us-cbp-cross-rulings-hq-112935•HQ 112935: Vessel Repair; 19 U.S.C. 1466; Casualty; Safety and Seaworthiness; RALEIGH BAY; Entry No. C04-0012152-8
HQ 112935: Vessel Repair; 19 U.S.C. 1466; Casualty; Safety and Seaworthiness; RALEIGH BAY; Entry No. C04-0012152-8
us-cbp-cross-rulings-hq-112935HQ 112935: Vessel Repair; 19 U.S.C. 1466; Casualty; Safety and Seaworthiness; RALEIGH BAY; Entry No. C04-0012152-8Guidance
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 112935
October 28, 1993
VES-13-18 CO:R:IT:C 112935 GOB
CATEGORY: Carriers
Chief, Residual Liquidation and Protest Branch
New York Region
Six World Trade Center
New York, New York 10048-0945
RE: Vessel Repair; 19 U.S.C. 1466; Casualty; Safety and
Seaworthiness; RALEIGH BAY; Entry No. C04-0012152-8
Dear Sir:
This is in response to your memorandum dated October 22, 1993,
which forwarded the petition submitted by Sea-Land Service, Inc.
("petitioner") in connection with the above-referenced entry.
FACTS:
The record reflects that the M.V. RALEIGH BAY ("vessel") had
certain foreign repairs performed in Rotterdam, Holland in early
May, 1993. On May 13, 1993, the vessel arrived at the port of
Boston, Massachusetts. A vessel repair entry was filed on the day
of arrival.
By letter dated September 10, 1993, your office denied the
application for relief based upon a finding that the evidence
submitted was insufficient.
Petitioner's Claims
The petitioner has submitted documentation which reflects that
the vessel collided with the pilot vessel MERKAN on May 1, 1993
while approaching the Nieuwe Waterweg, which is a waterway just
inside the breakwater at the entrance to the port of Rotterdam.
In the following days, certain repairs were effected to the vessel.
The documentation submitted includes: (a) U.S. Coast Guard
Form 2692, Report of Marine Accident, Injury or Death; (b)
American Bureau of Shipping ("ABS") report and summary report; (c)
a report of survey by Martin & Ottaway Holland B.V.; (d) a map
showing the location of the accident; and (e) pertinent invoices.
- 2 -
ISSUE:
Whether, pursuant to 19 U.S.C. 1466(d)(1), good and sufficient
evidence has been submitted which warrants the remission of vessel
repair duties.
LAW AND ANALYSIS:
19 U.S.C. 1466 provides for the payment of duty at a rate 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 be employed in such
trade.
19 U.S.C. 1466(d)(1) provides in part that the Secretary of
the Treasury is authorized to remit or refund such duties if the
owner or master of the vessel furnishes good and sufficient
evidence that the vessel was compelled by stress of weather or
other casualty to put into a foreign port and make repairs to
secure the safety and seaworthiness of the vessel to enable her to
reach her port of destination.
19 CFR 4.14(c)(3)(i) provides that "port of destination" means
such port in the United States and "...only the duty on the cost
of the minimal repairs needed for the safety and seaworthiness of
the vessel is subject to remission or refund."
19 U.S.C. 1466 and 19 CFR 4.14 essentially set forth a three-
part test, each of the elements of which must be established by
good and sufficient evidence to qualify for remission:
1. a casualty occurrence;
2. an unsafe and unseaworthy condition; and
3. the inability to reach the port of destination without
foreign repairs.
We find that the documentation submitted by the petitioner is
sufficient to satisfy the three part test.
- 3 -
HOLDING:
The petition is granted based upon good and sufficient
evidence that remission of vessel repair duties is warranted
pursuant to 19 U.S.C. 1466(d)(1).
Sincerely,
Arthur P. Schifflin
Chief
Carrier Rulings Branch
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