BOR-7-07-CO:R:IT:C 112534 DEC
Mr. Bruce N. Shulman
Stein, Shostak, Shostak & O'Hara
1620 L Street, N.W. - Suite 807
Washington, D.C. 20036-5605
RE: Instruments of International Traffic; IIT; plastic
boxes; struts; 19 U.S.C. 1322; 19 C.F.R. 10.41a.
Dear Mr. Shulman:
This is in response to your November 20, 1992, letter in
which you requested a ruling to classify folding reusable plastic
boxes designed to transport automotive strut components which
Tokico (U.S.A.) Inc. uses as instruments of international traffic
pursuant to 19 U.S.C. 1322(a) and 19 C.F.R. 10.41a.
FACTS:
Tokico (U.S.A.) Inc. uses folding reusable plastic boxes to
package automotive strut components it imports from Japan through
Los Angeles and Seattle for ultimate delivery to its Berea,
Kentucky plant. Upon arrival at its manufacturing facility, the
merchandise will be removed and the boxes will be set aside to be
returned to Japan routinely for reuse in importing additional
components.
The boxes measure approximately 21 inches long, by 14 inches
wide, by 10 1/2 inches high when opened and are constructed of
molded polypropylene plastic.
ISSUE:
Whether the described reusable plastic boxes may be
considered instruments of international traffic within the
meaning of 19 U.S.C. 1322(a) and section 10.41a of the U.S.
Customs Regulations (19 C.F.R. 10.41a)?
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LAW AND ANALYSIS:
Title 19, United States Code, section 1322(a) provides that:
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 regulations or
instructions of the Secretary of the Treasury.
19 U.S.C. 1322(a) (1992).
Title 19, Code of Federal Regulations, section 10.41a
specifically designates certain items as instruments of
international traffic. Additionally, this section authorizes the
Commissioner of Customs to designate other items as instruments
of international traffic in decisions to be published in the
weekly Customs Bulletin. Once designated as instruments of
international traffic, these items may be released without entry
or the payment of duty, subject to the provisions of 10.41a. 19
C.F.R. 10.41a(1) (1992).
To qualify as an "instrument of international traffic"
within the meaning of 19 U.S.C. 1322(a) and the regulation
promulgated pursuant thereto (19 C.F.R. 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. (See
generally Headquarters Decisions 103232, 104766, 108084, 108658,
109665, and 109702).
Treasury Decisions 68-56, 74-281, 75-265, and Headquarters
Decision 109702 all stand for the proposition that plastic trays
of similar dimensions which are used to transport goods are
substantial as well as suitable for and capable of repeated use.
In addition, the requirement that the instrument of international
traffic be used in significant numbers is also met as so long as
the plastic trays are, in fact, reused for subsequent shipments.
The designation of a container as an instrument of
international traffic becomes operative only when it is used as
such upon its arrival into this country in foreign trade. If the
holder or container is brought into the country by a party other
than the one who is using it as an instrument of international
trade, it is subject to entry as imported merchandise.
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Upon reviewing the request and accompanying documentation,
we are of the opinion that the requirements of establishing
instrument of international traffic status have been met. More
specifically, the containers in question appear to be
substantial, suitable for and capable of repeated use, and used
in significant numbers in international traffic. In addition,
U.S. Customs has previously ruled that shipping containers of
similar use and construction as those presently under
consideration qualify as instruments of international traffic
pursuant to 19 U.S.C. 1322(a) and 19 C.F.R. 10.41a (See
Headquarters Decision 109702, dated September 30, 1988).
HOLDING:
The folding reusable plastic boxes constructed of molded
polypropylene plastic used to transport automotive strut
components under consideration are hereby designated as
instruments of international traffic within the meaning of 19
U.S.C. 1322(a) and 19 C.F.R. 10.41a and may be released without
entry or the payment of duty.
Sincerely,
Acting Chief
Carrier Rulings Branch