HQ 0111862 - Vessel Repair; Evidence of Cost; Late Submission; Penalty; 19 U.S.C. 1466; 19 C.F.R. 4.14; S/S CHERRY VALLEY; Entry No. 002-0409857-8. - United States International Trade Commision Rulings

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HQ 111862

March 6, 1992

VES-13-02/18 CO:R:IT:C 111862 JBW

CATEGORY: CARRIER

Deputy Assistant Regional Commissioner
Classification and Value Division
ATTN: Regional Vessel Repair Liquidation Unit 6 World Trade Center
New York, New York 10048-002980

RE: Vessel Repair; Evidence of Cost; Late Submission; Penalty; 19 U.S.C. 1466; 19 C.F.R. 4.14; S/S CHERRY VALLEY; Entry No. 002-0409857-8.

Dear Sir:

This letter is in response to the above-referenced vessel repair entry that was forwarded to this office.

FACTS:

The record reflects that the subject vessel, the S/S CHERRY VALLEY, arrived at the port of Bayonne, New Jersey, on March 3, 1991. A vessel repair entry, number 002-0409857-8, was filed May 13, 1991. No further communication was received from the vessel operator until July 10, 1991, at which time cost evidence relating to the entry was also filed. Your office issued a memorandum dated August 16, 1991, to the Office of Fines, Penalties and Forfeitures, New York Region, Newark Area, to recommend that that office proceed with a penalty action for failure to make entry. 19 C.F.R. 4.14(b)(2).

ISSUE:

Whether the vessel operator timely filed its entry and its cost documentation.

LAW AND ANALYSIS:

Section 4.14(b) of the Customs Regulations provides specific time limitations for the filing of a vessel repair entry. This section states:

All equipment, parts, or materials purchased for, and repairs made outside the United
States to, any vessel subject to the provisions of [19 U.S.C. 1466] shall be entered on Customs Form 226 by the master or owner of the vessel. The entry shall be filed with the appropriate Customs officer at the port of first arrival within five working days after arrival.

19 C.F.R. 4.14(b)(2) (1991). The vessel under consideration first arrived on March 3, 1991. No vessel repair entry was received by the Customs Service until May 13, 1991, well after the expiration of the five day time limit. We therefore concur in your recommendation that a penalty action be initiated for the failure to file in a timely manner the vessel repair entry.

Furthermore, the Customs Regulations provide that evidence showing the cost of each item appearing in the entry must be submitted within sixty days from the date of the vessel's arrival, unless the appropriate vessel repair liquidation unit grants an extension. 19 C.F.R. 4.14(b)(2)(ii). The record contains no evidence that an extension was authorized, and the supporting evidence was filed after the sixty-day time period had expired. We therefore recommend that a penalty action be instituted for the failure to timely file evidence of vessel repair costs.

HOLDING:

Vessel repair entry shall be filed with the appropriate Customs officer at the port of first arrival within five working days after arrival. The vessel under consideration first arrived on March 3, 1991, but no entry was received by the Customs Service until May 13, 1991. We therefore concur in your recommendation that a penalty action be initiated for the failure to file in a timely manner the vessel repair entry. We also recommend that a penalty action be instituted for the failure to timely file evidence of vessel repair costs.

Sincerely,

B. James Fritz
Chief

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