HQ 111928: Vessel repair; Fishing vessel; Breakdown at sea; No permit to touch and trade issued

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 111928

                        November 20, 1991

VES-13-18-CO:R:IT:C  111928 LLB

CATEGORY:  Carriers

Mr. T.W. Kennard
B.A. McKenzie & Co., Inc.
813 Pacific Avenue
Tacoma, Washington 98402

RE:  Vessel repair; Fishing vessel; Breakdown at sea; No permit
     to touch and trade issued

Dear Mr. Kennard:

     Reference is amde to your letter, received by facsimile
transmission on October 2, 1991, concerning the applicability of
the vessel repair statute (19 U.S.C. 1466(a)) to unanticipated
repairs made in a foreign shipyard to a United States-documented
fishing vessel.

FACTS:

     You report that the fishing vessel KRISTY, an albacore
catching vessel, departed the port of Newport, Oregon, on August
20, 1991, bound for fishing grounds in the North Pacific.  The
vessel's reduction gear broke on August 31, 1991, leaving the
vessel dead in the water.  The vessel was towed to the nearest
port, Queen Charlotte City, British Columbia, Canada, in order to
be repaired.  The repairs were completed on September 7, 1991,
and the vessel returned to fishing until September 29, 1991, at
which time it first reentered the United States at the port of
Westport, Washington.

ISSUE:

     The question posed is whether, given the circumstances, the
provisions of the vessel repair statute are applicable.

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 documented
under the laws of the United States to engage in the foreign or
coastwise trade, or vessels intended to be employed in such
trade.

     While not documented for either the foreign or the coastwise
trade, a fishing vessel is deemed to be in trade when it departs
the United States with the intent to proceed to a foreign port or
place for the purpose of obtaining repairs or shipyard services,
or purchasing vessel equipment.  When such is the case, a fishing
vessel must follow the procedures described in section 4.15,
Customs Regulations (19 CFR 4.15).  In such circumstances, a
vessel repair entry is required to be filed and the surrender of
the permit to touch and trade is mandated.

HOLDING:


     Since a fishing vessel which obtains unexpected repairs
after departing the United States and while engaged in fishing
operations is neither documented for the named trades nor deemed
to have departed the United States in trade, there is no duty
liability for the value of such foreign shipyard services.

                                 Sincerely,


                           James Fritz
                              Chief
                     Carrier Rulings Branch