HQ 112532: Vessel Repair; 19 U.S.C. 1466; PRESIDENT EISENHOWER, V-77; Entry No. C-28-0146871-4; Application; Staging; CherryPicker; Cleaning.

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 112532

                                March 14, 1995

VES-13-18-CO:R:IT:C  112532 GOB

CATEGORY:  Carriers

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

RE:  Vessel Repair;  19 U.S.C. 1466;  PRESIDENT EISENHOWER, V-
77; Entry No.  C-28-0146871-4;  Application;  Staging; Cherry
Picker; Cleaning.

Dear Sir:

     This ruling is in response to your memorandum dated November
18, 1992, which forwarded the application for relief submitted by
American President Lines, Ltd. ("applicant") in connection with
the above-referenced vessel repair entry.

FACTS:

     The record indicates that the M.V. PRESIDENT EISENHOWER
("the vessel") entered the port of Oakland, California on June
11, 1992 and filed the subject vessel repair entry.    You
request our determination with respect to the following items.

               Item                Description
               1(e)                Staging
               11(b)                    Cherry Picker
               11(c)                    Dry Dock Bottom Cleaning
               12(b)                    Cherry Picker
               13(b)                    Staging
               20(c)                    Staging
               24(b)                    Staging
               25(b)                    Staging
               28                  Paint Supplied Under Guarantee

 

                              - 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.

     The various staging costs are nondutiable, pursuant to
previous rulings.

     The cherry picker costs are nondutiable.

     We find that the cost of the "dry dock bottom cleaning",
which was undertaken in connection with hull painting, is
dutiable.  In Texaco Marine Services Inc. v. United States, Case
No. 93-1354, decided on December 29, 1994, the Court of Appeals
for the Federal Circuit found that the costs of post-repair
cleaning and protective coverings are dutiable under 19 U.S.C.
1466.  

     With respect to item 28, the applicant asks for relief with
respect to the cost of paint which it claims was supplied "at no
cost under guarantee by 'CMP' and China Shipbuilding
Corporation."  We find that the cost of the paint is dutiable. 
We note initially that the applicant has not provided any
documentation in support of its claim that the paint was supplied
to it at no cost.  We note additionally that it has been 
Customs' position that warranty work falls within the scope of
dutiability pursuant to 19 U.S.C. 1466 unless such work falls
within the scope of Sea-Land Service, Inc. v. United States, 683
F.Supp. 1404 (C.I.T. 1988), which recognized the validity of
warranties issued in the context of new vessel construction.

HOLDING:

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


                         Sincerely,



                         Arthur P. Schifflin
                         Chief
                         Carrier Rulings Branch