Export Cargo Port Use Tax Exemption

§ 4462. Definitions and special rules(a) DefinitionsFor purposes of this subchapter—(1) Port useThe term “port use” means—(A) the loading of commercial cargo on, or (B) the unloading of commercial cargo from, a commercial vessel at a port. (2) Port(A) In generalThe term “port” means any channel or harbor (or component thereof) in the United States, which—(i) is not an inland waterway, and (ii) is open to public navigation. (B) Exception for certain facilitiesThe term “port” does not include any channel or harbor with respect to which no Federal funds have been used since 1977 for construction, maintenance, or operation, or which was deauthorized by Federal law before 1985. (C) Special rule for Columbia RiverThe term “port” shall include the channels of the Columbia River in the States of Oregon and Washington only up to the downstream side of Bonneville lock and dam. (3) Commercial cargo(A) In generalThe term “commercial cargo” means any cargo transported on a commercial vessel, including passengers transported for compensation or hire. (B) Certain items not includedThe 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. (4) Commercial vessel(A) In generalThe 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 generalThe 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) FerryThe 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 generalThe term “value” means, except as provided in regulations, the value of any commercial cargo as determined by standard commercial documentation. (B) Transportation of passengersIn 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(1) In generalNo tax shall be imposed under section 4461(a) with respect to—(A) cargo loaded on a vessel in a port in the United 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,