CBP revises vessel repair rule

CBP revises vessel repair rule    A new U.S. Customs and Border Protection regulation related to vessel repairs takes effect today.
   Purchases for or repairs made to vessels while they're outside the United States are subject to declaration, entry, and payment of ad valorem duty, the agency said.
   CBP amended its regulations to reflect statutory changes in 2004 and 2006 and free trade agreements.
   In 2004 CBP amended regulations to reflect a change in law that exempts most repairs performed while vessels are on the high seas from the assessment of vessel repair duties, and under a 2006 law, that was expanded to include the cost of equipment, repair parts, and materials installed on certain vessels by their regular crew while the vessels are in foreign waters or in an overseas port, provided the installation does not involve foreign shipyard repairs by foreign labor.
   Section 4.14(a) also provides that certain expenditures for vessel repairs and purchases made in Israel, Canada, and Mexico (countries that are parties to free trade agreements with the United States) are not subject to vessel repair duties, although they must be declared and entered.
   CBP said other free trade agreements may also limit the duties due on vessel repairs.
   For more details, read the Federal Register notice.