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 Rev. Rul. 59-21

1959-1 C.B. 715

Caution:Amplified by Rev. Rul. 63-97

Full Text

Rev. Rul. 59-21

Section 309 of the Tariff Act of 1930, as amended, 19 U.S.C. 1309, provides, in part, that distilled spirits, wines, and beer of foreign or domestic origin may be withdrawn free of duty and internal revenue tax, or with benefit of drawback, for supplies of aircraft registered in the United States and actually engaged in foreign trade or trade between the United States and any of its possessions. Similar provision are contained in pertinent regulations issued under chapter 51 of the Internal Revenue Code of 1954. Held , under the above provisions, liquors (including wines and beer) may be withdrawn free of tax or with benefit of drawback for lading on aircraft engaged in foreign trade, as supplies, and are eligible for use while such aircraft are in nonstop flights over the United States such as flights from Chicago, Illinois, to Mexico City, Mexico, and that the liquors served during such flights may be considered as used in international travel. See, however, Revenue Ruling 54-480, C.B. 1954-2, 558, with respect to special tax liability as a retail dealer in liquors.