HQ 110883: Protest No. 27049-001015, PRESIDENT KENNEDY V-1

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 110883

                          July 9, 1990



VES-13-18-CO:R:P:C  110883 KVS

Category:  Carriers

Chief, Technical Branch
Pacific Region
1 World Trade Center
Suite 705
Long Beach, CA  90831

Re:  Protest No. 27049-001015, PRESIDENT KENNEDY V-1

Dear Sir:

     Your memorandum dated February 26, 1990, forwarded a protest
regarding vessel repair entry no. C27-0034954-4.  Our findings
are set forth below.

FACTS:

     The PRESIDENT KENNEDY is one of three C-10 or "Panamax"
vessels (so named because their configurations include a beam too
wide to transit the Panama Canal) built for American President
Lines, Ltd. (APL) by Howaldstwerke-Deutsche Werft AG (HDW) in
Kiel, West Germany.  The subject vessel was delivered to APL on
July 15, 1988, and had work performed shortly thereafter in
foreign shipyards.  Specifically, the Satcom antenna Saturn-35
was repaired on two occasions, the HF transceiver was repaired,
engine equipment was checked, a bridge base station radio was
installed, and repairs were made to the SNA.91 radio.  Subsequent
to the completion of the aforementioned work, the subject vessel
arrived in the United States at San Pedro, California, on August
22, 1988.

     A vessel repair entry covering the voyage in question was
filed on August 22, 1989.  APL's letter of March 3, 1989,
incorporates by reference a letter dated December 13, 1988, from
Mr. Robert E. Weeks, Marine Customs Coordinator, APL, to the
Chief, Liquidation Branch, U.S. Customs Service, San Francisco,
which advances the arguments that certain foreign work performed
on the PRESIDENT KENNEDY was pursuant to a new vessel
construction warranty which extended one year from the date of
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delivery and therefore was not subject to duty.  In support of
this claim a copy of the construction contract (including the
warranty provision) was submitted.  However, no application for
relief was filed to cover the particular entry in question.  In
view of the failure to submit an application, the entry was
forwarded for liquidation, which took place on December 2, 1988.

     A protest (with copies of the invoices and job control
forms) was filed on March 14, 1989, 102 days after the date of
liquidation.

ISSUE:

     Whether a protest requesting relief from vessel repair
duties may be considered by Customs on its merits when the
protest was filed 102 days after the date of liquidation.

LAW AND ANALYSIS:

     Title 19, United States Code, section 1466, provides, in
pertinent part, that the equipment purchased for and the repairs
made in a foreign country upon a vessel documented under the laws
of the United States to engage in the foreign or coasting trade
or intended to be employed in those trades shall be subject to
the payment of an ad valorem duty of 50 percent of the cost of
that equipment and those repairs.  The Customs Regulations issued
under section 1466 are found in section 4.14, Customs Regulations
(19 CFR 4.14).

     Title 19, United States Code, section 1514, provides, in
pertinent part, for the filing of a protest within 90 days after
the notice of liquidation.

     In Penrod Drilling Co. v. United States, Slip Op. 89-168,
decided December 13, 1989 (Customs Bulletin dated January 3,
1990, p. 37), the Court of International Trade considered the
time limits pertaining to vessel repair protests.  The Court
ruled that a protest filed 8 days after the 90 day statutory
period and a protest sent by overnight express on the 89th day of
the statutory period but received by Customs on the 91st day were
properly denied as untimely filed.

     In this case, the protest for entry C27-0034954 was not
filed until 12 days after the 90 day statutory period.  On the
basis of Penrod, supra, the protest must be denied.



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HOLDING:

     A protest requesting relief from vessel repair duties may
not be considered by Customs on its merits when it was filed 102
days after the date of liquidation.

     Accordingly, the protest is denied.

                                     Sincerely,




                                     B. James Fritz
                                     Chief
                                     Carrier Rulings Branch