HQ 112973: Vessel Repair; 19 U.S.C. 1466; Petition for Review; Modification; Vessel Repair Entry No. 110-0104410-3; Date of Entry: January 27, 1993 Date of Arrival: January 27, 1993 Port of Arrival: Tacoma, Washington Vessel: SEA-LAND ENTERPRISE V-56/58

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 112973

                           March 23, 1994

VES-13-18-CO:R:IT:C  112973 DEC

CATEGORY:  Carriers

Deputy Regional Director
Commercial Operations
Pacific Region
One World Trade Center
Long Beach, California  90831

RE:  Vessel Repair; 19 U.S.C.  1466; Petition for Review;
     Modification; Vessel Repair Entry No. 110-0104410-3;
     Date of Entry:  January 27, 1993
     Date of Arrival:  January 27, 1993
     Port of Arrival:  Tacoma, Washington
     Vessel:  SEA-LAND ENTERPRISE V-56/58

Dear Sir:

     This is in response to your memorandum dated December 1, 1993,
which forwards the petition for review of the assessment of vessel
repair duties filed in connection with the above-referenced vessel.


FACTS:

     The SEA-LAND ENTERPRISE is owned by the Connecticut National
Bank and operated by Sea-Land Service, Incorporated.  It is an
American-flag vessel.  While abroad, the SEA-LAND ENTERPRISE stopped
in Kaohsiung, Republic of China, where it underwent various
operations.  In Headquarters Ruling 112786 (Sept. 21, 1993), Customs
denied, in part, relief from the assessment of vessel repair duties. 
A petition for review was timely filed.


ISSUE:

     Whether the cost of foreign shipyard work completed aboard the
subject vessel is dutiable pursuant to Title 19, United States Code,
section 1466.


LAW AND ANALYSIS:

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

                                 -2-


Items 145, 146, and 147

     Upon further review, Customs finds that these items represent
the expense associated with modifying the cell guide gathers.  These
new structural fittings placed between the cell guide gather and the
hatch coaming were installed to prevent future damage to the vessel. 
The petitioner has assured Customs that this new installation is not
a replacement of a current part, fitting, or structure that is not
in good working order.  Accordingly, Customs finds that this item
represents a non-dutiable modification.

Item 283

     Customs found that this item is subject to the assessment of
vessel repair duty because the "invoice does not reflect a
sufficient nexus with the M1 modification work . . . The invoice
does not establish that these expenses are related to a nondutiable
modification."  Headquarters Decision 112786 (Sept. 21, 1993).  Upon
further review of this item, Customs finds no basis upon which to
grant relief.  In addition, the petitioner has not offered any new
evidence to indicate why our ruling on this item in the application
should be altered.  Consequently, this item remains dutiable.


HOLDING:

     After a thorough review of the submitted evidence, this
petition for review is granted in part and denied in part for the
reasons detailed in the Law and Analysis section of this ruling. 
The petitioner should be informed of the right to file a protest
following liquidation of this entry, as evidenced by the posting of
the bulletin notice of liquidation.

                                Sincerely,



                                Stuart P. Seidel
                                Director, International Trade
                                Compliance Division