United States International Trade Commision Rulings And Harmonized Tariff Schedule
faqs.org  Rulings By Number  Rulings By Category  Tariff Numbers
faqs.org > Rulings and Tariffs Home > Rulings By Number > 1996 HQ Rulings > HQ 226089 - HQ 226535 > HQ 226521

Previous Ruling Next Ruling
HQ 226521

November 21, 1995

VES-13-06/18-R:IT:EC 226521 GOB


Port Director of Customs
Attn.: Vessel Repair Liquidation Unit, Room 415 P.O. Box 2450
San Francisco, CA 94126

RE: Vessel Repair Entry No. 110-6461504-7; 19 U.S.C. 1466; PRESIDENT JEFFERSON, V-303; Protest; Canceled invoice

Dear Sir:

This is in response to your memorandum dated October 23, 1995, which forwarded the protest submitted by American President Lines, Ltd. ("protestant") with respect to the above-referenced vessel repair entry.


The S.S. PRESIDENT JEFFERSON ("the vessel") is a U.S.-flag vessel owned and operated by the protestant. Certain foreign shipyard work was performed on the vessel in Japan and Taiwan in February 1994. The vessel arrived at the port of Seattle on March 8, 1994. The subject entry was timely filed on March 15, 1995.

In Ruling 113315 dated March 16, 1995, the petition for relief with respect to the subject entry was granted in part and denied in part.

The protest pertains to the costs on invoice IS40236, which were listed as item #11 on the CF 226.


Whether the costs at issue are dutiable pursuant to 19 U.S.C. 1466.


19 U.S.C. 1466 provides for the payment of duty at a rate of fifty 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 be employed in such trade.

The protestant states that the costs on the subject invoice are in dispute and will not be paid. It states that the vendor, Japan Marine Technologies Ltd. ("JMT"), has agreed to withdraw and cancel the invoice. The protestant has submitted a letter dated August 16, 1995 from JMT to the protestant, in which JMT states:

In consideration of our mutual good relation in the past, however, we accept your request of this time and will cancell [sic] the above invoice [invoice IS40236] with expectation to develop more business with you in the future.

After a consideration of the record, we find that the protestant has satisfactorily established that the costs on the subject invoice were not in fact expenses of foreign repairs within the meaning of 19 U.S.C. 1466 because they have not been paid by the protestant and the vendor has canceled the invoice.


The costs on invoice IS40236 are not expenses of foreign repairs within the meaning of 19 U.S.C. 1466 because they have not been paid by the protestant and the vendor has canceled the invoice. Accordingly, the protest is granted.

In accordance with Section 3A(11)(b) of Customs Directive 099 3550-065, dated August 4, 1993, Subject: Revised Protest Directive, this decision should be mailed by your office to the protestant no later than 60 days from the date of this letter. Any reliquidation of the entry in accordance with the decision must be accomplished prior to mailing of the decision. Sixty days from the date of the decision the Office of Regulations and Rulings will take steps to make the decision available to Customs - personnel via the Customs Rulings Module in ACS and the public via the Diskette Subscription Service, the Freedom of Information Act and other public access channels. Sincerely,

International Trade Compliance Division

Previous Ruling Next Ruling