§1309 Supplies for Certain Vessels and Aircraft

Summary

Under rules set by the Secretary of the Treasury, goods can be taken out of bonded warehouses, foreign-trade zones, places kept under continuous customs control, internal-revenue bonded warehouses, breweries, or wineries without paying customs duties or internal-revenue tax when they are used as supplies or repairs for certain ships and planes. The law covers three main cases: supplies (but not equipment) for vessels or aircraft operated by the United States or for U.S. fishing, whaling, or internationally or inter-state trading vessels; supplies (including equipment) or repairs for foreign warships or foreign trading or fishing vessels when that trade is allowed; and supplies (including equipment), ground equipment, maintenance, or repair for foreign-registered aircraft engaged in foreign or permitted trade. For ground equipment, the exemption only applies to duties and taxes tied to importation. Goods loaded as supplies on those vessels or aircraft count as exports for the purpose of getting drawback (refunds of duties). If goods that were duty-free or had drawback are later removed in the United States or returned to the United States, they are treated as if they were imported from a foreign country. Benefits for foreign-registered aircraft only apply if the Secretary of Commerce tells the Secretary of the Treasury that the foreign country gives similar privileges to U.S. aircraft; if the foreign country stops giving those privileges, the benefits stop.