VES-13-18-CO:R:P:C 110877 KVS
Chief
Residual Liquidation and Protest Branch
6 World Trade Center
New York, NY 10048-0954
RE: Vessel repair; LASH barges; 19 U.S.C. 1466(h)(1)
Vessel: GREEN VALLEY V-03
Vessel Repair Entry No. 514-3003951-4
Dear Sir:
This is in response to your memorandum of November 9, 1990,
regarding an application for relief filed in connection with the
subject vessel, which transmits for review certificates of
documentation and use for LASH barges used in conjunction with
the GREEN VALLEY V-03, vessel repair entry no. 514-3003951-4.
Our findings are set forth below.
FACTS:
The vessel GREEN VALLEY is a Lighter Aboard Ship (LASH)
barge mother vessel. Thirty-three vessel repair entries were
filed to cover various repairs made to a variety of barges from
November 11, 1988, until October 27, 1989, and an application for
relief was submitted to cover barges WA-1-0110, WA-1-0420, WA-2-
0478 and LB-945.
ISSUE:
Whether the cost of parts, materials, equipment, and repairs
made abroad to a U.S.-documented LASH barge which is used as a
cargo container is exempt from vessel repair duties imposed
pursuant to 19 U.S.C. 1466(a).
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,
intended to engage, or documented under the laws of the United
States to engage in the foreign or coastwise trade.
- 2 -
Section 1466 was amended by the Act of August 20, 1990 (Pub.
L. 101-382), whereby a new paragraph (h)(1) was added which
exempts from duty under section 1466(a), the cost of parts,
materials, equipment and repairs made abroad to U.S.-documented
LASH barges used as cargo containers, with certain effective date
restrictions not here relevant.
In a letter dated October 2, 1990, the appropriate vessel
repair liquidation unit was informed of the need for the
submission of additional evidence regarding documentation and use
for the subject barges to be eligible for relief under the new
amendment. In response to our request, the applicant has
submitted a certification of documentation and use as a cargo
container for each of the barges under consideration. Therefore,
since the barges have met the statutory requirements, we hereby
grant relief.
HOLDING:
Pursuant to 19 U.S.C. 1466(h)(1), the cost of parts,
materials, equipment and repairs made abroad to a U.S.-documented
LASH barge which is used as a cargo container is exempt from
duty.
Sincerely,
B. James Fritz
Chief
Carrier Rulings Branch