Vessel Repair; Application for Relief; Late Filing; Penalty; 19 U.S.C. 1466; 19 C.F.R. 4.14; SEA-LAND VALUE; Entry No. 514-3004476.

HQ 111853 March 6, 1992 VES-13-02/18 CO:R:IT:C 111853 JBW CATEGORY: Carriers Deputy Assistant Regional Commissioner Classification and Value Division ATTN: Regional Vessel Repair Liquidation Unit 6 World Trade Center New York, New York 10048-002980 RE: Vessel Repair; Application for Relief; Late Filing; Penalty; 19 U.S.C. 1466; 19 C.F.R. 4.14; SEA-LAND VALUE; Entry No. 514-3004476. Dear Sir: This letter is in response to the application for relief filed by Sea-Land Service, Inc., on June 20, 1991, in conjunction with the above-referenced vessel repair entry. FACTS: The record reflects that the subject vessel, the SEA-LAND VALUE, arrived at the port of Newark, New Jersey, on April 7, 1991. A vessel repair entry, marked incomplete, was filed on the same day as arrival. No further communication was received from the vessel operator until June 20, 1991, at which time an application for relief was filed. At this time, cost evidence relating to the entry was also filed. Your office issued a memorandum dated August 16, 1991, to the Office of Fines, Penalties and Forfeitures, Newark Region, to recommend that that office proceed with a penalty action for failure to submit cost documents within sixty days of arrival. 19 C.F.R. 4.14(b)(2)(ii). ISSUE: Whether the vessel operator timely filed its application for relief and its cost documentation. LAW AND ANALYSIS: Section 4.14(d) of the Customs Regulations provides specific time limitations for the submission of an application for relief of vessel repair duties. This section states: The application for relief, with supporting evidence, shall be filed within 60 days from the date of first arrival of the vessel. However, if good cause is shown, the appropriate vessel repair unit may authorize one 30-day extension of time to file beyond the 60-day filing period. 19 C.F.R. 4.14(d)(1)(ii) (1991). Unless steps are taken to validate or complete an application within the time period established by the regulations, the entry is subject to immediate liquidation upon the expiration of this time period. Headquarters Ruling Letter 110739, dated March 21, 1990. The vessel under consideration first arrived on April 7, 1991. The 60-day filing period in this case expired June 8, 1991. Yet, the first communication by the ship's owner appearing in the record was received by the Customs Service on June 20, 1991. The record contains no evidence that an extension of time was granted by the vessel repair liquidation unit. The entry is consequently subject to immediate liquidation. Furthermore, the Customs Regulations provide that evidence showing the cost of each item appearing in the entry must be submitted within sixty-days from the date of the vessel's arrival, unless the appropriate vessel repair liquidation unit grants an extension. 19 C.F.R. 4.14(b)(2)(ii). Again, the record contains no evidence that an extension was authorized, and the supporting evidence was filed after the sixty-day time period had expired. We therefore concur in your recommendation that a penalty action be instituted. HOLDING: The application for relief, with supporting evidence, shall be filed within sixty days from the date of first arrival of the vessel. The subject vessel arrived on April 7, 1991, and the sixty-day time period expired on June 8, 1991. However, no communication was received from the vessel operator until June 20, 1991, and no extension of time was authorized. The entry is therefore subject to immediate liquidation. Further, we concur in your recommendation that a penalty action be instituted for the failure to submit in a timely manner evidence of vessel repair costs. Sincerely, B. James Fritz Chief Carrier Rulings Branch