FRANCE: FUEL TAX EXONERATION FOR U.S. RESEARCH VESSELS

UNCLAS PARIS 000585 SIPDIS PLEASE PASS TO OES/OA LIZ TIRPAK AND ROBERTA BARNES; EUR/WE; L/OES E.O. 12958: N/A TAGS: TPHY KRVC EWWT FR SUBJECT: FRANCE: FUEL TAX EXONERATION FOR U.S. RESEARCH VESSELS REF: NOTE VERBALE 82/AME DTD 24 JANUARY 2007 ¶1. Embassy received from the MFA diplomatic note number 82/AME dated 24 January 2007 (Ref A). Informal Embassy Translation follows. ¶2. QUOTE: In its Diplomatic Note number 460 dated 14 September 2006, the Embassy had asked the Ministry whether U.S. vessels conducting scientific research could be exonerated from paying taxes when refueling in French ports. Following consultation with relevant Ministries and organizations, the Ministry informs the Embassy that US vessels conducting oceanographic research benefit from the exoneration of the Petroleum Gas (TIPP) and the Value Added Tax (VAT) on condition that they sail within the framework of missions under the aegis of public U.S. authorities. ¶3. For further information, the Embassy can contact Mrs. Michelle Jusselme, Ministry of Economy and Finances and Industry, Direction General of Customs and Rights (Tel: 01-44-74-47-21 michelle.jusselme@douanes.finances.gouv.fr). END QUOTE ¶4. COMMENT: The Department will recall that in connection with the cruise of R/V Endeavor (State Department File No. 2005-100) of April 2006, questions had arisen whether research vessels generally would be exempted from payment of taxes on bunkering of their fuel in French ports. Customs authorities in Marseille had replied negatively. The information provided in the above Note helps to clarify under what circumstances U.S. research vessels may be exempted from fuel taxes. Perhaps most helpfully the note refers the Embassy to a point-of-contact in French customs should questions of interpretation arise in the future. STAPLETON