VES-13-18-CO:R:IT:C 111746 LLB
Deputy Assistant Regional Commissioner
Commercial Operations Division
ATTN: Regional Vessel Repair Liquidation Unit
New Orleans, Louisiana 70130
RE: Vessel repair; Defective Application for Relief; No grounds
stated; Vessel SEALAND RELIANCE, V-1; Vessel repair entry
number C53-0012164-3; Arrival at port of Houston, Texas
Dear Sir:
Reference is made to your memorandum of June 28, 1991, which
forwards for our consideration documentation associated with the
above-captioned vessel repair entry.
FACTS:
The vessel SEALAND RELIANCE was taken to various foreign
shipyards for the purpose of having performed various survey,
repair, and modification procedures. The vessel remained in the
foreign shipyards from September 8 to 23, 1990; September 30,
1990 to January 24, 1991; January 26, 1991; and January 29 to 30,
1991. The operator filed a timely vessel repair entry upon
return to the United States on February 9, 1991. The operator,
in seeking relief from the duty provisions of section 466, Tariff
Act of 1930, as amended, (19 U.S.C. 1466), filed a one-page cover
letter forwarding various invoices and worksheets which reflect
proposed dispositions. Although the letter denominates itself an
Application for Relief, it does not rise to that level.
ISSUE:
Whether sufficient evidence has been submitted which will
allow thorough consideration of the dutiability aspects of the
subject foreign shipyard operations involved in this matter.
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.
The regulations governing the submission of evidence and the
determination of dutiability of foreign shipyard operations under
section 1466 are found in section 4.14, Customs Regulations (19
CFR 4.14). Subsection (d)(1) of section 4.14 (19 CFR 4.14(d)(1))
provides that while an Application for relief need not be
submitted in any particular format, it is necessary that it:
...allege that an item or a repair expense
covered by the entry is not subject to duty
under paragraph (a) of this section, or that
the articles purchased or the repair expenses
are within the provisions of paragraph (c) of
this section, or that both conditions are
present.
None of these allegations appear in the submitted documentation.
The requirements appearing in the regulations carry the force and
effect of law, having been promulgated pursuant to the specific
authority conferred by statute (19 U.S.C. 1498(a)(10)).
HOLDING:
Following a thorough review of the evidence submitted and an
analysis of the applicable law and precedents, we have determined
that, as a matter of law, relief cannot be granted for the
reasons set forth in the Law and Analysis section of this ruling.
This entry should be liquidated and the vessel operator should be
informed of the right to file a protest of the liquidation under
19 U.S.C. 1514 and 19 CFR Part 174.
Sincerely,
B. James Fritz
Chief
Carrier Rulings Branch