Rev. Proc. 71-23

Section 1. Purpose.

This Revenue Procedure is to announce the addition of Thailand, Yugoslavia, Republic of Korea, and Honduras to the list of foreign countries to which the reciprocal privileges provided by section 309 of the Tariff Act of 1930, 19 U.S.C. 1309, as amended, may be extended.

Sec. 2. Background.

Under the provisions of section 309 of the Tariff Act of 1930, as amended, and sections 5053, 5055, 5062(b), 5214(a)(7), and 5362(c)(3) of the Internal Revenue Code of 1954, and applicable regulations of the Internal Revenue Service, alcohol, distilled spirits, beer, and wine may be withdrawn free of tax or with benefit of drawback for use as supplies on aircraft registered in foreign countries and actually engaged in foreign trade or trade between the United States and its possessions, or between Hawaii and any other part of the United States, or between Alaska and and any other part of the United States where trade by foreign aircraft is permitted. Such privilege is extended in respect of aircraft registered in a foreign country only if the Department of Commerce has found that such foreign country allows, or will allow, substantially reciprocal privileges in respect of aircraft registered in the United States.

Sec. 3. Thailand, Yugoslavia, Republic of Korea, and Honduras.

In addition to those countries listed in Revenue Procedure 71-9, C.B. 1971-1, 676, the Department of Commerce has found and has advised the Department of the Treasury that the countries of Yugoslavia, the Republic of Korea, and Honduras extend to aircraft registered in the United States and engaged in foreign trade privileges substantially reciprocal to those given aircraft registered in Yugoslavia, the Republic of Korea, and Honduras and engaged in foreign trade. Likewise, advice has been given that Thailand, except for ground equipment, extends such privileges to aircraft registered in the United States and engaged in foreign trade.

Sec. 4. Complete List of Foreign Countries.

The complete list of foreign countries to which reciprocal privileges may be extended is as follows:

Argentina

Sec. 5. Effect on Other Documents.

This Revenue Procedure supersedes Revenue Procedure 71-9, C.B. 1971-1, 676.

Sec. 6. Inquiries.

Any inquiries concerning this Revenue Procedure should refer to its number and be addressed to the appropriate Assistant Regional Commissioner, Alcohol, Tobacco and Firearms.