Vessel repair; Casualty claim; Storm damage; Late filing of entry; Vessel S/S CORONADO, V-322; Entry No. C53-0012165-0

HQ 111701 December 17, 1991 VES-12-18-CO:R:IT:C 111701 LLB CATEGORY: Carriers Deputy Assistant Regional Commissioner Commercial Operations Division South Central Region New Orleans, Louisiana 70130-2341 RE: Vessel repair; Casualty claim; Storm damage; Late filing of entry; Vessel S/S CORONADO, V-322; Entry No. C53-0012165-0 Dear Sir: Reference is made to your memorandum of May 20, 1991, which forwards for our consideration the Application for Relief filed by Keystone Shipping Company, seeking relief from vessel repair duties in regard to the above-captioned vessel repair entry. FACTS: Over the course of a seven day passage from Whitegate, Ireland, to Come-by-Chance, Newfoundland, Canada, the vessel CORONADO encountered rough seas and winds as high as force 10 on the Beaufort scale. Repairs, limited to areas damaged during the stormy crossing, were effected in Come-by-Chance. The file contains ample evidence of the heavy weather and of the damaged condition of the vessel upon its arrival in Canada. The vessel first arrived in the United States on January 24, 1991, and a vessel repair entry was filed in Houston, Texas, its port of arrival, on February 8, 1991. ISSUE: Whether the evidence establishes that the foreign shipyard repairs obtained in the present matter were necessitated by stress of weather, thus permitting refund or remission of vessel repair duties. LAW AND ANALYSIS: Title 19, United States Code, section 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. Title 19, United States Code, subsection 1466(d)(1), states that the Secretary of the Treasury is authorized to remit or refund such duties if the owner or master furnishes good and sufficient evidence that the vessel was compelled to put into a foreign port and make repairs to secure the safety and seaworthiness of the vessel to enable her to reach her port of destination. The term "casualty" as it is used in the statute, has been interpreted as something which, like stress of weather, comes with unexpected force or violence, such as fire, explosion, or collision (Dollar Steamship Lines, Inc. v. United States, 5 Cust. Ct. 28-29, C.D. 362 (1940). In this sense, a "casualty" arises from an identifiable event of some sort. In the absence of evidence of such a casualty event, we must consider the repair to have been necessitated by normal wear and tear. See Customs Ruling Letter 106159 LLB (9-8-83). The Customs Regulations provide at section 4.14(b)(2) (19 CFR 4.14(b)(2)), that entry of all foreign repairs, equipment, parts, and materials purchases, shall be made to Customs at the first port of arrival within five (5) working days of such arrival. In recognition of the fact that it is often the case that not all information is at hand in such short order, the regulations provide that the entry may be marked to indicate that it is incomplete. Sixty (60) days are provided to submit cost evidence to render the entry complete, and provision for further extensions is made. Not extendable, however, is the regulatory time period for submitting the vessel repair entry. This time limit is mandatory and carries the force of law since it is promulgated pursuant to the specific authority conferred by statute. (See 19 U.S.C. 1498(a)(10)). There can be no doubt that the evidence submitted supports a finding that the statutory conditions for refund or remission have been met. However, since the time limit set for submission of an entry carries the force of law, the Application for relief cannot be considered since it supports a delinquent and defective entry. HOLDING: Following a thorough review of the evidence submitted and an analysis of the applicable law and precedents, we have determined that, as a matter of law, the Application for 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. 1514 and 19 CFR Part 174. Sincerely, B. James Fritz Chief Carrier Rulings Branch