HQ 0111295 - Vessel repair; untimely application; collision Vessel: S/S CORONADO V-TC-259 - United States International Trade Commision Rulings

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HQ 111295

July 1, 1991

VES-13-18-CO:R:IT:C 111295 KVS

CATEGORY: CARRIER

Chief
Residual Liquidation and Protest Branch
6 World Trade Center
New York, NY 10048-0954

RE: Vessel repair; untimely application; collision Vessel: S/S CORONADO V-TC-259
Vessel Repair Entry No. C11-0002176-0
Date of Arrival: July 27, 1988
Port of Arrival: Philadelphia, Pennsylvania

Dear Sir:

This is in response to your memorandum dated October 23, 1989 (received by our office on September 18, 1990) which transmits for our review an application for review filed in connection with the CORONADO, vessel repair entry no. C11- 0002176-0. Our findings are set forth below.

FACTS:

The CORONADO, an American-flag vessel, underwent certain foreign shipyard operations at Falmouth, England, between July 9- 10, 1988. The vessel arrived in the United States on July 27, 1988 at Philadelphia, Pennsylvania. Formal entry was made on August 4, 1988.

An application for relief and supporting documentation were filed on November 14, 1988, requesting relief on the grounds that repairs were necessitated by reason of collision damage. These documents, together with an accompanying memorandum dated October 23, 1989, were apparently transmitted to Customs Headquarters but never received. The documents were later re-transmitted to Headquarters and received on September 18, 1990.

ISSUE:

Whether, in the absence of an extension, an application for relief filed 110 days after the date of the vessel's arrival may be considered by Customs on its 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 CORONADO arrived at Philadelphia, Pennsylvania, on July 27, 1988. Under the regulations, the vessel had until September 25, 1988, to submit an application for relief and evidence of cost. Here, the application and supporting documentation were not filed until November 14, 1988. The record before us contains no indication that a request for time in which to file was ever requested or granted. Accordingly, the application for relief is denied.

HOLDING:

In the absence of an extension, an application for relief and supporting documentation filed 110 days after the vessel's date of arrival may not be considered by Customs on the merits.

Sincerely,

B. James Fritz

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