Rev. Proc. 70-19

Section 1. Purpose.

The purpose of this Revenue Procedure is to announce the addition of the Republic of China, Colombia, and Czechoslovakia 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the Tariff Act of 1930, 19 U.S.C. 1309, as amended, may be extended, and to announce that ground equipment may not be withdrawn under section 309(a)(3) of the Tariff Act of 1930, as amended, for aircraft registered in Australia and France.

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of 1954, and applicable regulations of the Internal Revenue Service, alcohol, distilled spirits, beer, and wine may be withdrawn free of tax or with benefit of drawback for use as supplies on aircraft registered in foreign countries and actually engaged in foreign trade or trade between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

In addition to those countries listed in Revenue Procedure 70-2, C.B. 1970-1, 416, the Secretary of Commerce has found and has advised the Secretary of the Treasury that, the Republic of China, except for ground equipment, Colombia, and Czechoslovakia extend to aircraft registered in the United States and engaged in foreign trade privileges substantially reciprocal to those given aircraft registered in the Republic of China, Colombia, and Czechoslovakia and engaged in foreign trade. Corresponding privileges are, therefore, extended to aircraft registered in the Republic of China, Colombia, and Czechoslovakia and engaged in foreign trade.

Sec. 4. Changes and Limitations.

In accordance with Customs Bulletin No. 14, T.D. 70-73, the listing of Bahama Islands is changed to Bahamas and Eire is changed to Ireland. Revenue Procedure 70-2 lists Australia and France as countries to which reciprocal privileges may be extended with no exception as to ground equipment. The Secretary of Commerce has now found and has advised the Secretary of the Treasury that Australia and France do not allow exemption from tax on ground equipment brought in for aircraft of United States registry engaged in foreign trade. Therefore, effective April 1, 1970, ground equipment may not be withdrawn under section 309(a)(3) of the Tariff Act of 1930, as amended, for aircraft registered in Australia and France. The listing in Section 5 of this Revenue Procedure reflects these changes and limitations.

Sec. 5. Complete List of Foreign Countries.

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

Argentina

Sec. 6. Effect on Other Documents.

This Revenue Procedure supersedes Revenue Procedure 70-2, C.B. 1970-1, 416.

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.