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 > 1998 HQ Rulings > HQ 003906 - HQ 114067 > HQ 114017

Previous Ruling Next Ruling
HQ 114017

July 27, 1997

VES-13-18-RR:IT:EC 114017 GOB


Port Director of Customs
Attn: Vessel Repair Liquidation Unit
423 Canal Street, Room 303
New Orleans, LA 70130-2341

RE: Vessel Repair Entry No. C15-0019102-3; 19 U.S.C. 1466; M/V ADVANTAGE, V- 45; Application

Dear Sir or Madam:

This is in response to your memorandum dated July 3, 1997, which forwarded the application for relief submitted on behalf of Red River Shipping Corporation (the "applicant") with respect to the above-referenced vessel repair entry.


The M/V ADVANTAGE (the "vessel") is a U.S.-flag vessel owned and operated by the applicant. Certain foreign shipyard work was performed on the vessel prior to its arrival at Sunny Point, North Carolina on July 4, 1993. The subject vessel repair entry was subsequently filed.


Whether the costs involved with respect to the items 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 subject entry is a "pre-Texaco" entry, i.e., an entry filed before the appellate decision in Texaco Marine Services, Inc., and Texaco Refining and Marketing, Inc. v. United States, 44 F.3d 1539 (CAFC 1994), aff'g 815 F.Supp. 1484 (CIT 1993).

You have requested us to rule on the following items.

1. Exhibit 1, item 8, propeller polishing. We have held previously on numerous occasions that propeller polishing is dutiable as a maintenance operation. There is nothing in the record which would convince us that the subject propeller polishing is other than a dutiable maintenance operation. Accordingly, we find that it is dutiable. The separately itemized transportation charge is nondutiable because the subject entry is a pre-Texaco entry.

2. Exhibit 7, Simplex invoice no. 1162-06-93. The applicant appears to be claiming that the parts on this invoice are nondutiable pursuant to 19 U.S.C. 1466(h)(2).

19 U.S.C. 1466(h)(2) states:

The duty imposed by subsection (a) of this section shall not apply to-

(2) the cost of spare repair parts or materials (other than nets or nettings) which the owner or master of the vessel certifies are intended for use aboard a cargo vessel, documented under the laws of the United States and engaged in the foreign or coasting trade, for installation or use on such vessel, as needed, in the United States, at sea, or in a foreign country, but only if duty is paid under appropriate commodity classifications of the Harmonized Tariff Schedule of the United States upon first entry into the United States of each such spare part purchased in, or imported from, a foreign country, or

19 U.S.C. 1466(h)(2) was enacted on August 20, 1990. Section 484E(b) of Pub. L. 101-382 provided that 19 U.S.C. 1466(h)(2) applied to: any entry made before the date of enactment (August 20, 1990) that is not liquidated on the date of enactment; and any entry made on or after the date of enactment and on or before December 31, 1992.

19 U.S.C. 1466(h)(2) was reenacted by Pub. L. 103-465, Title I, ? 112(a), Dec. 8, 1994, 108 Stat. 4825, which provided that, in addition to the time period stated in the previous paragraph, 19 U.S.C. 1466(h)(2) shall apply to any entry made on or after the date of the entry into force of the WTO Agreement with respect to the United States, January 1, 1995.

Thus, 19 U.S.C. 1466(h)(2) was not in effect from January 1, 1993 through December 31, 1994.

Inasmuch as the subject entry was filed in July 1993, 19 U.S.C. 1466(h)(2) does not apply to the entry.

Accordingly, there is no basis upon which to find that the subject parts are not subject to duty under 19 U.S.C. 1466. They are dutiable.

3. Exhibit 15, Heien Larsse invoice no. AB9047171, travel time. Travel time is a nondutiable item for pre-Texaco entries. Accordingly, this item is nondutiable.


As detailed supra, the application is granted in part and denied in part with respect to the three subject items.


Jerry Laderberg
Acting Chief,

Previous Ruling Next Ruling