Rev. Ruling 65-182
Export to U.S. Possessions
The Excise Tax Reduction Act of 1965, Public Law 89-44, includes a provision which affects the export status of shipments of liquors or stills to possessions of the United States. It is, therefore, necessary for the Internal Revenue Service to consider how such provisions affects the various provisions of regulations relating to such shipments.
26 CFR 201.11 defines the terms "export" and "exportation" to mean "A severance of goods from the mass of things belonging to the United States with the intention of uniting them to the mass of things belonging to some foreign country." 26 CFR 252.11 and 26 CFR 196.60 use this same language to define the term "exportation" and, in addition, state "For the purposes of this part, shipment to Puerto Rico, the Virgin Islands, American Samoa, Guam, and the Panama Canal Zone shall be treated as exportations. Shipments to Kingman's Reef, the Midway Islands, or Wake Island are not exportations within the meaning of this part."
The above quoted definitions preclude exportations without payment of tax or with benefit of drawback of the tax to any possessions of the United States other than those specifically mentioned (in 26 CFR 196.60 and 26 CFR 252.11) as being eligible for such shipments.
Section 807 of the Excise Tax Reduction Act of 1965, has amended section 5002(a) of the Internal Revenue Code of 1954 by adding a new paragraph at the end thereof reading, in part, as follows: "(12) EXPORT. - The terms 'export', 'exported', and 'exportation' shall include shipments to a possession of the United States." This section of the Excise Tax Reduction Act of 1965 takes effect on July 1, 1965.
Accordingly, notwithstanding the provisions of 26 CFR 196.60, 26 CFR 201.11, and 26 CFR 252.11, shipments of stills or of beer, wines, or distilled spirits made to any possession of the United States on or after July 1, 1965, shall be considered to be exportations for any purpose within the purview of 26 CFR Part 196, 201, 240, 245, or 252. For the purposes of this Revenue Ruling, the term "possession of the United States" shall mean any land area outside the United States which is listed as a possession in the current revisions of the "Geographic Report" (United States and Outlying Areas) issued by the Geographer of the Department of State and shall include Swan Islands, Navassa Island, Midway Islands, Wake Island, Johnston Island (including Sand Island), Palmyra Island, Kingman's Reef, Howland Island, Baker Island, and Jarvis Island.
26 U.S.C. 5002; 27 CFR 252.11