HQ 110806: Vessel repair; tank cleaning; oily water removal Vessel: Barge JOVALAN; Date of Arrival: September 17, 1989; Port of Arrival: Long Beach, California; Vessel Repair Entry No. C27-0075290-3

Native CBP ruling rendition. Applicability is fact-specific; modification/revocation relationships and original publisher date are retained. Publisher sentinel year0001 means unknown date, not a historical legal adoption.

                            HQ 110806

                          May 24, 1990


VES-13-18-CO:R:P:C  110806 KVS

CATEGORY:  Carriers

Chief, Technical Branch
Commercial Operations Division
Suite 705
One World Trade Center
Long Beach, CA  90831-0700

RE:  Vessel repair; tank cleaning; oily water removal
     Vessel:  Barge JOVALAN;
     Date of Arrival:  September 17, 1989;
     Port of Arrival:  Long Beach, California;
     Vessel Repair Entry No. C27-0075290-3

Dear Sir:

     This is in response to your memorandum of January 19, 1990,
which forwards for our consideration an application for vessel
repair entry C27-0075290-3.  Our findings are set forth below.

FACTS:

     The JOVALAN, an unmanned barge engaged in the
transportation of crude oil, underwent a series of inspections
and shipyard operations at Ensenada, Mexico, which were
accomplished in two different calls to that port.  Although the
documents submitted by the applicant contain a discrepancy as to
the dates of those calls, American Bureau of Shipping records
indicate that the calls were made between the dates of June 23,
1989 and September 15, 1989.  American Bureau of Shipping invoice
nos. 692100 and 692101 indicate that the following services were
rendered:  1) annual survey of hull; 2) annual load line
inspection; 3) load line certificate of renewal; 4) special
periodical survey of hull no. 2; and 5) damage survey of cargo
tank no. 1.

     In the case under consideration, the JOVALAN departed
Ensenada on September 15, 1989, arriving at Long Beach on
September 17, 1989.  An application for relief was timely filed
on November 14, 1989.  The application and supporting
documentation were forwarded to Headquarters for our review and
ruling as to the dutiability of the cost of oily water removal
and tank cleaning as listed on Astilleros Unidos de Ensenada,
S.A. de C.V. invoice number 6862, in the amount of $20,071.00.
                              - 2 -


ISSUE:

     Whether the cost of oily water removal and tank cleaning,
undertaken in preparation for a damage survey, is dutiable under
19 U.S.C. 1466.

LAW AND ANALYSIS:

     Title 19, United States Code, section 1466, provides in
pertinent part for payment of duty in the amount of 50 percent ad
valorem on the costs of foreign repairs to vessels documented
under the laws of the United States to engage in the foreign or
coastwise trade, or vessels intended to engage in such trade.

     The Customs Service has long taken the position that
cleaning is not dutiable unless performed in preparation for, or
as an integral part of repairs. See C.I.E. 51/61 (see also C.I.E.
18/48; C.I.E. 125/48; C.I.E. 820/60; C.I.E. 698/62).

     In the case under consideration, an examination of American
Bureau of Shipping documents reveals that, in addition to the
special periodical survey of the hull, a damage survey of the
cargo tanks was also performed.  Therefore, cleaning was not
undertaken for "inspection purposes only", as is alleged by the
applicant, but was also undertaken to determine what repairs were
necessary.  The cleaning and removal of oily water from the tank
to allow the assessment of necessary repairs is clearly cleaning
done in preparation of repairs within the meaning of C.I.E.
51/61.  Accordingly, the cost is dutiable.

HOLDING:

     The cost of oily water removal and tank cleaning undertaken
in preparation for a damage survey is dutiable under 19 U.S.C.
1466.

                                     Sincerely,




                                     B. James Fritz
                                     Chief
                                     Carrier Rulings Branch