VES-13-18 CO:R:IT:C 112909 GOB
Chief, Residual Liquidation and Protest Branch
New York Region
Six World Trade Center
New York, New York 10048-0945
RE: Vessel Repair; 19 U.S.C. 1466; Petition; M/V NEDLLOYD HUDSON,
V-39; Entry No. 559-1237242-6
Dear Sir:
This is in response to your memorandum dated October 1, 1993,
which forwarded the petition submitted by Sea-Land Service, Inc.
("petitioner") in connection with the above-referenced entry.
FACTS:
The record reflects that the M/V NEDLLOYD HUDSON (the
"vessel") arrived at the port of Boston on August 21, 1991. Vessel
repair entry no. 559-1237242-6 was filed on August 23, 1991.
Shipyard work was performed on the vessel in Rotterdam, Holland.
By letter dated June 11, 1993, your office denied in part the
petitioner's application for relief based upon "insufficient
documentation for `casualty'."
The petitioner asks for relief with respect to two items, item
no. 124 on Wilton-Fijenoord b.v. invoice dated August 16, 1991 and
ABS survey invoice no. RO 9885. In support of its claim that
remission is warranted, the petitioner has submitted the following
documentation:
1. a certification by the master of the vessel;
2. a copy of U.S. Coast Guard Form 2692, Report of Marine
Accident, Injury or Death; and
3. a copy of the vessel's deck log for August 3, 1991.
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ISSUE:
Whether, pursuant to 19 U.S.C. 1466(d)(1), good and sufficient
evidence has been submitted which warrants the remission of vessel
repair duties.
LAW AND ANALYSIS:
19 U.S.C. 1466(a) provides for the payment of duty at a rate
of fifty percent ad valorem on the cost of foreign repairs to
vessels documented under the laws of the United States to engage
in foreign or coastwise trade, or vessels intended to be employed
in such trade.
19 U.S.C. 1466(d)(1) provides in part that the Secretary of
the Treasury is authorized to remit or refund such duties if the
owner or master of the vessel furnishes good and sufficient
evidence that the vessel was compelled by stress of weather or
other casualty to put into a foreign port and make repairs to
secure the safety and seaworthiness of the vessel to enable her to
reach her port of destination.
19 CFR 4.14(c)(3)(i) provides that "port of destination" means
such port in the United States and "... only the duty on the cost
of the minimal repairs needed for the safety and seaworthiness of
the vessel is subject to remission or refund."
19 U.S.C. 1466 and 19 CFR 4.14 essentially set forth a three-
part test, all of the elements of which must be established by good
and sufficient evidence to qualify for remission:
1. a casualty occurrence;
2. an unsafe and unseaworthy condition; and
3. the inability to reach the port of destination without
foreign repairs.
In the subject case, we find that the evidence is sufficient
to establish that a casualty occurred within the meaning of 19
U.S.C. 1466.
However, the petitioner has not presented good and sufficient
evidence that the foreign repairs were necessary to secure the
safety and seaworthiness of the vessel to enable the vessel to
reach its port of destination. The submitted documentation does
not address this requirement.
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HOLDING:
The petition is denied based on the lack of good and
sufficient evidence that the foreign repairs were necessary to
secure the safety and seaworthiness of the vessel to enable the
vessel to reach its port of destination.
Sincerely,
Arthur P. Schifflin
Chief
Carrier Rulings Branch