§1309 Supplies for Certain Vessels and Aircraft

Summary

Allows goods to be taken out of bonded warehouses, foreign‑trade zones, or internal‑revenue bonded places without paying customs duties or internal‑revenue tax when those goods are used as supplies for certain ships and airplanes. The Treasury Secretary makes the rules for how this works. It covers three main cases: supplies (not equipment) for U.S. government vessels and U.S. vessels used in fisheries, whaling, foreign trade, or certain long domestic routes (including between Atlantic and Pacific ports, between the United States and its possessions, or between Hawaii or Alaska and any other U.S. place); supplies and equipment or repairs for foreign warships or other foreign vessels when such trade is allowed; and supplies, equipment, ground gear, maintenance, or repairs for foreign‑registered aircraft engaged in permitted foreign or certain domestic trade. Petroleum for voyages or flights only between Hawaii or Alaska and any Pacific coast port or airport is not covered. Goods loaded as supplies on those U.S. or qualifying foreign vessels or aircraft are treated as exported for drawback (refund) purposes. If tax‑free goods or goods given drawback are later taken off a vessel or aircraft and returned to the United States, they are treated as imports. The duty‑free benefits for foreign‑registered aircraft only apply if the Commerce Secretary says that the other country gives similar treatment to U.S. aircraft; if that country stops, the benefits stop too.