HQ 0111227 - Vessel repair; timely application for relief; untimely supporting documentation - United States International Trade Commision Rulings

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HQ 111227

October 10, 1990

VES-13-18-CO:R:P:C 111227 KVS

CATEGORY:

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

RE: Vessel repair; timely application for relief; untimely supporting documentation
Vessel: SEA-LAND EXPRESS V-143
Port of Arrival: Tacoma, WA
Date of Arrival: February 12, 1990
Vessel Repair Entry No. 110-0103983-0

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 SEA-LAND EXPRESS V-143, vessel repair entry no. 110-0103983-0. Our findings are set forth below.

FACTS:

The EXPRESS, an American-flag vessel, underwent various shipyard operations from January 8, 1990 until January 17, 1990 at Kobe, Japan, from January 21-22 at Hong Kong, from January 25-26 at Singapore, and from February 2, 1990 until February 4, 1990, at Kobe, Japan.

The vessel arrived in the United States at Tacoma, Washington on February 12, 1990. Formal entry was made on February 20, 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. A letter of application for relief was faxed to the San Francisco Vessel Repair Liquidation Unit on May 14, 1990. We will consider the letter timely filed as the 90th day after the date of the vessel's arrival fell on Sunday, May 13, 1990. Supporting documentation for the entry, including the shipyard
invoice, was not received until May 17, 1990. Additional documentation was received on May 21, 1990.

ISSUE:

Whether, in the absence of an additional 30-day extension, documents filed on the 93rd and the 97th day after the date of the vessel's arrival may be considered by the Customs Service 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 applicaiton 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 EXPRESS arrived at Tacoma, Washington, on February 12, 1990. Under the regulations, the vessel had until April 13, 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 13, 1990. Here, although we will consider the application for relief filed on May 14, 1990, the supporting documentation did not arrive until May 17, 1990 and May 21, 1990.

In the absence of a request for an additional 30-day extension from Customs Headquarters pursuant to section 4.14(b)(2)(ii), any material received after May 14, 1990, is untimely filed and may not be considered on the merits. Since the only timely-filed material is a letter of application containing the assertions of the applicant. In the absence of timely filed evidence in support of the application, the bald assertions of the applicant are unpersuasive. Accordingly, the application for relief is denied.

Sincerely,

B. James Fritz

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