VES-13-18-CO:R:P:C 110946 BEW
Deputy Assistant Regional Commissioner
Commercial Operations
ATTN: Regional Vessel Repair Liquidation Unit
New York, New York 10048-0945
RE: Dutiability of certain foreign shipyard operations
performed on U.S.-flag LASH barges, entry No. 514-3003047-1
Dear Sir:
Reference is made to memoranda dated March 22, 1990 and
November 9, 1990, from your office relating to a petition for
review and certificates of documentation and use for LASH barges
used in conjunction with the S.S ROBERT E. LEE, V-47, filed by
Central Gulf Lines, Inc., in relation to entry number 514-
3003047-1, dated August 20, 1987. The entry was filed upon the
arrival of the vessel S.S. ROBERT E. LEE, V-47, at the port of
New York on August 19, 1987, whereupon duties were assessed upon
the value of foreign shipyard operations pursuant to section 466,
Tariff Act of 1930, as amended (19 U.S.C. 1466).
The vessel ROBERT E. LEE is a Lighter Aboard Ship (LASH)
barge mother vessel. A single vessel repair entry was filed to
cover repairs to forty-four (44) LASH barges, each of which
should have been the subject of a separate entry with unique
entry number. An application for relief for repairs made to
three (3) of the subject barges was filed by Central Gulf and was
denied in part in Headquarters decision 109991CG BEW, dated
September 18, 1989. The petition for review currently under
consideration was timely filed.
Central Gulf claims that the repairs were made to the said
three (3) barges because damages resulted from a casualty. Those
barges for which relief is sought are as follows:
CG - 596,
CG - 597, and
CG - 574.
Our findings are set forth below.
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.
The Customs and Trade Act of 1990 (Pub. L. 101-382) dated
August 20, 1990, amends section 1466, 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 to your office dated October 2, 1990, we
informed you that the petitioner needed to submit 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 vessels have met the
statutory requirements, the petition is hereby granted.
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