VES-13-18-CO:R:P:C 110714 LLB
Deputy Assistant Regional Commissioner
Classification and Value Division
ATTN: Regional Vessel Repair Liquidation Unit
New York, New York 10048-0945
RE: Response to request for opinion regarding the
dutiability of certain foreign shipyard operations
performed on the U.S.-flag vessel RALEIGH BAY, V-008,
Entry No. 514-3003586-8; arrived at the port of
Elizabeth, New Jersey, on December 11, 1988
Dear Sir:
Reference is made to your memorandum of December 18, 1989,
which forwards for our consideration the vessel repair entry and
related documentation filed by Sea-Land Service, Inc.
FACTS:
The vessel arrived in the United States on December 11,
1988, and filed a vessel repair entry the next day covering
certain foreign shipyard services which had been obtained during
the just-completed voyage. Various invoices to support the entry
were filed with Customs on February 10, 1989. Following a
solicitation of further information by Customs, Sea-Land supplied
invoices for some survey and work items which had not been
previously declared. This submission was received on April 11,
1989. In a last submission received by Customs on April 20,
1989, Sea-Land provided statements from the Master, Chief Mate,
Second Officer, and Third Officer, detailing the circumstances
of a collision with the dock in the port of Algerciras, Spain,
which allegedly led to the damage attended to abroad. No
request for extension of time to file documentation was ever
filed by Sea-Land.
ISSUE:
Whether the submissions made by the vessel owner constituted
a vessel repair entry and Application for Relief sufficient to
permit Customs to properly process and consider this matter under
established regulatory guidelines.
LAW AND ANALYSIS:
Section 1466 provides, in pertinent part, for payment of
duty in the amount of 50 percent ad valorem of 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.
Section 4.14(b)(2), Customs Regulations (19 CFR 4.14(b)(2)),
provides that a vessel repair entry shall be filed with Customs
within 5 days of first arrival in the United States. Such entry
must be marked to indicate whether it is a complete or incomplete
account of foreign expenditures. The section goes on to provide
that the entry papers "shall include" evidence of the cost of
each item (the best examples being invoices). This evidence must
be supplied at the time the entry is filed, if presented as a
complete account, or within 60 days of first arrival for
incomplete entry accounts. Thus the statutory entry requirement
is satisfied upon timely submission of a vessel repair entry form
together with supporting cost evidence.
The regulations provide for the contingency that certain
documentation may not be readily available by permitting parties
to apply for extensions of filing deadlines (19 CFR 4.14
(b)(ii)). Vessel Repair Liquidation Units may grant up to 30
additional days, and further time to file may be granted by
Customs Headquarters.
The Customs Regulations provide that while Applications for
Relief need not conform to any particular format, it is necessary
to provide certain basics for proper filing to have occurred.
The Application may not consist wholly of bald self-serving
statements, and to the extent that such statements are made,
proof of their verity must be supplied. The whole of the claim
for relief appearing in the only submission made to Customs
within the 60-day period provided by regulation is:
All foreign equipment, parts or materials
purchased for, and all repairs made to the
vessel was necessary for the safety and sea
worthiness of the vessel.
In this case we believe that we are requested to grant remission
of duty pursuant 19 U.S.C. 1466(d)(1), the subsection of the
statute under which relief is provided for certain bona fide
marine casualty occurrences. The statute requires the submission
of "good and sufficient evidence" to support such casualty
claims. In this case, no such evidence was timely submitted and
no request for extension of time was filed. The cost evidence
which was submitted was incomplete. Complete invoices were not
received until four months after arrival of the vessel, and some
of the invoices were in the Spanish language, despite the
regulatory requirement that foreign language documents shall be
accompanied by certified English translations (19 CFR
4.14(d)(1)(iv)).
In light of all of the foregoing facts, it is our opinion
that an adequate application for relief was not filed in this
case. Accordingly, the case cannot be considered on its merits.
HOLDING:
Following a thorough review of the facts and analysis of the
law, we recommend that this entry be referred for immediate
liquidation.
The vessel operator should be informed that the next, and
final, administrative review available is a protest submitted
pursuant to Part 174, Customs Regulations (19 CFR Part 174).
Sincerely,
B. James Fritz
Chief
Carrier Rulings Branch