WITHDRAWAL OF LIQUORS FOR USE ON AIRCRAFT; RECIPROCATING COUNTRIES
Proprietors of distilled spirits plants, bonded wine cellars, breweries,
and others concerned:
Purpose. This circular is issued to inform you of the provisions of a
revenue procedure which will be published in an early issue of the Internal
Revenue Bulletin. The revenue procedure will announce the addition of
Jamaica to the list of foreign countries to which the reciprocal privileges
provided by section 309 of the Tariff Act of 1930, as amended, may be
extended, and will advise that ground equipment may be withdrawn under
section 309 for aircraft registered in Canada.
Background. Under the provisions of the above-cited section of the Tariff
Act, the privilege or withdrawing liquors free of tax or with benefit of
drawback, for use as supplies (including equipment), maintenance, or repair,
of aircraft registered in a foreign country is extended to aircraft
registered in a foreign country only if the Secretary of the Treasury is
advised by the Secretary of Commerce that such foreign country allows, or
will allow, substantially reciprocal privileges to aircraft registered in
the United States. The Secretary of Commerce has advised the Secretary of
the Treasury that, except for ground equipment, Jamaica extends such
privileges to aircraft registered in the United States and engaged in
foreign trade. Corresponding privileges are, therefore, extended to aircraft
registered in Jamaica and engaged in foreign trade.
Although Revenue Procedure 69-15 specifies an exception for the country
of Canada, the Secretary of Commerce has now found that it allows exemption
from tax on ground equipment brought into that country for aircraft of
United States registry engaged in foreign trade. Therefore, effective
September 17, 1969, ground equipment may be withdrawn under section 309(a)(3)
of the Tariff Act of 1930, as amended, for aircraft registered in Canada.
Complete List of Foreign Countries. The complete list of foreign countries
to which the privileges provided for by section 309 of the Tariff Act of
1930 may be extended is now as follows:
| Bahama Islands
||Union of Soviet
* (except for ground equipment).
Inquiries. Inquiries regarding this circular should refer to its number and
be addressed to the office of your Assistant Regional Commissioner (Alcohol,
Tobacco and Firearms).
Harold A. Serr,
Alcohol, Tobacco and Firearms Division