Rev. Rul. 64-19

Advice has been requested whether tax-exempt tobacco products may be removed from domestic factories or export warehouses for delivery to radar islands built by the Armed Forces of the United States at sea off the coasts of the United States for consumption thereon by the Armed Forces personnel who man such islands. All supplies for such Armed Forces personnel will be delivered to the radar islands by vessels or aircraft of the Armed Forces of the United States.

Section 5704(b) of the Internal Revenue Code of 1954 provides, in part, that a manufacturer or export warehouse proprietor may remove tobacco products, without payment of tax, for consumption beyond the jurisdiction of the internal revenue laws of the United States.

Since the `radar islands' are located beyond the jurisdiction of the internal revenue laws of the United States, i.e., the three-mile limit, tobacco products may be removed from a factory or an export warehouse, without payment of tax, for delivery to vessels or aircraft of the Armed Forces for subsequent delivery to radar islands, frequently referred to as `Texas Towers,' for consumption of the products on such islands by members of the Armed Forces.

Revenue Ruling 55-671, C.B. 1955-2, 477, is hereby superseded.

¹ Prepared pursuant to Revenue Procedure 62-24, C.B. 1962-2, 489.