BOR 7-07-CO:R:P:C 109634 BEW
Mr. James Burghart
President
A. Burghart Shipping Co., Inc.
Newark International Plaza
Newark, New Jersey 07114
RE: Beer kegs as instruments of international traffic (IIT)
Dear Mr. Burghart:
This is in reference to your telex of May 11, 1988, and
your memorandum June 27, 1988, in which you ask that we
classify certain beer kegs as instruments of international
traffic (IIT).
FACTS:
The beer kegs are of substantial stainless steel
construction and are capable of repeated use. They will be
used to transport beer from the Netherlands to the United
States moving under an IIT bond. After emptying, the kegs will
be exported to Heineken Brewery for cleaning and reuse. The
ports of entry will be New York/New Jersey.
The kegs will have their own unique serial numbers, and
will hold 13.2 and 15.5 gallons each. There will be a total of
145,112 of the smaller kegs and 3,249 of the larger kegs.
ISSUE:
Whether the beer kegs may be brought into the United
States as instruments of international traffic.
LAW AND ANALYSIS
Section 322(a), Tariff Act of 1930, as amended (19 U.S.C.
1322(a)), provides that "[v]ehicles and other instruments of
international traffic, of any class specified by the Secretary
of the Treasury, shall be granted the customary exceptions from
the application of the customs laws to the extent and subject
to such terms and conditions as may be prescribed in
regulations or instructions of the Secretary of the Treasury."
- 2 -
The Customs Regulations issued under the authority of
section 322(a) are in section 10.41a (19 CFR 10.41a).
Paragraph (a)(1) of section 10.41a designates as instruments of
international traffic lift vans, cargo vans, shipping tanks and
certain other named articles and states that other articles may
be designated as instruments of international traffic by the
Commissioner of Customs in decisions to be published in the
weekly Customs Bulletin. These instruments of international
traffic may be released without entry or the payment of duty,
subject to the provisions of section 10.41a
To qualify as an "instrument of international traffic"
within the meaning of section 322(a), Tariff Act of 1930, as
amended (19 U.S.C. 1322(a)), and the regulations issued
thereunder (19 CFR 10.41a et seq.), an article must be used as
a container or holder. The article must be substantial,
suitable for and capable of repeated use, and used in
significant numbers in international traffic.
We find that the beer kegs under consideration may be used
as a container or holder, that they are substantial, suitable
for and capable of repeated use, and that they are used in
significant numbers in international traffic. We further find
that the beer kegs under consideration are similar to beer kegs
which were designated as instruments of international traffic
in Treasury Decision 66-15 (stainless steel half barrels and
quarter barrel beer kegs, imported containing beer, used
primarily after importation for onward transportation and for
dispensing beer, and not for storing or aging the beer), and
are similar to certain beer kegs which were designated as
instruments of international traffic in Treasury Decision 68-81
(stainless steel beers kegs of a capacity of 9.2 gallons more
or less, sometimes referred to as 1/3 barrel kegs of the same
type and used in the same way as described in 66-15).
HOLDING:
The beer kegs under consideration qualify for treatment as
instruments of international traffic and may be released under
the procedures set forth in section 10.41a, Customs
Regulations.
Sincerely,
B. James Fritz
Chief
Carrier Rulings Branch