VES-13-18-CO:R:P:C 110895 GV
Deputy Assistant Regional Commissioner
Classification and Value Division
ATTN: Regional Vessel Repair Liquidation Unit
6 World Trade Center
New York, New York 10048-002980
RE: Bayonne, N.J. Vessel Repair Entry No. C10-4907884-8,
AMERICAN EAGLE
Dear Sir:
This is in response to your memorandum dated March 6, 1990,
transmitting an application for relief from duties assessed
pursuant to 19 U.S.C. 1466. Our findings are set forth below.
FACTS:
The AMERICAN EAGLE is a U.S.-flag vessel owned by Automar I
Corp. and operated by Pacific-Gulf Marine, Inc. of New Orleans,
Louisiana. The vessel had foreign work performed in Goteborg,
Sweden, during the period of July 31, 1989 through August 16,
1989. Subsequent to the completion of the work the vessel
arrived in the United States at Bayonne, New Jersey, on August
27, 1989. A vessel repair entry covering the work in question
was not filed until November 3, 1989.
By letter dated October 24, 1989, Pacific-Gulf Marine, Inc.
requested and received a 30-day extension to submit an
application and supporting documentation. The so-called
"application" in this case consisted of a two paragraph letter
dated December 13, 1989, transmitting copies of invoices.
Pursuant to correspondence dated December 28, 1989, from the New
York Vessel Repair Liquidation Unit, Pacific-Gulf Marine, Inc.
submitted additional cost evidence transmitted by letter dated
January 23, 1990.
ISSUE:
Whether the foreign work performed on the subject vessel is
dutiable under 19 U.S.C. 1466.
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LAW AND ANALYSIS:
Title 19, United States Code, section 1466, provides in
pertinent part for payment of duty in the amount of 50 percent ad
valorem on the cost of foreign repairs to vessels documented
under the laws of the United States to engage in the foreign or
coastwise trade, or vessels intended to engage in such trade.
Section 4.14(b)(2), Customs Regulations (19 CFR 4.14(b)(2))
provides, in pertinent part, that entry shall be made with the
appropriate Customs officer within five working days after the
vessel's arrival. Failure to make entry as required (which is
what occurred in this particular case) results in the issuance of
a penalty action (see 19 CFR 4.14(g)(1)).
In addition, absent Customs authorized extensions of time,
failure to submit an application for relief with supporting
evidence within 60 days from the date of the first arrival of the
vessel (see 19 CFR 4.14(b)(1)(ii)(B)) results in the entry being
forwarded for immediate liquidation. Although an application for
relief need not be in any particular form, pursuant to 19 CFR
4.14(d)(1)(i) it should allege that an item or a repair expense
is not subject to duty under either paragraph (a) or section 4.14
(items that are not subject to duty) and/or paragraph (c)
(circumstances allowing remission otherwise due). The so-called
"application" dated December 13, 1989, meets neither of these
criteria.
Accordingly, not only was Pacific-Gulf's letter dated
December 13, 1989, insufficient to constitute an application, it
was also submitted untimely (i.e., approximately two and one-half
weeks past the extended deadline). All foreign costs contained
within the entry are therefore dutiable with the exception of the
following:
Cityvarvet invoice no. 11-909209-89
Item 101.1 - Docking and undocking
Item 102.1A - Gas Free Certificate (prorate)
Item 102.3A - Shore Power
Item 102.3B - Fresh Water
Item D - Compressed air
Item D - Fire main
(additional)
Item F - Cooling water
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Item G - CO2 system
Item H - Telephone
Item I - Galley refuse removal
Item J - Crane services
Item 103.2 - Cranage
Item 104.3 - Cranage
Item 106.1-2 - Cranage
Item 107.1 - Stage
Item 109.1 - Stagings
Item 109.3B - Stagings
Item 202 - Stagings
Item 203 - Stagings
Item 205 - Cranage
Item 206 - Stagings
Item 217 - Cranage
Item 222 - Cranage
Item 307 - Cranage
Item 601.1 - Cranage
Item 602 - Cranage
Item 701 - Cranage
Item 704 - Cranage
Item 902 - Staging
Item 903A-B - Cranage
Item 400 001 - Cranage
Item 402 001 - Cranage
Item 405 001 - Stagings
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Cityvarvet invoice no. 11-909210-89
Item 208 - Stagings, cranage
Cityvarvet invoice no. 11-909211-89
Item 109.5 - Stagings
Cityvarvet invoice no. 11-909212-89
Item 401 001 - Cranage
Roland Marine Inc. invoice no. 8408/89
Air Freight and Insurance charges
Atlas Marin & Industri AB invoice no. 42327
Travel costs
Berg Propulsion invoice no. 11121/8-H
Travelling time, travel and hotel expenses
MacGregor Navire invoice no. 53720
Travelling costs
In addition, any increase or decrease in the expenses noted
by the yards on the invoices now under consideration should be
reflected in the amount for which this entry is liquidated.
HOLDING:
The foreign work for which the applicant seeks relief is
dutiable under 19 U.S.C. 1466 with the exception of those items
noted above.
Sincerely,
B. James Fritz
Chief
Carrier Rulings Branch
cc: N.O. VRLU
S.F. VRLU