BOR-4-07-RR:BSTC:CCI 116555 IDL
Steven P. Sonnenberg
Sonnenberg & Anderson
Attorneys & Counselors at Law
300 South Wacker Drive
12th Floor
Chicago, Illinois 60606
Re: Instruments of International Traffic; Accessories; Metal Racks; “Wiretainers;” Plastic Tote Bins; Plastic Dividers; Subheading 9803.00.50, HTSUSA; 19 U.S.C. § 1322; 19 CFR § 10.41a
Dear Mr. Sonnenberg:
This is in response to your letter on behalf of Tenneco Automotive, Inc. (“Tenneco”), dated September 29, 2005, to the Director, National Commodity Specialist Division, U.S. Customs and Border Protection (CBP). The letter, which requests a binding ruling on designation of metal racks, “wiretainers” (i.e., wire containers) and plastic tote bins as instruments of international traffic, and designation of plastic dividers as accessories therein, has been forwarded to this office for our review. Our ruling on this matter is set forth below.
FACTS:
Tenneco uses metal racks, wiretainers, and plastic tote bins containing plastic dividers to transport automotive parts to or from the United States.
Tenneco ships the metal racks containing exhaust system parts or exhaust assemblies to its manufacturers. The manufacturers then return the racks empty to Tenneco for reloading. The racks are properly sized and spaced so that the exhaust system parts or exhaust assemblies may be safely and efficiently shipped. The exact number of parts or assemblies that can fit on a rack depends
upon the configuration of the parts or assemblies being shipped, but Tenneco estimates that twenty exhaust assemblies can fit. Tenneco estimates that each metal rack has a serviceable life of approximately twenty years.
Tenneco uses the wiretainers to ship automotive parts to manufacturers in Canada, Mexico, and China. The manufacturers then return the wiretainers to Tenneco empty for refilling and shipment. The wiretainers have feet at each corner of their bases, which allow for stacking and easy transportation via forklift. According to technical specifications and statements submitted, generally, each wiretainer can hold eleven rows of thirty-six parts, and forty-four wiretainers can fit into a standard multimodal shipping container. However, the specifications of the wiretainers may vary in physical dimension depending on the type or size of parts being transported. Tenneco estimates that each wiretainer has a serviceable life of approximately five years.
Tenneco ships the plastic tote bins empty to its suppliers in Mexico or Canada. After loading a specified number of parts in each bin, the suppliers send them directly to Tenneco’s production line. Tenneco then reships the bins empty to its suppliers for reloading. Tenneco estimates that each plastic tote bin has a serviceable life of approximately ten years. The bins may include plastic dividers to facilitate organization and use of the imported parts.
You have stated that all of the articles discussed are normally used in international traffic as containers or holders of automotive parts, and are capable of repeated use. You have provided images of all the articles, and included technical specifications for the wiretainers.
ISSUES:
(1) Whether the metal racks, wiretainers, and plastic tote bins described above may be designated as instruments of international traffic within the meaning of
19 U.S.C. § 1322(a) and 19 CFR § 10.41a, CBP regulations (19 CFR 10.41a)?
(2) Whether the plastic dividers described above may be entered duty-free as accessories of instruments of international traffic within the meaning of 19 CFR
§ 10.41a(a)(2)?
LAW AND ANALYSIS:
Issue (1)
Title 19, United States Code, section 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….” The CBP regulations issued under the authority of section 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 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 section 10.41a.
To qualify as an “instrument of international traffic” (IIT) within the meaning of
19 U.S.C. section 1322(a) and the regulation promulgated pursuant thereto
(19 CFR 10.41 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 Schedule of the United States (TSUS), 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 112371 (December 9, 1992), CBP held that metal racks used for transporting flat glass qualified as IITs. In HQ 113687 (February 27, 1997), CBP held that collapsible metal containers or racks used for transporting auto parts, with pockets to accommodate handling by fork trucks, qualified as IITs. In HQ 114506 (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 the United States met the requirements necessary for designation as IITs. In HQ 112534 (January 25, 1993), CBP found that reusable plastic boxes designed to transport automotive strut components qualified as IITs.
In the instant case, we find that, based on the information provided, the metal racks, wiretainers, and plastic tote bins are used to contain or hold automotive parts during transportation to or from the United States; they are substantial, suitable for and capable of repeated use; and they are used in significant numbers in international traffic. Accordingly, those articles meet the requisite criteria to qualify as IITs pursuant to section 1322(a).
Issue (2)
With regard to the issue of the plastic dividers qualifying as accessories of IITs, please be advised that paragraph (a)(2) of section 10.41a (19 CFR 10.41a(a)(2)) provides the following:
Repair components, accessories, and equipment for any container of foreign production which is an instrument of international traffic may be entered or withdrawn from warehouse for consumption without the deposit of duty if the person making entry or withdrawal from warehouse files a declaration ...that the accessory or equipment is for a container of foreign production which is an instrument of international traffic. The port director must be satisfied that the importer of the repair component, accessory or equipment had the declared intention at the time of importation. (emphasis added)
We find that the information that you have provided indicates that the plastic dividers are designed and will be used for the plastic tote bins, which we have designated as IITs, and serve as accessories to them. Therefore, based on such information, we find that the plastic dividers are accessories of instruments of international traffic of foreign production, and are eligible for duty-free treatment pursuant to the provisions of 19 U.S.C. § 1322, subheading 9803.00.50, HTSUSA, and 19 CFR § 10.41a. We note that entry of the plastic dividers is required under 19 CFR § 10.41a(a)(2). (See also ruling letter 114446 (October 20, 1998)).
HOLDINGS:
(1) The metal racks, wiretainers, and plastic tote bins described above may be designated as instruments of international traffic within the meaning of 19 U.S.C. § 1322(a) and 19 CFR § 10.41a.
(2) The plastic dividers described above may be entered duty-free as accessories of instruments of international traffic within the meaning of 19 CFR
§ 10.41a(a)(2).
Sincerely,
Glen E. Vereb
Chief
Cargo Security, Carriers and Immigration Branch