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HQ 113659

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September 18, 1996

VES-13-18-RR:IT:EC 113659 GOB

CATEGORY: CARRIER

Port Director of Customs
Attn: Vessel Repair Liquidation Unit
423 Canal Street, Room 303
New Orleans, LA 70130-2341

RE: Vessel Repair Entry No. C16-0008662-8; 19 U.S.C. 1466; SEA-LAND INTEGRITY, V-272; Petition; 19 U.S.C. 1466(h)(2)

Dear Sir or Madam:

This is in response to your memorandum dated September 6, 1996, which forwarded the petition submitted by Sea-Land Service, Inc. ("petitioner") with respect to the above-referenced vessel repair entry.

FACTS:

The SEA-LAND INTEGRITY ("the vessel") is a U.S.-flag vessel owned and operated by the petitioner. Certain foreign shipyard work was performed on the vessel in April 1994. The vessel arrived at the port of Charleston, South Carolina on April 21, 1994. The subject entry was filed on the same date.

By letter dated October 28, 1994, your office denied the application for relief.

The petitioner requests relief with respect to certain previously imported parts.

ISSUE:

Whether the cost of the parts at issue 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(h)(2) states:

The duty imposed by subsection (a) of this section shall not apply to-

(2) the cost of spare repair parts or materials (other than nets or nettings) which the owner or master of the vessel certifies are intended for use aboard a cargo vessel, documented under the laws of the United States and engaged in the foreign or coasting trade, for installation or use on such vessel, as needed, in the United States, at sea, or in a foreign country, but only if duty is paid under appropriate commodity classifications of the Harmonized Tariff Schedule of the United States upon first entry into the United States of each such spare part purchased in, or imported from, a foreign country, or

19 U.S.C. 1466(h)(2) was enacted on August 20, 1990. Section 484E(b) of Pub. L. 101-382 provided that 19 U.S.C. 1466(h)(2) applied to: any entry made before the date of enactment (August 20, 1990) that is not liquidated on the date of enactment; and any entry made on or after the date of enactment and on or before December 31, 1992.

19 U.S.C. 1466(h)(2) was reenacted by Pub. L. 103-465, Title I, ? 112(a), Dec. 8, 1994, 108 Stat. 4825, which provided that, in addition to the time period stated in the previous paragraph, 19 U.S.C. 1466(h)(2) shall apply to any entry made on or after the date of the entry into force of the WTO Agreement with respect to the United States, January 1, 1995.

Thus, 19 U.S.C. 1466(h)(2) was not in effect from January 1, 1993 through December 31, 1994.

Inasmuch as the subject entry was filed on April 21, 1994, 19 U.S.C. 1466(h)(2) does not apply to the entry.

Accordingly, there is no basis upon which to find that the subject parts are not subject to duty under 19 U.S.C. 1466.

HOLDING:

As detailed supra, the petition is denied.

Sincerely,

Chief,
Entry and Carrier Rulings Branch

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