HQ 112812: Vessel Repair; Tacoma, Washington, Vessel Repair Entry No. 906-7500674-7; SEA-LAND DEVELOPER Voyage 137/172; Petition for Relief; crane services; 19 U.S.C. 1466; 19 CFR 4.14

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 112812

                        November 17, 1993

VES-13-18-CO:R:IT:C  112812 BEW

CATEGORY: Carriers

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

RE:  Vessel Repair; Tacoma, Washington, Vessel Repair Entry No.
     906-7500674-7; SEA-LAND DEVELOPER Voyage 137/172; Petition
     for Relief; crane services; 19 U.S.C. 1466; 19 CFR 4.14

Dear Sir:

     This is in response to your memorandum dated June 22, 1993,
which forwards for our consideration a petition for relief filed
in connection with the above-referenced vessel repair entry.  Our
findings are set forth below.

FACTS:

     The SEA-LAND DEVELOPER is owned by the Connecticut National
Bank and operated by Sea-Land Service, Inc.  It is an American-
flag container vessel.  The vessel departed from Tacoma,
Washington on May 21, 1991, and returned to Tacoma, Washington on
September 17, 1992.  While abroad, the vessel was routinely
repaired in various foreign shipyards.  In addition, the vessel
sustained substantial damage on March 21, 1992, when it was
struck by the Liberian-flag vessel, T.A. NAVIGATOR, while she was
moored at Honmoku Pier 6, Yokohama, Japan.  The operators of the
SEA-LAND DEVELOPER contend that various foreign shipyard
operations were modifications or non-effective repairs and that
certain items should be considered as articles of international
traffic. 

     An application for relief dated December 16, 1992, seeking
relief from vessel repair duties assessed on the above-referenced
foreign repairs was timely filed.  By our decision dated May 23,
1993 (HQ 112600 DEC), we found the following:

     Sampson Marine Services Co., Ltd................$   17,245
     Sampson Marine Services Co., Ltd................$   14,452

     The applicant submits the invoices referred to above for
     review as being connected to the collision between the T.A. 
     NAVIGATOR and the SEA-LAND DEVELOPER.  However, no
     independently-generated documentation makes this nexus. 
     While the vessel operator can expect to be granted remission
     for repairs associated with a casualty occurrence, it is
     Customs responsibility to require that the operators meet
     their burden of proving that the work performed was
     associated with the casualty event.  Unless and until such
     evidence is submitted, these items shall remain dutiable. 
     The itemized transportation charges ($1740 per invoice) are
     free of duty.
 
     Seagull Marine (Invoice No. SL-0030X/A)..........   87,490
     Seagull Marine (Invoice No. SL-0030X/B)..........   78,540
     OMI Engineering (Invoice No. 92-105).............  934,100

     The collision between vessels is deemed to be a casualty
     event.  Accordingly, the vessel repair statute provides for
     remission of vessel repair duties on work that is
     demonstrated to be associated with the casualty.  We are
     satisfied that the invoices referenced above are connected
     with the casualty.  Accordingly, remission of vessel repair
     duties is granted....

     Suyeki Floating Derrick Co., Ltd.................   875,250

     The applicant submits this invoice for review as being
     connected to the collision between the T.A. NAVIGATOR and
     the SEA-LAND DEVELOPER.  However, no independently generated
     documentation makes this nexus.  While the vessel operator
     can expect to be granted remission for repairs associated
     with a casualty occurrence, it is Customs responsibility to
     require that the operators meet their burden of proving that
     the work performed was associated with the casualty event. 
     Unless and until such evidence is submitted, these items are
     dutiable....

     Utoku Express Co., Ltd. (Bill No. WL-3-1018).....   375,139

     This invoice makes reference to a cargo swing charge.  
     Without a more elaborate description of what work was
     performed Customs is unable to make an informed decision
     with respect to vessel repair dutiability.  Unless and until
     a satisfactory explanation is submitted setting forth a
     basis for relief from vessel repair duties, this item
     remains dutiable....

     The petition is centered around the Suyeki and the Utoku
invoices.  The petitioner contends that the above stated invoices
represent costs for a floating crane hired in order to  
facilitate the opening of hatch covers and necessary to work the 
under deck containers in way of the damaged hinge towers.  The
petitioner further claims that the floating cranes were used to
assist in removing and offloading the damage structures, and to
swing cargo in an effort to repair the vessel and expedite the
sailing.

LAW AND ANALYSIS

     Title 19, United States Code, section 1466, 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 foreign or
coastwise trade, or vessels intended to engage in such trade.

     Pursuant to CD 1836 charges for drydocking, for furnishing
electricity, air and water, fees paid for the use of tugs and
pilots in drydocking and undocking a vessel, staging, and crane
expenses are not dutiable repairs if segregated on the invoice. 

     Examination of the entire record and the documentation
submitted with the petition, reveals that the subject invoices
were for costs associated with crane services necessary due to
the casualty.  Accordingly, the petition is granted as to the
subject items.

HOLDING:

     After thorough review of the evidence presented, and as
detailed in the Law and Analysis portion of this ruling, the
petition for relief is granted.

                                   Sincerely,




                                   Arthur P. Schifflin
                                   Chief