriminating or countervailing duties on vessels owned by citizens of the United States . Accordingly, the Department of State recommended that Lithuania be added to the list of countries whose vessels are exempt from special tonnage taxes and light money in ports of the United States , effective February 13, 2002.