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HQ 113384

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April 12, 1995

VES-13-18-CO:R:IT:C 113384 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. 514-3004951-3; M/V MARGARET LYKES, V-82; 19 U.S.C. 1466(d)(2); 19 U.S.C. 1466(h)(2); T.D. 75-257; Protest

Dear Sir:

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

FACTS:

The record reflects that the M/V MARGARET LYKES ("the vessel") arrived at the port of Newark, New Jersey on August 16, 1993. The subject vessel repair entry was filed on August 17, 1993.

By letter dated December 3, 1993, your office responded to the application for relief with respect to this entry. The entry was liquidated on December 17, 1993.

The protestant requests relief with respect to an item, a tie rod, which it states it paid duty upon previously.

ISSUE:

Whether the subject item is 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. (emphasis supplied.)

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 protestant has not submitted such documentation.

The pertinent invoice states that the tie rod was "made in Republic of Germany" and "American customs duties paid."

19 U.S.C. 1466(h)(2) was not in effect for entries filed between January 1, 1993 and December 31, 1994, and thus is not applicable for this entry.

Accordingly, the subject item is dutiable.

HOLDING:

As detailed supra, the protest is denied.

In accordance with Section 3A(11)(b) of Customs Directive 099 3550-065, dated August 4, 1993, Subject: Revised Protest Directive, this decision should be mailed by
your office to the protestant no later than 60 days from the date of this letter. Any reliquidation of the entry in accordance with the decision must be accomplished prior to mailing of the decision. Sixty days from the date of the decision the Office of Regulations and Rulings will take steps to make the decision available to Customs personnel via the Customs Rulings Module in ACS and the public via the Diskette Subscription Service, the Freedom of Information Act and other public access channels.

Sincerely,

Arthur P. Schifflin
Chief

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