New York Vessel Repair Entry No. 85-414443-9, S/T TEXACO CALIFORNIA

HQ 109998 July 5, 1989 VES-13-18-CO:R:P:C 109998 GV CATEGORY: Carriers Deputy Assistant Regional Commissioner Classification and Value Division ATTN: Regional Vessel Repair Liquidation Unit 6 World Trade Center New York, New York 10048-0945 RE: New York Vessel Repair Entry No. 85-414443-9, S/T TEXACO CALIFORNIA Dear Sir: Upon our receipt in January, 1989, of an application and accompanying documentation forwarded by you regarding the above referenced vessel repair entry dated August 9, 1985, we have reviewed the entire record. Our findings are set forth below. FACTS: The S/T TEXACO CALIFORNIA is a U.S.-flag vessel owned by Texaco Marine Services. During the voyage in question the subject vessel called at Lisbon, Portugal, and Pembroke, England, where foreign work was performed. The vessel arrived in New York, New York, on August 2, 1985. Pursuant to a request for an extension of time to submit the proper documentation, the operators submitted an application for relief dated October 30, 1985. In addition to the application, the following documentation was submitted by the applicant to support the request for relief: invoices and a credit schedule from Lisnave dated July 22, 1985; additional information from Lisnave dated June 4, 1986, which segregated costs; invoices and a report from the American Bureau of Shipping; and previous Customs rulings regarding the dutiable status of various items under the vessel repair statute. ISSUE: Whether the foreign work performed on the subject vessel for which the applicant seeks relief is dutiable under 19 U.S.C. 1466. 2 LAW AND ANALYSIS: 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. At the outset we note that although the subject vessel arrived at New York on August 2, 1985, the vessel repair entry was not filed until August 9, 1985. Pursuant to section 4.14(b)(2), Customs Regulations (19 CFR 4.14(b)(2)) an entry must be filed with Customs at the port of arrival within five working days after arrival. Despite the late filing of this entry we will nevertheless address the merits of this case; however, future late filings will not receive the same consideration. Upon reviewing the record in its entirety, we find the following items subject to full credit in view of the fact that the work listed was not performed: Item 102 - Ballast Slops Item 107 - Bunker Tanks Aft Item 109 - Rudder Welding Item 111 - Hull Bilge Keel Item 112 - Caulking Item 118 - Bulkhead Test--Cofferdams Item 128 - Cargo Pipeline Test Item 129 - Domestic Water Tank Item 138 - Handrail and Pipe Hanger Repairs Item 142 - Fore Peak Coating Item 148 - 6" Bunker Line Main Deck Item 149 - Port Cofferdam Ladder Repair Aft Item 151 - Diesel Fire Pump Item 152 - Alteration to Deepwell Pump Emergency Sections (5) Item 153 - Gas Freer Assembly Removal 3 Item 157 - Deck Renewal Item 304 - Main Lube Oil Sump Item 305 - Main Lube Oil Coolers Item 404 - Cargo Pipe Line Test Item 503 - Auxiliary Condenser Item 506 - Deaerator Examination, Cleaning and Repair Item 510 - Fuel Oil Transfer Pump Worthington Item 518 - Electrical Reciprocating Ridge Pump Item 520 - Clapper Valve Repair Item 521 - Sea Valve Repairs Item 603 - Heat Lamps Item 701 - Shell Plate Renewals Item 702 - Bulkhead Stiffeners Item 703 - Port Stbd. Item 801 - Dedicated Clean Ballast Modification The following items are considered to be nondutiable either as modifications to the hull and fittings and/or otherwise nondutiable costs incurred: Item 101 - Owners Preamble (note: this item is nondutiable with the exception of the services of the certified chemist for the purposes of obtaining a gas-free certificate. The cost of such services should be apportioned between that work which is dutiable and that work which is not) Item 103 - Air Blowers Item 104 - Drydocking Item 115 - Docking Plugs Item 119 - Lifeboat Weight Test Item 120 - Cargo Boom Test Item 135 - Deepwell Pumps 4 Item 137 - Heating Coils Item 140 - Focsle Deck Opening Item 143 - Midships Boom Alteration Item 162 - Additional Services Item 165 - Additional Docking Plug Item 174 - Additional Work--Cargo Line Drains Item 203 - Internal Desuperheator Item 213 - Port and Starboard Casing and Stack Item 216 - Air Heater Repairs (i.e., ineffective repairs, redone in Item 233) Item 220 - Insulation of Boiler Steam Lines and Mountings Item 226 - Additional Work--Boiler Hydro. Item 228 - Additional--Main Steam Line Hydro. Item 231 - Additional Work--F.0. Heater Item 309 - Main Propulsion Reduction Gear Item 311 - After Line Shaft Bearing Item 312 - Steam Valve Relocation/Modification Item 401 - Rudder Pintle Item 407 - Steering Gear Waterbury Pump Size 5 Type A Item 411 - Slop Line Relocation from 4C Intro 3C/Modification Item 504 - First Stage Feed Heater Item 505 - Feedwater Heaters 3d and 4th Stage Chemical Cleaning Item 601 - Main Switchboard and Energy Switchboard Examination Item 602 - Megger Test-Power Circuits Item 604 - Floodlight Modifications 5 The following items are considered to be foreign repairs dutiable in their entirety: Item 116 - Rudder Palm Bolts Item 124 - Spare Anchor Item 125 - Cargo Tank Item 126 - Grab Rungs (Cargo Tanks) Item 130 - Lifeboat Diesel Engine Overboard Item 131 - Port Light Repair Item 132 - Pusnes Winch Repairs Item 136 - Manhole Cover Fwd. Fuel Oil Tank Item 144 - Stack Door Repair Item 145 - Stbd. Running Light Repair Item 146 - Fireroom Overhead Doors Item 147 - Pumproom Watertight Doors Coaming P/S (two) Item 156 - Inert Gas Scrubber Overboard Hull Penetration Item 158 - Liquid Seal Tank, Priming System for Cargo Pumps Item 161 - Ship Base Line Item 163 - Additional--Hull Painting Item 164 - Additional Work--Hull Anodes Item 167 - Additional--Anchor Chain Item 168 - Additional Work--Cargo Tanks Repairs Item 169 - Additional--Strong Back Plates Item 170 - Additional Work--Lifeboat Diesel Item 171 - Additional Work--Pusnes Winches Item 173 - Additional Work--Draft/Marks Item 175 - Stack Door Repair 6 Item 176 - Additional Work--Pumproom WTD Item 177 - Additional Work--Liquid Seal Tank Item 205 - Port and Stbd. Boiler Hydrostatic Testing Item 206 - Sectional Header Caulking Item 208 - Main Steam Line Hydrostatic Testing Item 212 - Fuel Oil Heaters (4) Chemical Cleaning Item 214 - Boiler Casing Repair Item 215 - Boiler Mounting Renewal Item 218 - Fuel Oil Heater Steam Valve Renewal Item 219 - Furnace Wind Box Repair (P/S Boiler) Item 221 - Smoke Stack Transition Piece Repair Item 222 - F.D. Fan Repairs Item 223 - Steam Line to Aft Main Feed Pump Item 224 - Additional--Boiler Cleaning Item 225 - Additional Work--Boiler Mounts Item 227 - Additional--Safety Valves Item 230 - Additional--Water Supply Item 232 - Additional--Casing/Stack Test Item 233 - Additional--Rework Item 216 Item 234 - Additional--F.O. Heater Valves Item 235 - Additional Work--Furnace/Windbox Item 310 - Main Thrust Bearing Item 313 - Astern Maneuvering Valve Item 315 - Additional Work--H.P. Turbine Item 318 - Additional Work--Reduction Gear Item 319 - Additional Work--Steam Valve 7 Item 403 - Rudder Post Packing Gland Item 406 - Steering Gear Maintenance and Examination Item 410 - Pumproom Ventilation Duct Item 415 - Balanced Flanges on Manifold Item 416 - Additional Works--Heating Coils Item 417 - Additional Work--Steering Gear Item 419 - Additional Work--Blkd. Spools Item 421 - Additional Work--Pumproom Vent Ducts Item 423 - Additional Work Item 509 - Fuel Oil Service (Note: although this item does not appear on the July 22, 1985, Lisnave invoice, it does appear on the June 4, 1986, Lisnave invoice) Item 511 - Lube Oil Service Item 514 - Feed Pump Coffin Horizontal Centrifugal Type CG Item 516 - General Service Pump Item 517 - Butterworth Pump Item 519 - Misc. Engine Room Valves Item 522 - Auxiliary Circ. Pump Foundation Item 523 - Cross Over Main/Aux. Circ. Item 526 - Low Main Injection Strainer Plate Item 527 - Butterworth Pump Foundation Bracket Item 528 - General Service Pump Foundation Item 529 - Sail Line Renewal Item 532 - Additional--lst Stage Heater Item 533 - Additional--3d/4th Stage Heater Item 537 - Additional--L.O. Service Pump Item 539 - Additional Work--Gen. Service 8 Item 543 - Additional Work--Sux. Circ. Fan Item 544 - Additional--X-Over Main Aux. Circ. Item 545 - Add'l Work--Boiler Fwd. Pump Line Item 606 - CO2 Eng. Room Item 607 - Add'l Work--Floodlights Item 710 - Shell Framing P.S. Engine Room I.W.O. Main Circulating Pump Item 712 - Additional--Shaft Alley The following items are considered to be dutiable in their entirety with the exception of those that have segregated nondutiable costs and those for which partial credit has been given: Item 105 - Hull Preparation For Paint--(Dutiable except for the cost of crane/staging) Item 106 - Hull Painting--(Dutiable except for the cost of crane/staging) Item 108 - Rudder Internal Coating--(Dutiable except for the cost of staging) Item 110 - Hull Anodes--(Dutiable except of the cost of crane and staging) Item 113 - Bottom Welding--(Dutiable except for amount of partial credit) Item 114 - Anchor Chains--(Dutiable except for cost of crane and staging) Item 121 - Structural Fractures--(Dutiable except for amount of partial credit) Item 122 - Anchor Windlass Repairs--(Dutiable except for amount of partial credit) Item 123 - Anchor Chain Repairs/Chain Locker--(Dutiable except for cost of crane and staging) Item 127 - Strong Back Plates (Hatch Covers)--(Dutiable except for amount of partial credit) Item 133 - Deck Penetration Fittings--(Dutiable except for 9 the cost of staging) Item 134 - Draft/Loading Marks--(Dutiable except for the cost of staging) Item 150- Piping Renewals to Anchor Windlass--(Dutiable except for the cost of staging) Item 154 - Cofferdam Coating--(Dutiable except for the cost of staging and the amount of partial credit) Item 155 - Anchor Riding Pawl Renewal--(Dutiable except for amount of partial credit) Item 159 - Blasting/Coating Water Tanks--(Dutiable except Part B covering services, blowers and rental air compressors) Item 160 - Fire Line Pipe Section--(Dutiable except for the cost of transportation) Item 166 - Additional Windlass Repair--(Dutiable except for the cost of transportation) Item 172 - Additional Work--Deck Penetration--(Dutiable except for the cost of staging) Item 201 - Main Boilers--(Dutiable except for the cost of staging) Item 202 - Boiler Refractory Two (2) Boilers--(Dutiable except for transport/crane costs and the cost of removing debris) Item 204 - Port and Stbd. Boiler Mounting, Open and Remove-- (Dutiable except for amount of partial credit) Item 207 - Boiler Safety Valves--(Dutiable except for cost of transportation) Item 209 - Boiler Repairs--(Dutiable except for cost of transportation) Item 217 - Deck Penetration Eye--Hye Equipment--(Dutiable except for amount of partial credit) Item 229 - Additional--Steam Line Baskets--(Dutiable except for cost of transportation) Item 236 - Additional Work--Smoke Stack--(Dutiable except for the cost of staging) 10 Item 301 - Tailshaft Withdrawal--(Dutiable except of the cost of transportation) Item 302 - Working Propeller Pitch Check and Polishing-- (Dutiable except for use of crane and amount of partial credit) Item 303 - HP/L.P. Turbine Couplings and Bolts--(Dutiable except for the amount of partial credit) Item 306 - HP Turbine--(Dutiable except for cost of staging) Item 307 - L.P. Turbine--(Dutiable except cost of staging) Item 308 - Main Turbo Generator Sets--(Dutiable except for cost of transportation) Item 314 - Additional Tailshaft--(Dutiable except for cost of transportation) Item 316 - Additional Work--L.P. Turbine--(Dutiable except for cost of transportation) Item 317 - Additional Work--T.G. Sets--(Dutiable except for cost of transportation) Item 402 - Rudder Pintle Bearings Top and Bottom--(Dutiable except for staging and transportation) Item 404 - Heating Coils Hydrostatic Test and Repairs-- (Dutiable except for amount of partial credit) Item 408 - Bulkhead Spool Pieces--(Dutiable except for cost of staging, crane and rigging) Item 409 - Rudder Repairs--(Dutiable except for costs of staging and transportation) Item 412 - Deepwell Cargo Pump Turbines--(Dutiable except for cost of transportation) Item 413 - Deepwell Cargo Pump Repairs--(Dutiable except for cost of transportation and amount of partial credit) Item 414 - Ventilation Ducts in Pump Room--(Dutiable except for costs of transportation, staging, rigging, crane and amount of partial credit) Item 418 - Additional Work--Steering Pumps--(Dutiable except 11 for cost of transportation) Item 420 - Additional Work--Rudder--(Dutiable except for costs of staging and crane) Item 422 - Additional--Deepwell Pump Turbine--(Dutiable except for costs of transportation and staging) Item 424 - Additional--Pipes in Tank 3C--(Dutiable except for cost of transportation) Item 425 - Strainer Box Ballast Pump No.2--(Dutiable except for cost of transportation) Item 426 - Additional--Pipe in Tank 5C--(Dutiable except for cost of transportation) Item 501 - Sea Valves and Sea Chest Stainers--(Dutiable except for cost of transportation) Item 502 - Main Condenser--(Dutiable except for cost of staging) Item 507 - Main Circulator Worthington--(Dutiable except amount of partial credit) Item 512 - Main Condensate Pump Worthington Size 3 UZS- 1--(Dutiable except for amount of partial credit) Item 513 - Auxiliary Condensate Pump--(Dutiable except for amount of partial credit) Item 515 - Feed Pump Warren Horizontal Centrifugal Six Stage General Electric Turbine--Special Survey--(Dutiable except for Part A) Item 524 - Boiler Feed Pump Steam Line Valve--(Dutiable except for amount of partial credit) Item 525 - Microphor Tank Renewal--(Dutiable except for cost of staging and crane) Item 530 - Additional Work--Sea Valves--(Dutiable except for cost of transportation) Item 531 - Additional Work--(Dutiable except for costs of rigging, crane service and staging) Item 534 - Additional Work--Main Circ--(Dutiable except for the cost of transportation) Item 535 - Additional Work--Aux. Circ.--(Dutiable except for 12 the cost of transportation) Item 536 - Additional Work--F.0. Service Pump--(Dutiable except for the cost of transportation) Item 538 - Additional Work--Warren Pump--(Dutiable except for the cost of transportation) Item 540 - Additional Work--BTWH Coffin Pump--(Dutiable except for the cost of transportation) Item 541 - Additional Work--Engine Valve--(Dutiable except for the cost of staging and transportation) Item 542 - Additional Work--Sea Valve Repairs--(Dutiable except for the cost of transportation) Item 546 - Additional Work--Low Mn. Suct Strainer--(Dutiable except for the cost of transportation) Item 605 - Additional--Electric Motor--(Dutiable except for the cost of transportation) Item 704 - Hull Inserts--(Dutiable except for the cost of staging) Item 705 - Steel Repairs--(Dutiable except for the cost of staging and the amount of partial credit) Item 706 - Shaft Alley Steel Repair--(Dutiable except for the amount of partial credit) Item 707 - Boiler Flat--(Dutiable except for the amount of partial credit) Item 708 - Shaft Alley Double Bottoms--(Dutiable except for the amount of partial credit) Item 709 - Lazarette Insert/Repairs--(Dutiable except for the cost of staging) Item 711 - Additional Work--Boiler Flat--(Dutiable except for the cost of transportation) Item 713 - Additional Work--Lazarette--(Dutiable except for the cost of staging) Item 901 - Cargo Tank Coating Repair--(Dutiable except for the costs of staging, ventilation and lighting) Upon further review of the file we note that the applicant has submitted documentation from the American Bureau of Shipping 13 (ABS) covering fees and charges for services rendered in conjunction with various surveys of the subject vessel. In this regard we note that ABS invoice no. 830791 refers to ABS reports LB 4476, LB 4487, and LB 4487-X. Of these reports, only LB 4476 was contained in the file. In order to support a claim of nondutiability, ABS invoices and the corresponding reports must be submitted. Accordingly, in regard to the surveys listed on ABS invoice no. 830791, all are considered to be non-dutiable periodic surveys with the exception of the following: the propeller damage and temporary repairs; rudder and rudder stock repairs; hull damage repairs; port and starboard boiler repairs; tanker requirements and annual load line inspection (the latter two surveys, although listed on the ABS invoice, were not contained in report no. LB 4476 which was the only ABS report submitted. Further in this regard, we note ABS invoice no. 830792 covers a "Statement of Fact Certificate Test Hose Handling Booms." This invoice refers to ABS report no. LB 4488 which was not submitted. Accordingly, the entire cost of this item is dutiable. In addition, we note that although the vessel repair entry lists anchor repairs which took place in Pembroke, England, the file contains no documentation (i.e., invoices, bills, etc.) from England. Accordingly, the total cost of the materials and labor listed on the entry for this particular items is dutiable. HOLDING: The foreign work performed on the subject vessel for which the applicant seeks relief is dutiable as noted above. Please advise the applicant for his information that petitions for relief must be filed within 30 days after your decision is mailed; further, the applicant, should a petition be filed and subsequently denied, will be banned from further consideration for administrative relief unless a supplementary petition or a protest is filed within 90 days following your decision letter in the case of a supplementary petition, or, in the case of a protest, the time period as provided by 19 CFR 4.14(f). Sincerely, B. James Fritz Chief Carrier Rulings Branch