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 January 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Legal

National Domestic Surveyor Accreditation in place

Domestic marine surveyors will now be accredited under a national system run by the Australian Maritime Safety Authority (AMSA). The Domestic Surveyor Accreditation

Australian Tall Ship Rounds Cape Horn

The Royal Australian Navy operated Sail Training Ship Young Endeavour rounded Cape Horn on Australia Day, 36 days into a 12-month circumnavigation of the world.

Directorate Changes at Fastnet

Fastnet, the UK and Irish listed E&P company focused on near-term exploration and appraisal acreage in Morocco and the Celtic Sea, announces certain management

Finance

MOL, Mitsui Ink Charter Deal

Mitsui O.S.K. Lines, Ltd. signed a contract with Mitsui & Co., Ltd. today (January 29) to charter a new 177,000m3 liquefied natural gas (LNG) carrier. This

A HERO on the Seas

The expansion of the Panama Canal has opened up an opportunity for WWL to develop its next generation RoRo carriers. Due to its importance to international trade,

Fender Repairs Works for Dolphins at Hong Kong

For approximately four months, fender repairing and replacement works for five of the dolphins will be carried out in the To Kwa Wan Typhoon Shelter. The

 
 
Maritime Careers / Shipboard Positions Navigation Offshore Oil Port Authority Salvage Ship Electronics Ship Repair Ship Simulators Shipbuilding / Vessel Construction 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: 0.1404 sec (7 req/sec)