VES-13-18-RR:IT:EC 113753 GOB
Port Director of Customs
Attn: Vessel Repair Liquidation Unit
423 Canal Street, Room 303
New Orleans, LA 70130-2341
RE: Vessel Repair Entry No. C14-0040601-8; 19 U.S.C. 1466;
STONEWALL JACKSON, V-74; Petition; T.D. 75-257
Dear Sir or Madam:
This is in response to your memorandum dated October 30,
1996, which forwarded the petition submitted by Waterman
Steamship Corporation (the "petitioner") with respect to the
above-referenced vessel repair entry.
FACTS:
The STONEWALL JACKSON (the "vessel") is a U.S.-flag vessel
owned and operated by the petitioner. Certain foreign shipyard
work was performed on the vessel in July and August of 1994. The
vessel arrived at the port of Newport News, Virginia on August
15, 1994. The subject entry was subsequently filed.
By letter dated January 27, 1995, your office denied the
application for relief with respect to items 1, 3, 4, and 5. The
application was granted with respect to item 2.
The petitioner has submitted certain additional
documentation with its petition.
ISSUE:
Whether the costs involved with respect to the items at
issue are dutiable pursuant to 19 U.S.C. 1466.
LAW AND ANALYSIS:
19 U.S.C. 1466 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.
T.D. 75-257 states in part:
...the cost of materials of United States origin which are
purchased by the vessel owner in the United States is not
subject to duty under 19 U.S.C. 1466, when installed on the
vessel in a foreign country.
(Emphasis supplied.)
In order to receive duty-free treatment pursuant to T.D.
75-257, U.S. origin must be established. To establish U.S.
origin, a party must submit a statement from the vendor or
manufacturer of the merchandise that such merchandise was
manufactured or produced in the United States.
The petitioner has submitted such a statement with respect
to items 1, 3, and 5. Therefore, we find that the costs of such
items are not dutiable pursuant to 19 U.S.C. 1466.
The petitioner has not submitted the requisite statement
with respect to item 4. The statement which the petitioner
submitted with respect to item 4 was made by the petitioner
itself, and not by the vendor. Such a statement is not
sufficient to establish U.S. origin. Accordingly, the costs of
item 4 are dutiable.
HOLDING:
As detailed supra, the petition is granted with respect to
items 1, 3, and 5, and the petition is denied with respect to
item 4.
Sincerely,
Chief,
Entry and Carrier Rulings Branch