BOR 7-07-CO:R:P:C 109696 BEW

Mr. Charles E. Hurst
Sea and Land Shipping, Inc.
601 Twiggs Street
Tampa, Florida 33602

RE: Polypropylene bags as instruments of international traffic (IIT)

Dear Mr. Hurst:

This is in reference to your memorandum dated August 17, 1988, requesting that certain polypropylene "Mini Bags" be designated as instruments of international traffic (IIT).

FACTS:

You state that your client will ship approximately 2305 polypropylene bags annually into the United States. The bags are made of heavy duty polypropylene fabric. You state that the bags are top of the range multistrip bags and, therefore are stronger than the normal polypropylene bag. You state that the polypropylene bags will be used for fertilizer elements and will hold one metric ton. You state that the special ink used to number each bag is specially designed to have maximum adherence to the poly bags, and that you expect a minimum of 2 years legibility. You state that the port of entry is Oakland, California, and the port of departure is Tampa, Florida.

ISSUE:

Whether the heavy duty polypropylene bags used for the transportation of fertilizer elements may be designated as instruments of international traffic within the meaning of 19 U.S.C. 1322(a) and section 10.41a, Customs Regulations.

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

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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."

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 bags under consideration are woven heavy duty polypropylene bags capable of being used as a container or holder, that they are substantial, suitable for and capable of repeated use, and that they will be used in significant numbers in international traffic. We further find that the woven polypropylene bags under consideration are similar to woven polypropylene bags which were designated as instruments of international traffic in Treasury Decision 76-171 (woven polypropylene bags, and used for the transportation of dry chemicals), and Treasury Decision 68-4 (collapsible nylon container capable of holding zinc dust or similar material).

The designation of a container or holder as an IIT becomes effective only when used as such upon its arrival in this country in foreign trade, either empty or with merchandise. If the holder or container is brought into the country by a party other than the one who is using it as an IIT, it is subject to entry as imported merchandise. The principal on the IIT bond is the party who is using the holder or container as an IIT.

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HOLDING:

The heavy duty polypropylene bags 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

CO:R:P:C:BEWhiting:9/9/88