VES-13-18-RR:IT:EC 114042 GEV
Chief, Residual Liquidation and Protest Branch
U.S. Customs Service
6 World Trade Center
New York, New York 10048-0945
RE: Vessel Repair Entry No. C13-0036093-5; M/S FAUST; V-178;
Defective Application
for Relief
Dear Sir:
This is in response to your memorandum dated July 25, 1997,
which forwards for our review and consideration documentation
seeking relief from the assessment of vessel repair duties filed
by counsel on behalf of V-Ships/International Marine Carriers,
Inc., (the operator of the subject vessel) in connection with the
above-referenced vessel repair entry.
FACTS:
The vessel M/S FAUST underwent extensive shipyard operations
while outside of the United States. A vessel repair entry was
filed in a timely fashion. We are asked to review some of the
operations performed in the foreign shipyard for the purpose of
determining their dutiability. The operator, in seeking relief
from the duty provisions of 1466, Tariff Act of 1930, as
amended (19 U.S.C. 1466), filed a short cover letter forwarding
various invoices (some of which contain unsigned, undated,
handwritten notes) and documentation which reflect proposed
dispositions, but no specific plea for relief from duty was
filed. Although that 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.
- 2 -
LAW AND ANALYSIS:
Title 19, United States Code, 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
1466 are found in 4.14, Customs Regulations (19 CFR
4.14). Subsection (d)(1) of 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. 1466 and
1498(a)(10)).
HOLDING:
Following 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. We have reached this same conclusion
in previous rulings concerning vessel repair entries (see Customs
ruling letters 111714, 111746, 113521 and 113525).
Sincerely,
Jerry Laderberg
Chief
Entry Procedures and Carriers
Branch