BOR-4-07:OT:RR:BSTC:CCI H044815 ALS
Mr. Nathan B. Gollaher
Senior Manager
International Tax Services-Customs & International Trade
Ernst & Young LLP
233 South Wacker Drive
Chicago, Illinois 60606
RE: Instruments of International Traffic; 19 U.S.C. § 1322(a); 19 CFR 10.41a; Aluminum Boxes; Plastic Isotope Boxes; Polypropylene Beams; Plastic Pallets; Packing
Dear Mr. Gollaher:
This is in response to your correspondence, dated November 4, 2008, in which you forwarded a letter, enclosing drawings and illustrations from your client, Enrichment Technology, requesting a ruling as to whether certain aluminum boxes, plastic isotope boxes, polypropylene beams, plastic pallets, and packing qualify as instruments of international traffic under 19 U.S.C. § 1322(a) and 19 CFR 10.41a. Our ruling is set forth below.
FACTS:
Your client, Enrichment Technology, exports pipework and centrifuge parts for machines used in the process of enriching uranium. The aluminum boxes are inserted with plastic isotope boxes fitted with polypropylene beams, which contain the pipework and centrifuge parts. The plastic isotope boxes are placed on plastic pallets and then are loaded into the aluminum boxes. The loaded aluminum boxes,
which also contain packing that will enclose the product while in the aluminum boxes, are then stacked inside of standard 40-foot containers for shipment. Various packing items that will be imported with the aluminum boxes consist of a drying medium, orange cover, soft foam slab, plastic foil, small bags, trays, plastic bags, and a firm foam slab. The shipping dimensions of the various items, excluding the packing items, measured in centimeters, are as follows:
Length Width Height
Aluminum Boxes
1200-3745 800-1000 965-2130
(varies by country)
Plastic Isotope Boxes
1200 800 550
Polypropylene Beams
3650 1050 1050
Jumbo Pallets 1
3750 2230 180
Jumbo Pallets 2
2400 2230 180
Subunit Pallets
2200 1450 1120
ETC Euro Pallets
1200 800 140
You have stated that all of the articles are substantial, suitable for and capable of repeated use, and will be used to ship goods in international traffic between Europe and the United States on a routine basis. You also state that approximately 365 aluminum boxes with accompanying inserts and packing items are in use and will continue to be used for seven years.
ISSUE:
Whether the aluminum boxes, plastic isotope boxes, polypropylene beams, various pallets, and packing items described above may be designated as instruments of international traffic pursuant to 19 U.S.C. § 1322(a) and 19 CFR 10.41a.
LAW AND ANALYSIS:
Pursuant to 19 U.S.C. § 1322(a), instruments of international traffic (also referred to herein as “IITs”) shall be excepted from the application of the Customs laws to the extent that such terms and conditions are prescribed in regulations or instructions. Pursuant to 19 CFR 10.41a(a)(1), the Commissioner of Customs and Border Protection (CBP) is authorized to designate as IITs such additional articles not specifically noted in that section. With respect to “additional articles,” such as accessories for IIT containers, 19 CFR 10.41a(a)(3) provides that:
[a]s used in [section 10.41a], ‘instruments of international traffic’ [IITs] include the normal accessories and equipment imported with any such instrument which is a ‘container’ as defined in Article I of the Customs Convention on Containers.
Hence, any “designation” made under section 10.41a(a)(3) (that an article is a normal accessory of an IIT container) would entitle the accessory to the same exemption from customs entry and payment of duty as the IIT container itself only to the extent that the accessory is “imported with” the container. See also CBP Ruling HQ 116684 (August 17, 2006).
To qualify as an IIT within the meaning of 19 U.S.C. § 1322(a) and 19 CFR 10.41a(a)(1), an article must be used as a container or holder. The article also must be substantial, suitable for and capable of repeated use, and used in significant numbers in international traffic. See Harmonized Tariff Schedule of the United States Annotated subheading 9803.00.50 and CBP Ruling HQ 112303 (August 14, 1992).
Pallets are specifically designated as IITs under section 10.41a(a)(1). Therefore, the various pallets in question may be released without entry or payment of duty. In CBP Ruling HQ H011656 (August 21, 2007), we reiterated that plastic pallets are specifically designated as IITs pursuant to 19 CFR 10.41a(a)(1).
Aside from the pallets, we have previously ruled on the IIT status of articles of similar materials and construction as those now under consideration. In CBP Ruling HQ 116573 (December 19, 2005), we held that aluminum carrying cases, used to contain and hold acrylic inserts, are IITs. We find that our analysis in HQ 116573 applies to the subject aluminum boxes as well. Thus, upon review of your request, we find that the aluminum boxes are substantial, suitable for and capable of repeated use, and are used in significant numbers in international traffic. Therefore, we find that the subject aluminum boxes qualify as IITs pursuant to 19 U.S.C. § 1322(a) and 19 CFR 10.41a(a)(1).
The information that you have provided indicates that the various packing items are designed for and will be imported with the aluminum boxes, which are containers as defined in Article 1 of the Customs Convention on Containers and which we have found to be IITs themselves, and will serve as accessories of the aluminum boxes. Therefore, based on such information, we find that the various packing items are IITs as accessories of the aluminum boxes pursuant to 19 U.S.C. § 1322(a) and 19 CFR 10.41a(a)(3).
With regard to the plastic isotope boxes, we have also ruled on articles of similar construction. In CBP Ruling HQ H036108, we held that plastic pallet boxes, designed to last approximately five to seven years, qualified as IITs. We find that our analysis in HQ H036108 applies to the plastic isotope boxes as well. The plastic isotope boxes are substantial, suitable for and capable of repeated use, and are used in significant numbers in international traffic. Therefore, we find that the subject plastic isotope boxes qualify as IITs pursuant to 19 U.S.C. § 1322(a) and 19 CFR 10.41a(a)(1).
With regard to the polypropylene beams, we have also ruled on articles of similar construction. In CBP Ruling HQ 961657 (January 20, 1999), we held that a weaving beam, used to hold strands of yarn, qualified as an IIT. See also CBP Ruling HQ 112274 (December 14, 1992). We find that our analysis in HQ 961657 and HQ 112274 applies to the subject polypropylene beams as well. Consequently, we find that the polypropylene beams are substantial, suitable for and capable of repeated use, and are used in significant numbers in international traffic. Therefore, the subject polypropylene beams qualify as IITs pursuant to 19 U.S.C. § 1322(a) and 19 CFR 10.41a(a)(1).
HOLDING:
The subject aluminum boxes, plastic isotope boxes, polypropylene beams, and various pallets described above are hereby designated as IITs pursuant to 19 U.S.C. § 1322(a) and 19 CFR 10.41a(a)(1). The subject various packing items
described above are as accessories of IITs pursuant to 19 U.S.C. § 1322(a) and 19 CFR 10.41a(a)(3), and are therefore also designated as IITs pursuant to 19 U.S.C. § 1322(a) and 19 CFR 10.41a(a)(1).
Sincerely,
Glen E. Vereb
Chief
Cargo Security, Carriers, and Immigration Branch