HQ 0110895 - Bayonne, N.J. Vessel Repair Entry No. C10-4907884-8, AMERICAN EAGLE - United States International Trade Commision Rulings

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HQ 110895

June 1, 1990

VES-13-18-CO:R:P:C 110895 GV

CATEGORY: CARRIER

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.

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

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

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

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