§4497. Imputed value

(a) In general

For purposes of this subchapter, the term "imputed value" means, with respect to any hard mineral resource, 20 percent of the fair market value of the commercially recoverable metals and minerals contained in such resource. Such fair market value shall be determined-

(1) as of the date of the removal of the hard mineral resource from the deep seabed; and

(2) as if the metals and minerals contained in such resource were separated from such resource and were in the most basic form for which there is a readily ascertainable market price.

(b) Commercial recoverability

(1) Manganese, nickel, cobalt, and copper

For purposes of subsection (a), manganese, nickel, cobalt, and copper shall be treated as commercially recoverable.

(2) Minimum quantities and percentages

The Secretary may by regulations prescribe for each metal or mineral quantities or percentages below which the metal or mineral shall be treated as not commercially recoverable.

(c) Suspension of tax with respect to certain metals and minerals held for later processing

(1) Election

The permittee may, in such manner and at such time as may be prescribed by regulations, elect to have the application of the tax suspended with respect to one or more commercially recoverable metals or minerals in the resource which the permittee does not intend to process within one year of the date of extraction. Any metal or mineral affected by such election shall not be taken into account in determining the imputed value of the resource at the time of its removal from the deep seabed. Any suspension under this paragraph with respect to a metal or mineral shall be permanent unless there is a redetermination affecting such metal or mineral under paragraph (2).

(2) Later computation of tax

If the permittee processes any metal or mineral affected by the election under paragraph (1), or if he sells any portion of the resource containing such a metal or mineral, then the amount of the tax under section 4495 shall be redetermined as if there had been no suspension under paragraph (1) with respect to such metal or mineral. In any such case there shall be added to the increase in tax determined under the preceding sentence an amount equal to the interest (at the underpayment rate established under section 6621) on such increase for the period from the date prescribed for paying the tax on the resources (determined under section 4495(d)) to the date of the processing or sale.

(d) Determinations of value

All determinations of value necessary for the application of this subchapter shall be made by the Secretary (after consultation with other appropriate Federal officials) on the basis of the best available information. Such determinations shall be made under procedures established by the Secretary by regulations.

(Added Pub. L. 96–283, title IV, §402(a), June 28, 1980, 94 Stat. 583 ; amended Pub. L. 99–514, title XV, §1511(c)(7), Oct. 22, 1986, 100 Stat. 2745 .)

Amendments

1986-Subsec. (c)(2). Pub. L. 99–514 substituted "the underpayment rate established under section 6621" for "rates determined under section 6621".

Effective Date of 1986 Amendment

Amendment by Pub. L. 99–514 applicable for purposes of determining interest for periods after Dec. 31, 1986, see section 1511(d) of Pub. L. 99–514, set out as a note under section 47 of this title.

Section Referred to in Other Sections

This section is referred to in title 30 section 1473.