HQ 112671: Vessel Repair; Protest; United States-Israel Free Trade Act; Presidential Proclamation 5924; 19 U.S.C. 1466; Vessel Repair Entry: 514-3004608-9 Protest No.: 1001-92-102546 Vessel: SS EXPORT PATRIOT Date of Entry: November 5, 1991 Date of Arrival: November 5, 1991 Date of Liquidation: March 6, 1992 Port of Arrival: Newark, New Jersey

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 112671

                         April 26, 1993

VES-13-18-CO:R:IT:C 112671 DEC

CATEGORY:  Carriers

Deputy Assistant Regional Commissioner
Classification and Value Division
Attention:  Residual Liquidation and Protest Branch
New York, New York  10048-0945

RE:  Vessel Repair; Protest; United States-Israel Free Trade Act;
     Presidential Proclamation 5924; 19 U.S.C. 1466;
     Vessel Repair Entry:  514-3004608-9
     Protest No.:  1001-92-102546
     Vessel:  SS EXPORT PATRIOT
     Date of Entry:  November 5, 1991
     Date of Arrival:  November 5, 1991
     Date of Liquidation:  March 6, 1992
     Port of Arrival:  Newark, New Jersey

Dear Sir:

     This is in response to your memorandum of March 29, 1993,
transmitting the above-referenced protest and supporting
documentation submitted by Farrell Lines, Inc.  Our ruling on
this matter is set out below.


FACTS:

     The record reflects that the SS EXPORT PATRIOT arrived at
Newark, New Jersey, on November 5, 1991.  A vessel repair entry
indicating that work was performed on the vessel in Haifa,
Israel, was timely filed.  After the entry was liquidated, the
vessel operator submitted a timely protest seeking remission of
vessel repair duties based on newly submitted documentation
establishing that the parts and materials used were products of
Israel.


ISSUE:

     Whether the protestant's claim for relief can be justified
under the terms of the United States-Israel Free Trade Area
Implementation Act of 1985, as partially implemented through
Presidential Proclamation 5924 (Dec. 21, 1988).

                               -2-


LAW AND ANALYSIS:

     Title 19, United States Code, section 1466(a), provides, in
pertinent part, for payment of an ad valorem duty of fifty
percent on the cost of foreign repairs to a vessel documented
under the laws of the United States to engage in the foreign or
coasting trade, or a vessel intended to be employed in such
trade.

     On December 21, 1988, the President issued Proclamation 5924
under authority of section 4(a) of the United States-Israel Free
Trade Area Implementation Act of 1985.  This Proclamation
provides that vessel repair duties shall not be assessed on the
cost of parts, equipment or materials for, or repairs to U.S.
vessels if the subject expenditures are products of Israel or the
work was performed in Israel.  Customs interprets this to mean
that the articles must be made in and installed on vessels in
Israel.  Articles imported from elsewhere do not qualify for the
automatic duty exemption.

     Initially, this vessel repair was liquidated for $10,071
pursuant to 19 U.S.C.  1466.  Subsequently, the vessel operator
submitted this protest together with new documentary evidence
stating that all parts and materials used to repair the subject
vessel while in Israel are products of Israel.  Consequently,
Customs agrees with the protestant that remission with respect to
the Israeli invoice is appropriate pursuant to the above-
referenced authority.


HOLDING:

     Customs is satisfied that the protestant has met its burden
of proof by establishing that the parts used to repair the
subject vessel were products of Israel.  Accordingly, duty with
respect to these repairs and parts is to be remitted.

                                   Sincerely,




                                   Acting Chief
                                   Carrier Rulings Branch