HQ 113318: Vessel Repair Entry No. 110-6461582-3; 19 U.S.C. 1466; PRESIDENT HOOVER, V-146; Petition

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 113318

                                March 14, 1995

VES-13-18-CO:R:IT:C 113318 GOB

CATEGORY:    Carriers

Deputy Regional Director of Customs
Commercial Operations
Pacific Region
One World Trade Center
Long Beach, California 90831-0700

RE:  Vessel Repair Entry No. 110-6461582-3; 19 U.S.C. 1466;  PRESIDENT          HOOVER, V-146;  Petition

Dear Sir:

     This is in response to your memorandum dated January 10, 1995, which
forwarded  the petition submitted by American President Lines, Ltd. ("petitioner") with
respect to the above-referenced vessel repair entry.

FACTS:

     The record reflects that the PRESIDENT HOOVER ("the vessel") arrived at the
port of Seattle, Washington on July 6, 1994 and filed the subject vessel repair entry.

     By Ruling 113261 dated November 2, 1994, the application for relief with
respect to this entry was granted in part and denied in part.

     Our determination is requested with respect to the following items.

     Item No.            Description
     
     2.1-1                    diver - inspection of hull
     3.1-01              hull high pressure water wash
     Inv. 0010A/07-94         service charge
     4 on CF 226              slops



                              - 2 -

ISSUE:

     Whether the subject items are dutiable pursuant to 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.
                         
     After a consideration of the record, we make the following determinations.  

     The cost of item 2.1-1 (diver - inspection of hull) and the travel costs associated
with the service charge (Inv. 0010A/07-94) are not dutiable.

     The cost of the item 3.1-01 (hull high pressure water wash) is dutiable because
the record indicates that it is incident to dutiable repairs and/or a maintenance item.   

     With respect to the slops or sludge removal (item four on CF 226), the petitioner
states:

     [A] non-dutiable repair in Seattle, Washington ultimately generated        approximately 2,000 barrel of contaminated salt water slops.  These slops were  disposed of in Hong Kong...
     
     We believe that the disposal of slops generated by a "non-dutiable" repair in   Seattle, Washington is non-dutiable and is not pursuant to dutiable repairs.

     We determine that the cost of the slops removal is not dutiable pursuant to 19
U.S.C. 1466.

HOLDING:

     As detailed supra, the petition is granted in part and denied in part.

                              
                              Sincerely,


                              Harvey B. Fox
                              Director
                              Office of Regulations and Rulings