BOR-4-07 OT:RR:BSTC:CCI H225100 ALS
Mr. Stephen P. Hill
Customs Trade Compliance
UPS, Inc.
1930 Bishop Lane, Suite 600
Louisville, Kentucky 40218
RE: Instruments of International Traffic (IITs); Temperature-Controlled Cargo Container; Accessories to IITs; Global Positioning System (GPS) Data Unit; 19 U.S.C. §1322(a); 19 CFR 10.41a
Dear Mr. Hill: This is in response to your ruling request in which you seek to have certain temperature-controlled cargo containers designated as instruments of international traffic, and certain built-in GPS tracking devices designated as accessories of instruments of international traffic, pursuant to 19 U.S.C. §1322(a) and 19 CFR 10.41a. FACTS:
The cargo container in question is the PharmaPort 360 Container that is manufactured by Cool Containers, LLC. According to the marketing information you provided with your request, the PharmaPort 360 is a square box container with a hinged door on one its sides. The exterior dimensions are 80” long by 52.5” wide by 58.5” height, with the interior dimensions being slightly smaller. It weighs 1,200 pounds and is designed to contain 1,102 pounds of payload. The container section is set at a fixed temperature of five degrees Celsius with a temperature tolerance from 60 degrees Celsius to -40 degrees Celsius. It accommodates standard 40” by 48” pallets and includes a secure, customs-tagable locking device. It operates on rechargeable internal power and is capable of maintaining cool temperatures for 72 hours. You state that there will be approximately 100 units used in international traffic on an annual basis (approximately 7,800 total annual shipments), with an approximate lifespan of at least 30 years for each unit. You also state that the GPS tracking devices are permanently built into the structure of the containers.
ISSUE: Whether certain temperature-controlled cargo containers qualify as instruments of international traffic and GPS data units installed inside such containers qualify as accessories thereto under 19 U.S.C. §1322(a) and 19 CFR 10.41a. 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 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 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 section 1322(a) and 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 Harmonized Tariff Schedule of the Unites States Annotated (HTSUSA) subheading 9803.00.50, and former Tariff Schedule of the United States (TSUS) Headnote 6(b)(ii). See also CBP Rulings HQ 104766; HQ 108084; HQ 108658; HQ 109665; and HQ 109702. 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. See also Holly Stores, Inc. v. United States, 697 F.2d 1387 (Fed. Cir. 1982). We note that CBP has previously ruled on the IIT status of articles of similar size, construction, and usage. In CBP Ruling HQ 116047 (December 1, 2003), CBP held that collapsible steel racks that hold automobile transmissions within ocean containers are IITs. In CBP Ruling HQ 115503 (May 30, 2000), we held that hard plastic boxes used to ship integrated circuit wafers qualified as IITs. In CBP Ruling HQ 112534 (January 25, 1993), it was held that reusable plastic boxes designed to transport automotive strut components qualified as IITs.
In this case, the specialized containers will be reused over a period of approximately 30 years at least. The container is presented as substantial in nature and durable and will be used in significant numbers in international trade. Based on this information and the pictures submitted, we conclude that the temperature-controlled cargo containers meet the requisite criteria to qualify as IITs pursuant to 19 U.S.C. § 1322(a).
With regard to the GPS Data Units, you seek to have these declared accessories to IITs. Pursuant to 19 CFR 10.41a(a)(2), the following is provided:
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 the entry or withdrawal from warehouse files a declaration that the repair component was imported to be used in the repair of a container of foreign production which is an instrument of international traffic, or 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.
Pursuant to 19 CFR 10.41a(a)(3), the following is provided:
As used in this section, instruments of international traffic includes the normal accessories and equipment imported with any such instrument which is a container as defined in Article 1 of the Customs Convention on Containers.
Given that the GPS tracking device is built into the structure of the container itself, it is an integral part of the container. As such, the GPS tracking device is not an accessory of the container. Therefore, while it is not an accessory of an IIT, as an integral part of a container that has met the criteria to qualify as an IIT, it need not be separately evaluated.
HOLDING: The temperature-controlled cargo containers described above qualify as IITs within the meaning of 19 U.S.C. §1322(a) and 19 CFR § 10.41a.
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