CON-2-03-RR:IT:EC 114863 CC
P. Michael Lawrentz
Director of International Marketing
BPL International
441 North Main Street
P.O. Box 1414
Mansfield, OH 44901-1414
RE: IIT; FIBC’s; 19 U.S.C. § 1322(a); 19 CFR § 10.41a
Dear Mr. Lawrentz:
This is in response to your letter of October 20, 1999, requesting that we designate certain flexible intermediate bulk containers (FIBC’s) as instruments of international traffic (IIT’s).
FACTS:
You state that the FIBC’s are 2-ton bulk bags constructed of uncoated woven polypropylene material. They measure 42" x 42" x 82", 38” x 38” x 82 “, or 40” x 40”
x 78”. The FIBC’s are used for the transportation of edible beans. Approximately 32,000 of the FIBC’s are used in a year, and a FIBC is used typically seven to ten times.
ISSUE:
Whether the subject FIBC’s may be designated as instruments of international traffic within the meaning of 19 U.S.C. § 1322(a) and 19 CFR § 10.41a.
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 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 instruction of the Secretary of the Treasury.”
The Customs Regulations issued under the authority of section 322(a) are contained in section 10.41a (19 CFR § 10.41a). Paragraph (a)(1) of section 10.41a designates lift vans, cargo vans, shipping tanks and certain other named articles as IIT’s and states that other articles may be designated as IIT’s by the Commissioner of Customs in a decision to be published in the weekly Customs Bulletin. Once designated as IIT’s, these items 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 19 U.S.C. § 1322(a) and the regulation promulgated pursuant thereto (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. See, subheading 9803.00.50, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), and former Headnote 6(b)(ii), Tariff Schedules of the United States (TSUS), as well as Headquarters Ruling Letters (HQs) 104766, dated August 22, 1988; 109665, dated September 12, 1988; and 109702, dated September 30, 1988.
Upon review of the request, we are of the opinion that the FIBC’s in question are substantial, suitable for and capable of repeated use, and used in significant numbers in international traffic. We have ruled that similar containers, polypropylene bags, qualify as IIT’s. See, e.g., Treasury Decision (T.D.) 76-171; HQ 109696, dated September 12, 1988; HQ 113220, dated September 28, 1994; HQ 113407, dated April 25, 1995; HQ 113916, dated July 2, 1997; HQ 114418, dated September 23, 1998; and HQ 114238, dated October 23, 1998. Consequently, we find that the subject FIBC’s qualify as IIT’s pursuant to 19 U.S.C. § 1322(a).
HOLDING:
The subject FIBC’s qualify as instruments of international traffic and may be released pursuant to 19 CFR § 10.41a.
Sincerely,
Jerry Laderberg
Chief
Entry Procedures and Carriers Branch