United States International Trade Commision Rulings And Harmonized Tariff Schedule

faqs.org  Rulings By Number  Rulings By Category  Tariff Numbers

faqs.org > Rulings and Tariffs Home > Rulings By Number > 1992 HQ Rulings > HQ 0111793 - HQ 0111883 > HQ 0111812

Previous Ruling Next Ruling

---

HQ 111812

August 6, 1991

VES-13-18 CO:R:IT:C 111812 JBW

CATEGORY: CARRIER

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

RE: Vessel Repair; Casualty; Heavy Weather; PRESIDENT ADAMS; Entry No. C27-0189100-7; 19 U.S.C. 1466; 19 C.F.R.

Dear Sir:

This letter is in response to your memorandum of March 19, 1991, which forwards for our review the application for relief filed in conjunction with the above-referenced vessel repair entry.

FACTS:

The record reflects that the subject vessel, the PRESIDENT ADAMS, arrived at the port of San Pedro, California, on January 26, 1991. Vessel repair entry, number C27-0189100-7, was filed on the same day as arrival.

The applicant seeks relief for the costs reflected in the following two shipyard invoices:

Trimble Navigation (Japan) Ltd: Repairs were made to the satellite navigation antenna. The ships log shows that on December 12, 1990, while en route from Kaohsiung, Taiwan, to San Pedro, California, the vessel encountered a "rough monsoon sea." Winds were noted in the log at force 8. The damage report for the antenna stated that winds were blowing at seventy-five miles per hour, with thirty foot seas. The log further indicates that, among other items, the vessel's navigation system alarm sounded, but that it was found in working order. Finally, the damage report states that on the above date, the satellite navigation antenna was found fallen over. The crew attempted to straighten the antenna, but the antenna would not received signals until final repairs were made in Yokohama, Japan, on the following voyage.

Anschuetz Japan Co., Ltd.: Repairs were made to the steering amplifier transformers of the automatic steering mechanism. The log shows that the vessel experienced steering failure approximately three hours after leaving the San Francisco pilot. The vessel returned to the port for "temporary repairs." Permanent repairs were made in Yokohama. The damage report indicates that, at the time the steering failure was noticed, the wind was blowing at thirty miles per hour and that seas were at ten feet.

ISSUES:

(1) Whether the evidence submitted demonstrates that the repairs performed to the ship's satellite navigation antenna were necessitated by stress of weather and were necessary to secure the safety and seaworthiness of the vessel.

(2) Whether duties paid on foreign repairs made to the ship's automatic steering mechanism are remissible as a casualty under 19 U.S.C. 1466.

LAW AND ANALYSIS:

Title 19, United States Code, section 1466, 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 foreign or coastwise trade, or vessels intended to engage in such trade. The statute provides for the remission of the above duties in those instances where good and sufficient evidence is furnished to show that foreign repairs were compelled by "stress of weather or other casualty" and were necessary to secure the safety and seaworthiness of the vessel to enable her to reach her port of destination. 19 U.S.C. 1466(d)(1).

The Customs Service has held that repairs required by stress of weather must be made on the same voyage that the damage occurred. C.I.E. 1325/58, dated September 18, 1958. In the instant case, damages to the satellite navigation antenna were discovered while the vessel was en route from Kaohsiung, Taiwan, to San Pedro, California. Final repairs, however, were not made until the vessel called at Yokohama, Japan, on its next voyage. Thus, regardless of the evidence submitted to demonstrate that heavy weather caused damage to the antenna, we find that the costs for foreign repairs to the satellite navigation antenna are dutiable.

With regard to the repairs made to the automatic steering mechanism, we find no grounds for remission of duties. The applicant presents no explanation for the cause of the steering failure. We thus may not infer that the damages resulted from stress of weather. Furthermore, the Customs Service has recognized as a remissible "casualty":
a part's failure to function if satisfactory evidence shows that the specific part was repaired or serviced immediately before starting the voyage from the United States port and that the part failed to function within six months of such repair or servicing.

19 C.F.R. 4.14(c)(3)(i) (1990). In the instant case, the part failed within three hours of the departure of the ship from San Francisco harbor. The ship returned for what were acknowledged to be "temporary repairs." No further evidence was submitted to demonstrate the extent of the repairs made in the United States. This regulation does not contemplate, however, that those repairs made in the United States would be only minimal, temporary repairs to permit the vessel to travel to a foreign shipyard for final repairs. We thus find the evidence insufficient to support a claim that the foreign repairs were required to remedy failed repairs made in the United States.

HOLDINGS:

(1) Foreign repairs made to the satellite navigation antenna, having been made on a voyage subsequent to the voyage in which claimed heavy weather damages occurred, are dutiable under 19 U.S.C. 1466.

(2) Permanent repairs made in a foreign shipyard to the automatic steering mechanism, which failed only three hours out of the United States and required the vessel to return to the United States for temporary repairs, are dutiable.

Sincerely,

B. James Fritz
Chief

Previous Ruling Next Ruling