HQ 112379: User Fees; U.S. Government Owned Vessels; MARAD; 19 U.S.C. 58c(a)(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 112379

                       September 10, 1992

VES-5-08-CO:R:IT:C 112379 GFM

CATEGORY:  Carriers

Mr. R. Short
Thornley & Pitt, Inc.
48 Gold Street
San Francisco  CA  94133

RE:  User Fees; U.S. Government Owned Vessels; MARAD;
     19 U.S.C. 58c(a)(1)

Dear Mr. Short:

     This is in response to your letter dated July 10, 1992,
requesting exemption from the statutorily mandated user fee of
$397.00 assessed upon arrival of commercial vessels weighing 100
net tons or more.  Our ruling is set forth below.

FACTS:

     Claimant represents both the U.S.A. S/T CHESAPEAKE and the
U.S.A. S.S. CAPE JUBY.  Both vessels are owned by the United
States and, under the auspices of the Secretary of Transportation
acting through the Maritime Administration, have been chartered
by the Military Sea Lift Command.  The Maritime Administration
has appointed American Foreign Shipping Co. as its agent.  The
S/T CHESAPEAKE arrived at San Francisco, California, on August 4,
1991, whereupon a user fee of $397.00 was paid on its behalf by
claimant.  The S.S. CAPE JUBY arrived at San Francisco,
California, on March 30, 1991, whereupon a user fee of $397.00
was paid on its behalf by claimant.  Claimant now objects to
these charges and seeks a ruling regarding the applicability of
the user fee statute to these vessels. 

ISSUE:

     Whether the subject vessels are considered non-commercial
vessels exempting them from the user fees imposed by 19 U.S.C.
58c(a)(1).
 LAW AND ANALYSIS:

     Title 19, United States Code, section 58c(a)(1), provides
for the assessment of a $397.00 user fee upon the arrival of a
commercial vessel of 100 net tons or more.  The statute does not
provide an exemption for commercial vessels simply because they
are operated by a government entity.  Customs has determined,
however, that a vessel owned by or under the complete control of
the United States, not carrying passengers or merchandise in
trade, is not a commercial vessel for purposes of 19 U.S.C.
58c(a)(1). 

     In the present case, the subject vessels are exempt from the
user fees established in 19 U.S.C. 58c(a)(1) in that they are not
commercial vessels for purposes of that statute.  The submitted
documents indicate that the vessel's operation and movements were
subject to the complete discretion of the U.S. Navy.  The S/T
CHESAPEAKE undertook repairs necessary to its efficient operation
and the S.S. JUBY was involved in the transportation of military
explosives.  These activities signify that the vessels were under
the control of the United States.  Additionally, there is no
indication in the submitted documentation that the subject
vessels were used to carry passengers or merchandise in trade. 
Thus, in accord with prior Customs Service determinations, the
vessels under consideration are not commercial vessels as that
term is used in 19 U.S.C. 58c(a)(1), and are exempt from payment
of the attendant $397.00 user fee.

HOLDING: 

     The above discussed MARAD-operated, U.S. Government-owned
vessels used for the purpose of supporting operations of the
Department of the Navy are not considered commercial vessels as
that term is used in 19 U.S.C. 58c(a)(1) and are therefore
exempted from the attendant $397.00 user fee.

                                        Sincerely,




                                        B. James Fritz
                                        Chief
                                        Carrier Rulings Branch