Michigan Laws 207.1076 – Sale of motor fuel by bonded or occasional importer; license requirements
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(1) A person who desires to import motor fuel into this state from another country by transport truck, tank wagon, pipeline, or marine vessel into a storage facility other than a qualified terminal shall be licensed as either of the following:
(a) An occasional importer.
Terms Used In Michigan Laws 207.1076
- Bulk transfer: means a transfer of motor fuel from 1 location to another by pipeline tender or marine delivery within the bulk transfer/terminal system, including, but not limited to, all of the following transfers:
(i) A marine vessel movement of motor fuel from a refinery or terminal to a terminal. See Michigan Laws 207.1002Department: means the department of treasury or its designee. See Michigan Laws 207.1002 Import: means to bring motor fuel into this state by motor vehicle, marine vessel, pipeline, or any other means. See Michigan Laws 207.1003 Import verification number: means the number assigned by the department to an individual delivery of motor fuel by a transport truck, tank wagon, marine vessel, or rail car in response to a request for a number from an importer or transporter carrying motor fuel into this state for the account of an importer. See Michigan Laws 207.1003 Importer: means a person who imports motor fuel into this state. See Michigan Laws 207.1003 In this state: means the area within the borders of this state, including all territories within the borders owned by, held in trust by, or added to the United States of America. See Michigan Laws 207.1003 Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases. Motor fuel: means gasoline, diesel fuel, kerosene, a mixture of gasoline, diesel fuel, or kerosene, or a mixture of gasoline, diesel fuel, or kerosene and any other substance. See Michigan Laws 207.1004 Permissive supplier: means a person who may not be subject to the taxing jurisdiction of this state but who does meet both of the following requirements:
(i) Is a position holder in a federally registered terminal located outside of this state, or a person who acquires from a position holder motor fuel in an out-of-state terminal in a transaction that otherwise qualifies as a 2-party exchange under this act. See Michigan Laws 207.1004Person: means and includes an individual, cooperative, partnership, firm, association, limited liability company, limited liability partnership, joint stock company, syndicate, and corporation, both private and municipal, and any receiver, trustee, conservator, or any other officer having jurisdiction and control of property by law or by appointment of a court other than units of government. See Michigan Laws 207.1004 state: when applied to the different parts of the United States, shall be construed to extend to and include the District of Columbia and the several territories belonging to the United States; and the words "United States" shall be construed to include the district and territories. See Michigan Laws 8.3o Tank wagon: means a straight truck having 1 or more compartments other than the fuel supply tank designed or used to carry motor fuel. See Michigan Laws 207.1006 Tax: means a tax, interest, or penalty levied under this act. See Michigan Laws 207.1006 Terminal: means a motor fuel storage and distribution facility that meets all of the following requirements:
(i) Is registered as a qualified terminal by the internal revenue service. See Michigan Laws 207.1006Transport truck: means a semitrailer combination rig designed or used for the purpose of transporting motor fuel over the public roads or highways. See Michigan Laws 207.1006 United States: shall be construed to include the district and territories. See Michigan Laws 8.3o
(b) A bonded importer.
(2) An applicant for a license under subsection (1) may choose which license the person shall operate under. The fee for either license is $1,000.00.
(3) A bonded importer or occasional importer who sells motor fuel shall collect from the purchaser the tax imposed by section 8 on that motor fuel.
(4) In addition to the license application information required by section 53, an applicant for an occasional importer’s license or a bonded importer’s license shall provide a copy of the applicant’s license to purchase or handle motor fuel tax-exempt in the specified province, country, or other source jurisdiction for which the license is to be issued.
(5) This section does not apply to a person who imports motor fuel if both of the following conditions are met:
(a) All of the motor fuel is subject to 1 or more tax precollection agreements with a supplier as provided in section 72.
(b) All of the motor fuel is expressly evidenced on the terminal-issued shipping paper as provided in section 101.
(6) A person who desires to import motor fuel into a destination in this state from outside the United States, and who has not entered into an agreement to prepay to the supplier or permissive supplier this state’s motor fuel tax with respect to the motor fuel, shall obtain an occasional importer’s license or a bonded importer’s license subject to the special bonding requirements of section 58(2).
(7) A person who obtains a license to import motor fuel pursuant to subsection (5) shall do all of the following:
(a) Obtain an import verification number from the department within 24 hours before entering the state for each separate import into the state but not later than actual entry into this state.
(b) Display the import verification number on the terminal-issued shipping paper required under section 104.
(c) Comply with the payment requirements under section 78 or 80, whichever is applicable.
(8) An occasional importer’s license or a bonded importer’s license issued under subsection (5) shall be specific to each foreign country or other jurisdiction outside the United States.
(9) If the foreign country or other jurisdiction outside the United States has adopted reciprocal legislation or entered into a compact with this state providing for collection of destination jurisdiction tax by the terminal supplier in accordance with terminal-issued shipping papers designating the intended state or country of destination, then the importer is ineligible for a license to import motor fuel outside of the bulk transfer terminal system from the other country, and a license to so import is canceled.
(10) The department shall not issue an occasional importer’s license or a bonded importer’s license if the applicant is not licensed in the foreign country or other jurisdiction outside the United States.