HQ 113111: Vessel Repair Entry No. 718-0000430-2; 19 U.S.C. 1466; GREEN LAKE, V-48; U.S. Coast Guard inspection

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 113111

                            June 20, 1994

VES-13-18-CO:R:IT:C   113111 GOB

CATEGORY:  Carriers

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

RE:  Vessel Repair Entry No. 718-0000430-2; 19 U.S.C. 1466; GREEN
     LAKE, V-48; U.S. Coast Guard inspection 

Dear Sir:

     This is in response to your memorandum dated May 10, 1994,
which forwarded the application for relief submitted by Central
Gulf Lines, Inc. ("applicant") with respect to the above-referenced
entry.

FACTS:

     The record reflects the following.  The GREEN LAKE ("vessel")
is a U.S.-flag vessel owned and operated by the applicant.  Certain
foreign shipyard work was performed on the vessel on voyage 48. 
The vessel arrived at the port of Portland, Oregon on February 27,
1994 and filed a vessel repair entry dated March 2, 1994.

     You ask for our determination with respect to the following
items:    

          1. U.S. Coast Guard inspection for low press. Co2 system. 
Arranged service men for the inspection.
          
          5. Arranged mechanics to assist U.S. Coast Guard
inspection for D.G. & popping test for air vessels.
          
          8. U.S. Coast Guard inspection for electric system. 
Arranged electricians of TERASAKI, Electric for A.C.B. of E.S.B.
and black out test for M.S.B. etc.

Application

     The applicant states as follows:

     We claim the cost of the inspections are remissible based on
     the fact that the inspections were a part of the required   

                              - 2 -

     annual inspections by the U.S. Coast Guard.  The labor
     supplied was used solely as support services for the U.S.
     Coast Guard Representative, by providing assistance with the
     inspection as required.  Thus, in accordance with previous
     U.S. Customs decisions, these inspections meet criteria for
     remission of duty.

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.

     It is Customs position that in certain cases the cost of a
periodic and required inspection or survey by a governmental entity
or classification society is nondutiable.  However, where a
periodic and required inspection or survey by a governmental entity
or classification society is accompanied by repairs, the entire
cost is dutiable if the repairs are not separately invoiced.

     In this case, the applicant has not submitted any invoices of
a governmental entity or classification society.  Further, the
record indicates that repairs were accomplished as part of the
foreign shipyard work.  

     Accordingly, we find that the cost of the subject items is
dutiable.  

HOLDING:

     The cost of the subject items is dutiable pursuant to 19
U.S.C. 1466.



                              Sincerely,



                              Arthur P. Schifflin
                              Chief
                              Carrier Rulings Branch