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 > 1995 HQ Rulings > HQ 113298 - HQ 113511 > HQ 113383

Previous Ruling Next Ruling
HQ 113383

---

April 12, 1995

VES-13-18-CO:R:IT:C 113383 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. 514-3004934-9; M/V ADABELLE LYKES, V-86; Petition; 19 U.S.C. 1466(d)(2); T.D. 75-257

Dear Sir:

This is in response to your memorandum dated March 24, 1995, which forwarded the petition submitted by Lykes Bros. Steamship Co., Inc. ("the petitioner") with respect to the above-referenced vessel repair entry.

FACTS:

The record reflects that the M/V ADABELLE LYKES ("the vessel") arrived at the port of Elizabeth, New Jersey on July 2, 1993. The subject vessel repair entry was filed on the same day.

By letter dated January 28, 1994, your office denied in part the application for relief with respect to this entry.

The petitioner requests relief with respect to certain parts or materials which it claims are of United States origin.

ISSUE:

Whether the subject items are dutiable pursuant to 19 U.S.C. 1466.

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)(2) provides for the remission or refund of duties:

If the owner or master of such vessel furnishes good and sufficient evidence that-
...
(2) such equipments or parts thereof or repair parts or materials, were manufactured or produced in the United States, and the labor necessary to install such equipments or to make such repairs was performed by residents of the United States, or by members of the regular crew of such vessel.

T.D. 75-257 states in part:

...the cost of materials of United States origin which are purchased by the vessel owner in the United States is not subject to duty under 19 U.S.C. 1466, when installed on the vessel in a foreign country.

In order to receive remission under 19 U.S.C. 1466(d)(2), U.S. manufacture or production must be established, in addition to the establishment that the labor was performed by U.S. residents or members of the regular crew of the vessel. In order to receive duty-free treatment pursuant to T.D. 75-257, U.S. origin must be established. To establish U.S. manufacture, production, or origin, a party must submit a statement from the vendor or manufacturer of the merchandise that such merchandise was manufactured or produced in the United States. The petitioner has not submitted such documentation. An invoice from a U.S. company is not sufficient.

Accordingly, the subject items are dutiable.

HOLDING:

As detailed supra, the petition is denied.

Sincerely,

Arthur P. Schifflin
Chief

Previous Ruling Next Ruling