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HQ 113753

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November 13, 1996

VES-13-18-RR:IT:EC 113753 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. C14-0040601-8; 19 U.S.C. 1466; STONEWALL JACKSON, V-74; Petition; T.D. 75-257

Dear Sir or Madam:

This is in response to your memorandum dated October 30, 1996, which forwarded the petition submitted by Waterman Steamship Corporation (the "petitioner") with respect to the above-referenced vessel repair entry.

FACTS:

The STONEWALL JACKSON (the "vessel") is a U.S.-flag vessel owned and operated by the petitioner. Certain foreign shipyard work was performed on the vessel in July and August of 1994. The vessel arrived at the port of Newport News, Virginia on August 15, 1994. The subject entry was subsequently filed.

By letter dated January 27, 1995, your office denied the application for relief with respect to items 1, 3, 4, and 5. The application was granted with respect to item 2.

The petitioner has submitted certain additional documentation with its petition.

ISSUE:

Whether the costs involved with respect to the items at issue 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.

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.
(Emphasis supplied.)

In order to receive duty-free treatment pursuant to T.D. 75-257, U.S. origin must be established. To establish U.S. 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 submitted such a statement with respect to items 1, 3, and 5. Therefore, we find that the costs of such items are not dutiable pursuant to 19 U.S.C. 1466.

The petitioner has not submitted the requisite statement with respect to item 4. The statement which the petitioner submitted with respect to item 4 was made by the petitioner itself, and not by the vendor. Such a statement is not sufficient to establish U.S. origin. Accordingly, the costs of item 4 are dutiable.

HOLDING:

As detailed supra, the petition is granted with respect to items 1, 3, and 5, and the petition is denied with respect to item 4.

Sincerely,

Chief,
Entry and Carrier Rulings Branch

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