Question 3045 Deck General

The correct answer is C) You MUST declare the cost of labor and pay duty. This is because when a U.S. vessel undergoes repairs or maintenance outside of the United States, the cost of those repairs, including labor, must be declared and duty must be paid. The U.S. Customs and Border Protection requires that all foreign repair costs be reported, and duty will be assessed on the total value of the repairs, including labor. The other options are incorrect because A) ship's personnel work is still considered a foreign repair cost that must be declared, and B) and D) are incorrect as duty must be paid on the total repair costs, not just the materials.