HQ 0110978 - Vessel Repair; Entry No. 559-1236279-9; M/V NEDLLOYD HOLLAND V-001 - United States International Trade Commision Rulings

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HQ 110978

July 18, 1990

VES-13-18-CO:R:P:C 110978 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: Vessel Repair; Entry No. 559-1236279-9; M/V NEDLLOYD HOLLAND V-001

Dear Sir:

This is in response to your memorandum dated April 5, 1990, forwarding an application for relief from duties assessed pursuant to 19 U.S.C. 1466 on the cost of foreign work performed on the subject vessel. Our findings are set forth below.

FACTS:

The M/V NEDLLOYD HUDSON is a U.S.-flag vessel owned by Sea- Land Service, Inc. ("Sea-Land"). The vessel had foreign shipyard work performed in March and April, 1988. Subsequent to the completion of the work the vessel arrived in the United States at Boston, Massachusetts, on April 26, 1988. A vessel repair entry covering the work in question was untimely filed on June 7, 1988.

An application for relief, dated August 15, 1988, was untimely filed transmitting some of the requisite cost documentation (i.e., shipyard invoices). An additional letter, dated September 5, 1988, was filed transmitting additional documentation. Furthermore, pursuant to a Notice of Action from the New York Vessel Repair Liquidation Unit, dated December 18, 1989, requesting still more cost documentation, said documentation was submitted by a letter from Sea-Land dated January 12, 1990.

ISSUE:

Whether the foreign expenses for which the applicant seeks relief are 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 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 filed with the appropriate Customs officer within five (5) working days after the vessel's arrival. We note that the entry in this case was filed over a month late.

Furthermore, pursuant to section 4.14(d)(1)(ii), Customs Regulations, the application for relief, with supporting evidence, shall be filed within 60 days from the date of first arrival of the vessel, unless Customs grants an extension. Absent Customs authorized extensions of time, failure to submit an application for relief with supporting evidence within the 60- day time period noted above results in the entry being forwarded for liquidation. Accordingly, in view of the untimeliness of the application, relief is denied with the exception of the following expenses which are classifiably free under section 1466:

GROUP 1

Aalborg Boilers Holland invoice no. 3379 (only the costs of "travel hours" and "travel by car" are nondutiable)

Emil Kritzky invoice no. 40-40934

Forcal Engineering Pte. Ltd. invoice no. FE/S/105/88

Fuji Trading invoice no. T8302026

Grenova Marine Services invoice no. 1988106

Grenova Marine Services invoice no. 1988108 (only the costs of transportation are nondutiable)

Jamico Private Limited invoice no. 6550 (only the cost of emergency drinking water and Milkmaid life boat condensed milk are nondutiable)

Jamico Private Limited invoice no. 6587 (only the cost of drinking water is nondutiable)

Keppel Shipyard invoice no. 88/C/Q/076 (only the cost of transportation is nondutiable)

Komalco Service invoice no. 1084

Magnus Maritec invoice no. 106/9329 and 106/9556

Marconi International Marine Co. Ltd. invoice no. 491516, 491517, 491515, 491513, 491512, 491511, 491510, 491508 (only the transportation costs listed thereon are nondutiable)

Marine Supply and Engineering invoice no. FTS/88-0365 (only the costs of consumable stores and provisions are nondutiable)

Milieutechnisch invoice no. 8071

Rentokil invoice nos. 32153 and 31502

Royal Marine invoice no. 3762

Ritchie & Bisset invoice no. MO78 (only the cost of travelling expenses is nondutiable)

Unitor invoice no. 198173 (only the costs of acetylene, oxygen, and refrigerant are nondutiable)

GROUP 2

ABS invoice no. 642921 (only the costs of the annual survey of hull/machinery & annual LL inspection, and the annual survey of automation are nondutiable)

CISERV invoice no. 2855 (only those costs under item 832-082 of this invoice are nondutiable)

EE-Tech invoice no. 8211 (only the cost of transportation is nondutiable)

Haven Automation invoice no. 14476 (only the cost of transportation is nondutiable)

IHI Marine Engineering invoice no. ID-40-704 (only items 1,4 and 5 on this invoice are nondutiable)

Jurong Shipyard invoice no. 14646:

Section I - All costs listed under this section are nondutiable with the exception of items 2,3,13,17,18,19,23,25,27, and 28)

Section II - All costs listed under this section are nondutiable with the exception of items 3,6,7,8 (although the cost of crane/transportation under items 7 and 8 are nondutiable)

Section III - All costs listed under this section are nondutiable with the exception of items 2,8,10 (although the cost
of crane/transportation under item 10 is nondutiable), 11,12 and

Section V - All costs listed under this section are nondutiable with the exception of items 4 and 5)

Section VI - All costs listed under this section are nondutiable with the exception of items 7,8,9,10 and 11)

Section VII - All costs listed under this section are nondutiable

Section VIII - All costs listed under this section are nondutiable with the exception of item 1 (although the cost of crane/transportation under item 1 is nondutiable)

Section IX - All costs listed under this section are nondutiable with the exception of item 4)

Section X - All costs listed under this section are nondutiable with the exception of items 1 and 4)

Section XI - All costs listed under this section are nondutiable)

Section XII - All costs listed under this section are nondutiable)

Section XIII - All costs listed under this section are nondutiable with the exception of items 3 (although the cost of crane/transportation under item 3 is nondutiable), 3.1.5, 3.2.15, additional items 1,2,3,4,6 (although the cost of staging under item 6 is nondutiable), 7,10,11 (although the cost of crane/transportation under item 11 is nondutiable),12,13,14,22, 24,32,33,35,36,37,38,39,46,50,51,54,57,58,59,60,63,66,72,73,75, 76,88,89,90,92,95,97,99,101,104,105,107,108 (although the cost of transportation and handling/freight are nondutiable), 109,110, 112,117,118,121,125,126,93(p.66),74(p.66),2(p.67),1(p.67), 2(p.68),5(p.70),6(p.70),7(p.71),8(p.72),9(p.75),10(p.74), 11(p.75),12(p.75 except for the cost of crane/transportation), 13(p.75),14(p.76),15(p.76),16(p.76),17(p.77),18(p.77),19(p.77), 20(p.77),21(p.77),22(p.78),23(p.78)

Section XIII (p.80) - All costs listed under this section are nondutiable)

Section XV - All costs listed under this section are nondutiable with the exception of items 1,3,3.1-2,3.1-3,3.1- 4,3.1-6,3.1-8,3.2-1,3.2-2,3.2-6,3.2-7,3.2-8

Section 3.2 (p.95) - All costs listed under this section are nondutiable with the exception of items 3.2-6,1,5,6,7,8,9,10,11,

12,14,15,16,17,19,20,21,23,25,27,29,30,31,32,33,35,36,37,38,40, 41,42,43,44,45,46,49,50,51,52

Jurong Shipyard invoice no. 14643 - All costs listed on this invoice are nondutiable with the exception of items 2.1-7,2.2-5

Jurong Shipyard invoice no. 14644 - All costs listed on this invoice are nondutiable with the exception of items 2.1.3,3.2.16

Kwong Soon Engineering Co. invoice no. 1318/S

Sulzer invoice no. 14421 (only the costs of actual conveyance fares, accommodation & meals, charges for erecting tools on loan, and freight & packing are nondutiable)

W.H. Radut Associates invoice no. 617

Yokosin Marine invoice no. YM/4491 (only the costs of transportation and launch are nondutiable)

Nippon Diesel Service invoice no. 10701 (only the cost of transportation is nondutiable)

Sulzer invoice no. BNO.3-736.5787 (only the cost of documentation/handling/airfreight are nondutiable)

Sulzer invoice no. BNO.3-736.5380 (only the cost of handling and airfreight are nondutiable)

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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