VES-13-02/18 CO:R:IT:C 111853 JBW
Deputy Assistant Regional Commissioner
Classification and Value Division
ATTN: Regional Vessel Repair Liquidation Unit
6 World Trade Center
New York, New York 10048-002980
RE: Vessel Repair; Application for Relief; Late Filing; Penalty;
19 U.S.C. 1466; 19 C.F.R. 4.14; SEA-LAND VALUE; Entry No.
514-3004476.
Dear Sir:
This letter is in response to the application for relief
filed by Sea-Land Service, Inc., on June 20, 1991, in conjunction
with the above-referenced vessel repair entry.
FACTS:
The record reflects that the subject vessel, the SEA-LAND
VALUE, arrived at the port of Newark, New Jersey, on April 7,
1991. A vessel repair entry, marked incomplete, was filed on the
same day as arrival. No further communication was received from
the vessel operator until June 20, 1991, at which time an
application for relief was filed. At this time, cost evidence
relating to the entry was also filed. Your office issued a
memorandum dated August 16, 1991, to the Office of Fines,
Penalties and Forfeitures, Newark Region, to recommend that that
office proceed with a penalty action for failure to submit cost
documents within sixty days of arrival. 19 C.F.R.
4.14(b)(2)(ii).
ISSUE:
Whether the vessel operator timely filed its application for
relief and its cost documentation.
LAW AND ANALYSIS:
Section 4.14(d) of the Customs Regulations provides specific
time limitations for the submission of an application for relief
of vessel repair duties. This section states:
The application for relief, with supporting
evidence, shall be filed within 60 days from
the date of first arrival of the vessel.
However, if good cause is shown, the
appropriate vessel repair unit may authorize
one 30-day extension of time to file beyond
the 60-day filing period.
19 C.F.R. 4.14(d)(1)(ii) (1991). Unless steps are taken to
validate or complete an application within the time period
established by the regulations, the entry is subject to
immediate liquidation upon the expiration of this time period.
Headquarters Ruling Letter 110739, dated March 21, 1990.
The vessel under consideration first arrived on April 7,
1991. The 60-day filing period in this case expired June 8,
1991. Yet, the first communication by the ship's owner appearing
in the record was received by the Customs Service on June 20,
1991. The record contains no evidence that an extension of time
was granted by the vessel repair liquidation unit. The entry is
consequently subject to immediate liquidation.
Furthermore, the Customs Regulations provide that evidence
showing the cost of each item appearing in the entry must be
submitted within sixty-days from the date of the vessel's
arrival, unless the appropriate vessel repair liquidation unit
grants an extension. 19 C.F.R. 4.14(b)(2)(ii). Again, the
record contains no evidence that an extension was authorized, and
the supporting evidence was filed after the sixty-day time period
had expired. We therefore concur in your recommendation that a
penalty action be instituted.
HOLDING:
The application for relief, with supporting evidence, shall
be filed within sixty days from the date of first arrival of the
vessel. The subject vessel arrived on April 7, 1991, and the
sixty-day time period expired on June 8, 1991. However, no
communication was received from the vessel operator until June
20, 1991, and no extension of time was authorized. The entry is
therefore subject to immediate liquidation. Further, we concur
in your recommendation that a penalty action be instituted for
the failure to submit in a timely manner evidence of vessel
repair costs.
Sincerely,
B. James Fritz
Chief
Carrier Rulings Branch