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HQ 114042

November 18, 1997

VES-13-18-RR:IT:EC 114042 GEV


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. C13-0036093-5; M/S FAUST; V-178; Defective Application for Relief

Dear Sir:

This is in response to your memorandum dated July 25, 1997, which forwards for our review and consideration documentation seeking relief from the assessment of vessel repair duties filed by counsel on behalf of V-Ships/International Marine Carriers, Inc., (the operator of the subject vessel) in connection with the above-referenced vessel repair entry.


The vessel M/S FAUST underwent extensive shipyard operations while outside of the United States. A vessel repair entry was filed in a timely fashion. We are asked to review some of the operations performed in the foreign shipyard for the purpose of determining their dutiability. The operator, in seeking relief from the duty provisions of ? 1466, Tariff Act of 1930, as amended (19 U.S.C. ? 1466), filed a short cover letter forwarding various invoices (some of which contain unsigned, undated, handwritten notes) and documentation which reflect proposed dispositions, but no specific plea for relief from duty was filed. Although that letter denominates itself an Application for Relief, it does not rise to that level.


Whether sufficient evidence has been submitted which will allow thorough consideration of the dutiability aspects of the subject foreign shipyard operations involved in this matter.


Title 19, United States Code, ? 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 regulations governing the submission of evidence and the determination of dutiability of foreign shipyard operations under provides that while an Application for Relief need not be submitted in any particular format, it is necessary that it:

...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.

None of these allegations appear in the submitted documentation. The requirements appearing in the regulations carry the force and effect of law, having been promulgated pursuant to the specific authority conferred by statute (19 U.S.C. ?? 1466 and


Following review of the evidence submitted and an analysis of the applicable law and precedents, we have determined that, as a matter of law, relief cannot be granted for the reasons set forth in the Law and Analysis section of this ruling. This entry should be liquidated and the vessel operator should be informed of the right to file a protest of the liquidation under 19 U.S.C. in previous rulings concerning vessel repair entries (see Customs ruling letters 111714, 111746, 113521 and 113525).


Jerry Laderberg

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