Rev. Rul. 58-124

Section 309 of the Tariff Act of 1930, as amended, 46 Stat. 690, 19 U.S.C. 1309, authorizes, in part, the withdrawal of liquors, free of tax, for supplies on aircraft registered in the United States and actually engaged in foreign trade or trade, `between the United States and any of its possessions.' It also authorizes the withdrawal of liquors, free of internal revenue tax, on a reciprocal basis, as supplies on aircraft registered in any foreign country and actually engaged in foreign trade or trade `between the United States and any of its possessions' where such trade by foreign aircraft is permitted. Drawback is authorized therein with respect to liquors laden as supplies on aircraft so registered and actually engaged in such trade. Treasury Decision 45047, approved July 18, 1931, and Treasury Decision 45146, approved September 23, 1931, recognized the application of this provision to Puerto Rico and Alaska. Held, the provision is also applicable to the Territory of Hawaii. Accordingly, pursuant to the applicable regulations, liquors may be withdrawn, free of tax or with benefit of drawback, for use as supplies on the aircraft specified when such aircraft are actually engaged in trade between the United States and Hawaii.