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HQ 110718


May 25, 1990

VES-13-18-CO:R:P:C 110718 KVS

CATEGORY: CARRIER

Chief
Residual Liquidation and Protest Branch
6 World Trade Center
New York, NY 10048

RE: Vessel: EXPORT PATRIOT V-149
Date of Arrival: March 12, 1989
Port of Arrival: Port Elizabeth, New Jersey Vessel Repair Entry No. 514-3003699-9

Dear Sir:

This is in response to your memorandum of December 18, 1989, which forwards for our consideration an application for relief from vessel repair duties as regards the EXPORT PATRIOT V-149, vessel repair entry no. 514-3003699-9. Our findings are set forth below.

FACTS:

The EXPORT PATRIOT, owned by Farrell Lines, Inc., underwent foreign shipyard operations on February 11-13 and February 25-26, 1989, in Naples, Italy. The vessel arrived in the United States on March 12, 1989 at Port Elizabeth, New Jersey, and made entry. The application for relief under consideration was timely filed on April 24, 1989.

ISSUE:

Whether the work performed on the subject vessel constitutes dutiable repairs within the meaning of 19 U.S.C. 1466.

LAW AND ANALYSIS:

Title 19, United States Code, section 1466(a), 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 be employed in such trade.

The applicant contends that the cost of the opening of the condenser and the cost of checking a broken boiler pipe are non- dutiable because this work was carried out in preparation of repairs. While these charges may be non-dutiable if incurred as part of a general inspection where no repairs are undertaken, here, the charges were an integral part of the repairs performed and as such are dutiable.

We find that the following items are not dutiable under 19 U.S.C. 1466:

Carrino Giovanni Figli invoice # 030
Transportation 390.000. Italian lira

Carrino Giovanni Figli invoice # 031
Transport from/for facility 110.000. Italian lira

All other items not listed above are dutiable.

HOLDING:

Following a thorough review of the evidence provided, and as detailed in the Law and Analysis section of this ruling, the application is granted in part and denied in part.

Sincerely,

B. James Fritz

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