HQ 111999: Vessel Repair; LASH Barges; Liquidation; 19 U.S.C. 1466(h); ROBERT E. LEE; Entry No. 1001-81-515-217-2.

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 111999

                          July 22, 1992

VES-13-18   CO:R:IT:C  111999  JBW

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:  Vessel Repair; LASH Barges; Liquidation; 19 U.S.C. 1466(h);
     ROBERT E. LEE; Entry No. 1001-81-515-217-2.

Dear Sir:

     This letter is in response to your memorandum that forwards
for our review and ruling the above-referenced vessel repair
entry.

FACTS:

     The record reflects that the ROBERT E. LEE, a Lighter Aboard
Ship (LASH) mother vessel, arrived in the port of New York on
September 3, 1981.  A single vessel repair entry was filed on
September 8, 1981, indicating foreign repairs made to LASH barges
carried by the mother vessel.  Two supplemental vessel repair
entries were filed, one on September 21, 1981, and the other on
March 15, 1982.

     On November 23, 1981, the vessel operator, Waterman
Steamship Corporation, filed a document in which it sought
relief from duties on the foreign repairs for specified barges.
The case lay dormant from 1982 until October 21, 1988, when
Customs liquidated the entry and issued its bill, 40941910, for
the duties liquidated.  In a letter dated January 4, 1989,
Waterman noted that it had not received a ruling on its
application prior to liquidation.  In response to another bill,
Waterman again noted its failure to receive a ruling despite the
filing of a "petition for remission" on November 23, 1981.

     The entry was forwarded to the Carrier Rulings Branch for a
ruling on July 11, 1990.  Because of the length of time that
elapsed between the date that the vessel owner filed its
application for relief and the date of this notice, and because
of the failure of Customs to respond to this application, and
notwithstanding the failure of the vessel owner to file its
application within the time periods established by the
regulations, we determined that these circumstances give rise to
an inadvertence by Customs sufficient to require correction of
the liquidation.  Headquarters Ruling Letter 111165, dated
November 6, 1990.  We stated that liquidation of this entry
should be suspended, and interest accrued against the pending
liquidation should be cancelled.  Id.  We also stated that
because of omissions in the record, we were unable to rule on the
dutiability of certain repairs made to the barges.  Id.  Your
present transmittal now forwards the missing information.

ISSUE:

     Whether the cost of repairs made to the LASH barges are
subject to duty 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 fifty percent
ad valorem on the cost of foreign repairs to vessels documented
under the laws of the United States to engage in foreign or
coastwise trade, or vessels intended to engage in such trade.

     On August 20, 1990, the statute was amended to exempt from
duty equipment purchased for or repairs made to LASH barges
documented under the laws of the United States and utilized as
cargo containers.  19 U.S.C. 1466(h).  The statute applied this
amendment to "any entry made before the date of enactment of this
Act that is not liquidated on the date of enactment of this
Act...."  Customs and Trade Act of 1990, 484E, Pub. L. No. 101-
382, 104 Stat. 629, 709-10 (1990).  This office has held that for
purposes of the retroactive application of 19 U.S.C. 1466(h),
the benefits of said legislation will inure to those entries that
were not finally liquidated (i.e., for which no timely protest
was filed or court action initiated) on or before August 20,
1990.

     Applying these rules, we determine that the cost of repairs
made to the LASH barges under consideration are not subject to
duty under 19 U.S.C. 1466.  The LASH vessels are United States
vessels that are used as cargo containers.  Moreover, because of
the procedural difficulties noted in our earlier ruling, this
entry has not been finally liquidated.  See Headquarters Ruling
Letter 111165.  The entry therefore should be accorded the
benefits of the exemption for LASH barges found in 19 U.S.C.
1466(h).


HOLDING:

     The cost of repairs made to the LASH barges under
consideration are not subject to duty under 19 U.S.C. 1466.



                              Sincerely,



                              B. James Fritz
                              Chief
                              Carrier Rulings Branch