VES-13-18-CO:R:P:C 111004 GV
Chief, Technical Branch
Pacific Region
One World Trade Center
Long Beach, California 90831
RE: Vessel Repair; Protest No. 32019-000144; CAPE HORN
Dear Sir:
Your memorandum dated January 29, 1990, forwarded a protest
regarding vessel repair entry no. H19-0010403-5. Our findings
are set forth below.
FACTS:
The CAPE HORN is a U.S.-flag vessel owned by the Department
of Transportation/U.S. Maritime Administration. While engaging
in the military exercise "Cobra Gold" the subject vessel had
repairs performed at Sattahip, Thailand, and Subic Bay, R.P., in
May, June and July, 1989. Subsequent to the completion of the
aforementioned work, the subject vessel arrived in the United
States at Honolulu, Hawaii, on July 14, 1989.
A vessel repair entry covering the work in question was
filed on the date of arrival. The protestant elected not to file
an application for relief. The entry was liquidated on November
24, 1989. A timely protest was filed on December 26, 1989. The
protestant contends that since the vessel is owned by the U.S.
Government and was engaged in the performance of government
business at the time of the repairs, it is exempt from the
payment of vessel repair duties. In support of this claim the
protestant has submitted shipyard invoices and a U.S. Coast Guard
Certificate of Ownership of Vessel.
It should be noted that upon contacting the U.S. Coast
Guard, we have ascertained that the subject vessel is documented
with a registry endorsement.
ISSUE:
Whether the foreign work for which the protestant seeks
relief 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 costs 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(a)(2)(ii), Customs Regulations (19 CFR
4.14(a)(2)(ii)), promulgated pursuant to 19 U.S.C. 1466) provides
that "Vessels owned or chartered by the United States Government,
if documented with a registry, coastwise trade, or Great Lakes
trade endorsement, or if undocumented, intended to engage in
foreign, coastwise or Great Lakes trade, are subject to this
section."
Accordingly, in view of the fact that the CAPE HORN is
documented with a registry endorsement, the repairs under
consideration are dutiable notwithstanding the vessel's ownership
by the Department of Transportation/U.S. Maritime Administration.
HOLDING:
The foreign work for which the protestant seeks relief is
dutiable under 19 U.S.C. 1466.
Accordingly, the protest is denied.
Sincerely,
B. James Fritz
Chief
Carrier Rulings Branch
cc: N.Y. VRLU
N.O. VRLU