VES-13-18-CO:R:IT:C 111476 KVS
Deputy Assistant Regional Commissioner
Commercial Operations Division
423 Canal Street
New Orleans, LA 90130-2341
RE: Vessel repair; untimely application; untimely entry
Vessel: FRANCES HAMMER V-11
Vessel Repair Entry No. C53-0012157-7
Date of Arrival: June 30, 1990
Port of Arrival: Houston, Texas
Dear Sir:
This is in response to your memorandum of January 14, 1991,
which forwards for our consideration an application for relief of
vessel repair duties filed in connection with the FRANCES HAMMER,
vessel repair entry no. C53-0012157-7. Our findings are set
forth below.
FACTS:
The FRANCES HAMMER, an American-flag vessel, underwent
certain foreign shipyard operations offshore Malta at Hurd Bank
anchorage from May 23, 1990 until May 25, 1990, and at Palermo,
Italy, from May 29, 1990 until June 1, 1990. The vessel arrived
in the United States at Houston, Texas on June 30, 1990. Formal
entry was made with Customs on July 9, 1990. In connection with
this voyage, an application for relief from vessel repair duties
was filed on September 26, 1990.
ISSUE:
Whether, in the absence of an extension, an application for
relief from vessel repair duties filed 88 days after the date of
arrival may be considered by Customs on its merits.
LAW AND ANALYSIS:
Title 19, United States Code, section 1466(a) provides, in
pertinent part, for payment of duty in the amount of 50 percent
ad valorem on the cost of foreign repairs to vessels engaged,
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intended to engage, or documented under the laws of the United
States to engage in the foreign or coastwise trade.
The Customs Regulations provide specific time limitations
for the submission of an application for relief of vessel repair
duties. This time period is contained in section 4.14(d)(1)(ii),
which states:
The application for relief, with supporting
evidence, shall be filed within 60 days from
the date of first arrival of the vessel.
However, if good cause is shown, the
appropriate vessel repair unit may authorize
one 30-day extension of time to file beyond
the 60-day filing period.
Furthermore, the regulations specify that the time period
for filing the application for relief is concurrent with the time
period for submission of costs. Section 4.14(b)(2)(ii)(B)
states:
The 60-day time period to submit evidence of
cost on the entry is concurrent with the 60-
day time period to submit an application for
relief under paragraph (d)(1)(ii) of this
section and will not operate to provide
additional time to submit an application for
relief. A request for additional time to
submit evidence of cost may include a request
for additional time to submit an application
for relief.
This additional time to submit evidence of cost and an
application for relief is found in section 4.14(b)(2)(ii),
Customs Regulations:
If before the end of the 60-day period, the
party that is required to furnish the
evidence of cost submits a written request
for an extension of time beyond the 60-day
period, together with a satisfactory
explanation of the delay, to the appropriate
vessel repair liquidation unit, that unit may
grant an additional 30-day extension of time
to submit cost evidence. Any request for a
further extension of time to furnish evidence
of cost shall be submitted to Headquarters,
U.S. Customs Service...for approval.
In the case under consideration, the FRANCES HAMMER arrived
at Houston on June 30, 1990. Under the regulations, the vessel
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had until August 29, 1990 to submit an application for relief
and cost evidence. However, the application for relief was not
filed until September 26, 1990. Although the regulations provide
for the granting of a 30-day extension upon application to the
appropriate vessel repair liquidation unit, we find no record
that an extension was either requested or granted. Accordingly,
the application is denied.
Additionally, section 4.14(b)(2), Customs Regulations (19
CFR 4.14(b)(2) provides that, "entry shall be filed with the
appropriate Customs officer at the port of first arrival within
five working days after arrival." Under the regulations, the
vessel had until July 6, 1990 to file formal vessel entry
documents. Here, formal entry was not made until July 9, 1990.
Therefore, we recommend that the matter be referred to the
appropriate office for action.
Parenthetically, we note that in reviewing the materials
submitted, we were unable to confirm the location of several of
the geographic points alleged to have been visited by the vessel.
Therefore, we would suggest that a full written itinerary be
included with any further submissions in reference to this
voyage.
HOLDING:
In the absence of an extension, an application for relief
from vessel repair duties filed 88 days after the date of arrival
may not be considered by Customs on its merits.
Sincerely,
B. James Fritz
Chief
Carrier Rulings Branch