Cruise Lines Win Partial Victory on HMT

Thursday, August 08, 2002
The U.S. Court of International Trade ruled that the value of a cruise fare for purposes of the Harbor Maintenance Tax (HMT) only includes the fair market value of the shipboard services. In the instant case, the Customs Service had assessed the HMT based on the full price paid by individual passengers. That full price included such things as airfare, travel agent commissions, port taxes, and Customs/INS fees. The court ruled that such inclusion was inconsistent with the HMT statute. Carnival Cruise Lines, Inc. v. United States Source: HK Law
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