Question 3046Deck General70% to pass
A vessel puts into the port of Kobe, Japan to discharge cargo. While awaiting completion of the cargo operation, the vessel contracts with a local shipyard to have the hull chipped, scaled, and painted. How is the cost of this maintenance handled with the Collector of Customs?
AI Explanation
The correct answer is D) A declaration is required and duty is involved on the total cost.
When a vessel puts into a foreign port and undergoes maintenance or repairs, the total cost of the work, including both labor and materials, must be declared to the Collector of Customs upon the vessel's return to the United States. This is considered a temporary importation, and import duties will be assessed on the full cost of the maintenance or repairs. The other options are incorrect because a declaration is required (not optional), and duty is charged on the total cost, not just the labor or materials separately.
Related Questions
#3044 In some cases, the 50% duty on all foreign repairs made to American flag merchant vessels may be remitted. Which work does NOT come under the remitting policy of U.S. Customs? #3045 A vessel puts into the port of Kobe, Japan, to discharge cargo. The vessel contracts a local shipyard to have the hull chipped and scaled. If the vessel provides the primer and paint, which statement is TRUE? #3047 According to U.S. regulations, when estimating the cost of collision damage to a tank vessel after a marine accident, which of the following should NOT be included in the repair cost estimate? #3048 A vessel sailing from Liverpool to New York puts into Boston, Mass. for emergency repairs. If no inward foreign cargo is to be discharged at that port, which of the following documents is required? #3049 The Master of a passenger vessel which is not required to maintain an Official Logbook must keep a record of the number of passengers received and delivered from day to day. This record must be available for a period of _______________.