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

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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

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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

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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

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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

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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)

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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

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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

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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