A bill to provide that certain vessel repairs done by United States crews are not subject to duty.

Amends the Tariff Act of 1930 to exempt from duty the cost of equipment, repair parts, and materials involved in the repair of certain vessels by U.S. crews done in foreign waters or in a foreign port that does not involve foreign shipyard repairs by foreign labor.

Amends the Harmonized Tariff Schedule of the United States to comply with this Act.

[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 3183 Introduced in Senate (IS)]


109th CONGRESS
  2d Session
                                S. 3183

To provide that certain vessel repairs done by United States crews are 
                          not subject to duty.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 25, 2006

   Mr. Lott introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
To provide that certain vessel repairs done by United States crews are 
                          not subject to duty.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. VESSEL REPAIR DUTIES.

    (a) Exemption.--Section 466(h) of the Tariff Act of 1930 (19 U.S.C. 
1466(h)) is amended by striking paragraph (4) and inserting the 
following:
            ``(4) the cost of equipment, repair parts, and materials 
        that are installed on a vessel documented under the laws of the 
        United States and engaged in the foreign or coasting trade, if 
        the installation is done by members of the regular crew of such 
        vessel while the vessel is on the high seas, in foreign waters, 
        or in a foreign port, and does not involve foreign shipyard 
        repairs by foreign labor. Declaration and entry shall not be 
        required with respect to the installation, equipment, parts, 
        and materials described in this paragraph.''.
    (b) Amendment to HTS.--Subchapter XVIII of chapter 98 of the 
Harmonized Tariff Schedule of the United States is amended by striking 
``U.S. Note'' and inserting ``U.S. Notes'' and by adding after U.S. 
note 1 the following new note:
``2. Notwithstanding the provisions of subheadings 9818.00.03 through 
9818.00.07, no duty shall apply to the cost of equipment, repair parts, 
and materials that are installed in a vessel documented under the laws 
of the United States and engaged in the foreign or coasting trade, if 
the installation is done by members of the regular crew of such vessel 
while the vessel is on the high seas, in foreign waters, or in a 
foreign port and does not involve foreign shipyard repairs by foreign 
labor. Declaration and entry shall not be required with respect to such 
installation, equipment, parts, and materials.''.
    (c) Effective Date.--The amendments made by this section apply to 
vessel equipment, repair parts, and materials installed on or after 
April 25, 2001.
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