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HQ 115006

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July 21, 2000

VES-13-18-RR:IT:EC 115006 GEV

CATEGORY: CARRIER

Chief, Residual Liquidation and Protest Branch U.S. Customs Service
6 World Trade Center
New York, New York 10048-0945

RE: PRESQUE ISLE; Vessel Repair Entry No. C41-0045009-6; Protest No. 4101-00-100102; Presidential Proclamation 5923

Dear Sir:

This is in response to your memorandum dated March 31, 2000, which forwarded for our review the above-referenced vessel repair protest. Our ruling on this matter is set forth below.

FACTS:

The PRESQUE ISLE is a U.S.-flag vessel owned by GLF Great Lakes Corporation. The vessel underwent various shipyard work at Port Weller Dry Docks, St. Catherines, Ontario, Canada, during the period of July 1, 1999 – July 31, 1999. Upon completion of the work in question, the vessel departed for the United States and arrived at the port of Erie, Pennsylvania, on August 1, 1999. A vessel repair entry was timely filed.

There was no application for relief filed with respect to the subject entry. Consequently, the entry was liquidated on February 11, 2000, in the amount of $385,596.00. A protest, dated March 15, 2000, was timely filed.

ISSUE:

Whether the costs for which the protestant seeks relief are dutiable under 19 U.S.C. § 1466.

LAW AND ANALYSIS:

Title 19, United States Code, § 1466 (19 U.S.C. § 1466), provides in pertinent part for the payment of an ad valorem duty of 50 percent of the cost of “equipments, or any part thereof, including boats, purchased for, or the repair parts or materials to be used, or the expenses of repairs made in a foreign country upon a vessel documented under the laws of the United States”

In regard to the above-cited statutory provision, we note that pursuant to Presidential Proclamation 5923 of December 14, 1988, effective January 1, 1989, all such costs incurred in Canada were to be dutiable at a rate of 45 percent ad valorem and were to decrease at 5 percent increments on January 1 of each successive year until January 1, 1998, when duty on Canadian work assessed pursuant to 19 U.S.C. § 1466 was to be eliminated.

With respect to the costs covered by the vessel repair entry under consideration listed as no. 1-8 on the CF 226, we note that all of them pertain to work incurred at Port Weller Dry Docks, St. Catherines, Ontario, Canada, subsequent to January 1, 1998. Accordingly, these costs are non-dutiable pursuant to Presidential Proclamation 5923.

HOLDING:

The costs for which the protestant seeks relief are not dutiable under 19 U.S.C. § 1466.

The protest should be granted in its entirety. In accordance with § 3A(11)(b) of Customs Directive 099 3550-065, dated August 4, 1993, Subject: Revised Protest Directive, you are to mail this decision, together with the Customs Form 19, to the protestant no later than 60 days from the date of this letter. Any reliquidation of the entry in accordance with this decision must be accomplished prior to mailing this decision. Sixty days from the date of the decision, the Office of

Regulations and Rulings will make the decision available to Customs personnel, and to the public on the Customs Home Page on the World Wide Web at www.customs.gov, by means of the Freedom of Information Act, and other methods of public distribution.

Sincerely,

Acting Chief

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