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HQ 110946


December 4, 1990

VES-13-18-CO:R:P:C 110946 BEW

CATEGORY: CARRIER

Deputy Assistant Regional Commissioner
Commercial Operations
ATTN: Regional Vessel Repair Liquidation Unit New York, New York 10048-0945

RE: Dutiability of certain foreign shipyard operations performed on U.S.-flag LASH barges, entry No. 514-3003047-1

Dear Sir:

Reference is made to memoranda dated March 22, 1990 and November 9, 1990, from your office relating to a petition for review and certificates of documentation and use for LASH barges used in conjunction with the S.S ROBERT E. LEE, V-47, filed by Central Gulf Lines, Inc., in relation to entry number 514- 3003047-1, dated August 20, 1987. The entry was filed upon the arrival of the vessel S.S. ROBERT E. LEE, V-47, at the port of New York on August 19, 1987, whereupon duties were assessed upon the value of foreign shipyard operations pursuant to section 466, Tariff Act of 1930, as amended (19 U.S.C. 1466).

The vessel ROBERT E. LEE is a Lighter Aboard Ship (LASH) barge mother vessel. A single vessel repair entry was filed to cover repairs to forty-four (44) LASH barges, each of which should have been the subject of a separate entry with unique entry number. An application for relief for repairs made to three (3) of the subject barges was filed by Central Gulf and was denied in part in Headquarters decision 109991CG BEW, dated September 18, 1989. The petition for review currently under consideration was timely filed.

Central Gulf claims that the repairs were made to the said three (3) barges because damages resulted from a casualty. Those barges for which relief is sought are as follows:

CG - 596,
CG - 597, and
CG - 574.

Our findings are set forth below.

ISSUE:

Whether the cost of parts, materials, equipment, and repairs made abroad to a U.S.-documented LASH barge which is used as a cargo container is exempt from vessel repair duties imposed pursuant to 19 U.S.C. 1466(a).

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 engaged, intended to engage, or documented under the laws of the United States to engage in the foreign or coastwise trade.

The Customs and Trade Act of 1990 (Pub. L. 101-382) dated August 20, 1990, amends section 1466, whereby a new paragraph (h)(1) was added which exempts from duty under section 1466(a), the cost of parts, materials, equipment and repairs made abroad to U.S.-documented LASH barges used as cargo containers, with certain effective date restrictions not here relevant.

In a letter to your office dated October 2, 1990, we informed you that the petitioner needed to submit additional evidence regarding documentation and use for the subject barges to be eligible for relief under the new amendment. In response to our request, the petitioner has submitted a certification of documentation and use as a cargo container for each of the barges under consideration. Therefore, since the vessels have met the statutory requirements, the petition is hereby granted.

HOLDING:

Pursuant to 19 U.S.C. 1466(h)(1), the cost of parts, materials, equipment and repairs made abroad to a U.S.-documented LASH barge which is used as a cargo container is exempt from duty.

Sincerely,

B. James Fritz
Chief

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