HQ 110952: Vessel repair; one round voyage rule; casualty; boilers; steering system Vessel: LIBERTY BELLE V-5 Date of Arrival: December 9, 1989 Port of Arrival: Los Angeles, California Vessel Repair Entry No. C27-0011743-8

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 110952

                         October 1, 1990


VES-13-18-CO:R:P:C  110952 KVS

CATEGORY:  Carriers

Chief, Technical Branch
Commercial Operations Division
6 World Trade Center
Long Beach, CA  90831

RE:  Vessel repair; one round voyage rule; casualty; boilers;
     steering system
     Vessel:  LIBERTY BELLE V-5
     Date of Arrival:  December 9, 1989
     Port of Arrival:  Los Angeles, California
     Vessel Repair Entry No. C27-0011743-8

Dear Sir:

     This is in response to your memorandum of March 26, 1990,
which forwards for our consideration an application for relief
filed in connection with the LIBERTY BELLE V-5, vessel repair
entry no. C27-0011743-8.  Our findings are set forth below.

FACTS:

     The LIBERTY BELLE, before departing upon the voyage in
question, underwent various repairs in the United States,
including repairs to the boilers and the steering system.  After
departing the United States, and within six months of the
domestic repairs, the subject vessel underwent various foreign
shipyard operations at Singapore on September 19, 1989, for
miscellaneous repairs; at Pakistan on October 6 and 27, 1989, for
repairs which included boiler repairs; and Indonesia on November
18, 1989, for repairs to the steering system.  The vessel arrived
in the United States on December 9, 1989, at Los Angeles,
California.

     The applicant requested and received an extension of time to
file an application for relief.  The application for relief
currently under consideration was timely filed on February 28,
1990.  Two items have been presented for our determination.


                              - 2 -


ISSUE:

     Whether the foreign shipyard operations carried out aboard
the subject vessel are subject to duty pursuant to 19 U.S.C.
1466.

LAW AND ANALYSIS:

          Title 19, United States Code, section 1466(a) provides,
in pertinent part, for payment of duty in the amount of 50
percent ad valorem on the cost of foreign repairs to vessels
engaged, intended to engage, or documented under the laws of the
United States to engage in the foreign or coastwise trade.
Section 1466(d)(1) provides that the Secretary of the Treasury is
authorized to remit or refund such duties if the owner or master
of the vessel provides good and sufficient evidence that the
vessel was compelled be stress of weather or other casualty to
put into such foreign port to make repairs to secure the safety
and seaworthiness of the vessel to enable her to reach her port
of destination.

     The Customs Service, in T.D. 71-83(38) (dated March 11,
1971), held that when evidence shows that any part of a vessel
failed while on the first round trip voyage immediately following
domestic repair of that part, such failure occurring within six
months of domestic repairs will be considered a casualty
occurrence which qualifies for remission under section 1466.
However, T.D. 71-83(38) states that remission of duty is "limited
to duty on the essential, minimum foreign repairs to the part."

     In the case currently under consideration, foreign invoices,
domestic invoices indicating repairs to the same areas less than
six months before the foreign repairs, and a telex indicating the
development of problems en route are evidence of the failure of
the domestically-repaired parts while in the course of the first
round trip voyage following the repair.

     Accordingly, we find the labor charge for steering repairs
invoiced on Ray-Control Services invoice no. 89/1119 to be non-
dutiable.  Transportation charges listed on the invoice are also
non-dutiable.

     Likewise, we find the charge for boiler repairs listed on
Diamond Engineering invoice no. VSL/057/89-90 to be non-dutiable.
Additionally, we find that the amount listed under item 3 for the
cost of a Chemist Certificate should be apportioned between
dutiable and non-dutiable items.  All other items are listed on
the invoice are dutiable.



                              - 3 -


HOLDING:

     Where satisfactory evidence exists demonstrating that a
vessel part which fails while on the first round trip voyage
immediately following domestic repair of that part, such failure
occurring within six months of domestic repairs will be
considered a casualty and and remission may be granted pursuant
to 19 U.S.C. 1466(d)(1).

                                Sincerely,




                                B. James Fritz
                                Chief
                                Carrier Rulings Branch