Rev. Rul. 2009-34
Rev. Rul. 2009-34
Section 4221(e) reciprocal privileges. The list of countries that allow reciprocal privileges for purposes of the exemption for supplies for civil aircraft of foreign registry is updated and restated. Rev. Ruls. 74-346, 75-190, 75-398, and 75-526 superseded.
PURPOSE
This revenue ruling updates the list of countries that allow substantially reciprocal privileges for purposes of section 4221(e)(1) of the Internal Revenue Code (Code).
LAW
Section 4081 imposes a tax on certain removals, entries, and sales of taxable fuel, including kerosene. Section 4082(e) generally exempts from the § 4081 tax kerosene that is removed from any refinery or terminal directly into the fuel tank of an aircraft if such aircraft is employed in foreign trade or trade between the United States and any of its possessions. A similar exemption from the tax imposed by § 4041(c) on other liquids used in aviation is allowed by §§ 4041(d)(5) and (g)(1). The exemptions described above are derived from § 4221(d)(3).
Section 6427(l) sets forth the payment provisions that apply if previously taxed kerosene is used in an aircraft engaged in foreign trade or trade between the United States and any of its possessions.
Section 4221(d)(3) of the Code provides that the term “supplies for vessels or aircraft” means fuel supplies, ships’ stores, sea stores, or legitimate equipment on vessels actually engaged in foreign trade or trade between the Atlantic and Pacific ports of the United States or between the United States and any of its possessions. For purposes of the preceding sentence, the term “vessels” includes civil aircraft employed in foreign trade or trade between the United States and any of its possessions.
Section 4221(e)(1) of the Code provides that, in the case of articles sold for use as supplies for aircraft, the privileges granted under § 4221(a)(3) in respect of civil aircraft employed in foreign trade or trade between the United States and any of its possessions, in respect of aircraft registered in a foreign country, shall be allowed only if the Secretary of the Treasury has been advised by the Secretary of Commerce that he has found that such foreign country allows, or will allow, substantially reciprocal privileges in respect of aircraft registered in the United States. If the Secretary of the Treasury is advised by the Secretary of Commerce that he has found that a foreign country has discontinued or will discontinue the allowance of such privileges, the privileges granted under § 4221(a)(3) shall not apply thereafter in respect of civil aircraft registered in that foreign country and employed in foreign trade or trade between the United States and any of its possessions.
NOTIFICATION
The Secretary of Commerce has advised the Secretary of Treasury that the current list of foreign countries that allow substantially reciprocal privileges in respect of aircraft registered in the United States is as follows:
| Afghanistan | Lebanon |
|---|---|
| Albania | Liberia |
| Antigua and Barbuda | Luxembourg |
| Argentina | Macau |
| Aruba | Madagascar |
| Australia | Malaysia |
| Austria | Maldives |
| The Bahamas | Mali |
| Bahrain | Malta |
| Barbados | Marshall Islands |
| Belarus | Mexico |
| Belgium | Federated States of Micronesia |
| Belize | Moldova |
| Benin | Montenegro |
| Bermuda | Morocco |
| Bosnia and Herzegovina | Namibia |
| Brazil | Netherlands |
| Brunei Darussalam | Netherlands Antilles |
| Burkina Faso | New Zealand |
| Burma | Nicaragua |
| Cameroon | Nigeria |
| Canada | Norway |
| Cape Verde | Oman |
| Chad | Pakistan |
| Chile | Palau |
| People’s Republic of China | Panama |
| Colombia | Paraguay |
| Democratic Republic of the Congo (only aircraft fuel and lubricants) | Peru |
| Cook Islands | Republic of the Philippines |
| Costa Rica | Poland |
| Cote d’Ivoire | Portugal |
| Cuba | Qatar |
| Czech Republic | Romania |
| Denmark | Russia |
| Dominica | Rwanda |
| Ecuador | St. Kitts and Nevis |
| Egypt (only aircraft fuel and lubricants) | St. Lucia |
| El Salvador | St. Vincent and the Grenadines |
| Ethiopia | Samoa |
| Fiji | Saudi Arabia |
| Finland | Serbia |
| France | Singapore |
| Gabon | Slovak Republic |
| The Gambia | South Africa |
| Federal Republic of Germany | Spain |
| Ghana | Sri Lanka |
| Greece | Suriname |
| Grenada | Sweden |
| Guatemala | Switzerland |
| Guyana | Taiwan |
| Haiti | Tajikistan |
| Honduras | Tanzania |
| Hong Kong | Thailand |
| Hungary | Tonga |
| Iceland | Trinidad and Tobago |
| India | Tunisia |
| Indonesia | Turkey |
| Iran | Turkmenistan |
| Ireland | Tuvalu |
| Israel | Uganda |
| Italy | Ukraine |
| Jamaica | United Arab Emirates |
| Japan | United Kingdom |
| Jordan | Uruguay |
| Kazakhstan | Uzbekistan |
| Kenya (only aircraft fuel and lubricants) | Venezuela |
| Kiribati | Vietnam |
| Republic of Korea | Zambia |
| Kuwait | Zimbabwe |
| Kyrgyzstan |
EFFECT ON OTHER REVENUE RULINGS
Rev. Rul. 74-346, 1974-2 C.B. 361, Rev. Rul. 75-190, 1975-1 C.B. 348, Rev. Rul. 75-398, 1975-2 C.B. 434, and Rev. Rul. 75-526, 1975-2 C.B. 435, are superseded.
DRAFTING INFORMATION
The principal author of this revenue ruling is Celia Gabrysh of the Office of Associate Chief Counsel (Passthroughs & Special Industries). For further information regarding this revenue ruling, contact Celia Gabrysh at (202) 622-3130 (not a toll-free call).