HQ 112441: Vessel Repair; Heavy Weather; Survey; PRESIDENT TRUMAN, v- 41; Entry No. C27-0067823-1; 19 U.S.C. 1466.

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 112441

                        February 24, 1993

VES-13-18  CO:R:IT:C  112441  JBW

CATEGORY:  Carriers

Deputy Regional Director
Commercial Operations
Pacific Region
1 World Trade Center
Long Beach, CA 90831

RE:  Vessel Repair; Heavy Weather; Survey; PRESIDENT TRUMAN, v-
     41; Entry No. C27-0067823-1; 19 U.S.C.  1466.

Dear Sir:

     This letter is in response to your memorandum that forwards
for our review the application for relief filed in conjunction
with the above-referenced vessel repair entry.

FACTS:

     The record reflects that the subject vessel, the PRESIDENT
TRUMAN, arrived at the port of Los Angeles, California, on April
25, 1992.  Vessel repair entry, number C27-0067823-1, was filed
on April 27, 1992.  The entry indicates among other items that
the vessel was surveyed while in Japan to ascertain the extent of
damages caused by heavy weather encountered by the vessel during
its voyage between Seattle, Washington, and Yokohama, Japan.  The
record demonstrates that the American Bureau of Shipping surveyor
found that the vessel required repairs to the shell, frame, and
deck.  The surveyor, however, found that the vessel was fit to
proceed.  The vessel returned to San Pedro, California,  where
permanent repairs were made.

ISSUE:

     Whether the cost of a survey performed to ascertain whether
repairs are necessary to correct damage resulting from heavy
weather is subject to vessel repair duty if the actual repairs
were delayed until the vessel returned to the United States.
 LAW AND ANALYSIS:

     Title 19, United States Code, section 1466, provides in
pertinent part for payment of duty in the amount 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 engage in such trade.

     The Customs Service has held that the costs of surveys
undertaken to ascertain the extent of damage sustained by a
vessel or whether repairs are deemed necessary are dutiable as
part of the repairs that are accomplished.  C.I.E. 429/61; C.S.D.
79-2, 13 Cust. B. & Dec. 993 (1979); C.S.D. 79-277, 13 Cust. B. &
Dec. 1395, 1396 (1979).  The Customs Service has held that
inspections not resulting in repairs are not dutiable. 
Headquarters Ruling Letter 110395, dated September 7, 1989; see
American Viking Corp. v. United States, 37 Cust. Ct. 237, 247,
C.D. 1830 (1956).

     The record reflects that the vessel encountered heavy
weather and sustained damage while en route between the United
States and Japan.  The vessel proceeded to Japan where a surveyor
from the American Bureau of Shipping examined the vessel.  The
surveyor found damages to the vessel that needed repair.  The
surveyor determined, however, that the vessel was fit to proceed. 
Permanent repairs were made in San Pedro, California.  From the
above-cited legal authority, we determine that the cost of the
American Bureau of Shipping survey is not subject to duty, for no
foreign repairs were made as a result of that inspection.

HOLDING:

     The cost of a survey performed to ascertain whether repairs
are necessary to correct damage resulting from heavy weather is
not subject to vessel repair duty if the actual repairs were
delayed until the vessel returned to the United States.


                              Sincerely,




                              Acting Chief