HQ 113246: Vessel Repair; 19 U.S.C. 1466; Protest; M/V NEDLLOYD HUDSON, V-39; Entry No. 559-1237242-6; Casualty

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 113246

                           October 13, 1994                       

VES-13-18-CO:R:IT:C  113246 GOB

CATEGORY: Carriers

Chief, Residual Liquidation and Protest Branch
New York Region
Six World Trade Center
New York, New York 10048-0945

RE:  Vessel Repair; 19 U.S.C. 1466; Protest; M/V NEDLLOYD HUDSON,
     V-39; Entry No. 559-1237242-6; Casualty

Dear Sir:

     This is in response to your memorandum dated September 30,
1994, which forwarded the protest submitted by Sea-Land Service,
Inc. ("protestant") in connection with the above-referenced entry.

FACTS:

     The record reflects that the M/V NEDLLOYD HUDSON (the
"vessel") arrived at the port of Boston on August 21, 1991.  Vessel
repair entry no. 559-1237242-6 was filed on August 23, 1991. 
Shipyard work was performed on the vessel in Rotterdam, Holland.

     By letter dated June 11, 1993, your office denied in part the
application for relief in this case based upon "insufficient
documentation for `casualty.' "

     By Ruling 112909 dated October 20, 1993, this office denied
the petition based on the lack of good and sufficient evidence that
the foreign repairs were necessary to secure the safety and
seaworthiness of the vessel to enable it to reach its port of
destination.

     The protestant asks for relief with respect to the same two
items which were the subject of the petition, item no. 124 on
Wilton-Fijenoord b.v. invoice dated August 16, 1991 and ABS survey
invoice no. RO 9885.  In support of its claim that remission is
warranted, the protestant has submitted the following
documentation:

          1.  an affidavit from its Manager, Fleet Services dated
April 7, 1994;

          

                              - 2 -

          2.  a Marine Inspection Report from the U.S. Coast Guard
- handwritten notes dated August 6, 1991 through August 10, 1991; 

          3.  an ABS Report dated August 10, 1991;

          4. a certification by the master of the vessel dated July
1, 1993;

          5. a copy of U.S. Coast Guard Form 2692, Report of Marine
Accident, Injury or Death signed by the master of the vessel and
dated August 4, 1991; and

          6. a copy of the vessel's deck log for August 3, 1991.

ISSUE:

     Whether, pursuant to 19 U.S.C. 1466(d)(1), good and sufficient
evidence has been submitted which warrants the remission of vessel
repair duties.

LAW AND ANALYSIS:

     19 U.S.C. 1466(a) 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.  

     19 U.S.C. 1466(d)(1) provides in part that the Secretary of
the Treasury is authorized to remit or refund such duties if the
owner or master of the vessel furnishes good and sufficient
evidence that the vessel was compelled by stress of weather or
other casualty to put into a foreign port and make repairs to
secure the safety and seaworthiness of the vessel to enable her to
reach her port of destination.

     19 CFR 4.14(c)(3)(i) provides that "port of destination" means
such port in the United States and "... only the duty on the cost
of the minimal repairs needed for the safety and seaworthiness of
the vessel is subject to remission or refund."

     19 U.S.C. 1466 and 19 CFR 4.14 essentially set forth a three-
part test, all of the elements of which must be established by good
and sufficient evidence to qualify for remission:

          1. a casualty occurrence;

          2. an unsafe and unseaworthy condition; and

          3. the inability to reach the port of destination without
foreign repairs.

                              - 3 -

     After a consideration of the evidence of record, we find that
the protestant has satisfied the three-part test described supra. 
In particular, the U.S. Coast Guard Marine Report and the ABS
Report are instrumental in establishing the protestant's claim.

HOLDING:

     Pursuant to 19 U.S.C. 1466(d)(1), the protestant has submitted
good and sufficient evidence that the vessel was compelled by
casualty to make the subject repairs to secure the safety and
seaworthiness of the vessel to enable her to reach her port of
destination.  Accordingly, the protest is granted.

     In accordance with Section 3A(11)(b) of Customs Directive    
099 3550-065, dated August 4, 1993, Subject: Revised Protest
Directive, this decision should be mailed by your office to the
protestant no later than 60 days from the date of this letter.  Any
reliquidation of the entry in accordance with the decision must be
accomplished prior to mailing of the decision.  Sixty days from the
date of the decision the Office of Regulations and Rulings will
take steps to make the decision available to Customs personnel via
the Customs Rulings Module in ACS and the public via the Diskette
Subscription Service, the Freedom of Information Act and other
public access channels.



                              Sincerely,



                              Arthur P. Schifflin
                              Chief
                              Carrier Rulings Branch