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HQ 113356

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March 9, 1995

VES-13-18-CO:R:IT:C 113356 GOB

CATEGORY: CARRIER

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

RE: 19 U.S.C. 1466; Vessel Repair Entry No. CO4-0031102-0; NEWARK BAY; Casualty; 19 U.S.C. 1466(d)(1)

Dear Sir:

This is in response to your memorandum dated February 24, 1995, which forwarded the petition submitted Sea-Land Service, Inc. ("petitioner") with respect to the above-referenced vessel repair entry.

FACTS:

The record reflects that the NEWARK BAY ("the vessel") arrived at the port of Boston, Massachusetts on July 27, 1994 and filed the subject vessel repair entry.

By letter dated November 9, 1994, your office denied the application for relief in this matter.

ISSUE:

Whether the vessel repair duty is subject to remission under 19 U.S.C.

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

The petitioner has submitted the following documentation in support of its claim for remission pursuant to 19 U.S.C. 1466(d)(1):

1. Affidavit of Thomas Lord;
2. U.S. Coast Guard Report of Marine Accident, Injury or Death; 3. Report of Survey of Martin, Ottawa, & van Hemmed, Inc.; 4. Photographs of parts of the vessel which were damaged; 5. Diving report; and
6. American Bureau of Shipping report.

After a consideration of the evidence of record, we find that the petitioner has provided good and sufficient evidence to meet the three-part test stated supra.

The record indicates that on June 27, 1994 the vessel's propeller blade struck a submerged object and that the vessel suffered substantial damage as a result. The damage resulted in an unsafe and unseaworthy condition for which immediate repair was required.

HOLDING:

The petitioner has established that remission pursuant to 19 U.S.C. 1466(d)(1) is warranted. The petition is granted.

Sincerely,

Arthur P. Schifflin
Chief

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