BOR-4-07-OT:RR:BSTC:CCI H167475 DAC
James R. Cahill
Cahill Customs Consulting
P.O. Box 821067
South Florida, FL 33082-1067
RE: Instruments of International Traffic; 19 U.S.C. § 1322(a); 19 C.F.R. § 10.41a(a)(1); “Kodiak” temperature control containers.
Dear Mr. Cahill:
This letter is in response to your correspondence of May 6, 2011, in which you request a ruling on behalf of your client, Active CC Boxes (“ACCB”). In your request, you inquire whether certain reusable cases, as described below, qualify for designation as instruments of international traffic (IIT) under 19 U.S.C. § 1322(a) and 19 CFR § 10.41a. Our ruling is set forth below.
FACTS:
The following facts are from your letter dated May 6, 2011, which includes pictures of the subject articles. The articles in question are described as “Kodiak” temperature control containers, and their components are used for shipping various articles for the pharmaceutical, biotech and genetic research industries. The “Kodiak” temperature control containers are produced as both refrigerated containers and “deep frozen” dry ice containers. The subject containers are available in two volume sizes, thirty-six liters and eleven liters. The subject containers are designated by the following model numbers and words: ATA R36 Refrigerated Container; ATA D36 Deep Frozen Container; and the R11T Refrigerated Container. Images of the “Kodiak” temperature control containers are provided below.
The “Kodiak” temperature control containers are capable of being reused over one hundred times, and currently, approximately 45 have been sold and about 55 are rented or leased. Each “Kodiak” temperature control container has a unique serial number on the back and inside. The “Kodiak” temperature control containers are currently planned for shipping products to and from Puerto Rico, Europe, Ireland, Slovakia, South America, Central America, Canada, Mexico, Australia, Israel, Asia, China, and Saudi Arabia.
ISSUE:
Whether the “Kodiak” temperature control containers as described above may be designated as instruments of international traffic (IIT) within the meaning of 19 U.S.C. § 1322(a) and 19 CFR § 10.41a(a)(1). 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 or instructions…” The Customs and Border Protection (CBP) Regulations issued under the authority of § 1322(a) are contained in 19 CFR § 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 CBP Rulings HQ 104766 and HQ 108084. The concept of reuse contemplated above is for commercial shipping or transportation purposes, and not incidental or fugitive uses. See Tariff Classification Study, Sixth Supplemental Report (May 23, 1963) at 99; Holly Stores, Inc. v. United States, 697 F.2d 1387 (Fed. Cir. 1982). CBP has consistently held that “repeated use” means more than twice. See CBP Rulings HQ 105567 and HQ 108658.
You assert that the subject articles are instruments of international traffic. Pursuant to 19 U.S.C. § 1322(a), instruments of international traffic shall be excepted from the application of the Customs laws to the extent that such terms and conditions are prescribed in regulations or instructions. The CBP regulations, promulgated under the authority of 19 U.S.C. § 1322(a), provide in pertinent part:
Lift vans, cargo vans, shipping tanks, skids, pallets, caul boards, and cores for textile fabrics, arriving (whether loaded or empty) in use or to be used in the shipment of merchandise in international traffic are hereby designated as “instruments of international traffic” . . . The Commissioner of Customs[now
CBP] is authorized to designate as instruments of international traffic, . . ., such additional articles or classes of articles as he shall find should be so designated. Such instruments may be released without entry or the payment of duty, subject to the provisions of this section. 19 C.F.R. § 10.41a(a)(1). (emphasis added.)
In prior determinations, CBP has ruled that certain articles of similar nature, use and construction as those presently under consideration qualify as instruments of international traffic pursuant to 19 U.S.C. § 1322(a) and 19 CFR § 10.41a. See H030677 (July 17, 2008); HQ 116573, (Dec. 19, 2005). See also HQ H016491 (Oct. 1, 2007); HQ 114150 (Dec. 12, 1997); HQ 107545 (May 7, 1985); Treas. Dec. 71-159, Cust. B. & Dec. 296 (June 18, 1971); 99 Treas. Dec. 533, No. 56247 (Aug. 26, 1964).
Upon reviewing the present matter, we are of the opinion, based on the information provided by Cahill Customs Consulting on behalf of ACCB, that the requisite criteria for designation of the subject “Kodiak” temperature control containers as instruments of international traffic have been met. The “Kodiak” temperature control containers and associated equipment and accessories are used to transport various articles for the pharmaceutical, biotech and genetic research industries that must be stored at controlled temperatures. ABBC states that there are approximately one hundred such containers already in circulation. The containers are scheduled to be reused approximately one hundred times. We find the subject containers are substantial. Accordingly, the subject “Kodiak” temperature control containers meet the requisite criteria to qualify as IIT pursuant to 19 U.S.C. § 1322(a) and 19 CFR § 10.41a.
HOLDING:
The subject “Kodiak” temperature control containers, specifically model numbers ATA R36, ATA D36, and R11T, are hereby designated as IIT within the meaning of 19 U.S.C. § 1322(a) and 19 CFR § 10.41a(a)(1), and may be released without entry or the payment of duty pursuant to the provisions of 19 CFR § 10.41a(a)(1).
Sincerely,
George Frederick McCray
Supervisory Attorney-Advisor/Chief
Cargo Security, Carriers and Immigration Branch
Office of International Trade, Regulations & Rulings
U.S. Customs and Border Protection