HQ 110895: Bayonne, N.J. Vessel Repair Entry No. C10-4907884-8, AMERICAN EAGLE

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 110895

                          June 1, 1990

VES-13-18-CO:R:P:C  110895 GV

CATEGORY:  Carriers

Deputy Assistant Regional Commissioner
Classification and Value Division
ATTN:  Regional Vessel Repair Liquidation Unit
6 World Trade Center
New York, New York 10048-002980

RE:  Bayonne, N.J. Vessel Repair Entry No. C10-4907884-8,
     AMERICAN EAGLE

Dear Sir:

     This is in response to your memorandum dated March 6, 1990,
transmitting an application for relief from duties assessed
pursuant to 19 U.S.C. 1466.  Our findings are set forth below.

FACTS:

     The AMERICAN EAGLE is a U.S.-flag vessel owned by Automar I
Corp. and operated by Pacific-Gulf Marine, Inc. of New Orleans,
Louisiana.  The vessel had foreign work performed in Goteborg,
Sweden, during the period of July 31, 1989 through August 16,
1989.  Subsequent to the completion of the work the vessel
arrived in the United States at Bayonne, New Jersey, on August
27, 1989.  A vessel repair entry covering the work in question
was not filed until November 3, 1989.

     By letter dated October 24, 1989, Pacific-Gulf Marine, Inc.
requested and received a 30-day extension to submit an
application and supporting documentation.  The so-called
"application" in this case consisted of a two paragraph letter
dated December 13, 1989, transmitting copies of invoices.
Pursuant to correspondence dated December 28, 1989, from the New
York Vessel Repair Liquidation Unit, Pacific-Gulf Marine, Inc.
submitted additional cost evidence transmitted by letter dated
January 23, 1990.

ISSUE:

     Whether the foreign work performed on the subject vessel is
dutiable under 19 U.S.C. 1466.

                              - 2 -

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 cost 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.

     Section 4.14(b)(2), Customs Regulations (19 CFR 4.14(b)(2))
provides, in pertinent part, that entry shall be made with the
appropriate Customs officer within five working days after the
vessel's arrival.  Failure to make entry as required (which is
what occurred in this particular case) results in the issuance of
a penalty action (see 19 CFR 4.14(g)(1)).

     In addition, absent Customs authorized extensions of time,
failure to submit an application for relief with supporting
evidence within 60 days from the date of the first arrival of the
vessel (see 19 CFR 4.14(b)(1)(ii)(B)) results in the entry being
forwarded for immediate liquidation.  Although an application for
relief need not be in any particular form, pursuant to 19 CFR
4.14(d)(1)(i) it should allege that an item or a repair expense
is not subject to duty under either paragraph (a) or section 4.14
(items that are not subject to duty) and/or paragraph (c)
(circumstances allowing remission otherwise due).  The so-called
"application" dated December 13, 1989, meets neither of these
criteria.

     Accordingly, not only was Pacific-Gulf's letter dated
December 13, 1989, insufficient to constitute an application, it
was also submitted untimely (i.e., approximately two and one-half
weeks past the extended deadline).  All foreign costs contained
within the entry are therefore dutiable with the exception of the
following:

     Cityvarvet invoice no. 11-909209-89

          Item 101.1 - Docking and undocking

          Item 102.1A - Gas Free Certificate (prorate)

          Item 102.3A - Shore Power

          Item 102.3B - Fresh Water

          Item D - Compressed air

          Item D - Fire main
                   (additional)

          Item F - Cooling water

                              - 3 -

          Item G - CO2 system

          Item H - Telephone

          Item I - Galley refuse removal

          Item J - Crane services

          Item 103.2 - Cranage

          Item 104.3 - Cranage

          Item 106.1-2 - Cranage

          Item 107.1 - Stage

          Item 109.1 - Stagings

          Item 109.3B - Stagings

          Item 202 - Stagings

          Item 203 - Stagings

          Item 205 - Cranage

          Item 206 - Stagings

          Item 217 - Cranage

          Item 222 - Cranage

          Item 307 - Cranage

          Item 601.1 - Cranage

          Item 602 - Cranage

          Item 701 - Cranage

          Item 704 - Cranage

          Item 902 - Staging

          Item 903A-B - Cranage

          Item 400 001 - Cranage

          Item 402 001 - Cranage

          Item 405 001 - Stagings

                              - 4 -

     Cityvarvet invoice no. 11-909210-89

          Item 208 - Stagings, cranage

     Cityvarvet invoice no. 11-909211-89

          Item 109.5 - Stagings

     Cityvarvet invoice no. 11-909212-89

          Item 401 001 - Cranage

     Roland Marine Inc. invoice no. 8408/89

          Air Freight and Insurance charges

     Atlas Marin & Industri AB invoice no. 42327

          Travel costs

     Berg Propulsion invoice no. 11121/8-H

          Travelling time, travel and hotel expenses

     MacGregor Navire invoice no. 53720

          Travelling costs

     In addition, any increase or decrease in the expenses noted
by the yards on the invoices now under consideration should be
reflected in the amount for which this entry is liquidated.

HOLDING:

     The foreign work for which the applicant seeks relief is
dutiable under 19 U.S.C. 1466 with the exception of those items
noted above.

                                   Sincerely,




                                   B. James Fritz
                                   Chief
                                   Carrier Rulings Branch

cc:  N.O. VRLU
     S.F. VRLU