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Horizon Lines, LLC v. US, 10-1138

Court of International Trade's determination that the government owed a refund to an operator of cargo ship for duties imposed

Horizon Lines, LLC v. US, 10-1138, concerned a challenge to the Court of International Trade's conclusion that the government owed an operator of cargo ship a refund for duties imposed on certain work performed on an ocean carrier while the ship was overseas.

In affirming the decision, the court held that, although the Court of International Trade erred in holding that the prior condition of replaced parts is irrelevant to the determination of whether work constitutes a nondutiable modification or a dutiable repair, because the court determined that the replaced parts on the carrier were in proper working order prior to modification, this error was harmless, and as such, the court did not clearly err in determining that the work constituted a nondutiable modification, rather than a dutiable repair.

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