Page:United States Statutes at Large Volume 100 Part 5.djvu/793

 PUBLIC LAW 99-662—NOV. 17, 1986

100 STAT. 4267

"(3) COMMERCIAL CARGO.—

"(A) IN GENERAL.—The term 'commercial cargo' means any cargo transported on a commercial vessel, including passengers transported for compensation or hire. "(B) CERTAIN ITEMS NOT INCLUDED.—The term 'commercial cargo' does not include— "(i) bunker fuel, ship's stores, sea stores, or the legitimate equipment necessary to the operation of a vessel, or "(ii) fish or other aquatic animal life caught and not previously landed on shore.

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"(4) COMMERCIAL VESSEL.—

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"(A) IN GENERAL.—The term 'commercial vessel' means any vessel used— "(i) in transporting cargo by water for compensation or hire, or "(ii) in transporting cargo by water in the business of the owner, lessee, or operator of the vessel. "(B) EXCLUSION OF FERRIES.—



"(i) IN GENERAL.—The term 'commercial vessel' does not include any ferry engaged primarily in the ferrying of passengers (including their vehicles) between points within the United States, or between the United States and contiguous countries. "(ii) FERRY.—The term 'ferry' means any vessel which arrives in the United States on a regular schedule during its operating season at intervals of at least once each business day. "(5) VALUE.—



"(A) IN GENERAL.—The term 'value' means, except as provided in regulations, the value of any commercial cargo as determined by standard commercial documentation. "(B) TRANSPORTATION OF PASSENGERS.—In the case of the transportation of passengers for hire, the term 'value' means the actual charge paid for such service or the prevailing charge for comparable service if no actual charge is paid. "(b) SPECIAL RULE FOR ALASKA, HAWAII, AND POSSESSIONS.—

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"(1) IN GENERAL.—No tax shall be imposed under section 4461(a) with respect to— "(A) cargo loaded on a vessel in a port in the United Maritime affairs. States mainland for transportation to Alaska, Hawaii, or any possession of the United States for ultimate use or consumption in Alaska, Hawaii, or any possession of the United States, "(B) cargo loaded on a vessel in Alaska, Hawaii, or any possession of the United States for transportation to the United States mainland for ultimate use or consumption in the United States mainland, "(C) the unloading of cargo described in subparagraph (A) or (B) in Alaska, Hawaii, or any possession of the United States, or in the United States mainland, respectively, or "(D) cargo loaded on a vessel in Alaska, Hawaii, or a possession of the United States and unloaded in the State or possession in which loaded.

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