BOR-7-07 CO:R:IT:C 112399 JBW

Richard A. Lidinsky, Jr.
Vice President
Government Affairs
Sea Containers America Inc.
700 13th Street, N.W.
Washington, D.C. 20005

RE: Instruments of International Traffic; IIT; Shipping Tanks; Designation of Container or Holder; 19 U.S.C. 1322; 19 C.F.R. 10.41a.

Dear Mr. Lidinsky:

This letter is in response to your request for a ruling on the release of shipping tanks in the United States as instruments of international traffic.

FACTS:

Sea Containers brought into the United States ten new tank containers that will be used for the carriage of appropriate cargo in international traffic. The tank containers will not be used for domestic storage or transportation. You state that United States Customs officials, citing regulations that require the specific designation of instruments of international traffic in the Customs Bulletin, did not permit the release of the tanks as instruments of international traffic.

ISSUE:

Whether an article must be specifically designated in the Customs Bulletin before it may be released in the United States as an instrument of international traffic.

LAW AND ANALYSIS:

Title 19, United States Code, section 1322(a), provides:

Vehicles and other instruments of international traffic, of any class specified by the Secretary of the Treasury, shall be excepted from the application of the customs laws to such extent and subject to such terms and conditions as may be prescribed in regulation or instructions of the Secretary of the Treasury.

19 U.S.C. 1322(a) (1988). The Customs regulations issued under the authority of this section are contained in 19 C.F.R. 10.41a (1992). The regulations specifically designate lift vans, cargo vans, shipping tanks, skids, pallets, caul boards, and cores for textile fabrics as instruments of international traffic. 19 C.F.R. 10.41a(a)(1). The regulations also authorize the Commissioner of Customs to designate in the Customs Bulletin other articles or classes of articles as instruments of international traffic. Id.

Shipping tanks are explicitly designated by regulation as instruments of international traffic. The provision in the regulation that requires publication in the Customs Bulletin relates only to "additional" articles or classes of articles not already designated. If a container or holder is identical or similar to an article or class of articles already designated as an instrument of international traffic, the regulations do not require a formal ruling on the designation of any specific container or holder. Thus, we conclude that the tank containers under consideration, if properly characterized as "shipping tanks" to the satisfaction of local Customs officials, are not required to be specifically listed in the Customs Bulletin as instruments of international traffic.

We stress, however, that if Customs officials do not believe that the tanks qualify as instruments of international traffic, then formal designation would be required. This situation may arise, for example, if the local Customs officials believe that the tanks may be used in domestic commerce. 19 C.F.R. 10.41a(d).

HOLDING:

An article is not required to be specifically designated as an instrument of international traffic in the Customs Bulletin before it may be released in the United States as an instrument of international traffic if such article is identical or similar to an article or class of articles already so designated.


Sincerely,

Acting Chief