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the last date prescribed for payment of (3) No interest shall be payable in retax for the taxable year for which such spect of taxes on amounts referred to item was deposited in the fund to the in section 607(h)(2) (i) and (ii) of the last date for payment of tax for the Act (relating to withdrawals for retaxable year in which the withdrawal search and development and payments is made. Both dates are to be deter- against indebtedness in excess of basis) mined without regard to any exten- or in the case of any nonqualified withsions of time for payment. Interest de- drawal arising from the application of termined under this paragraph which is the recapture provision of section 606(5) paid within the taxable year shall be of the Merchant Marine Act, 1936, as in allowed as a deduction for such year effect on December 31, 1969. under section 163 of the Code. However, (f) Basis and holding period in the case such interest is to be treated as part of of property purchased by the fund or conthe party's tax for the year of with- sidered purchased by the fund. In the drawal for purposes of collection and in case of a nonqualified withdrawal of determining any interest or additions property other than money which was to tax for the year of withdrawal under purchased by the fund (including depossection 6601 or 6651, respectively, of the ited property considered under $391.2 Code.

(g)(1)(ii) as purchased by the fund), the (2) For purposes of section adjusted basis of the property in the 607(h)(3)(C)(ii) of the Act, and for pur- hands of the party is its adjusted basis poses of certain dispositions of vessels to the fund on the day of the withconstructed, reconstructed, or acquired drawal. In determining the period for with qualified withdrawals described in which the taxpayer has held the prop$ 391.6(e), the applicable rate of interest erty withdrawn in a nonqualified withfor any nonqualified withdrawal- drawal, there shall be included only the

(i) Made in a taxable year beginning period beginning with the date on in 1970 and 1971 is 8 percent.

which the withdrawal occurred. For (ii) Made in a taxable year beginning basis and holding period in the case of after 1971, the rate for such year as de- nonqualified withdrawals of property termined and published jointly by the other than money deposited into the Secretary of the Treasury or his dele- fund, see $391.2(g)(4). gate and the Secretary of Transportation. Such rate shall bear a relation

8391.8 Certain corporate reorganizaship to 8 percent which the Secretaries

tions and changes in partnerships,

and certain transfers on death. [Redetermine to be comparable to the re

served] lationship which the money rates and investment yields for the calendar year $ 391.9 Consolidated returns. [Reimmediately preceding the beginning served] of the taxable year bear to the money rates and investment yields for the cal

$ 391.10 Transitional rules for existing endar year 1970. The determination of

funds. the applicable rate for any such tax- (a) In general. Section 607(j) of the able year will be computed by multi- Act provides that any person who was plying 8 percent by the ratio which (a) maintaining a fund or funds under secthe average yield on 5-year Treasury tion 607 of the Merchant Marine Act, securities for the calendar year imme- 1936, prior to its amendment by the diately preceding the beginning of such Merchant Marine Act of 1970 (for purtaxable year, bears to (b) the average poses of this part referred to as “old yield on 5-year Treasury securities for fund”) may continue to maintain such the calendar year 1970. The applicable old fund in the same manner as under rate so determined shall be computed prior law subject to the limitations to the nearest one-hundredth of 1 per- contained in section 607(j) of the Act. cent. If such a determination and pub. Thus, a party may not simultaneously lication is made, the latest published maintain such old fund and a new fund. percentage shall apply for any taxable established under the Act. year beginning in the calendar year (b) Extension of agreement to new fund. with respect to which publication is If a person enters into an agreement made.

under the Act to establish a new fund,

he may agree to the extension of such agreement to some or all of the amounts in the old fund and transfer the amounts in the old fund to which the agreement is to apply from the old fund to the new fund. If an agreement to establish a new fund is extended to amounts from an old fund, each item in the old fund to which such agreement applies shall be considered to be transferred to the appropriate account in the manner provided for in $391.8(d) in the new fund in a nontaxable transaction which is in accordance with the provisions of the agreement under which such old fund was maintained. For purposes of determining the amount of interest under section 607(h)(3)(C) of the Act and g 391.7(e), the date of deposit of any item so transferred shall be deemed to be July 1, 1971, or the date of the deposit in the old fund, whichever is the later.


U.S. foreign trade pursuant to a contract entered into before April 15, 1970, shall be treated as satisfying the requirements of paragraph (a)(1) of this section and the requirements of paragraph (a)(2)(i) of this section.

(2) The term qualified vessel means any vessel

(i) Constructed in the United States and, if reconstructed, reconstructed in the United States,

(ii) Documented under the laws of the United States, and

(iii) Which the person maintaining the fund agrees with the Secretary of Transportation will be operated in the U.S. foreign, Great Lakes, noncontiguous domestic trade or in the fisheries of the United States.

(3) The term agreement vessel means any eligible vessel or qualified vessel which is subject to an agreement entered into under section 607 of the Act.

(4) The term vessel includes cargo handling equipment which the Secretary of Transportation determines is intended for use primarily on the vessel. The term vessel also includes an ocean-going towing vessel or an oceangoing barge or comparable towing vessel or barge operated in the Great Lakes.

(b) Insofar as the computation and collection of taxes are concerned, other terms used in the regulation in this part, except as otherwise provided in the Act or this part, have the same meaning as in the Code and the regulations thereunder.

$ 391.11 Definitions.

(a) As used in the regulations in this part and as defined in section 607(k) of the Act

(1) The term eligible vessel means any vessel

(i) Constructed in the United States, and if reconstructed, reconstructed in the United States,

(ii) Documented under the laws of the United States, and

(iii) Operated in the foreign or domestic commerce of the United States or in the fisheries of the United States. Any vessel which was constructed outside of the United States but documented under the laws of the United States on April 15, 1970, or constructed outside the United States for use in the

[29 FR 10464, July 28, 1964]





Part 400 401 402 403 404

Great Lakes pilotage regulations
Great Lakes pilotage rules and orders
Great Lakes pilotage uniform accounting system
Great Lakes pilotage ratemaking

427 444 447 448

[blocks in formation]

Subpart D-Rates, Charges, and

Conditions for Pilotage Services 401.400 Calculation of pilotage units and de

termination of weighting factor. 401.405 Basic rates and charges on the St.

Lawrence River and Lake Ontario. 401.407 Basic rates and charges on Lake Erie

and the navigable waters from Southeast

Shoal to Port Huron, MI. 401.410 Basic rates and charges on Lakes

Huron, Michigan and Superior and the

St. Mary's River. 401.420 Cancellation, delay or interruption

in rendition of services. 401.425 Provision for additional pilot. 401.427 Charge on past due accounts. 401.428 Basic rates and charges for carrying

a U.S. pilot beyond normal change point

$ 401.100 Purpose.

The purpose of this part is to carry out those provisions of the Great Lakes Pilotage Act of 1960 (74 Stat. 259, 46 U.S.C. 216) relating to the registration of United States pilots, the formation of pools by voluntary associations of United States registered pilots and the establishment of rates, charges, and other conditions or terms for services

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