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Groups from the US manufacturing, trade and transportation industries are lobbying to get the House Ways and Means Committee to reject the proposal to increase the vessel tonnage tax to pay for maritime subsidies. The coalition of opponents contends that the tax hike would adversely affect bulk commodities because their competitiveness in the international market can easily be weakened by the slightest price increase.

The National Assn. of Maritime Organizations is against Pres. Clinton's proposal to increase vessel-tonnage taxes to finance at least $1 billion of new ship-operating subsidies. The vessel-tonnage tax imposed on commercial vessels calling at US ports is computed based on their net-registered tonnage. The proposed measure would increase the tax from the current 9 cents per ton for ships calling from Western Hemisphere ports and 27 cents from other foreign areas.

The National Assn. of Manufacturers has criticized a proposed increase in shipping taxes to fund $1 billion in ship operating subsidies being sought by the Clinton administration. The association is seeking the revival of the country's merchant marine to maintain US presence in ocean shipping and to lead national security requirements. However, funding must be allocated by the Dept. of Defense or by using general revenues.

The Federation of American Controlled Shipping in New York has opposed the imposition of bigger vessel tonnage taxes as a way of financing Pres Clinton's Maritime Security Program. The administration program aims to grant subsidies to 52 US-flag vessels as a way of keeping them registered with the US. The foreign registry group, however, found the provision to be unfair to foreign shipping because 96% of cargoes in US foreign trade are carried on foreign vessels.

New Jersey officials have declared their intention to levy a corporate franchise tax on international shipping companies whose ships utilize the state ports and are represented in the state by individual offices or associated agencies. The considerable tax revenue from the foreign-owned ships using the large Port Newark/Elizabeth complex is expected to correct the state's budget shortfall. However, the New Jersey plan could result in tax problems for foreign shipping companies if other states begin to impose their own taxes., Faced with a budget shortfall, the State of New Jersey looked around and discovered what appeared to be a rich and easy source of tax revenue -- foreign-owned shipping companies. [...]

The Clinton Administration's Maritime Security Program, which costs $1 billion and involves nearly 52 ships, will be financed by a 150% increase in the vessel tonnage tax. The proposed fee hike of an additional $1.47 for every 20-foot container brought into the US will apply to all shipping sectors including container, tanker, dry bulkers and passenger ships. The new program also removes trade route and service restrictions and permits mixed-flag operations., Details of the Clinton Administration maritime subsidy plan were spelled out by Transportation Secretary Federico Pena on March 10. The task of getting the program through Congress has fallen on [...]

US and Canadian maritime interests are pressuring Canadian authorities to remove tolls on the St. Lawrence Seaway for the waterway to survive toward the 21st century. However, Canadian authorities do not want the tolls eliminated because this was an important source of funds for the waterway's maintenance and other operations. Canada's transport minister Doug Young spoke at the 57th annual joint conference of the Lake Carriers Association and the Canadia Shipowners Association and urged for the dropping of the tolls.

Shipowners in France are urging the government to grant them total exemption in national insurance contributions for French seafarers. The Comite Central des Armateurs de France has been discussing with government officials the possibility of not paying for social security and other contributions for French nationals. According to the group, this tax relief will allow shipowners to retain their competitiveness vis-a-vis their rivals in other European countries.

UK shipowners are concentrating their efforts to gain temporary tax relief on the Treasury. The shipping sector thinks that it has won the support of other relevant government agencies and the Treasury is the remaining obstacle in the maritime industry's campaign for more tax allowances. The shipowners have also emphasized that they are not seeking subsidies, but rather a temporary tax deferment.

U.S. barge operators urge Senate to kill tax entirely. House cut tax in half. Thanks to recent developments in Washington, the nation's barge operators may defeat President Clinton's proposed inland [...]

WASHINGTON -- Rep. Jim Saxton (R-N.J.) and several other members of the House Merchant Marine Committee introduced two pieces of legislation "to halt the stealth passage of increased taxes and […]

Domestic shippers may be risking huge fines and penalties by failing to pay harbor maintenence taxes. Statistics indicate that tax collection from domestic cargo has fallen to record levels, unlike in all other cargo categories. While total harbor maintenance tax receipts rose 9.3% from the previous year's figures to $272.2 million in the first half of FY 1993, receipts from domestic cargo shipments during the same period fell by 4. 9% to $11.9 million.

Congress must reinstate a reinvestment tax clause which was repealed in 1986, or US shipping will suffer irreparable damage. That clause allowed US ships to reinvest the taxes owed on their foreign earnings into the fleet. Other countries do not tax the foreign earnings of their shipping lines, so the tax puts the US ships at a distinct competitive disadvantage. The repeal was supposed to raise $40 million a year for deficit reduction, but it has only succeeded in seriously harming the industry. As an alternative, a 10-cent per ton excise tax on the cargo of all ships entering our ports would raise about $50 million.

Washington legislators are considering the benefits and shortfalls of a proposed bill that will require a $700 million taxon shipping services. Many shipping lines are protesting that the proposed tax would only reduce ocean cargo and international trade prospects. Industry members are also afraid that high taxes will force shippers to find cheaper locales to conduct their operations.

State of Washington tax legislation has been passed, setting a 6.25% tax on sale of goods and services. Sales tax previously stood at 6.5% but applied only to goods. The measure, which does not contain an exemption for the maritime industry, raised protests from port and shipping interests and a promise from the governor for such an amendment. Objecting to the bill were American President Lines and Sea-Land Service Inc., as well as the Tacoma port commission.

Members of the Coast Guard and Navigation and Merchant Marine subcommittees of the House Merchant Marine and Fisheries Committee protested the government's proposed additional fuel taxes on the shipping industry. The fuel taxes would escalate barge industry taxes by 600% and hasten the decline of the already tax-burdened industry. Industry experts cited a General Accounting Office report which showed that the maritime insustry's total taxes reached nearly $12 billion dollars in 1991. They argue that taxation worsens the budget deficit because it reduces the industry's taxable revenue.

Politicians seem to speak out regardless of accuracy as long as they are defending their interests. Such is the case with Sen Tom Harkin of Iowa, who represents the corn growing region. Harkin expressed his disapproval of a proposition by the Corps of Engineers to impose fuel tax on barge operators for the maintenance of the interisland waterway system. He argues that the higher transport costs will spell lower profits for the corn farmers. However, barges may not be that fuel efficient as believed by the solon since other transport services such as the railways can handle more for less fuel.

The US Customs Service will be conducting more auditing jobs in its aim of establishing an efficient tax-collection system. This move was prompted by reports indicating that $50 million dollars in harbor maintenance fees have gone uncollected in the past years. Customs blames the inefficient collection to lack of adequate funding. Officials announced that audits will be conducted randomly to pinpoint companies that do not report their actual shipment volumes and do not pay the required fees.

The maritime industry will use a report from the General Accounting Office to fight against tax increases. The report indicates that tax levies were imposed on waterborne trade in 1991 amounting to $11.9 billion. A follow-up report may soon come out to evaluate the effects of the taxes on the US trade and transportation industry. Shippers and port officials are complaining that tax increases to be imposed by Pres Clinton will be very detrimental to the maritime industry.

President Bill Clinton's proposed economic plan would flood the nation's barge industry with a 500 percent tax increase that St. Louis operators say will devastate the industry. The administration proposes [...]

The American Waterway Operators Assn (AWOA) and the National Grain andFeed Assn (NGFA) oppose Pres Bill Clinton's proposal to increase fuel taxes forinland waterway users. NGFA members pay a tax of 17 cents per gallon of fuel that go to the Inland Waterways Trust Fund. The fund pays for construction and maintenance work done by the US Army Corps of Engineers. Clinton's plan for thetax to be increased to 19 cents in 1994 and to a maximum of $1.20 in 1997. AWOAVP Paul Werner said the plan would hurt the barge industry. The NGFA added thatthe plan would push shipping costs by another 10 cents per bushel.

Pres Bill Clinton's proposal to increase waterways taxes would result in prohibitive costs of barges which transport 15% of US freight, including half of exported grains, a fourth of coal deliveries and a third of petroleum shipments. The proposal would raise towboat fuel taxes from 17 cents to $1.20 per gallon. In addition, an 8.5 cents per gallon tax hike on the British thermal unit would also be added.

A Washington state bill that imposes a $60 a trip tax on ship operators is opposed by steamship companies in the Pacific Northwest. The state will use the tax money to pay anti-oil spill enforcement officers. However, the Puget Sound Steamship Operators Assn, which groups most of the region's maritime firms, doubts whether the proposed 15-member field unit can effectively prevent oil spills.

The Singapore government approved Neptune Orient Lines Ltd's tax exemption request in order to draw carriers to Singapore. The decision has placed Neptune Orient along with 14 other international shipping lines under the government's Approved International Shipping Enterprise plan. Under the plan, shipping lines are given tax exemptions based on profits from flag vessels that are non-Singaporean and are operating in international waters.

Army Corps of Engineers adviser DuWayne A. Koch has explained that harbor maintenance tax rates could be lessened by recent collection efforts on domestic shippers. Koch has also emphasized that this reduction forecast is due to factors such as stable maintenance dredging expenditure, rising tax collections and evident excess in the harbor maintenance trust fund. This renewed tax collection enforcement and lower rates are noteworthy developments in the ports' and shippers' demand for harbor tax reduction.

The North Carolina Ports Authority has been receiving numerous inquires about its shipping services since the state legislature passed a tax credit bill for shippers. However, a ports authority official notes that it is unlikely that there will be an immediate increase in shippers utilizing the ports because most shippers would still want to familiarize themselves with the tax incentive. Supporters of the bill comment that the initial negative impact of the tax credit, in terms of state revenue losses, will slowly be recovered through increased business activity in the port areas.

Democrat Representatives Joe Moakley and Gerry Studds have a bill which would roll-back the harbor maintenence tax. This legislation would repeal the 1990 tax hike on waterborne cargo value. This bill is introduced despite new congressional plans of higher tax rates. The two Massachusetts legislators stress that the roll-back would foster employment and port competitiveness. Several supporters and oppositionists to the roll-back, however, believe a tax hike for shippers is inevitable.

The Asia North America Eastbound Rate Agreement is urging the Federal Maritime Commission to deny the petition of Philippines, Micronesia and Orient Navigation Co and Castle and Cooke Worldwide Ltd to have rate filing exemption. The Trans-Pacific carriers oppose the request because they consider it as a way to hide market information about fruit shipments and trade. The fruit shipper and its contract carrier, on the other hand, are rationalizing that the petition is necessary for the modification of their service contract which will expire in Jun 1993.

A compromise might be in the offing over a controversial tax break bill which will exempt Michigan ports and General Motors Corp from paying harbor maintenance tax. The bill has stirred opposition because of a provision that would offset the $68 million exemption over five years by increasing rates on other shippers and US ports. Polaroid Corp has proclaimed it will back the tax break bill if a rate rollback to the 1990 level of 0.04% of waterborne cargo value is effected for all shippers.

STAFFORDSHIRE international haulier Michael Chilton had brought fines, costs and buck duty of 3,784.98[pound] 'on his own head', after failing to tax his vehicles as a 'protest' againts what he [...]

Is it a tight rein on shipping, as U.S. officials fear? Or looser rein, as Korean claims? Is Korea on the verge of implementing tough tariff and service filing requirements [...]

EC criticised over ship supplies tax EUROPEAN Commission proposals to introduce a tax on ship supplies within the European Community have been criticised for being bureaucratic and unworkable by ship [...]

Hong Kong's new maritime chief has unveiled a plan to offer tax exemptions to shipowners. It is an apparent effort to ward off competing registries whose tax packages have already [...]