![]() 3/28/90.Ħ00.0063 Transfer of Vessel to Obtain Dungeness Crab Permit. Therefore, the application of the sales or use tax to the repair of the marine cargo containers in California is governed by Regulation 1546, Installing, Repairing, Reconditioning in General. Marine cargo containers do not constitute watercraft within the meaning of section 63.1. For purposes of the watercraft exemption, inflatable life rafts are watercraft and the survival kits sealed therein are component parts of the watercraft. The watercraft exemption in section 6368 is not applicable to the sale of freight containers, which are designed for land movement as well as for storage in vessels for movement at sea. ![]() A floating dry dock built in Japan and delivered to the buyer in San Diego is tangible personal property which qualifies as a vessel, and its use in California is subject to use tax. Although section 6356 contains an unqualified exemption from sales tax for vessels of more than 1,000 tons sold in this state by the builder, it does not contain a comparable exemption from use tax. If the spreaders are instead attached to and used in conjunction with shoreside cargo handling equipment they are not component parts of the ship. Cargo spreaders which are a component and integral part of the cargo handling equipment permanently affixed to a ship are component parts of the ship for purposes of the watercraft exemption. A barge, approximately 112' by 52' in size which will be used as a ferry dock and a passenger loading platform for ferry boat services, does not qualify for the watercraft exemption since it will be used principally in intrastate commerce. ![]() Generally, a clamshell barge cannot qualify for the watercraft exemption because it is not used for the transportation of property or persons for hire.
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