BOR-4-07 RR:IT:EC 116045 CK
Mr. R. Bruce Warner
Import/Export Manager
Panasonic
Matsushita Electronic Components Corporation of America
5105 South National Drive
Knoxville, TN 37914-6527
RE: Corrugated cardboard boxes and steel winding cores as instruments of international traffic; 19 CFR §10.41a; 19 U.S.C. §1322(a)
Dear Mr. Warner:
This is in response to your ruling request dated August 26, 2003. You request a ruling designating certain corrugated cardboard boxes and steel winding cores as instruments of international traffic.
FACTS:
One of the commodities you import is etched aluminum capacitor foil, which is imported in rolls that are .5 meters wide and in various lengths. After it is processed it becomes formed aluminum capacitor foil, and is still in rolls .5 meters wide and various lengths.
In the past you imported these rolls in packaging made of ¾ inch plywood with steel support, which was the subject of HQ 113790, dated February 21, 1997. You sell the formed aluminum capacitor foil domestically or for export reusing the packaging.
You plan to incorporate an additional packaging style for importing and sale of the product. The new packaging will be made of corrugated cardboard that is reusable. Imported rolls are shipped on a winding core and finished product is wound onto and shipped on the same type of winding core. The winding core is reusable. The core is made of either stainless steel or parkerized carbon steel. A drawing of both the corrugated cardboard box and winding cores were submitted. The corrugated cardboard is reuseable for over a year, and the winding cores will last in excess of 10 years. You plan on having over 1,000 pieces made of each, and they will be used in international trade several times a month.
ISSUE:
Whether the corrugated cardboard packaging and winding cores described above may be designated as instruments of international traffic within the meaning of 19 U.S.C. § 1322(a) and § 10.41a, Customs Regulations (19 CFR § 10.41a).
LAW AND ANALYSIS:
Title 19, United States Code, § 1322(a) (19 U.S.C. § 1322(a)), provides in pertinent part, that "[v]ehicles and other instruments of international traffic, .…, 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 …." The Customs Regulations issued under the authority of § 322(a) are contained in section 10.41a (19 CFR § 10.41a). Section 10.41a(a)(1) specifically designates lift vans, cargo vans, shipping tanks, skids, pallets, caul boards, and cores for textile fabrics as instruments of international traffic.
Section 10.41a(a)(1) also authorizes the Commissioner of Customs and Border Protection (CBP) to designate other items as instruments of international traffic. 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.
To qualify as an "instrument of international traffic" (IIT) 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 (HTSUS), as well as Headquarters Decisions 104766; 108084; 108658; 109665; and 109702).
The concept of reuse contemplated above is for commercial shipping or transportation purposes, and not incidental or fugitive uses. Tariff Classification Study, Sixth Supplemental Report (May 23, 1963) at 99. See, Holly Stores, Inc. v. United States, 697 F.2d 1387 (Federal Circuit, 1982).
In HQ 115503, dated May 30, 2000, CBP held that hard plastic boxes used to ship integrated circuit wafers qualified as IITs. In HQ 114506, dated October 29, 1998, CBP determined that containers made of plastic known as totes that were used to ship various small automobile replacement parts from Japan to United States met the requirements necessary for designation as instruments of international traffic. In HQ 112534, dated January 25, 1993, CBP found that reusable plastic boxes designed to transport automotive strut components qualified as instruments of international traffic.
Most important to the subject case, CBP has held that articles which consist of pallets and tops, plastic outer rings, plastic and cardboard pads, and form trays used to transport ceramic logs qualified as IITs when these parts were assembled together. See, HQ 115108, dated August 24, 2000. In this case, the corrugated cardboard packaging has a useful life of over a year. It will be used in international trade several times a month, and over 1,000 will be constructed. Based on the above described criteria and the designs submitted showing the packaging is substantial and durable, the corrugated cardboard packaging possesses the requisite criteria to qualify as IITs pursuant to 19 U.S.C. § 1322(a). Additionally, the steel winding cores, which have a useful life of over 10 years, will also be used in international trade several times a month, and will be used in large quantities, also meet the requisite criteria to qualify as IITs pursuant to 19 U.S.C. § 1322(a).
HOLDING:
The corrugated cardboard packaging and winding cores described above qualify as instruments of international traffic within the meaning of 19 U.S.C. §1322(a) and may be released pursuant to 19 CFR § 10.41a.
Sincerely,
Glen E. Vereb
Chief
Entry Procedures and Carriers Branch