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HQ 112935

October 28, 1993

VES-13-18 CO:R:IT:C 112935 GOB

CATEGORY: CARRIER

Chief, Residual Liquidation and Protest Branch New York Region
Six World Trade Center
New York, New York 10048-0945

RE: Vessel Repair; 19 U.S.C. 1466; Casualty; Safety and Seaworthiness; RALEIGH BAY; Entry No. C04-0012152-8

Dear Sir:

This is in response to your memorandum dated October 22, 1993, which forwarded the petition submitted by Sea-Land Service, Inc. ("petitioner") in connection with the above-referenced entry.

FACTS:

The record reflects that the M.V. RALEIGH BAY ("vessel") had certain foreign repairs performed in Rotterdam, Holland in early May, 1993. On May 13, 1993, the vessel arrived at the port of Boston, Massachusetts. A vessel repair entry was filed on the day of arrival.

By letter dated September 10, 1993, your office denied the application for relief based upon a finding that the evidence submitted was insufficient.

Petitioner's Claims

The petitioner has submitted documentation which reflects that the vessel collided with the pilot vessel MERKAN on May 1, 1993 while approaching the Nieuwe Waterweg, which is a waterway just inside the breakwater at the entrance to the port of Rotterdam. In the following days, certain repairs were effected to the vessel.

The documentation submitted includes: (a) U.S. Coast Guard Form 2692, Report of Marine Accident, Injury or Death; (b) American Bureau of Shipping ("ABS") report and summary report; (c) a report of survey by Martin & Ottaway Holland B.V.; (d) a map showing the location of the accident; and (e) pertinent invoices.

ISSUE:

Whether, pursuant to 19 U.S.C. 1466(d)(1), good and sufficient evidence has been submitted which warrants the remission of vessel repair duties.

LAW AND ANALYSIS:

19 U.S.C. 1466 provides for the payment of duty at a rate of fifty 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 be employed in such trade.

19 U.S.C. 1466(d)(1) provides in part that the Secretary of the Treasury is authorized to remit or refund such duties if the owner or master of the vessel furnishes good and sufficient evidence that the vessel was compelled by stress of weather or other casualty 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.

19 CFR 4.14(c)(3)(i) provides that "port of destination" means such port in the United States and "...only the duty on the cost of the minimal repairs needed for the safety and seaworthiness of the vessel is subject to remission or refund."

19 U.S.C. 1466 and 19 CFR 4.14 essentially set forth a three- part test, each of the elements of which must be established by good and sufficient evidence to qualify for remission:

1. a casualty occurrence;

2. an unsafe and unseaworthy condition; and

3. the inability to reach the port of destination without foreign repairs.

We find that the documentation submitted by the petitioner is sufficient to satisfy the three part test.

HOLDING:

The petition is granted based upon good and sufficient evidence that remission of vessel repair duties is warranted pursuant to 19 U.S.C. 1466(d)(1).

Sincerely,

Arthur P. Schifflin
Chief

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