HQ 0111226 - Vessel repair; untimely application for relief; untimely supporting documentation - United States International Trade Commision Rulings

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HQ 111226

October 9, 1990

VES-13-18-CO:R:P:C 111226 KVS

CATEGORY: CARRIER

Chief, Technical Branch
Commercial Operations Division
1 World Trade Center
Long Beach, CA 90831

RE: Vessel repair; untimely application for relief; untimely supporting documentation
Vessel: SEA-LAND MARINER V-103
Vessel Repair Entry No. 110-0103985-5
Date of Arrival: February 26, 1990
Port of Arrival: Tacoma, Washington

Dear Sir:

This is in response to your memorandum of July 24, 1990, which forwards for our consideration an application for relief filed in connection with the MARINER, vessel repair entry no. 110-0103985-5. Our findings are set forth below.

FACTS:

The MARINER, an American-flag vessel, underwent various shipyard operations in Kobe, Singapore, Yokohama, Hong Kong and Kaohsiung in January - February, 1990. The vessel arrived in the United States at Tacoma, Washington, on February 26, 1990, and made formal entry on March 5, 1990.

The applicant requested and received from the San Francisco Vessel Repair Liquidation Unit a 30-day extension of time in which to file an application for relief and supporting documentation. The application for relief, with supporting cost evidence, was filed May 30, 1990.

ISSUE:

Whether, in the absence of an additional 30-day extension, an application for relief, with supporting cost evidence, which is filed on the 93rd day after the date of the vessel's arrival may be considered by Customs on the merits.

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 Regulations provide specific time limitations for the submission of an application for relief of vessel repair duties. This time period is contained in section 4.14(d)(1)(ii), which states:

The application for relief, with supporting evidence, shall be filed within 60 days from the date of first arrival of the vessel.
However, if good cause is shown, the appropriate vessel repair unit may authorize one 30-day extension of time to file beyond the 60-day filing period.

Furthermore, the regulations specify that the time period for filing the application for relief is concurrent with the time period for submission of costs. Section 4.14(b)(2)(ii)(B) states:

The 60-day time period to submit evidence of cost on the entry is concurrent with the 60- day time period to submit an application for relief under paragraph (d)(1)(ii) of this section and will not operate to provide additional time to submit an application for relief. A request for additional time to submit evidence of cost may include a request for additional time to submit an application for relief.

This additional time to submit evidence of cost and an application for relief is found in section 4.14(b)(2)(ii), Customs Regulations:

If before the end of the 60-day period, the party that is required to furnish the evidence of cost submits a written request for an extension of time beyond the 60-day period, together with a satisfactory explanation of the delay, to the appropriate vessel repair liquidation unit, that unit may grant an additional 30-day extension of time to submit cost evidence. Any request for a further extension of time to furnish evidence
of cost shall be submitted to Headquarters, U.S. Customs Service...for approval.

In the case under consideration, the MARINER arrived at Tacoma, Washington, on February 26, 1990. Under the regulations, the vessel had until April 27, 1990 to submit an application for relief and evidence of cost. The applicant's request for a 30- day extension, which was granted by the vessel repair liquidation unit, extended that date until May 27, 1990. Here, the application and supporting documentation were not filed until May 30, 1990.

In the absence of a request for an additional 30-day extension from Customs Headquarters pursuant to section 4.14(b)(2)(ii), the application and supporting documentation are untimely filed and may not be considered on the merits. Accordingly, the application for relief is denied.

Sincerely,

B. James Fritz

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