VES-13-18-CO:R:P:C 110945 KVS
Chief
Residual Liquidation and Protest Branch
6 World Trade Center
New York, NY 10048-0954
RE: Vessel repair; LASH barges; 19 U.S.C. 1466(h)(1)
Vessel: SAM HOUSTON V-48
Vessel Repair Entry: 514-3003000-0
Dear Sir:
This is in response to your memorandum dated November 9,
1990, regarding a petition for review filed in connection with
the subject vessel, which transmits for review certificates of
documentation and use for LASH barges used in conjunction with
the SAM HOUSTON V-48, vessel repair entry no. 514-30030000-0.
Our findings are set forth below.
FACTS:
The vessel SAM HOUSTON is a Lighter Aboard Ship (LASH) barge
mother vessel. Vessel repair entries were filed to cover various
repairs made to nine barges. An application for relief for these
repairs was filed and was denied in part in Headquarters decision
110023CG BEW, dated September 18, 1989. The petition for review
currently under consideration was timely filed.
ISSUE:
Whether the cost of parts, materials, equipment, and repairs
made abroad to a U.S.-documented LASH barge which is used as a
cargo container is exempt from vessel repair duties imposed
pursuant to 19 U.S.C. 1466(a).
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
engaged, intended to engage, or documented under the laws of the
United States to engage in the foreign or coastwise trade.
- 2 -
Section 1466 was amended by the Act of August 20, 1990 (Pub
L. 101-382), whereby a new paragraph (h)(1) was added which
exempts from duty under section 1466(a), the cost of parts,
materials, equipment and repairs made abroad to U.S.-documented
LASH barges used as cargo containers, with certain effective
date restrictions not here relevant.
In a letter dated October 2, 1990, the appropriate vessel
repair liquidation unit was informed of the need for the
submission of additional evidence regarding documentation and use
for the subject barges to be eligible for relief under the new
amendment. In response to our request, the petitioner has
submitted a certification of documentation and use as a cargo
container for each of the barges under consideration. Therefore,
since the barges have met the statutory requirements, we hereby
grant relief.
HOLDING:
Pursuant to 19 U.S.C. 1466(h)(1), the cost of parts,
materials, equipment and repairs made abroad to a U.S.-documented
LASH barge which is used as a cargo container is exempt from
duty.
Sincerely,
B. James Fritz
Chief
Carrier Rulings Branch