HQ 112167: Entry No. C11-0034380-0; Vessel repair; Casualty; 19 U.S.C. 1466; M/V RAINBOW HOPE

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 112167

                          May 20, 1992


VES-13-18:CO:R:IT:C  112167 GFM

CATEGORY:  Carriers

Deputy Assistant Regional Commissioner
Classification and Value Branch
ATTN:  Regional Vessel Repair Liquidation Unit
New York  NY  10048-0945

RE:  Entry No. C11-0034380-0; Vessel repair; Casualty; 19 U.S.C.
      1466; M/V RAINBOW HOPE

Dear Sir:

     Reference is made to your memorandum of April 1, 1992,
which forwards for our consideration the Application for Relief
filed in regard to the above-captioned vessel repair entry.

FACTS:

     The record reflects that on November 15, 1991, the subject
vessel, the M/V RAINBOW HOPE, while engaged in cargo operations
at Praia da Vatoria, Azores, experienced an on-board crane
malfunction which prevented the replacement of hatch covers
which were previously placed ashore.  As no other crane
facilities were available to replace said covers, and as
replacement of the covers was required in order to ensure the
vessel's seaworthiness, a repair technician effected repairs to
the ship's crane.  Applicant now seeks to establish that said
malfunction constituted a casualty and that subsequently assessed
repair duties should be remissible.

ISSUE:

     Whether the evidence submitted is sufficient to demonstrate
that the equipment malfunction in question constitutes a casualty
entitling applicant to remission of duties under 19 U.S.C.
1466.

LAW AND ANALYSIS:

     Title 19, United States Code, section 1466(a), 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 the foreign or
coastwise trade, or vessels intended to be employed in such
trade.

     Title 19, United States Code, subsection 1466(d)(1), states
that the Secretary of the Treasury is authorized to remit or
refund such duties if the owner or master furnishes good and
sufficient evidence that the vessel was compelled 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.

     The term "casualty", as it is used in the statute, has been
interpreted as something, like stress of weather, that comes with
unexpected force or violence, such as fire, explosion, or
collision.  Dollar Steamship Lines, Inc. v. United States, 5
Cust. Ct. 23, 28-29, C.D. 362 (1940).  In this sense, a casualty
must arise from an identifiable event of some such sort.  In the
absence of evidence of such a casualty causing event, we must
consider the repair to have been necessitated by normal wear and
tear.  C.S.D. 89-95, 23 Cust. B. & Dec., No. 43, 4, 5 (1989).

     In the present case, although the applicant provided
documentation regarding the ship's specific malfunction and
subsequent repairs, the applicant furnished no information
whatsoever to show that said malfunction was caused by an event
similar in nature to those enumerated above.  Under these
circumstances, "good and sufficient" evidence of casualty has not
been provided.  Accordingly, remission cannot be granted.

HOLDING:

     Based upon the absence of evidence concerning the vessel's
alleged casualty, the request for remission of duties is denied.

                                   Sincerely,




                                   B. James Fritz
                                   Chief
                                   Carrier Rulings Branch