American Vessel Repair Statute Interpreted

Thursday, October 17, 2002
In a designated test case, the U.S. Court of International Trade ruled that any ad valorem duty imposed on a U.S. vessel repaired in a foreign shipyard is not to include a pro-rata portion of the drydock expenses where the repairs were performed during a dry-docking required to comply with mandatory U.S. Coast Guard and classification society requirements and the period of the dry-docking did not exceed the time necessary to perform the required work. In the instant case, the vessel was dry-docked in Hong Kong to undergo mandatory inspections and modifications required by the Coast Guard and the classification society. While in the shipyard, the vessel also had repairs performed that were subject to the ad valorem duty. It was uncontested, though, that the vessel's time in the foreign shipyard did not exceed the time necessary to perform the required, non-dutiable work. The court held that, since the full expenses of the dry-docking would have been incurred even if only the non-dutiable work had been performed, none of those dry-docking expenses are dutiable. SL Service, Inc. v. United States. Source: HK Law

Maritime Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter April 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Legal

113 Migrants Drown in Libya-Italy Weekend Transits

An estimated 113 people died in four shipwrecks between Libya and Italy at the weekend as the crossing becomes the preferred sea route for migrants to Europe, the

Crowley Acquires Ace Fuels Assets in Anchorage

Anchorage-based Crowley Fuels yesterday completed an asset acquisition of the aviation fuels business of Ace Fuels, LLC, a fixed base operator (FBO) headquartered

USCG Sets 2nd Round of Hearings for El Faro

The U.S. Coast Guard will conduct a second round of public hearings May 16-27 for the Marine Board of Investigation into the loss of the U.S.-flagged cargo ship El Caro, and its 33 crewmembers.

Finance

Pirates Switch to Kidnapping Crew as Oil Fetches Less

Pirate gangs in West Africa are switching to kidnapping sailors and demanding ransom rather than stealing oil cargoes as low oil prices have made crude harder to sell and less profitable,

Baltic Index Down for Third Straight Session

The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, fell on Tuesday for the third straight session, as demand for bigger vessels weakened.

Kongsberg, DNV GL Partner to Reduce Training Costs

Kongsberg Maritime has entered a partnership with class society DNV GL to issue Product Certificates for Maritime Simulator Systems required by maritime training

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Standards Naval Architecture Offshore Oil Port Authority Salvage Ship Repair Ship Simulators Shipbuilding / Vessel Construction
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.0828 sec (12 req/sec)