Rev. Rul. 68-229

Revenue Ruling 63-62, C.B. 1963-1, 250, as modified by Revenue Ruling 63-230, C.B. 1963-2, 539, and Revenue Ruling 67-193, C.B. 1967-1, 306, and as supplemented by Revenue Ruling 64-228, C.B. 1964-2, 437, sets forth a list of foreign countries that the Secretary of Commerce has determined allow substantially reciprocal privileges in respect of aircraft registered in the United States, for purposes of the special rule provided by section 4221(e)(1) of the Internal Revenue Code of 1954. That special rule relates to excise tax exemptions with respect to articles sold for use as supplies for civil aircraft registered in a foreign country and employed in foreign trade or trade between the United States and any of its possessions.

The Secretary of the Treasury has been advised by the Secretary of Commerce that he has determined that Portugal also allows substantially reciprocal privileges in respect of aircraft registered in the United States. Therefore, the list of countries that have been found to allow substantially reciprocal privileges should include `Portugal.'

Revenue Ruling 63-62 is hereby supplemented.