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HQ 110986

July 9, 1990

VES-13-18-CO:R:P:C 110986 GV


Chief, Technical Branch
Commercial Operations
Pacific Region
1 World Trade Center
Long Beach, California 90831

RE: Port Hueneme Vessel Repair Entry No. C27-0011756-0; GREEN WAVE V-36

Dear Sir:

Your memorandum dated April 13, 1990, forwarded an application for relief from duties assessed pursuant to 19 U.S.C. 1466. You request that we review one item contained in the above referenced entry. Our findings are set forth below.


The GREEN WAVE is a U.S.-flag vessel owned by Central Gulf Lines, Inc. (Central Gulf) of New Orleans, Louisiana. The vessel had foreign repairs performed in September and November, 1989. Subsequent to the completion of the repairs the subject vessel arrived in the United States at Port Hueneme, California, on December 28, 1989. A vessel repair entry covering the work in question was filed on January 3, 1990.

Pursuant to an authorized extension of time until March 28, 1990, an application for relief, dated March 27, 1990, was timely filed. The specific charges for which relief is claimed are those for the services of an engineer from the Canadian firm of Krupp Mak Diesel Inc. who rode the vessel from Nordenham, West Germany, to Gibraltar. The applicant claims that these charges should be nondutiable since the duties of the engineer "were to take readings of the engine's performance, not to perform repairs. We had ordered these diagnostics to aid with our planning." (see the second and third paragraphs of the application) In support of this claim the applicant submitted with the application an itemized invoice (Exhibit 1), and a statement of activities (Exhibit 2). In addition, by letter
dated March 29, 1990, and received by the San Francisco Vessel Repair Liquidation Unit (VRLU) on April 2, 1990, the applicant submitted a cost analysis spread sheet of duty and a service report of the engineer.


Whether the foreign expenses for which the applicant seeks relief are dutiable under 19 U.S.C. 1466.


Title 19, United States Code, section 1466, 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 foreign or coastwise trade, or vessels intended to engage in such trade.

Pursuant to section 4.14(d)(1)(ii), Customs Regulations, the application for relief, with supporting evidence, shall be filed within 60 days from the date of first arrival of the vessel, unless Customs grants an extension. Accordingly, pursuant to the San Francisco VRLU's granting of the applicant's request for an extension of time, the deadline for filing the supporting evidence and application for this entry was March 28, 1990. Any evidence submitted after that date will not be considered in the liquidation of this entry. Furthermore, Central Gulf should be informed that absent Customs authorized extensions of time, failure to submit an application for relief with supporting evidence within the 60-day time period noted above results in the entry being forwarded for immediate liquidation.

Upon reviewing the evidence submitted, it should be noted that the statement of activities of the engineer (Exhibit 2) was in German and not accompanied by an English translation that is certified for accuracy by the translator as required by 19 CFR 4.14(d)(1)(iv). As to the remaining evidence under consideration, it appears that the engineer's activities included more than just the mere taking of readings of the engine's performance, but also work that was tantamount to maintenance of the engine as well as making recommendations as to the repairs necessary for the engine's operation. Accordingly, in the absence of evidence to the contrary, the services of the engineer constitute dutiable charges under section 1466. The applicant's request is therefore denied and the entry should be liquidated immediately with the sending of a bill when appropriate.


The foreign costs discussed above for which the applicant seeks relief are dutiable under 19 U.S.C. 1466.


B. James Fritz

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