Vessel Repair Entry No. 603-1016990-3; 19 U.S.C. 1466; OCEAN PHOENIX; Application

HQ 113390 April 17, 1995 VES-13-18-CO:R:IT:C 113390 GOB CATEGORY: Carriers Deputy Regional Director Commercial Operations Pacific Region One World Trade Center Long Beach, California 90831 RE: Vessel Repair Entry No. 603-1016990-3; 19 U.S.C. 1466; OCEAN PHOENIX; Application Dear Sir: This is in response to your memorandum dated March 28, 1995, which forwarded the application for relief submitted on behalf of Phoenix Processor Limited Partnership ("applicant") with respect to the above-referenced vessel repair entry. FACTS: The record reflects that the OCEAN PHOENIX ("the vessel") arrived at the port of Seattle, Washington on November 21, 1994. The subject vessel repair entry was filed on the same date. Your office asks for our determination with respect to the following items: Item No. Description 067 and 068 measurements and testing 072 cleaning before repairs 074 anchor chains 075 calibrating side cables 076 modification of cathodic protection system 087 inspection 088 outer seal gland 132 no. 7 centre D.B. W.B. Tank 135 shaft seal housing - 2 - ISSUE: Whether the subject items are dutiable pursuant to 19 U.S.C. 1466. LAW AND ANALYSIS: 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. After a consideration of the evidence of record, we make the following determinations. The cost of the following items are not dutiable because the record indicates that dutiable repairs were not performed: 067, 068, 074, 075, 076, 087, and 132. The cost of the following items is dutiable because the record reflects that these items are dutiable repairs or items incident to dutiable repairs: 072, 088, and 135. With respect to item 72, cleaning prior to and incident to repairs is dutiable. Similarly, item 088 contains repairs and items incident to repairs and is fully dutiable. Item 135 is a dutiable repair. HOLDING: As detailed supra, the application is granted in part and denied in part. Sincerely, Arthur P. Schifflin Chief Carrier Rulings Branch