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?

Correct Answer: Option D — A declaration is required and duty is involved on the total cost.

Vessels of the United States undergoing repairs in foreign ports must declare all costs to Customs and Border Protection. Per 19 U.S.C. 1466, the 50% ad valorem duty is levied on the total expense of labor and materials, unless the work is proven necessary to reach the next port of call.