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 Reporter September 2013 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Legal

NZ's Lyttelton Port Recommends Offer, to Pay Special Dividend

The board of New Zealand's  Lyttelton Port Co. Ltd recommended minority shareholders accept an offer of NZ$3.95 a share offer from the commercial arm of the Christchurch city council.

NYK Opens New Planning Center in Kumamoto

On September 1, 2014, NYK and Kozo Keikaku Engineering Inc. established a stowage planning center for container shipping at the Kumamoto office of Kozo Keikaku Engineering Inc.

Indian Investigators Drop Case Against Billionaire Birla

India's Central Bureau of Investigation (CBI) has closed a coal scam case against billionaire Kumar Mangalam Birla and a former top bureaucrat that emerged in

Finance

NZ's Lyttelton Port Recommends Offer, to Pay Special Dividend

The board of New Zealand's  Lyttelton Port Co. Ltd recommended minority shareholders accept an offer of NZ$3.95 a share offer from the commercial arm of the Christchurch city council.

A Boost for UK Offshore Drilling? DW Monday Muses

Drilling activity offshore UK is now expected to increase over the next few years as government and industry reacts to the recommendations in Sir Ian Wood’s report

MHI, IHI & DBJ Join Forces On Investments

Mitsubishi Heavy Industries, Ltd. (MHI), IHI Corporation and the Development Bank of Japan Inc. (DBJ) concluded a three-way formal agreement today on their respective

 
 
Maritime Careers / Shipboard Positions Offshore Oil Port Authority Salvage Ship Electronics Ship Repair Ship Simulators Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | terms and conditions | 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: 0.1206 sec (8 req/sec)