HQ 113229: Vessel Repair; 19 U.S.C. 1466; Entry No. 137-1038094-2; S.S. MORMACSKY; Protest

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 113229

                          September 22, 1994

VES-13-18-CO:R:IT:C 113229 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; Entry No. 137-1038094-2;
     S.S. MORMACSKY; Protest 

Dear Sir:

     This is in response to your memorandum dated September 16,
1994 which forwarded for our review and ruling the above-
referenced protest on the assessment of vessel repair duties.

FACTS:

     The record reflects the following.  The S.S. MORMACSKY 
("vessel"), which is operated by Mormac Marine Transport Inc.
("protestant") arrived at the port of Providence, R.I. on August
25, 1994 and filed the above-referenced vessel repair entry on
September 1, 1993.

     The entry was liquidated on January 14, 1994.

Protestant's Claims

     The protest states as follows, in part:

     As stated in the Master's application for relief submitted
     with the entry, the cost of hold cleaning in preparation for
     loading the next cargo should be non-dutiable (letter
     attached)...

     We believe that the cost of equipment, parts, labor and
     material used for the erection of temporary bulkheads or
     similar devices for the control of bulk cargo is
     specifically non-dutiable under Section 4.14(c)(3)(iii), and
     therefore request a review of this calculation.





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ISSUE:

     Whether the items at issue are dutiable under 19 U.S.C.
1466.

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.

     With respect to the first issue raised by the protestant
(invoice no. 93-8237), we find that the nature of the work
performed is not fully clear from the invoice.  The invoice
reflects various activities including: cleaning; installing,
capping, and securing of pipes; hot work; welding; and the
removal and transportation of equipment. The invoice states at
one point "Conversion of a tanker to load grain."   The invoice
further states: "On completion work inspected by Port Authorities
and ship's staff and found satisfactory."  
     
     We are unable to conclude that the work performed with
respect to this invoice was merely "hold cleaning."  We find
that, with the exception of the separately itemized
transportation and cranage costs which are nondutiable and the
gas free certificate cost which is to be apportioned between
dutiable and nondutiable costs, the costs on this invoice are
dutiable.

     Similarly, with respect to the second issue raised by the
protestant (invoice no. 93-8238), we find that the nature of the
work performed is not clear from the invoice.  The invoice
indicates that ballast pump strainers, cargo pump strainers, and
a cone were "made up" or "fabricated."  We are unable to conclude
that the costs on this invoice are nondutiable pursuant to 19 CFR
4.14(c)(3)(iii).  Accordingly, the costs are dutiable.

HOLDING:

     As detailed supra, with the exception of the separately
itemized transportation and cranage costs which are nondutiable
and the gas free certificate cost which is to be apportioned
between dutiable and nondutiable costs, the protest is denied.

     In accordance with Section 3A(11)(b) of Customs Directive
099 3550-065, dated August 4, 1993, Subject: Revised Protest
Directive, this decision should be mailed by your office to the
protestant no later than 60 days from the date of this letter. 
Any reliquidation of the entry in accordance with the decision
must be accomplished prior to mailing of the decision.  Sixty 

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days from the date of the decision the Office of Regulations and
Rulings will take steps to make the decision available to Customs
personnel via the Customs Rulings Module in ACS and the public
via the Diskette Subscription Service, the Freedom of Information
Act and other public access channels.
        
                              

                              Sincerely,



                              Arthur P. Schifflin
                              Chief
                              Carrier Rulings Branch