HQ 0111269 - Vessel repair; Entry No. C27-0012523-3; Protest No. 27049- 002198; Casualty; Weather-related damage; Vessel PRESIDENT JACKSON, V-3 - United States International Trade Commision Rulings

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HQ 111269

February 27, 1991

VES-13-18-CO:R:IT:C 111269 LLB

CATEGORY: CARRIER

Chief, Technical Branch
Commercial Operations
Pacific Region
One World Trade Center
Long Beach, California 90731

RE: Vessel repair; Entry No. C27-0012523-3; Protest No. 27049- 002198; Casualty; Weather-related damage; Vessel PRESIDENT JACKSON, V-3

Dear Sir:

Reference is made to your memorandum of September 4, 1990, which forwards for our determination the Protest of liquidation filed by American President Lines, Ltd., in regard to the above- captioned vessel repair entry.

FACTS:

While en-route from Oakland, California, to Yokohama, Japan, the vessel PRESIDENT JACKSON encountered high winds and heavy swells with confused seas. It was noted at the time in the vessel's deck log that damage was found at the welded seam in the bow recess for the starboard anchor. The weld was cracked for some 36 inches, and actually opened for 22 inches to a maximum width of one-and-one-eighth inches. Relief from duty is sought for the cost of repairing this damage, as well as for the cost of an ABS damage report concerning this matter. Evidence submitted to support the claim of weather-related damage includes extracts from the deck log, the ABS damage report, a U.S. Coast Guard Report of Marine Accident, Injury or Death, and foreign shipyard invoices.

ISSUE:

Whether sufficient evidence is provided to substantiate the claim that the costs under protest were necessitated by weather- related damage.

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.

Title 19, United States Code, subsection 1466(d)(1), states that the Secretary of the Treasury is authorized to remit or refund such duties if the owner or master furnishes good and sufficient evidence that the vessel was compelled to put into a foreign port and make repairs to secure the safety and seaworthiness of the vessel to enable her to reach her port of destination.

The term "casualty" as it is used in the statute, has been interpreted as something which, like stress of weather, comes with unexpected force or violence, such as fire, explosion, or collision (Dollar Steamship Lines, Inc. v. United States, 5 Cust. Ct. 28-29, C.D. 362 (1940). In this sense, a "casualty" arises from an identifiable event of some sort. In the absence of evidence of such a casualty event, we must consider the repair to have been necessitated by normal wear and tear. See Customs Ruling Letter 106159 LLB (9-8-83).

In the present matter, it has been demonstrated to our satisfaction that the repairs to the weld in the starboard anchor recess were necessitated by the heavy weather incident. Further, as a cost inexorably tied to that expense, the cost of the ABS damage report is also casualty-related. As such, the Protest on both of these items is allowed.

HOLDING:

Following thorough review of the evidence submitted and after a full review of the applicable law and precedents, we have determined that the Protest in this matter should be granted in full, as specified above.

Sincerely,

B. James Fritz

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