WITHDRAWAL OF LIQUORS FOR USE ON AIRCRAFT;
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 the Republic of China, Colombia, and Czechoslovakia 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and will advise that ground equipment may not be withdrawn under
section 309 for aircraft registered in Australia and France.
Background. Under the provisions of the above-cited section of the
Tariff Act, the privilege of 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
the Republic of China, except for ground equipment, Colombia, and
Czechoslovakia extend such privileges to aircraft registered in the
United States and engaged in foreign trade. Corresponding privileges
are, therefore, extended to aircraft registered in the Republic of
China, Colombia, and Czechoslovakia and engaged in foreign trade.
In accordance with Customs Bulletin No. 14, T.D. 70-73, the listing
of Bahama Islands is changed to Bahamas and Eire is changed to Ireland.
Although Revenue Procedure 70-2 did not specify any exceptions for the
countries of Australia and France, the Secretary of Commerce has now
found that these countries do not allow exemption from tax on ground
equipment brought into those countries for aircraft of United States
registry engaged in foreign trade. Therefore, effective April 1, 1970,
as to Australia and France, ground equipment may not be withdrawn
under section 309(a)(3) of the Tariff Act of 1930, as amended, for
aircraft registered in such foreign countries.
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 maybe extended is now as follows:
||Union of Soviet
|China, Republic of*
* (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