Rev. Proc. 69-25

Section 1. Purpose.

The purpose of this Revenue Procedure is to announce the addition of South Africa 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the Tariff Act of 1930, 19 U.S.C. 1309, as amended, may be extended, and to announce that ground equipment may not be withdrawn under section 309(a)(3) of the Tariff Act of 1930, as amended, for aircraft registered in Canada, the Federal Republic of Germany, Italy, and the United Kingdom.

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of 1954, and applicable regulations of the Internal Revenue Service, alcohol, distilled spirits, beer, and wine may be withdrawn free of tax or with benefit of drawback for use as supplies on aircraft registered in foreign countries and actually engaged in foreign trade or trade between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 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 Secretary 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. South Africa.

In addition to those countries listed in Revenue Procedure 69-15, page 287, this Bulletin, the Secretary of Commerce has found and has advised the Secretary of the Treasury that, except for ground equipment, the country of South Africa extends to aircraft registered in the United States and engaged in foreign trade privileges substantially reciprocal to those given aircraft registered in South Africa and engaged in foreign trade. Corresponding privileges are, therefore, extended to aircraft registered in South Africa and engaged in foreign trade.

Sec. 4. Ground Equipment

Revenue Procedure 69-15 lists the countries of Canada, the Federal Republic of Germany, Italy, and the United Kingdom, without exception as to ground equipment, as countries to which reciprocal privileges may be extended. The Secretary of Commerce has now found and has advised the Secretary of the Treasury that those countries do not allow exemption from tax on ground equipment brought in for aircraft of United States registry engaged in foreign trade. Therefore, effective May 1, 1969, as to Canada and the Federal Republic of Germany, effective June 25, 1969, as to the United Kingdom, and effective September 23, 1969, as to Italy, ground equipment may not be withdrawn under section 309(a)(3) of the Tariff Act of 1930, as amended, for aircraft registered in such foreign countries. The listing in Section 5 of this Revenue Procedure reflects these changes.

Sec. 5. Complete List of Foreign Countries.

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

Argentina

This Revenue Procedure supersedes Revenue Procedure 69-15, page 287, this Bulletin.

Sec. 7. 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.