A vessel puts into the port of Kobe, Japan to... - USCG Deck General

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?

A A declaration is made, but duty is charged on the labor only.

B A declaration is made and duty is charged on the materials only.

C No declaration is required since this is considered routine maintenance.

D A declaration is required and duty is involved on the total cost.

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.

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Question 3046 Deck General

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?

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