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HQ 112537

May 20, 1993

VES-13-18-CO:R:IT:C 112537 BEW


Chief, Residual Liquidation and Protest Branch
U.S. Customs Service
6 World Trade Center
New York, New York 10048-0945

RE: Vessel Repair Entry No. C46-0013786-2 dated October 17, 1991; 19 U.S.C. 1466; Application; Invoice; Evidence; ADM. WM. M. CALLAGHAN, Voyage 02

Dear Sir:

This is in response to your memorandum of November 27, 1992, regarding the application for relief on vessel repair entry C46- 0013786-2.


The record reflects that the ADM. WM. M. CALLAGHAN arrived at the port of Bayonne, New Jersey, on October 11, 1991. Vessel repair entry No. C46-0013786-2 was filed on October 17, 1991, reflecting foreign repairs to the vessel as a result of the vessel's grounding in the Red Sea during September 22, 1990.

The subject of this ruling is an application for relief.


Whether the documents submitted by the applicant are sufficient to sustain the application for relief.


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 documented under the laws of the United States to engage in the foreign or coastwise trade, or vessels intended to be employed in such trade.

The Customs Regulations provide at section 4.14(b)(2) (19 CFR 4.14(b)(2)), that entry of all foreign repairs, equipment, parts, and materials purchases, shall be made to Customs at the first port of arrival within five (5) working days of such arrival. In recognition of the fact that it is often the case that not all information is at hand in such short order, the regulations provide that the entry may be marked to indicate that it is incomplete. Sixty (60) days are provided to submit cost evidence to render the entry complete, and provision for further extensions is made.

Furthermore, 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.

Title 19, Code of Federal Regulations, section 4.14(d)(1)(iii), states in part:

Unless such evidence is already filed with Customs, each application for relief shall include duplicate copies of the following evidence, in addition to any other documents the applicant wishes to submit in support of the application:

(A All itemized bills, receipts, and invoices covering items specified in paragraph (a)(1) of this section, segregating the cost of those items for which relief is sought from all other items listed in the vessel repair entry.

It is a well established Customs principle that relief cannot be granted to a party that has failed to satisfy its obligation pursuant to 19 C.F.R. 4.14(b)(2)(ii) to provide evidence of cost of repairs (i.e., invoices) within 60 days after the date of the vessel's arrival. Headquarters Decision 109961 KMF (3-22-89).

The evidence required by the regulations includes itemized bills, receipts, and invoices. At a minimum, the evidence must include some proof from the shipyard/vendor as to the work in question and the cost thereof. Internal documents, standing alone, are insufficient but will be considered in support of the evidence mentioned above.

In the instant case, the documents submitted do not meet the requirements set forth in the Customs Regulations stated above. Accordingly, we cannot act on this submission without a proper Application for Relief.
Under the provisions of 4.14(d)(1)(i) of the Customs Regulations, the application for relief need not be in any particular form. The application for relief should allege that an item or a repair expense covered by the entry is not subject to duty under paragraph (a) of this section, or that the articles purchased or the repair expenses are within the provisions of paragraph (c) of this section, or that both conditions are present. The application for relief also shall certify that all foreign equipment, parts, or materials purchased for, and all foreign repairs made to, the vessel within one year immediately proceding the application have been declared as required by this section, or the application shall be deemed incomplete.

The application for relief is denied. Please inform the applicant of the right to file a petition for review pursuant to 19 C.F.R. 4.14(d)(2).


The application for relief is denied on the basis that the evidence submitted is insufficient to substantiate a claim upon which relief can be granted.


Acting Chief

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