HQ 111941: Vessel Repair Entry No. VR-C53-0014355-5; S/S ULTRAMAR; V-84; Post-Repair Cleaning; 19 U.S.C. 1466

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 111941

                          March 15, 1995

VES-13-18-CO:R:IT:C 111941 GEV

CATEGORY:  Carriers

Port Director
U.S. Customs Service
Vessel Repair Liquidation Unit, Room 303
423 Canal Street
New Orleans, Louisiana 70130-2341

RE:     Vessel Repair Entry No. VR-C53-0014355-5; S/S ULTRAMAR; V-84;
     Post-Repair Cleaning; 19 U.S.C.  1466

Dear Sir:

     This is in response to a memorandum from the Acting DARC, Commercial Operations
Division, dated October 3, 1991, forwarding for our review an application for relief from duties
assessed pursuant to 19 U.S.C.  1466.    Our findings on this matter are set forth below.

FACTS:

     The S/S ULTRAMAR is a U.S.-flag vessel owned by American Maritime Transport, Inc. 
The subject vessel had foreign shipyard work performed on her in Portugal during February of
1991.  The vessel arrived in the United States at the port of Galveston, Texas, on March 12,
1991.  A vessel repair entry was filed on the date of arrival.

     Pursuant to an authorized extension of time, an application for relief with supporting
documentation was timely filed on July 9, 1991.  The applicant requests relief for a myriad of
items contained within the above-referenced entry.  The New Orleans Vessel Repair Liquidation
Unit seeks guidance regarding the following:  the sufficiency of the shipyard invoice; the notation
"ABS/USCG Inspection" appearing throughout the shipyard invoice; cleaning after repairs and
removal of debris.
                              - 2 -

ISSUE:

     Whether the foreign shipyard costs for which the applicant seeks relief are dutiable
pursuant to 19 U.S.C.  1466.

LAW AND ANALYSIS:

     Title 19, United States Code,  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.

     At the outset we note that although the Solisnor shipyard invoice in question is other than
exemplary in terms of clarity of cost breakdown, we are not of the opinion that it is flawed to the
point where this deficiency alone necessitates it being denied in its entirety.  However, the
aforementioned deficiency will, where appropriate, be construed contra to the applicant's claims
for relief.

     Further in regard to the lack of clarity discussed above, the notation "ABS/USCG
Inspection" appearing throughout the entire Solisnor invoice is in fact non-specific as to what
work was actually done.  Consequently, those costs associated therewith are dutiable.   

     The Solisnor invoice also contains references to "cleaning after repairs" and "removal of
debris."  Pursuant to the "but for" test enunciated by the U.S. Court of Appeals for the Federal
Circuit in Texaco Marine Services, Inc. and Texaco Refining and Marketing, Inc. v. United
States, Docket No. 93-1354, decided December 29, 1994 (affirming the decision of the U.S.
Court of International Trade at 815 F.Supp. 1484 (1993)), post-repair cleaning and protective
coverings (the latter of which is also contained within the Solisnor invoice at Item 131) for repair
work are dutiable under 19 U.S.C.  1466.  Although the costs for "removal of debris" are
segregated from those for "cleaning after repairs", the invoice is devoid of any detailed description
supporting a meaningful distinction.  Accordingly, the subject costs for "cleaning after repairs,"
"removal of debris" and protective coverings are dutiable.
     
     
                              - 3 -

HOLDING:

     The foreign shipyard costs for which the applicant seeks relief are dutiable pursuant to 19
U.S.C.  1466 as discussed in the Law and Analysis portion of this ruling.

                              Sincerely,




                              Arthur P. Schifflin
                              Chief
                              Carrier Rulings Branch