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092701 1 (1969-06-09)

handle is hein.gao/gaobacwoq0001 and id is 1 raw text is: Fo S2. UNITED STATES GENERAL ACCOUNTING OFFICE 0 U V WASHINGTON, D C 20548 CIVIL DIVISION JUN 9 1q69 Dear Mr. Johnson: As part of a survey of Customs control over petroleum products in bonded storage, we obtained information concerning the duty-free with- drawal of bonded jet fuel for use in certain American-flag aircraft purportedly engaged in foreign trade within the meaning of section 309(a)(1)(C) of the Tariff Act of 1930, as amended (19 U.S.C. 1309). The purpose of this letter is to obtain your views and comments on the interpretation and administration of the provisions of section 309. Section 309(a)(1)(C) of the Tariff Act of 1930, as amended, provides generally that articles of foreign origin may be withdrawn from Customs custody free of duty for use as supplies on aircraft registered in the United States and actually engaged in foreign trade. Treasury Decision 66-99(1), dated May 6, 1966, states that - American-flag aircraft are engaged in the carriage of passengers and cargo for hire on regularly scheduled flights between Los Angeles, California, and a foreign country or countries, in both directions. Some of the flights proceed to foreign destinations via the polar route with an inter- mediate stop at San Francisco, California, where more pas- sengers and/or cargo may be laden. Other flights depart Los Angeles eastbound to foreign destinations with intermediate stops en route, such as at Chicago, Illinois, Detroit, Michigan, Philadelphia, Pennsylvania, New York, New York, and Boston, Massachusetts, where other passengers and/or cargo may be laden. On outward and inward flights there is no change of aircraft in the United States and each stopover in this country 2s for about 1 hour. The aircraft simultane- ously engage in the carriage of passengers and cargo in domestic servce in the United States. Aircraft so engaged are in foreign trade within the meaning of section 309(a)(1)(C) of the Tariff Act of 1930, as amended, and as such qualify for duty-free withdrawals of turbine fuel and other supplies under that statute. Bureau letter dated April 14, 1966. In our opinion, American-flag commercial aircraft engaged in contin- uous regularly scheduled flights between the United States and a foreign country, in both d2rections, are entitled to duty-free withdrawal of bonded