BOR-4-07-RR:BSTC:CCI 116689 IDL
Kimberly Carlson
Braumiller Schulz & Co., LLP
5220 Spring Valley Road
Suite 200
Dallas, Texas 75254
Re: Instruments of International Traffic; “Strong-backs”; Aircraft Packing Parts; Subheading 9803.00.50, HTSUSA; 19 U.S.C. § 1322; 19 CFR § 10.41a
Dear Ms. Carlson:
This is in response to your submission on behalf of your client, Vought Aircraft Industries, Inc., dated May 27, 2006, to the Director, National Commodity Specialist Division (NCSD), U.S. Customs and Border Protection (CBP). The NCSD has forwarded to this office for our review your request for a binding ruling on designation of “strong-backs,” used in the transportation of aircraft components, as instruments of international traffic. Subsequently, you submitted a supplemental letter, dated July 28, 2006, and an e-mail message, dated September 13, 2006, modifying your request. Our ruling on this matter is set forth below.
FACTS:
Vought Aircraft Industries, Inc. (“Vought”) manufactures wings, fuselage subassemblies, empennages, nacelles, thrust reversers, cabin structures, and other aircraft parts for prime manufacturers of aircraft. Foreign suppliers secure the transportation of aircraft components to Vought using “strong-backs.” Vought later returns the strong-backs to its foreign suppliers, and the cycle repeats.
You describe a strong-back as a “rotatable reinforcing structural brace that is bolted to the side or the bottom of an aircraft component (depending upon the component's positioning within the container)…. The bolting of the strong-back to the component…helps keep the component from bending within the container,” and therefore, serves to protect the aircraft component from damage during transportation to the United States.
You have stated that the strong-backs are United States or foreign-manufactured, they are substantial, suitable for and capable of repeated use “for many years,” and they are used in significant numbers in international traffic, with an estimated circulation, based on past usage, of 14 to 96 (the number could vary depending on certain variables, such as logistical feasibility, customer specifications/demand, and rate of production). You provided an image of the strong-backs with your supplemental letter.
ISSUE:
Whether the “strong-backs” 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), and therefore, are classifiable under subheading 9803.00.50, HTSUSA?
LAW AND ANALYSIS:
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 1322(a) are contained in section 10.41 et seq. (19 CFR 10.41 et seq.). 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 (IITs).
Section 10.41a(a)(1) also authorizes the Commissioner of CBP to designate other items as IITs. Once designated as IITs, these items may be released without entry or the payment of duty, subject to the provisions of section 10.41a.
To qualify as an IIT within the meaning of 19 U.S.C. 1322(a) and the regulations 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 previous rulings, we designated as IITs shipping fixtures used in the transportation of aircraft component parts. HQ 104567 (May 28, 1980). We also designated as IITs shipping fixture assemblies that used struts during transportation of electric power generator turbines to brace against the casings and rotor shafts. HQ 103627 (September 27, 1978). See also T.D. 74-195 (July 31, 1974), which designated as IITs steel, wood or steel mesh fiberglass-coated stands or cases designed to transport aircraft engines or parts; and T.D. 66-213 (October 19, 1966), which designated as IITs steel aircraft engine stands and wooden covers for such stands used for transporting aircraft engines.
In the instant case, we find that, based on the information provided, the strong-backs are used to hold the aircraft goods during transportation to the United States; they are substantial, suitable for and capable of repeated use; and they are used in significant numbers in international traffic. Accordingly, the strong-backs meet the requisite criteria to qualify as IITs pursuant to section 1322(a).
HOLDING:
The “strong-backs” are designated as instruments of international traffic within the meaning of 19 U.S.C. § 1322(a) and 19 CFR § 10.41a, and therefore, are classifiable under subheading 9803.00.50, HTSUSA.
Sincerely,
Glen E. Vereb
Chief
Cargo Security, Carriers and Immigration Branch