[Code of Federal Regulations]
[Title 26, Volume 16]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR49.4262(c)-1]

[Page 261-262]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 49_FACILITIES AND SERVICES EXCISE TAXES--Table of Contents
 
                   Subpart D_Transportation of Persons
 
Sec. 49.4262(c)-1  Definitions.

    (a) The continental United States. For purposes of the regulations 
in this subpart, the term ``continental United States'' includes only 
the 48 States existing on July 25, 1956 (the date of the enactment of 
the Act of July 25, 1956 (Pub. L. 796, 84th Cong., 70 Stat. 644)) and 
the District of Columbia, including inland waters (such as rivers, 
lakes, bays, etc.) lying wholly therein, and, where an international 
boundary line divides inland waters, such parts of such inland waters as 
lie within the boundary of the United States, and also the waters 3 
nautical miles (3.45 statute miles) from low tide on the coast line. For 
purposes of the regulations in this subpart, the term ``continental 
United States'' does not include Alaska or Hawaii for any period either

[[Page 262]]

prior or subsequent to their admission into the Union as States.
    (b) The 225-mile zone. For purposes of the regulations in this 
subpart, the term ``225-mile zone'' means that portion of Canada and 
Mexico which is not more than 225 miles from the nearest point in the 
continental United States. Whether any point in Canada or Mexico is more 
than 225 miles from the continental United States is to be determined by 
measuring the distance from such point to the nearest point on the 
boundary of the continental United States.
    (c) Uninterrupted International air transportation. (1) For the 
purpose of the regulations in this subpart, the term ``uninterrupted 
international air transportation'' means transportation entirely by air 
which does not begin in the United States or in the 225-mile zone and 
end in the United States or in the 225-mile zone provided that:
    (i) Where the transportation within the United States involves one 
stop, the scheduled interval between the beginning or end of the United 
States portion of such air transportation and the end or beginning of 
the remainder of the air transportation, and
    (ii) Where the United States portion of such transportation involves 
two or more stops, the scheduled interval between the beginning or end 
of one segment and the end or beginning of the continuing segment of 
such portion does not exceed six hours. The transportation is considered 
to be entirely by air even though the passenger may use other means of 
transportation between two airports provided the scheduled six-hour 
limitation for his continuing air transportation is complied with. 
Transportation which otherwise is uninterrupted international air 
transportation does not cease to be such because of the use of non-air 
transportation between ports or stations which are outside the United 
States, provided the non-air transportation is not part of 
transportation which is indirectly from one port or station in the 
United States to another port or station in the United States.
    (2) Where the interval between arrival and departure time at any 
stopover point in the United States exceeds six hours, such 
transportation is not uninterrupted international air transportation 
even though the schedules of the air lines do not make possible a 
scheduling within the six-hour limit. Where any interval scheduled for 
six hours or less is increased to exceed six hours, the transportation 
will continue to be uninterrupted international air transportation if 
the increase in time is attributable to delays in the arrival or 
departure of the scheduled air transportation. In such case the 
transportation shall continue to be uninterrupted international air 
transportation if the passenger continues his transportation no later 
than on the first available flight offered by the continuing carrier 
which affords the passenger substantially the same accommodations as 
originally purchased. However, if for any other reason such interval at 
any stopover is increased to more than 6 hours, the transportation will 
lose its classification of uninterrupted international air 
transportation. The tax applicable in such case shall be paid as 
provided in paragraph (a) (2) of Sec. 49.4264(c)-1. The transportation 
from the point of orgin in the United States to a port or station 
outside the United States and the 225-mile zone, with a stopover in the 
United States, must be scheduled before the time the initial 
transportation commences in order for the United States portion of such 
transportation to qualify as uninterrupted international air 
transportation. For example, where transportation by air from Chicago to 
New York only is scheduled in Chicago and transportation by air from New 
York to London, England, is scheduled by the passenger after his arrival 
in New York, the Chicago to New York trip does not qualify as 
uninterrupted international air transportation even though the passenger 
may depart on the London flight within six hours after arrival in New 
York.

[T.D. 6430, 24 FR 9665, Dec. 3, 1959, as amended by T.D. 6618, 27 FR 
11225, Nov. 14, 1962; 27 FR 11691, Nov. 28, 1962]