HQ 110805: Cleaning in preparation of repairs; damage survey Vessel: Barge JOVALAN Date of Arrival: August 10, 1989 Port of Arrival: Long Beach, CA Vessel Repair Entry No. C27-0075267-1

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 110805

                          July 25, 1990

VES-13-18-CO:R:P:C  110805 KVS

CATEGORY:  Carriers

Chief, Technical Branch
Commercial Operations Division
Suite 705
One World Trade Center
Long Beach, CA  90831-0700

RE:  Cleaning in preparation of repairs; damage survey
     Vessel:  Barge JOVALAN
     Date of Arrival:  August 10, 1989
     Port of Arrival:  Long Beach, CA
     Vessel Repair Entry No. C27-0075267-1

Dear Sir:

     This is in response to your memorandum of January 19, 1990,
which forwards for our consideration an application for vessel
repair entry C27-0075267-1.  Our findings are set forth below.

FACTS:

     The JOVALAN, an unmanned barge engaged in the transportation
of crude oil, underwent a series of inspections and shipyard
operations at Ensenada, Mexico, which were accomplished in two
different calls to that port.  Although the documents submitted
by the applicant contain a discrepancy as to the dates of those
calls, American Bureau of Shipping records indicate that the
calls were made between the dates of June 23, 1989 and September
15, 1989. American Bureau of Shipping invoice nos. 692100 and
692101 indicate that the following services were rendered:  1)
annual survey of hull; 2) annual load line inspection; 3) load
line certificate renewal; 4) special (damage) survey of hull no.
2; and 5) damage survey of cargo tank no. 1.

     In the case under consideration, the JOVALAN departed
Ensenada on August 8, 1989, arriving at Long Beach on August 10,
1989.  On October 6, 1989, the applicant requested an extension
of time in which to file an application for relief, which was
granted.  An application for relief was timely filed on November
9, 1989.  The application and supporting documentation was
forwarded to Headquarters for our review and ruling as to the
dutiability of the cost of "oily water removal and tank cleaning
for inspection" listed on Astilleros Unidos de Ensenada, S.A. de
C.V. invoice no. 6842.
                              - 2 -


ISSUE:

     Whether the cost of oily water removal and tank cleaning
undertaken in preparation for a damage survey is dutiable under
19 U.S.C. 1466.

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 costs 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.

     The Customs Service has long taken the position that
cleaning is not dutiable unless performed in preparation for, or
as an integral part of repairs.  See C.I.E. 51/61 (see also
C.I.E. 18/48; C.I.E. 125/48; C.I.E. 820/60; C.I.E. 698/62).

     In the case under consideration, an examination of American
Bureau of Shipping documents reveals that, in addition to the
special periodical survey of the hull, a damage survey of the
cargo tanks was also performed.  Therefore, cleaning was not
undertaken "for inspection purposes only", as is alleged by the
applicant, but was also undertaken to determine what repairs were
necessary.  The cleaning and removal of oily water from the tank
to allow the assessment of necessary repairs is clearly cleaning
done in preparation of repairs within the meaning of C.I.E.
51/61.  Accordingly, the cost is dutiable.

                                     Sincerely,




                                     B. James Fritz
                                     Chief
                                     Carrier Rulings Branch